Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH
DATE: May 5, 2005
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Contract Financing
SOURCE: Federal Register, May 5, 2005, Vol. 70, No. 86, page 23827
AGENCIES: Department of Defense (DOD)
ACTION: Proposed Rule
SYNOPSIS: This proposed rule would amend DFARS Part 232, Contract Financing, to update text pertaining to contract financing.
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."
DATES: Comments on the proposed rule should be submitted on or before July 5, 2005.
ADDRESSES: Respondents may submit comments directly on the Federal eRulemaking Portal at http://www.regulations.gov; on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; by e-mail to: firstname.lastname@example.org; by fax to 703-602-0350; by mail to Defense Acquisition Regulations Council, Attn: Bill Sain, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by courier/hand to Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402. Cite "DFARS Case 2003-D043" when making comments on this proposed rule.
FOR FURTHER INFORMATION CONTACT: Bill Sain, 703-602-0293.
SUPPLEMENTARY INFORMATION: This proposed rule would amend DFARS Part 232 to update its text and to delete unnecessary or redundant language as follows:
- DFARS 232.007, Contract Financing Payments, would be added. It would consist of paragraph (a) of DFARS 232.906, Contract Financing Payments, which addresses DOD policy on making contract financing payments.
- Paragraph (c) of DFARS 232.070, Responsibilities, which addresses agency contract finance offices, would be removed and relocated to PGI 232.070, Responsibilities. A cross-reference to PGI 232.070 would be substituted for the removed text.
- DFARS 232.071, Contract Finance Committee, would be deleted because it is unnecessary. Also, references to the DOD Contract Finance Committee would be deleted from paragraph (a) of DFARS 232.070, Responsibilities, and paragraph (a) of DFARS 232.617, Contract Clause.
- DFARS 232.108, Financial Consultation, which consists of a cross-reference to DFARS 232.070, Responsibilities, for offices to be consulted regarding financial matters, would be deleted because DFARS 232.070(c) is proposed for relocation to the PGI.
- Paragraph (d) of DFARS 232.206, Solicitation Provisions and Clauses, which addresses the distribution of financing payments on contracts with multiple appropriations accounts for contracts containing foreign military sales (FMS) requirements, would be deleted because similar text was proposed for inclusion in PGI 204.202, Agency Distribution Requirements, by the proposed rule published June 25, 2004 (see the June 25, 2004, FEDERAL CONTRACTS DISPATCH “Defense Federal Acquisition Regulation Supplement (DFARS); Payment and Billing Instructions”).
- DFARS 232.207, Administration and Payment of Commercial Financing Payments, which addresses amounts to be charged to FMS accounts in approvals of financing requests, would be deleted because the material is adequately addressed in the FAR.
- Paragraph (a)(9) of DFARS 232.404, Exclusions, would be amended to increase from $500 to $2,500 the threshold below which the requirements of FAR Subpart 32.4, Advance Payments for Non-Commercial Items, do not apply to high school and college publications for military recruitment efforts.
- DFARS 232.409-1, Recommendation for Approval, and DFARS 232.410, Findings, Determination, and Authorization, which address procedures for advance payments for non-commercial items, would be removed and relocated to PGI 232.409-1, Recommendation for Approval, and PGI 232.410, Findings, Determination, and Authorization, respectively. Cross-references to PGI 232.409-1 and PGI 232.410 would be substituted for the removed text.
- DFARS 232.501-2, Unusual Progress Payments, would be removed and relocated to PGI 232.501-2, Unusual Progress Payments. A cross-reference to PGI 232.501-2 would be substituted for the removed text.
- Paragraph (b) of DFARS 232.501-3, Contract Price, which addresses the limitation of the government's liability when the contract price exceeds the funds obligated under the contract, would be clarified.
- The following sentence in paragraph (b) of DFARS 232.605, Responsibilities and Cooperation Among Government Officials, would be deleted because it is unnecessary: “At installations where integrated accounting is in effect, the finance and accounting officer is a disbursing officer.”
- DFARS 232.606, Debt Determination and Collection, DFARS 232.610, Demand for Payment of Contract Debt, DFARS 232.670, Transfer of Responsibility for Debt Collection, and DFARS 232.671, Bankruptcy Reporting, would be removed and relocated to PGI 232.606, Debt Determination and Collection, PGI 232.610, Demand for Payment of Contract Debt, PGI 232.670, Transfer of Responsibility for Debt Collection, and PGI 232.671, Bankruptcy Reporting, respectively. Cross-references to PGI 232.606, PGI 232.610, PGI 232.670, and PGI 232.671 would be substituted for the removed text.
- DFARS 232.905, Invoicing Payments, would disappear because its text would be relocated elsewhere in DFARS Subpart 232.9, Prompt Payment, or deleted:
- DFARS 232.905(1) would be redesignated as paragraph (d) of DFARS 232.904, Determining Payment Due Date.
- The text of DFARS 232.905(2), which addresses payments to small disadvantaged businesses, would be moved to paragraph (a)(ii) of DFARS 232.906, Making Payments (currently titled “Contract Financing”), and rewritten.
- DFARS 232.905(f)(6) which addresses electronic notification to the payment office of government acceptance and approval, would be deleted because electronic submission and processing of payment requests is addressed in DFARS Subpart 232.70, Electronic Submission and Processing of Payment Requests.
- DFARS 232.906(a)(i) would be added to require contracting officers to insert the standard due date for interim payments on cost-reimbursement contracts for services.
- DFARS 232.1007, Administration and Payment of Performance-Based Payments, which addresses the amount to be charged to FMS accounts, would be deleted because it is unnecessary.
- DFARS 232.1108, Payment by Governmentwide Commercial Purchase Card, would be deleted because the matter is addressed in DFARS 213.270, Use of the Governmentwide Commercial Purchase Card.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.
Copyright 2005 by Panoptic Enterprises. All Rights Reserved.
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