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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: February 22, 2005

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Resolving Tax Problems

SOURCE: Federal Register, February 22, 2005, Vol. 70, No. 34, page 8538

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is removing the text in DFARS 229.101, Resolving Tax Problems, pertaining to resolution of tax problems under DOD contracts, and relocating it to the DFARS companion document, the "Procedures, Guidance, and Information" (PGI).

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 Federal Acquisition Regulation (FAR) authorities, deviations from 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).

For more on the DFARS transformation, see the February 11, 2003, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS) Transformation"). 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 August 10, 2004, FEDERAL CONTRACTS DISPATCH Defense Federal Acquisition Regulation Supplement (DFARS); Resolving Tax Problems.

EFFECTIVE DATE: February 22, 2005.

SUPPLEMENTARY INFORMATION: As part of the DFARS transformation, DOD published a proposed rule on August 10, 2004, to remove the text of DFARS 229.101(c), which addresses the resolution of issues regarding the applicability of taxes under DOD contracts, and DFARS 229.101(d), which addresses tax relief agreements between the United States and European governments; relocate the removed text to PGI 229.101; and replace the removed text with cross-references to PGI 229.101(c) and (d), respectively. DOD received no comments on the proposed rule, so it has adopted the proposed rule as final without change.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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