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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 22, 2005

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Reporting Contract Performance Outside the United States

SOURCE: Federal Register, April 22, 2005, Vol. 70, No. 77, page 20838

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS Subpart 225.72, Reporting Contract Performance Outside the United States, to clarify requirements for the reporting of contract performance outside the United States.

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), which is available at http://www.acq.osd.mil/dpap/dars/pgi/index.htm.

Additional information on the DFARS Transformation initiative is available at http://www.acq.osd.mil/dpap/dars/dfars/transformation/index.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 June 8, 2004, FEDERAL CONTRACTS DISPATCHDefense Federal Acquisition Regulation Supplement (DFARS); Reporting Contract Performance Outside the United States.”

EFFECTIVE DATE: April 22, 2005.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0328; fax: 703-602-0350.

SUPPLEMENTARY INFORMATION: DFARS Subpart 225.72, Reporting Contract Performance Outside the United States, implements two distinct reporting requirements: (1) the requirements of 10 U.S.C. 2410g for offerors and contractors to notify DOD of any intention to perform a DOD contract outside the United States and Canada when the contract exceeds $10,000,000 and could be performed inside the United States or Canada; and (2) DOD policy for contractor reporting of performance outside the United States of contracts exceeding $500,000.

As part of the DFARS transformation, DOD is amending DFARS Subpart 225.72 and related clauses in DFARS Part 252 as follows:

On June 8, 2004, DOD published a proposed rule to make most of these changes. One comment was received and, as a result, the titles of DFARS 252.225-7003 and DFARS 252.225-7004 were amended to add “and Canada”, and the title of DFARS 252.225-7004 was further amended to distinguish between requirements for reporting intended and actual contract performance. Likewise, the proposed title of DFARS 252.225-7006 was “Quarterly Reporting of Contract Performance Outside the United States,” but that title was revised as well to distinguish between requirements for reporting intended and actual contract performance.

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

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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