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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 4, 2004

SUBJECT: Department of Defense; Commercial Item Clauses for Acquisitions Using the Standard Procurement System (SPS)

SOURCE: Department of Defense Memorandum, dated April 29, 2004

AGENCIES: Department of Defense (DOD)

ACTION: Class Deviation

SYNOPSIS: On April 29, 2004, Director of Defense Procurement and Acquisition Policy Deidre Lee issued a memorandum to the directors of defense agencies, the services' assistant secretaries for acquisition, the director of the Defense Contract Management Agency, and the Defense Logistics Agency's executive director for acquisition, technology, and supply permitting DOD contracting activities to deviate from certain Federal Acquisition Regulation (FAR) and Defense FAR Supplement (DFARS) clauses used in commercial item acquisitions when the SPS is used.

EFFECTIVE DATES: May 1, 2004, through April 20, 2009, or until rescinded.

SUPPLEMENTAL INFORMATION: FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders -- Commercial Items, and DFARS 252.212-7001, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to Defense Acquisitions of Commercial Items, require the contracting officer to "check a box" to identify the clauses that are applicable to the specific acquisition of commercial items. Rather than requiring the contracting officers to "check the applicable clauses," SPS has a clause logic capability that automatically selects the appropriate clauses under FAR 52.212-5 and DFARS 252.212-7001. This deviation gives contracting officers the authority to rely on the SPS clause logic capability when preparing solicitations and contracts, and provides the texts of FAR 52.21-5 and DFARS 252.212-7001 reflecting the deviation.

The deviation states, "Contracting officers must ensure that the attached deviation clauses are incorporated into these solicitations and contracts because these deviation clauses fulfill the statutory requirements on auditing and subcontract clauses applicable to commercial items. The deviation also authorizes adjustments to these deviation clauses required by future changes to the clauses at [FAR] 52.212-5 or [DFARS] 252.212-7001 that are published in the FAR or DFARS."

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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