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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: March 23, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Contracting Authority Revisions

SOURCE: Federal Register, March 23, 2004, Vol. 69, No. 56, page 13478

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: The August 21, 2003, interim rule that restricted the use of multiyear contracts for supplies to only those for complete and usable end items, and restricted the use of advance procurement to only those long-lead items necessary in order to meet a planned delivery schedule for complete major end items, is adopted as final without changes.

EDITOR'S NOTE: For more on the interim rule that is being finalized, see the August 21, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Contracting Authority Revisions."

For more on the acquisition-related provisions of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), see the December 3, 2002, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2003."

EFFECTIVE DATE: March 23, 2004.

FOR FURTHER INFORMATION CONTACT: Teresa Brooks, 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. Cite "DFARS Case 2002-D041" when referring to this final rule.

SUPPLEMENTAL INFORMATION: On August 21, 2003, DOD published an interim rule that amended DFARS 217.173, Multiyear Contracts for Weapon Systems and Other Multiyear Acquisitions Specifically Authorized by Law, to implement Section 820 of the National Defense Authorization Act for Fiscal Year 2003. Section 820 clarified that funds for multiyear contracts may only be used for the procurement of complete and usable end items, for the procurement of long-lead items necessary to meet a planned delivery schedule for complete major end items, or for economic order quantities of long-lead items when authorized by law.

No comments on the interim rule were received, so the interim rule is adopted as final without changes.

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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