[Federal Register Volume 59, Number 246 (Friday, December 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31456]


[[Page Unknown]]

[Federal Register: December 23, 1994]


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DEPARTMENT OF DEFENSE

48 CFR Parts 210, 215, and 252

 

Defense Federal Acquisition Regulation Supplement; Specifications 
and Standards

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to reflect 
DoD's preference for the use of performance specifications and non-
Government standards.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 23, 1995, to be considered 
in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Michele Peterson, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 94-
D003 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Michele Peterson, (703) 602-0131.

SUPPLEMENTARY INFORMATION

A. Background

    This proposed rule amends DFARS Parts 210, 215, and 252 to reflect 
DoD's commitment to (1) minimizing the use of military and federal 
specifications and standards; and (2) maximizing the use of performance 
specifications and non-Government standards. The rule contains a new 
solicitation provision and contract clause encouraging offerors and 
contractors to propose alternatives to specifications and standards 
cited in DoD solicitations and contracts valued at $100,000 or more.

B. Regulatory Flexibility Act

    The proposed changes to DFARS Parts 210, 215, and 252 may 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 rule minimizes the use of military and federal 
specifications and standards in DoD acquisitions. The rule is expected 
to benefit entities involved in the manufacture and distribution of 
commercial products. However, the rule may reduce the business base of 
entities who specialize in manufacturing products in accordance with 
military and federal specifications and standards. An Initial 
Regulatory Flexibility Analysis (IRFA) has been prepared and may be 
obtained from the address stated herein. A copy of the IRFA has been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration. Comments from small entities concerning the affected 
subparts will be considered in accordance with Section 610 of the Act. 
Such comments must be submitted separately and cite DFARS Case 94-D003 
in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies. A request for approval of the 
burden has been submitted to the Office of Management and Budget in 
accordance with 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 210, 215, and 252

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, it is proposed that 48 CFR Parts 210, 215, and 252 be 
amended as follows:
    1. The authority citation for 48 CFR Parts 210, 215, and 252 
continues to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 210--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE 
DESCRIPTIONS

    2. Section 210.002-72 is added to read as follows:


210.002-72  Use of specifications and standards in DoD acquisitions.

    (a) Departments and agencies shall use performance specifications 
in all acquisitions including new systems, major modifications, 
upgrades to current systems, and nondevelopmental and commercial items.
    (b) If it is not cost-effective, does not meet user needs, or is 
not practicable to use a performance specification, departments and 
agencies shall use non-Government standards.
    (c) A military specification or standard may be used only if--
    (1) It applies to reprocurement of a system in Acquisition Category 
I, II, III, or IV (see DoDI 5000.2) without major modification or 
upgrade of an item already in the inventory; or
    (2) For a program in Acquisition Category I, II, III, or IV, a 
waiver is granted prior to solicitation, in accordance with department 
or agency procedures (a waiver is not required for use of a 
specification or standard prescribed by the FAR or DFARS); and either
    (3) Use of a performance specification or non-Government standard 
would not meet user needs, be cost-effective, or be practicable; or
    (4) No acceptable non-Government standard exists.
    (d) Departments and agencies shall encourage offerors and 
contractors to propose alternatives to specifications and standards 
cited in solicitations and contracts.
    (e) Contracting officers will, when appropriate--
    (1) Participate with Government technical requirements personnel in 
obtaining contractor feedback on opportunities to eliminate military 
and federal specifications and standards, with the objective of 
maximizing use of performance specifications and non-Government 
standards in solicitations and contracts;
    (2) Structure solicitations to facilitate evaluation and 
consideration of proposed alternatives to specifications and standards 
cited in solicitations and contracts;
    (3) Develop and include contract incentives to motivate and 
recognize contractor initiative in proposing viable alternatives to 
specifications and standards cited in solicitations and contracts. This 
may take the form of additional profit consideration (see 215.971-
2(f)(1)(ii)), award fee, and treatment of proposed alternatives as 
value engineering change proposals; and
    (4) Consider using the value engineering no-cost settlement method 
at FAR 48.104-3.
    3. Section 210.011-70 is amended by adding paragraph (d) and (e) to 
read as follows:


210.011-70  Solicitation provisions and contract clauses.

* * * * *
    (d)(1) Use the provision at 252.210-7005, Alternatives to 
Specifications and Standards, in all solicitations--
    (i) With an expected contract value of $100,000 or more; and
    (ii) Issued on or after November 26, 1994.
    (2) Use the provision with its Alternate I when sealed bid 
procedures are used.
    (e) Use the clause at 252.210-7006, Alternatives and Updates to 
Specifications and Standards, in all--
    (1) New contracts--
    (i) Valued at $100,000 or more; and
    (ii) Awarded on or after November 26, 1994; and
    (2) Existing contracts--
    (i) Valued at $500,000 or more; and
    (ii) Having a substantial contract effort remaining to be performed 
beyond November 26, 1994.

PART 215--CONTRACTING BY NEGOTIATION

    4. In Section 215.971-2 paragraphs (f) introductory text and (f)(1) 
introductory text are republished and paragraph (f)(1)(ii) is revised 
to read as follows:


215.971-2  Performance risk.

* * * * *
    (f)Evaluation criteria for cost control.
    (1) The contracting officer should evaluate--
* * * * *
    (ii) The contractor's cost reduction initiatives (e.g., competition 
advocacy programs, dual sourcing, spare parts pricing reform, value 
engineering, offering of viable alternatives to specifications and 
standards);
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Sections 252.210-7005 and 252.210-7006 are added to read as 
follows:


252.210-7005  Alternatives to Specifications and Standards.

    As prescribed in 210.011-70(d)(1), use the following provision:

Alternatives to Specifications and Standards (Date)

    (a) The Department of Defense is--
    (1) Committed to minimizing the use of military and federal 
specifications and standards; and
    (2) Seeking to use performance specifications and non-Government 
standards to the maximum extent practicable to satisfy its 
requirements.
    (b) The Offeror--
    (1) Is encouraged to identify and propose alternatives to 
specifications and standards cited in this solicitation;
    (2) May submit a proposal to the Contracting Officer that, as a 
minimum, consists of--
    (i) A copy of each of the proposed alternatives;
    (ii) A comparison of the proposed alternatives to the 
specifications or standards cited in the solicitation; and
    (iii) An analysis supporting the feasibility and cost-
effectiveness of the proposed alternatives.
    (c) The Government will, to the maximum extent practicable, 
evaluate the acceptability of any proposed alternative. If an 
alternative proposal is not considered for the instant acquisition, 
it will be considered for future acquisitions. If the Contracting 
Officer does not accept the Offeror's proposed alternative, the 
Offeror may agree to perform in accordance with the specified 
requirements, or may void the offer, at the Offeror's option.

(End of provision)

Alternate I (Date)

    As prescribed in 210.011-70(d)(2), add the following paragraph 
(d) to the basic provision:
    (d) Submission of proposed alternatives prior to bid opening 
will allow Government assessment of the feasibility of the 
alternatives and, if appropriate, incorporation of the changes into 
a solicitation amendment.


252.210-7006  Alternatives and Updates to Specifications and Standards.

    As prescribed in 210.011-70(e), use the following clause:

Alternatives and Updates to Specifications and Standards (Date)

    (a) The Department of Defense is--
    (1) Committed to minimizing the use of military and federal 
specifications and standards; and
    (2) Seeking to use performance specifications and non-Government 
standards to the maximum extent practicable to satisfy its 
requirements.
    (b) The Contractor--
    (1) Is encouraged to identify and propose alternatives to 
specifications and standards cited in this contract;
    (2) May submit to the Contracting Officer a proposal addressing 
alternatives to contractually mandated military, federal, or 
commercial specifications and standards, consisting of the 
following:
    (i) A copy of each of the proposed alternatives;
    (ii) A comparison of the proposed alternatives to the 
specifications or standards cited in the contract; and
    (iii) An analysis supporting the feasibility and cost-
effectiveness of the proposed alternatives.
    (c) If the Contractor has a contract, or multiple DoD contracts, 
that incorporate outdated or different versions of cited 
specifications or standards, the Contractor may request that all of 
its contracts be updated to the latest version of the applicable 
specifications or standards. Updating must not affect the form, fit, 
or function of any deliverable item, and must be beneficial to the 
Government. The Contractor shall submit requests to the Contracting 
Officer through the cognizant contract administration office. The 
Government will, to the maximum extent practicable, evaluate the 
acceptability of any proposed alternative. If a proposed alternative 
is not considered for the instant acquisition, it will be considered 
for future acquisitions. If the Contracting Officer does not accept 
the proposed alternative, the Contractor agrees to perform the 
contract in accordance with the specifications and standards cited 
in the contract.

(End of Clause)

[FR Doc. 94-31456 Filed 12-22-94; 8:45 am]
BILLING CODE 5000-04-M