[Federal Register Volume 60, Number 123 (Tuesday, June 27, 1995)]
[Rules and Regulations]
[Pages 33144-33145]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15252]



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DEPARTMENT OF DEFENSE

48 CFR Part 246


Defense Federal Acquisition Regulation Supplement; Contract 
Quality Requirements

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comment.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal [[Page 33145]] Acquisition Regulation 
Supplement (DFARS) to encourage increased use of commercial quality 
standards in DoD contracts.

DATES: Effective date: June 13, 1995.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before August 28, 1995, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Mr. Richard G. Layser, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-
D007 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Mr. Rick Layser, (703) 602-0131.

SUPPLEMENTARY INFORMATION: 

A. Background

    Current DoD initiatives to merge the Defense and private sector 
industrial base require increased use of commercial standards and 
recognition of contractor quality systems. This interim rule amends 
DFARS Part 246 to encourage increased use of commercial quality 
standards by removing existing requirements to use military quality 
standards in DoD contracts. The rule revises the definition of 
``quality program''; replaces direct references to MIL-I-45208 and MIL-
Q-9858 with references to higher-level quality requirements; and 
deletes Table 46-1, Contract Quality Requirements Guide.

B. Regulatory Flexibility Act

    This interim rule 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 
encourages increased use of commercial quality standards. The rule will 
enable contractors to use a single quality system in their facilities, 
rather than maintaining duplicative commercial and military quality 
systems. This is expected to result in lower costs, as well as improved 
process capability, process controls, and product quality. 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 
DFARS subparts will be considered in accordance with Section 610 of the 
Act. Such comments must be submitted separately and cite DFARS Case 95-
D007 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this interim 
rule does not impose any new information collection requirements which 
require the approval of OMB under 44 U.S.C. 3501, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that compelling reasons exist to publish this interim rule 
prior to affording the public an opportunity to comment. This action is 
necessary to permit the Government and industry to realize, as soon as 
possible, the significant cost savings anticipated from allowing 
contractors to maintain a single quality system in their facilities. 
Comments received in response to the publication of this interim rule 
will be considered in formulating the final rule.

List of Subjects in 48 CFR Part 246

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 246 is amended as follows:
    1. The authority citation for 48 CFR Part 246 is revised to read as 
follows:

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

PART 246--QUALITY ASSURANCE

    2. Section 246.101 is amended by revising the definition of 
``Quality program'' to read as follows:


246.101  Definitions.

* * * * *
    Quality program is a program which is developed, planned, and 
managed to carry out cost-effectively all efforts to effect the quality 
of materials and services from concept exploration and definition 
through demonstration and validation, engineering and manufacturing 
development, production and deployment, and operations and support.
    3. Section 246.102 is amended by adding a second sentence in 
paragraph (4) to read as follows:


246.102  Policy.

* * * * *
    (4) * * * Contractor quality programs may be modeled on military, 
commercial, national, or international quality standards.
    4. Section 246.202-3 is revised to read as follows:


246.202-3  Higher-level contract quality requirements.

    (i) Higher-level contract quality requirements are used in addition 
to a standard inspection requirement.
    (ii) Higher-level contract quality requirements, including 
nongovernment quality system standards adopted to meet DoD needs, are 
listed in the DoD Index of Specifications and Standards.
    5. Section 246.204 is revised to read as follows:


246.204  Application of criteria.

    When purchasing a commercial item, the technical, quality 
assurance, and contracting activities must work together to tailor 
contract quality requirements to--
    (1) Eliminate or minimize special Government testing, quality 
control, and inspection requirements. Consider--
    (i) The item's application;
    (ii) The cost objectives of the acquisition; and
    (iii) The item's reliability as established in the commercial 
market;
    (2) Maximize use of the certificate of conformance consistent with 
FAR 46.504; and
    (3) Provide for examination and acceptance at the most economical 
point (source or destination).
    6. Section 246.704 is amended by revising paragraph (4) to read as 
follows:


246.704  Authority for use of warranties.

* * * * *
    (4) Supplies and services in fixed-price type contracts containing 
quality assurance provisions that reference higher-level contract 
quality requirements (see 246.202-3); or
* * * * *
[FR Doc. 95-15252 Filed 6-26-95; 8:45 am]
BILLING CODE 5000-04-M