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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 10, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Small Disadvantaged Businesses and Leader Company Contracting

SOURCE: Federal Register, November 22, 2004, Vol. 69, No. 224, page 67855

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is removing DFARS Subpart 217.4, Leader Company Contracting, and revising DFARS 219.705-4, Reviewing the Subcontracting Plan, to lower the approval level for small business subcontracting plans that contain a small disadvantaged business goal of less than 5%.

EDITOR'S NOTE: On February 11, 2003, DOD announced plans for conducting a "major transformation" of the DFARS (see the February 11, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS) Transformation"). The objective of the DFARS transformation is to improve the efficiency and effectiveness of the acquisition process while allowing the acquisition workforce the flexibility to innovate. The transformed DFARS will contain only requirements of law, DOD-wide policies, delegations of FAR authorities, deviations from Federal Acquisition Regulation (FAR) requirements, and policies and procedures that have a significant effect beyond the internal operating procedures of DOD or a significant cost or administrative impact on contractors or offerors. All mandatory and non-mandatory internal DOD procedures, non-mandatory guidance, and supplemental information will be contained in the DFARS companion document, the Procedures, Guidance, and Information (PGI).

Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dfars/transf.htm.

For more on the PGI, see the November 1, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Procedures, Guidance, and Information."

For more on the proposed rule, see the April 23, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Small Disadvantaged Businesses and Leader Company Contracting."

EFFECTIVE DATE: November 22, 2004.

FOR FURTHER INFORMATION CONTACT: Robin Schulze, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0326; fax: 703-602-0350.

SUPPLEMENTAL INFORMATION: In response to the DFARS Transformation initiative, DOD published a proposed rule on April 23, 2004, that would make the following changes to the DFARS:

No comments were received on the proposed rule, so DOD has adopted the proposed rule as final without change.

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.

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