FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 1, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Deletion of Duplicative Text on Federal Prison Industries (FPI)

SOURCE: Federal Register, November 1, 2004, Vol. 69, No. 210, page 63328

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is deleting from the DFARS text on the purchase of products from the FPI that is no longer necessary with the addition of language to Federal Acquisition Regulation (FAR) Subpart 8.6, Acquisition from Federal Prison Industries, Inc.

EFFECTIVE DATE: November 1, 2004.

FOR FURTHER INFORMATION CONTACT: Michele Peterson, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0311; fax: 703-602-0350.

SUPPLEMENTAL INFORMATION: Section 811 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 101-107), contained requirements for conducting market research before purchasing an FPI product, and using competitive procedures if an FPI product is found to be noncomparable to products available from the private sector (see the January 2, 2002, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2002"). DOD implemented Section 811 with the publication of an interim rule that modified DFARS Subpart 208.6, Acquisition from Federal Prison Industries, Inc., and requested comments (see the April 26, 2002, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Competition Requirements for Purchases from Federal Prison Industries (FPI)").

Section 819 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) clarified Section 811 by limiting an inmate worker's access to information, and prohibiting mandatory use of FPI as a subcontractor. DOD proposed implementing Section 819 by further modifying DFARS Subpart 208.6, and requested comments (see the May 15, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Competition Requirements for Purchases from Federal Prison Industries (FPI)").

DOD finalized the interim rule and the proposed rule with the publication of a final rule (see the November 14, 2003, FEDERAL CONTRACTS DISPATCH"Defense Federal Acquisition Regulation Supplement (DFARS); Competition Requirements for Purchases from the Federal Prison Industries (FPI)").

Section 637 of the Consolidated Appropriations Act for Fiscal Year 2004 (Public Law 108-199), required that the restrictions and requirements regarding purchases from FPI that were imposed on DOD be made to apply throughout the government. Section 637 was implemented with the publication of Federal Acquisition Circular (FAC) 2001-21 (see the March 26, 2004, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 2001-21, Purchases from Federal Prison Industries, Inc.").

Since the FAR policy makes the DFARS policy on FPI purchases unnecessary, this final rule removes the DFARS policy by deleting DFARS Subpart 208.6 and the following:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.