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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 12, 2005

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Personal Services Contracts

SOURCE: Federal Register, April 12, 2005, Vol. 70, No. 69, page 19003

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is finalizing, without changes, the interim rule that amended DFARS 237.104, Personal Services Contracts, to implement Sections 721 and 841 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136). Section 721 provides authority for DOD to enter into personal services contracts for health care at locations outside of DOD medical treatment facilities, and Section 841 adds authority for DOD to enter into personal services contracts to be performed outside the United States or that directly support the mission of a DOD intelligence or counter-intelligence organization or the special operations command.

EDITOR'S NOTE: For more on the interim rule being finalized, see the September 17, 2004, FEDERAL CONTRACTS DISPATCH Defense Federal Acquisition Regulation Supplement (DFARS); Personal Services Contracts.

For more on other acquisition-related provisions of Public Law 108-136, see the November 25, 2003, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2004."

EFFECTIVE DATE: April 12, 2005.

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: On September 17, 2004, DOD published an interim rule that amended DFARS 237.104 to implement Sections 721 and 841 of Public Law 108-136. Section 721 provides permanent authority for DOD to enter into personal services contracts for health care at locations outside of DoD medical treatment facilities (such as military entrance processing stations). This authority had been in effect but was temporary, and it expired December 31, 2003. Section 841 adds authority for DOD to enter into contracts for personal services that either: (1) are to be provided by individuals outside the United States to support DOD activities and programs outside the United States; (2) directly support the mission of a DOD intelligence or counter-intelligence organization; or (3) directly support the mission of the DoD special operations command. This authority applies if the services to be procured are urgent or unique and would not be practical to obtain by other means.

The interim rule implemented Section 721 by adding paragraph (b)(ii)(A)(2) to DFARS 237.104, which stated that "health care services at locations outside of medical treatment facilities (such as the provision of medical screening examinations at military entrance processing stations)" may be acquired through a personal services contract. In addition, paragraph (b)(ii)(C) was amended to require the "chief of the medical facility who is responsible for the area in which the services will be performed" to approve the use of such contracts.

The interim rule implemented Section 841 by adding paragraph (b)(iii), which stated that an agency may enter into a personal services contract if head of the contracting activity provides written approval and the services "are to be provided by individuals outside the United States, regardless of their nationality [a later subparagraph states that such services must be 'necessary and appropriate for supporting DOD activities and programs outside the United States']; directly support the mission of a defense intelligence component or counter-intelligence organization of DOD; or directly support the mission of the special operations command of DOD."

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

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

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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