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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: May 13, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Procurement Authority for Environmental Services for Military Installations

SOURCE: Federal Register, May 13, 2004, Vol. 69, No. 93, page 26507

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adopting as final, without changes, the interim rule that amended DFARS 217.171, Multiyear Contracts for Services, to implement Section 827 of the National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314), which authorizes DOD to enter into multiyear contracts for environmental remediation services for military installations.

EDITOR'S NOTE: For more on the interim rule, see the July 22, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Multiyear Procurement Authority for Environmental Services for Military Installations."

For more on other acquisition-related provisions of 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: May 13, 2004.

FOR FURTHER INFORMATION CONTACT: Euclides Barrera, Defense Acquisition Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0296; fax: 703-602-0350. Cite "DFARS Case 2003-D004" when referring to this final rule.

SUPPLEMENTAL INFORMATION: 10 U.S.C. 2306c provides authority for DOD to enter into contracts for periods of not more than five years for certain services, and for items of supply related to those services, even though funds would otherwise be available for obligation only within the fiscal year for which the funds are appropriated. This authority is limited to specific circumstances. DFARS 217.171(a) implements 10 U.S.C. 2306c.

Section 827 of the National Defense Authorization Act for Fiscal Year 2003 amended 10 U.S.C. 2306c to add environmental remediation services for military installations to the types of services for which multiyear contracting is authorized.

On July 22, 2003, DOD published an interim rule that amended DFARS 217.171(a) to implement Section 827 by adding to the list of services permitted to be acquired under this authority the following as subparagraph (a)(1)(v): "Environmental remediation services for (A) an active military installation; (B) a military installation being closed or realigned under a base closure law as defined in 10 U.S.C. 2667(h)(2); or (C) a site formerly used by DOD."

In addition, the interim rule amended DFARS 217.103, Definitions, to add the following definition for "military installation": "a base, camp, post, station, yard, center, or other activity under the jurisdiction of the Secretary of a military department or, in the case of an activity in a foreign country, under the operational control of the Secretary of a military department or the Secretary of Defense (10 U.S.C. 2801(c)(2))."

Two respondents submitted comments on the interim rule. After reviewing the comments, DOD has decided to adopt the interim rule 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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