[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6893]


[Federal Register: March 28, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Part 46

[FAR Case 92-27]


Federal Acquisition Regulation; Quality Assurance Nonconformances

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) concerning quality assurance to include 
definitions of the terms ``critical nonconformance,'' ``major 
nonconformance,'' and ``minor nonconformance,'' and make other 
conforming amendments as a result of recommendations made by the 
Department of Defense Inspector General.
    This regulatory action was not subject to Office of Management and 
Budget review pursuant to Executive Order 12866 dated September 30, 
1993.

DATES: Comments should be submitted at the address shown below on or 
before May 27, 1994, to be considered in the formulation of a final 
rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets NW., Room 4037, Washington, DC 20405.
    Please cite FAR case 92-27 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAR case 92-
27.

SUPPLEMENTARY INFORMATION: 

A. Background

    On September 27, 1990, the Department of Defense Inspector General 
issued Audit Report 90-113, Nonconforming Products Procured by the 
Defense Industrial Supply Center, which included recommendations that 
the DOD should use standardized terminology for a nonconformance, and 
that the DOD definition of a nonconformance should be in agreement with 
the FAR. Therefore, it is proposed that FAR Part 46 be amended to 
include uniform definitions for use by all acquiring agencies.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the 
revisions merely revise and standardize definitions of terms. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments from small entities concerning the affected FAR 
subpart will be considered in accordance with section 610 of the Act. 
Such comments must be submitted separately and should cite 5 U.S.C. 
601, et seq. (FAR case 92-27), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 46

    Government procurement.

    Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR part 46 be amended as set 
forth below:
    1. The authority citation for 48 CFR part 46 continues to read as 
follows:

PART 46--QUALITY ASSURANCE

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 46.101 is amended by adding in alphabetical order the 
definitions ``Critical nonconformance'', ``Major nonconformance'', and 
``Minor nonconformance'' to read as follows:


46.101  Definitions.

* * * * *
    Critical nonconformance means a nonconformance that judgement and 
experience indicate is likely to result in hazardous or unsafe 
conditions for individuals using, maintaining, or depending upon the 
supplies or services; or is likely to prevent performance of a vital 
agency mission.
* * * * *
    Major nonconformance means a nonconformance, other than critical, 
that is likely to result in failure, or to materially reduce the 
usability of the supplies or services for their intended purpose.
    Minor nonconformance means a nonconformance that is not likely to 
materially reduce the usability of the supplies or services for their 
intended purpose, or is a departure from established standards having 
little bearing on the effective use or operation of the supplies or 
services.
* * * * *
    3. Section 46.103 is amended at the end of paragraph (c) by 
removing ``and''; in paragraph (d) by removing the period and inserting 
``; and''; and by adding paragraph (e) to read as follows:


46.103  Contracting office responsibilities.

* * * * *
    (e) Ensuring that nonconformances are identified and considered 
when determining the acceptability of supplies or services which do not 
meet contract requirements.
    4. Section 46.407 is amended by revising the first sentence in 
paragraph (c)(1) introductory text; revising paragraph (d); and 
revising the first sentence in paragraph (f) to read as follows:


46.407  Nonconforming supplies or services.

* * * * *
    (c)(1) In situations not covered by paragraph (b) of this section, 
the contracting officer ordinarily shall reject supplies or services 
when the nonconformance is critical or major. * * *
* * * * *
    (d) If the nonconformance is minor, the cognizant contract 
administration office may make the determination to accept or reject, 
except where this authority is withheld by the contracting office of 
the contracting activity. To assist in making this determination, the 
contract administration office may establish a joint contractor/
contract administrative office review group. Acceptance of supplies and 
services with critical or major nonconformances is outside the scope of 
the review group.
* * * * *
    (f) Each contract under which supplies or services with critical or 
major nonconformances are accepted, as authorized in paragraph (c) of 
this section, shall be modified to provide for an equitable price 
reduction or other consideration. * * *
* * * * *
[FR Doc. 94-6893 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M