[Federal Register Volume 61, Number 188 (Thursday, September 26, 1996)]
[Rules and Regulations]
[Pages 50446-50458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24064]



[[Page 50446]]

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DEPARTMENT OF DEFENSE

48 CFR Parts 201, 202, 204, 206, 207, 209, 212, 214, 215, 219, 223, 
225, 227, 228, 231, 232, 235, 239, 242, 244, 249, 250, 252, 253, 
and Appendices B, C, G, and I

[Defense Acquisition Circular (DAC) 91-11]


Defense Federal Acquisition Regulation Supplement; Miscellaneous 
Amendments

AGENCY: Department of Defense (DoD).

ACTION: Final rules.

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SUMMARY: Defense Acquisition Circular (DAC) 91-11 amends the Defense 
Federal Acquisition Regulation Supplement (DFARS) to revise, finalize, 
or add language on competition requirements, acquisition planning, 
contractor qualifications, contracting by negotiation, ozone-depleting 
substances, drug-free work force, foreign acquisition, bonds and 
insurance, contract cost principles and procedures, contract financing, 
research and development contracting, acquisition of information 
resources, contract administration, and subcontracting policies and 
procedures.

DATES: Effective date: September 26, 1996.

FOR FURTHER INFORMATION CONTACT:
Ms. Susan Buckmaster, PDUSD(A&T)DP(DAR),IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131.

SUPPLEMENTARY INFORMATION: 

A. Background

    This Defense Acquisition Circular (DAC) 91-11 includes 30 rules and 
miscellaneous editorial amendments. Ten of the rules (Items, III, VI, 
VII, VIII, XI, XII, XX, XXII, XXIII, and XXVI) were published 
previously in the Federal Register and thus are not included as part of 
this notice of amendments to the Code of Federal Regulations. These ten 
rules are being published in the DAC incorporate the previously 
published amendments into the loose-leaf edition of the DFARS.

B. Regulatory Flexibility Act

DAC 91-11, Items I, II, X, XIV, XVIII, XIX, XXIV, XXV, and XXVII

    These final rules do not constitute significant revisions within 
the meaning of Federal Acquisition Regulation 1.501 and Public Law 98-
577, and publication of public comment is not required. However, 
comments from small entities concerning the affected DFARS subparts 
will be considered in accordance with Section 610 of the Regulatory 
Flexibility Act (5 U.S.C. 610). Please cite the applicable DFARS case 
number in correspondence.

DAC 91-11, Items V, XV, XVII, XXI, XXVIII, XXIX, and XXX

    DoD certifies that these rules will not 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:
    Item V, Leasing of Commercial Vehicles and Equipment--Leasing of 
commercial vehicles and equipment is already permitted by the Federal 
Acquisition Regulation (FAR). This rule merely amends the Defense FAR 
Supplement (DFARS) to reflect DoD statutory authority and internal 
Government considerations pertaining to such leasing.
    Item XV, Naval Vessel Components--The foreign source restrictions 
contained in this rule do not differ significantly from existing 
foreign source restrictions.
    Item XVII, Pricing for Sales of Defense Articles--The DFARS already 
requires pricing of foreign military sales contracts using the same 
general principles that are used in pricing other defense contracts. 
The only significant change in this rule relates to the allowability of 
independent research and development and bid and proposal costs in 
accordance with the cost principle at FAR 31.205-18, under contracts 
for foreign military sales wholly paid for from nonrepayable funds. 
Most contracts awarded to small entities are awarded using simplified 
acquisition procedures, or on a competitive fixed-price basis, and do 
not require application of the FAR or DFARS cost principles.
    Item XXI, Allowability of Costs--The cost principle in this rule 
applies only to costs for bonuses or other payments in excess of the 
normal salary paid by a contractor to an employee, when such payments 
are part of restructuring costs associated with a business combination. 
Most contracts awarded to small entities are awarded using simplified 
acquisition procedures, or on a competitive fixed-price basis, and do 
not require application of the FAR or DFARS cost principles.
    Item XXVIII, Material Management and Accounting System Changes--
Material management and accounting system (MMAS) requirements only 
apply to contracts exceeding the simplified acquisition threshold that 
are not for the acquisition of commercial items and are not awarded 
under the set-aside or Section 8(a) procedures of FAR Part 19. 
Additionally, MMAS disclosure, demonstration, and maintenance 
requirements only apply to large business concerns.
    Item XXIX, Contractor Purchasing System Reviews--Contractor 
purchasing system reviews generally are conducted only for contractors 
that are expected to have annual sales to the Government exceeding $25 
million.
    Item XXX, Ground and Flight Risk--The amendments in this rule only 
apply to contracts for aircraft development, production, modification, 
maintenance, repair, or overhaul, or otherwise involving the furnishing 
of aircraft to the contractor by the Government. Historically, most 
contractors engaged in this type of contract have been large business 
concerns.

DAC 91-11, Items IV, IX, XIII, and XVI

    A final regulatory flexibility analysis has been performed for each 
of these rules. A copy of the analysis is available by writing the 
Defense Acquisition Regulations Council, PDUSD(A&T)DP(DAR), 3062 
Defense Pentagon, Washington, DC 20301-3062. Please cite the applicable 
DFARS case number in correspondence. The analyses are summarized as 
follows:
    Item IV, Precontractual Contract Administration (DFARS Case 95-
D015)--This final rule amends the DFARS to provide the contract 
administration component access to acquisition planning information, 
set forth the fact that costs or savings related to contract 
administration may be considered when evaluating an offeror's past 
performance, and establish as a contract administration function the 
providing of support to program offices and buying activities in 
precontractual efforts leading to a solicitation or award. No public 
comments were received in response to the initial regulatory 
flexibility analysis prepared for the proposed rule published in the 
Federal Register at 60 FR 53573 on October 16, 1995. The rule applies 
to all entities, large and small, that compete for DoD contracts 
awarded using past performance as an evaluation factor. The rule 
imposes no new reporting, recordkeeping, or other compliance 
requirements. The alternative of not making the revisions to DFARS 
Parts 207 and 242 was considered, since the Federal Acquisition 
Regulation (FAR) already permits involvement of contract administration 
components in precontractual efforts. However, it was determined that 
these revisions are needed to ensure that the contract administration 
component has access to early acquisition planning information and is 
involved in precontractual planning in order to allow for efficient

[[Page 50447]]

and effective contract administration support throughout the 
acquisition. The alternative of not making the revisions to DFARS Parts 
209 and 215 was also considered, since the FAR already permits the use 
of contract and audit data in evaluating performance risk or past 
performance. It was determined that specifically citing costs and 
savings related to contract administration and audit as a factor in 
evaluating performance risk or past performance will encourage use of 
this factor and will be beneficial in refining the process for 
determining the best value to the Government.
    Item IX, Drug Free Work Force (DFARS Case 88-083)--This rule is 
necessary to implement DoD policy to ensure that its contractors 
maintain programs for achieving a drug-free work force. No public 
comments were received in response to the initial regulatory 
flexibility analysis prepared for the interim rule published in the 
Federal Register at 57 FR32736 on July 23, 1992. The rule applies to 
large and small entities with DoD contracts that involve access to 
classified information, or that include the prescribed clause for 
reasons of national security or for the purpose of protecting the 
health or safety of those using or affected by the product of, or 
performance of, the contract. The rule requires that certain DoD 
contractors maintain a drug-free work force program, including 
recordkeeping necessary to ensure that any instances of illegal drug 
use be dealt with in accordance with the contractor's program. The 
recordkeeping required by DFARS clause 252.223-7004 has been approved 
by the Office of Management and Budget under OMB Control Number 0704-
0336. Consideration was given to elimination of the rule in light of 
Federal Acquisition Regulation (FAR) Subpart 23.5, which implements the 
Drug-Free Work Force Act of 1988. However, the FAR addresses illegal 
drugs only in the workplace. The DoD policy is that any drug use by a 
contractor employee working in a sensitive position under a DoD 
contract may adversely affect national security, health, or safety of 
those using or affected by the product of, or performance of, the 
contract.
    Item XIII, Ball and Roller Bearings (DFARS Case 95-D308)--This 
final rule implements Section 8099 of the Fiscal Year 1996 Defense 
Appropriations Act (Pub. L. 104-61) and 10 U.S.C. 2534 as amended by 
Sections 806(b) and (d) of the Fiscal Year 1996 Defense Authorization 
Act (Pub. L. 104-106), which extend the statutory restriction on the 
acquisition of nondomestic ball and roller bearings through the year 
2000, but reduce the exceptions to the restriction and limit waiver 
authority when Fiscal Year 1996 funds are used. There were no issues 
raised by public comments in response to the initial regulatory 
flexibility analysis prepared for the interim rule published in the 
Federal Register at 61 FR 10899 on March 18, 1996. The final rule 
incorporates the restriction on miniature and instrument ball bearings 
that is presently included in DFARS Subpart 225.71, and specifically 
identifies the commercial item exception to the requirements of Section 
8099 of the Fiscal Year 1996 Defense Appropriations Act. The rule 
applies to all small and large entities that are interested in 
furnishing to the Government ball or roller bearings or items 
incorporating ball or roller bearings. The rule lessens foreign 
competition for domestic sources, particularly in acquisitions that do 
not exceed the simplified acquisition threshold, and is expected to 
have a positive impact on both small and large entities. The rule 
imposes no new recordkeeping or reporting requirements. The existing 
recordkeeping and reporting required by DFARS clause 252.225-7025 has 
been approved by the Office of Management and Budget under OMB Control 
Number 0704-0229.
    Item XVI, Foreign Product Restrictions (DFARS Case 95-D033)--This 
final rule eliminates all foreign product restrictions in DFARS Subpart 
225.71, with the exception of ship propulsion shafts (excluding service 
and landing craft shafts), periscope tubes, and ring forgings for bull 
gears (greater than 120 inches in diameter). The restriction on 
miniature and instrument ball bearings is being incorporated in DFARS 
225.7019 with the other statutory restrictions on ball and roller 
bearings, because 10 U.S.C. 2534(a)(5) provides for restrictions on 
ball and roller bearings in accordance with DFARS Subpart 225.71, as in 
effect on October 23, 1992. The elimination of the other restrictions 
in DFARS Subpart 225.71 is based on an assessment by DoD that these 
restrictions are no longer needed. The objective of this rule is to 
maximize full and open competition to the extent consistent with 
maintenance of a viable domestic industrial base. No comments were 
received in response to the initial regulatory flexibility analysis 
prepared for the proposed rule published in the Federal Register at 60 
FR 67115 on December 28, 1995. However, a number of respondents 
expressed concern that the rule's elimination of foreign product 
restrictions would weaken the domestic forging industry and the 
national security. Therefore, retention of the foreign product 
restrictions on forgings was considered, but rejected for the following 
reasons: The restrictions were originally imposed to preserve a 
domestic mobilization base for specific classes of items, including 
various ferrous forgings, needed to meet Cold War era operational 
scenarios. DoD no longer has such a requirement for the classes of 
forgings under consideration. Therefore, the mobilization base for 
these forgings is no longer required. Additionally, both productivity 
and exports have increased for the domestic forging industry.
    The rule will affect the preference for domestic manufacturers of 
the items no longer restricted. It is estimated that approximately 90 
contractors, some of which are small businesses, supply such items to 
DoD either as prime contractors or subcontractors under defense 
contracts. The information collection required by DFARS clause 252.225-
7025 has been approved by the Office of Management and Budget under OMB 
Control Number 0704-0229. The rule will reduce this information 
collection requirement, as recordkeeping and reporting will no longer 
be required for those items which are no longer restricted to domestic 
sources. There are no practical alternatives which would affect the 
impact on small entities and still accomplish the objectives of the 
rule.

C. Paperwork Reduction Act

DAC 91-11, Items I, II, IV, V, X, XIV, XV, XVII, XVIII, XIX, XXI, XXIV, 
XXV, XXVII, XXIX, and XXX

    The Paperwork Reduction Act does not apply because these rules do 
not contain information collection requirements which require the 
approval of the Office of Management and Budget (OMB) under 44 U.S.C. 
3501 et seq.

DAC 91-11, Items IX, XIII, XVI, and XXVIII

    The Paperwork Reduction Act applies. OMB has approved the 
information collection requirements as follows:

------------------------------------------------------------------------
                                                             OMB control
                            Item                                number  
------------------------------------------------------------------------
IX.........................................................    0704-0336
XIII.......................................................    0704-0229
XVI........................................................    0704-0229
XXVIII.....................................................    0704-0250
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Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Defense Acquisition Circular (DAC) 91-11 amends the Defense Federal 
Acquisition Regulation Supplement (DFARS) 1991 edition. The amendments 
are summarized as follows:

Item I--Revisions to FAR/DFARS (DFARS Case 96-D009)

    This final rule amends DFARS 201.201-1 to specify that requests for 
changes to the FAR or DFARS must identify any potential impact of the 
change on automated systems (e.g., automated financial and procurement 
systems).

Item II--Overseas Contracts With NATO/Allied Governments or the United 
Nations (DFARS Case 96-D004)

    This final rule amends DFARS 201.402 and adds a new section at 
225.970 to authorize contracting officers outside the United States to 
deviate from prescribed non-statutory FAR and DFARS clauses when 
contracting for support services, supplies, or construction, with the 
governments of North Atlantic Treaty Organization (NATO) countries or 
other allies (as described in 10 U.S.C. 2341(2)), or with United 
Nations or NATO organizations. This authority may be exercised only if 
such governments or organizations will not agree to the standard FAR/
DFARS clauses.

Item III--Justification and Approval Thresholds (DFARS Case 96-
D307)

    This final rule was issued by Departmental Letter 96-003, effective 
April 12, 1996 (61 FR 10285, March 13, 1996). The rule amends DFARS 
206.304 to implement Section 4102 of the Fiscal Year 1996 Defense 
Authorization Act (Pub. L. 104-106). Section 4102 amends 10 U.S.C. 
2304(f)(1)(B) and 41 U.S.C. 253(F)(1)(B) to increase the dollar 
thresholds at which approval for use of other than full and open 
competition must be obtained from the competition advocate, the head of 
the procuring activity, or the senior procurement executive.

Item IV--Precontractual Contract Administration (DFARS Case 95-
D015)

    This final rule amends DFARS Subparts 207.1, 209.1, 215.6, and 
242.3 to (1) provide for involvement of the contract administration 
office early in the acquisition process, and (2) specify that costs or 
savings related to contract administration and audit may be considered 
in proposal evaluation when an offeror's past performance or 
performance risk is likely to result in significant costs or savings.

Item V--Leasing of Commercial Vehicles and Equipment (DFARS Case 96-
D302)

    The interim rule issued by Departmental Letter 96-007, on April 18, 
1996, is revised and finalized. The rule amends DFARS 207.470 to 
implement Section 807 of the Fiscal Year 1996 Defense Authorization Act 
(Pub. L. 104-106). Section 807 amends 10 U.S.C. 2401a to permit the use 
of leasing in the acquisition of commercial vehicles and equipment. The 
final rule differs from the interim rule in that it clarifies that the 
requirements of 207.470(b) apply to the leasing of commercial vehicles 
and the equipment that is associated with those vehicles.

Item VI--Institutions of Higher Education (DFARS Case 96-D305)

    This interim rule was issued by Departmental Letter 96-012, 
effective May 21, 1996 (61 FR 25408, May 21, 1996). The rule amends 
DFARS 209.470 and 243.105 to implement Section 541 of the Fiscal Year 
1996 Defense Authorization Act (Pub. L. 104-106). Section 541 provides 
that no funds available to DoD may be provided by grant or contract to 
any institution of higher education that has an anti-ROTC policy.

Item VII--Small Disadvantaged Business Concerns (DFARS Case 95-D039)

    This final rule was issued by Departmental Letter 96-009, effective 
April 29, 1996 (61 FR 18686, April 29, 1996). The rule amends DFARS 
Parts 215, 219, 236, 242, 252, and 253 to (1) expand use of the 
evaluation preference for small disadvantaged businesses (SDBs) to 
include competitive awards based on other than price or price-related 
factors; (2) consider small, small disadvantaged, and women-owned small 
business subcontracting as a factor in the evaluation of past 
performance; (3) clarify that the contracting officer will weigh 
enforceable commitments to use small businesses, SDBs, women-owned 
small businesses, historically black colleges and universities, and 
minority institutions more heavily than non-enforceable ones, if the 
commitment to use such firms is included in the solicitation as a 
source selection criterion; (4) require prime contractors to notify the 
contracting officer of any substitutions of firms that are not small, 
small disadvantaged, or women-owned small businesses for the firms 
listed in the subcontracting plan; and (5) establish a test program of 
an SDB evaluation preference that would remove the bond cost 
differentials between SDBs and other businesses as a factor in most 
source selections for construction acquisitions.

Item VII--Test Program for Negotiation of Comprehensive Subcontracting 
Plans (DFARS Case 96-D304)

    This interim rule was issued by Departmental Letter 96-016, 
effective July 31, 1996 (61 FR 39900, July 31, 1996). The rule amends 
DFARS Subpart 219.7 and the clause at 252.219-7004 to reflect changes 
to the Test Program for Negotiation of Comprehensive Small Business 
Subcontracting Plans, as required by Section 811 of the Fiscal Year 
1996 Defense Authorization Act (Pub. L. 104-106). The rule also makes 
editorial changes to DFARS Part 219 to reflect revisions to FAR Part 19 
published in Federal Acquisition Circular 90-32.

Item IX--DRUG-Free Work Force (DFARS Case 88-083)

    The interim rule published as Item VII of DAC 91-3, and amended by 
Item XXXV of DAC 91-9, is converted to a final rule without change. The 
rule implements DoD policy regarding contractor maintenance of a drug-
free work force. The applicable DFARS guidance is at Subpart 223.5 and 
252.223-7004.

Item X--Ozone-Depleting Substances (DFARS Case 95-D037)

    This final rule adds DFARS Section 223.803 to provide a cross-
reference to the restrictions in DFARS 211.271 regarding award or 
modification of contracts requiring the use of class I ozone-depleting 
substances.

Item XI--Petroleum Products from Caribbean Basin Countries (DFARS 
Case 96-D312)

    This interim rule was issued by Departmental Letter 96-015, 
effective July 22, 1996 (61 FR 37841, July 22, 1996). The rule amends 
DFARS 225.403 to fully implement Section 8094 of the Fiscal Year 1994 
Defense Appropriations Act (Pub. L. 103-139). Section 8094 requires DoD 
to consider all qualified bids from eligible countries under the 
Caribbean Basin Economic Recovery Act as if they were offers from 
designated countries under the Trade Agreements Act. The rule also 
amends DFARS 225.403-70 and 252.225-7007 to clarify that the definition 
of Caribbean Basin country end products includes petroleum and any end 
product derived from petroleum.

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Item XII--Designation of Singapore (DFARS Case 96-D308)

    This final rule was issued by Departmental Letter 96-008, effective 
April 18, 1996 (61 FR 16880, April 18, 1996). The rule amends DFARS 
225.408 and 252.225-7007 to add Singapore as a designated country under 
the Trade Agreements Act of 1979, as directed by the United States 
Trade Representative on March 19, 1996.

Item XIII--Ball and Roller Bearings (DFARS Case 95-D308)

    The interim rule issued by Departmental Letter 96-004 on March 18, 
1996, is revised and finalized. The rule implements Section 8099 of the 
Fiscal Year 1996 Defense Appropriations Act (Pub. L. 104-61) and 
Sections 806(b) and (d) of the Fiscal Year 1996 Defense Authorization 
Act (Pub. L. 104-106), which extend the statutory restrictions on the 
acquisition of nondomestic ball and roller bearings through the year 
2000, but reduce the exceptions to the restrictions and limit waiver 
authority when fiscal year 1996 funds are used to acquire other than 
commercial items. The final rule differs from the interim rule in that 
it amends DFARS 225.7001, 225.7019, and 252.225-7016 to include 
restrictions pertaining to the acquisition of miniature and instrument 
ball bearings which previously were included in Subpart 225.71 and 
252.225-7025.

Item XIV--Domestic Wool Preference (DFARS Case 96-D311)

    This final rule amends DFARS 225.7002 and deletes the provision at 
252.225-7013 to eliminate special procedures for evaluation of offers 
for wool. In December 1995, the U.S. Department of Agriculture 
discontinued the practice of establishing incentive prices for domestic 
wool, which was the practice upon which the special evaluation 
procedures were based. Corresponding amendments are made at 212.301.

Item XV--Naval Vessel Components (DFARS Case 96-D300)

    The interim rule issued by Departmental Letter 96-005, on March 26, 
1996, is converted to a final rule without change. The rule amends 
DFARS 225.7012 and 225.7022 to implement Section 806(a) of the Fiscal 
Year 1996 Defense Authorization Act (Pub. L. 104-106). Section 806(a) 
imposes additional statutory restrictions on the acquisition of anchor 
and mooring chain and totally enclosed lifeboats, when used as 
components of naval vessels. The rule further amends 225.7012, and 
deletes the clauses at 252.225-7020 and 252.225-7021, to remove 
obsolete language pertaining to fiscal year 1988-90 restrictions on the 
acquisition of anchor and mooring chain.

Item XVI--Foreign Product Restrictions (DFARS Case 95-D033)

    This final rule amends DFARS Subpart 225.71 and the clause at 
252.225-7025 to eliminate non-statutory foreign product restrictions 
except those for certain forging items (ship propulsion shafts, 
periscope tubes, and ring forgings for bull gears). Restrictions 
pertaining to miniature and instrument ball bearings have been moved to 
Subpart 225.70 and 252.225-7016.

Item XVII--Pricing for Sales of Defense Articles (DFARS Case 96-
D309)

    The interim rule issued by Departmental Letter 96-010, on April 30, 
1996, is converted to a final rule without change. The rule amends 
DFARS 225.7303 to implement Section 531A of the Fiscal Year 1996 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act (Pub. L. 104-107). Section 531A provides that 
foreign military sales of defense articles and services wholly paid for 
from funds made available on a nonrepayable basis shall be priced on 
the same costing basis as is applicable to like items purchased by DoD 
for its own use.

Item XVIII--Alternatives to Miller Act Bonds (DFARS Case 95-D305)

    This final rule removes DFARS 228.171 and 252.228-7007. These 
sections were published as Item XXIII of DAC 91-9, and amended by Item 
X of DAC 91-10, to provide alternative payment protections for 
construction contracts between $25,000 and $100,000, pending 
implementation of Section 4104(b)(2) of the Federal Acquisition 
Streamlining Act of 1994 (Pub. L. 103-355) in the FAR. The implementing 
FAR guidance was published as Item XVII of FAC 90-39; therefore, the 
DFARS guidance is removed.

Item XIX--Insurance--Liability to Third Parties (DFARS Case 92-
D015)

    This final rule amends DFARS 228.311 to remove guidance pertaining 
to use of the clause at FAR 52.228-6, Insurance--Immunity from Tort 
Liability, as this clause was removed from the FAR by item XII of FAC 
90-37.

Item XX--Individual Compensation (DFARS Case 96-D314)

    This interim rule was issued by Departmental Letter 96-014, 
effective July 10, 1996 (61 FR 36305, July 10, 1996). The rule amends 
DFARS Part 231 to implement Section 8086 of the Fiscal Year 1996 
Defense Appropriations Act (Pub. L. 104-61). Section 8086 limits 
allowable costs for individual compensation to $200,000 per year. This 
limitation applies to payments using funds appropriated in fiscal year 
1996 under contracts awarded after July 1, 1996.

Item XXI--Allowability of Costs (DFARS Case 95-D309)

    The interim rule published as Item XVII of DAC 91-10 is converted 
to a final rule with minor clarifying revisions at DFARS 231.205-6. The 
rule implements Section 8122 of the Fiscal Year 1996 Defense 
Appropriations Act (Pub. L. 104-61). Section 8122 prohibits DoD from 
using fiscal year 1996 funds to reimburse a contractor for costs paid 
to an employee for a bonus or other payment in excess of the normal 
salary paid to the employee, when such payment is part of restructuring 
costs associated with a business combination.

Item XXII--Restructuring Costs Under Defense Contracts (DFARS Case 
94-D316)

    This final rule was issued by Departmental Letter 96-006, effective 
April 18, 1996 (61 FR 16881, April 18, 1996). The rule amends DFARS 
231.205-70 and 242.1204 to finalize the interim rule which was 
published as Item XXIII of DAC 91-7 and which implements Section 818 of 
the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337). 
Section 818 restricts DoD from reimbursing external restructuring costs 
associated with a business combination undertaken by a defense 
contractor unless certain conditions are met.

Item XXIII--Cost Reimbursement Rules for Indirect Costs (DFARS Case 
96-D303)

    This interim rule was issued by Departmental Letter 96-011, 
effective May 13, 1996 (61 FR 21973, May 13, 1996). The rule adds a new 
section at DFARS 231.205-71 to implement Section 808 of the Fiscal Year 
1996 Defense Authorization Act (Pub. L. 104-106). Section 808 permits 
DoD to enter into a defense capability preservation agreement with a 
defense contractor where it would facilitate the achievement of the 
policy objectives relating to defense reinvestment, diversification, 
and conversion set forth

[[Page 50450]]

in 10 U.S.C. 2501(b), Such an agreement would permit the contractor to 
claim certain indirect costs, attributable to its private sector work, 
on its defense contracts.

Item XXIV--Determination of Need (DFARS Case 96-D012)

    This final rule revises DFARS 232.803(d) to reflect (1) the 
amendments made to FAR Subpart 32.8 in Item III of FAC 90-38; and (2) 
the May 10, 1996, determination by the Director of Defense Procurement 
that a need exists for DoD to agree not to reduce or set off any money 
due or to become due under a contract when the proceeds under the 
contract have been assigned in accordance with the Assignment of Claims 
provision of the contract.

Item XXV--Manufacturing Technology Program (DFARS Case 96-D313)

    This final rule amends DFARS 235.006 to implement a portion of 
Section 276 of the Fiscal Year 1996 Defense Authorization Act (Pub. L. 
104-106). Section 276 changes the name of the Manufacturing Science and 
Technology Program to the ``Manufacturing Technology Program,'' and 
permits contracts under the program to be on other than a cost-sharing 
basis if the contract is for a program to be carried out by an 
institution of higher education.

Item XXVI--Direct Submission of Vouchers to Disbursing Office (DFARS 
Case 96-D007)

    This final rule was issued by Departmental Letter 96-013, effective 
May 21, 1996 (61 FR 25409, May 21, 1996). The rule amends DFARS 242.803 
to permit contract auditors to authorize direct submission of interim 
vouchers for provisional payment to the disbursing office, for 
contractors with approved billing systems.

Item XXVII--Requirements for Cost/Schedule Status Report (DFARS Case 
95-D042)

    This final rule amends DFARS Subpart 242.11 to update references 
and guidance pertaining to contractor reporting requirements. DoDI 
7000.10, Contract Cost Performance, Funds Status and Cost/Schedule 
Status Reports, has been canceled and replaced by DoD 5000.2-R, 
Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and 
Major Automated Information System (MAIS) Acquisition Programs, dated 
March 15, 1996.

Item XXVIII--Material Management and Accounting System Changes (DFARS 
Case 95-D029)

    This final rule amends DFARS Subpart 242.72 and 252.242-7004 to (1) 
increase the dollar thresholds at which large business contractors are 
subject to material management and accounting system (MMAS) disclosure, 
demonstration, and maintenance requirements; (2) clarify the 
circumstances under which MMAS disclosure and demonstration are 
required; and (3) clarify requirements for contractor use of a ``loan/
pay-back'' technique for accomplishing material transactions.

Item XXIX--Contractor Purchasing System Reviews (DFARS Case 95-
D026)

    This final rule removes the procedures for contractor purchasing 
system reviews at DFARS 244.303 and Appendix C, to provide agencies 
maximum flexibility in conducting such reviews.

Item XXX--Ground and Flight Risk (DFARS Case 95-D028)

    This final rule amends DFARS 252.228-7001 and 252.228-7002 to (1) 
specify that the Government's assumption of risk of aircraft does not 
extend to damage, loss, or destruction sustained during flight, if the 
flight crew members have not been approved by an authorized Government 
flight representative; (2) increase; from $1,000 to $25,000, the 
contractor's liability for aircraft loss or damage not sustained during 
flight; and (3) clarify language pertaining to aircraft which is 
damaged, lost, or destroy prior to delivery and acceptance by the 
Government.

Editorial Revisions

    (1) DFARS 201.201-1(d)(i) is amended to update the DAR Council 
datafax number.
    (2) DFARS 202.101 is amended under the heading ``Army'' to revise 
the name ``Strategic Defense Command'' to read ``Space and Strategic 
Defense Command.''
    (3) DFARS 202.101 is amended under the heading ``Navy'' to revise 
the title ``Deputy, Acquisition Policy, Integrity and Accountability'' 
to read ``Deputy, Acquisition and Business Management.''
    (4) DFARS is amended to reflect the change in name of the 
``Advanced Research Projects Agency'' to the ``Defense Advanced 
Research Projects Agency'' and the change in name of the ``Defense 
Nuclear Agency'' to the ``Defense Special Weapons Agency.''
    (5) DFARS 207.105 is amended to update references and to conform to 
the current numbering of FAR 7.105.
    (6) DFARS 215.605 is amended to conform to the current numbering of 
FAR 15.605.
    (7) DFARS 227.7009-1 is amended to update FAR references.
    (8) DFARS 231.205-71 is amended to remove the title ``Assistant 
Secretary of Defense for Economic Security'' and insert in its place 
the title ``Deputy Under Secretary of Defense for Industrial Affairs 
and Installations.''
    (9) DFARS 239.7501-2 is amended to update statutory references.
    (10) DFARS 253.204-70(c)(4)(ix)(B)(9) is amended to revise the FAR 
reference.
    (11) DFARS Part 253 is amended to update DD Forms 882 and 2139. 
(This amendment is being made only in the loose-leaf edition of the 
DFARS.)
    (12) DFARS Appendix G is amended to update activity names and 
addresses.
    (13) DFARS Appendix I is amended in I-102(a) and (b) and I-103(a) 
by revising the date ``September 30, 1995'' to read ``September 30, 
1996.''

Interim Rules Adopted as Final Without Change

PARTS 223 AND 252--[AMENDED]

    The interim rule that was published at 57 FR 32736 on July 23, 
1992, and amended at 60 FR 61597 on November 30, 1995, is adopted as 
final without change.

PART 225--[AMENDED]

    The interim rule that was published at 61 FR 18987 on April 30, 
1996, is adopted as final without change.

PARTS 225 AND 252--[AMENDED]

    The interim rule that was published at 61 FR 13106 on March 26, 
1996, is adopted as final without change.

Interim Rules Adopted as Final With Changes

PART 207--[AMENDED]

    The interim rule that was published at 61 FR 16879 on April 18, 
1996, is adopted as final with an amendment at section 207.470.

PARTS 225 AND 252--[AMENDED]

    The interim rule that was published at 61 FR 10899 on March 18, 
1996, is adopted as final with revisions at sections 225.7001, 
225.7019-2, 225.7019-3, and 252.225-7016.

PART 231--[AMENDED]

    The interim rule that was published at 61 FR 7077 on February 26, 
1996, is

[[Page 50451]]

adopted as final with amendments at section 231.205-6.

List of Subjects in 48 CFR Parts 201, 202, 204, 206, 207, 209, 212, 
214, 215, 219, 223, 225, 227, 228, 231, 232, 235, 239, 242, 244, 249, 
250, 252, 253

    Government procurement.

Amendments to 48 CFR Chapter 2 (Defense Federal Acquisition Regulation 
Supplement)

    48 CFR Chapter 2 (the Defense Federal Acquisition Regulation 
Supplement) is amended as set forth below.
    1. The authority citation for 48 CFR Parts 201, 202, 204, 206, 207, 
209, 212, 214, 215, 219, 223, 225, 227, 228, 231, 232, 235, 239, 242, 
244, 249, 250, 252, 253, and Appendices B, C, B, and I to subchapter I 
continues to read as follows:

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

PART 201--FEDERAL ACQUISITION REGULATIONS SYSTEM

    2. Section 201.201-1 is amended by revising the introductory text 
of paragraph (d)(i), and paragraph (d)(i)(III) to read as follows:


201.201-1   The two councils.

* * * * *
    (d)(i) Departments and agencies process proposed revisions of FAR 
or DFARS through channels to the Director of the DAR Council. Process 
the proposed revision as a memorandum in the following format, 
addressed to the Director, DAR Council, OUSD(A&T), 3062 Defense 
Pentagon, Washington, DC 20301-3062; datafax (703) 602-0350:
* * * * *
    III. Discussion: Include a complete, convincing explanation of 
why the change is necessary and how the recommended revision will 
solve the problem. Address advantages and disadvantages of the 
proposed revision, as well as any cost or administrative impact on 
Government activities and contractors. Identify any potential impact 
of the change on automated systems, e.g., automated financial and 
procurement systems. Provide any other background information that 
would be helpful in explaining the issue.
* * * * *
    3. Section 201.402 is amended by revising paragraph (2) to read as 
follows:


201.402   Policy.

* * * * *
    (2) Individual deviations.
    (i) Except as provided in paragraph (2)(ii) of this section, 
individual deviations, other than those in paragraph (1)(i) of this 
section, must be approved in accordance with the department/agency plan 
prescribed by 201.304(4).
    (ii) Contracting officers outside the United States are authorized 
to deviate from prescribed non-statutory FAR and DFARS clauses when 
contracting for support services, supplies, or construction, with the 
governments of North Atlantic Treaty Organization (NATO) countries or 
other allies (as described in 10 U.S.C. 2341(2)), or with United 
Nations or NATO organizations. This authority shall be exercised only 
if such governments or organizations will not agree to the standard 
clauses.
* * * * *

PART 202--DEFINITIONS OF WORDS AND TERMS


202.101   [Amended]

    4. Section 202.101 is amended by revising under the heading 
``ARMY'' the phrase ``Strategic Defense Command'' to read ``Space and 
Strategic Defense Command''; by revising under the heading ``NAVY'' the 
phrase ``Deputy, Acquisition Policy, Integrity and Accountability,'' to 
read ``Deputy, Acquisition and Business Management,''; by revising the 
heading ``ADVANCED RESEARCH PROJECTS AGENCY'' to read ``DEFENSE 
ADVANCED RESEARCH PROJECTS AGENCY''; by revising the heading ``DEFENSE 
NUCLEAR AGENCY'' to read ``DEFENSE SPECIAL WEAPONS AGENCY''; by 
revising under the newly revised heading ``DEFENSE SPECIAL WEAPONS 
AGENCY'' the phrase ``Headquarters, Defense Nuclear Agency'' to read 
``Headquarters, Defense Special Weapons Agency''; and by revising in 
the definition of Departments and agencies the phrases ``Advanced 
Research Projects Agency'' and ``Defense Nuclear Agency'' to read 
``Defense Advanced Research Projects Agency'' and ``Defense Special 
Weapons Agency'', respectively.

PART 204--ADMINISTRATIVE MATTERS


204.7003   [Amended]

    5. Section 204.7003 is amended in paragraph (a)(1)(i)(F) by 
revising the phrase ``Defense Nuclear Agency--DNA'' to read ``Defense 
Special Weapons Agency--DSWA''.

PART 206--COMPETITION REQUIREMENTS

    6. Section 206.304 is amended by revising paragraph (a)(4)(B)(2) to 
read as follows:


206.304   Approval of the justification.

    (a)(4) * * *
    (B) * * *
    (2) If a civilian, is serving in a position with a grade under the 
General Schedule (or any other schedule for civilian officers or 
employees) that is comparable to or higher than the grade of major 
general or rear admiral.

PART 207--ACQUISITION PLANNING


207.103   [Amended]

    7. Section 207.103 is amended in paragraph (h)(i)(B) by revising 
the phrase ``to the extent prescribed DoDD 5000.1'' to read ``to the 
extent prescribed by DoDD 5000.1''.
    8. Section 207.104 is added to read as follows:


207.104   General procedures.

    (b) The planner should forward the requirements information to the 
contract administration organization when assistance in identification 
of potential sources of supply is necessary, when an existing contract 
is being modified or resolicited, or when contract administration 
resource requirements will be affected.
    9. Section 207.105 is amended by revising the introductory text; in 
paragraph (a)(8) by removing the reference ``DoDI 5000.2, Defense 
Acquisition Management Policies and Procedures'' and inserting in its 
place ``DoD 5000.2-R, Mandatory Procedures for Major Defense 
Acquisition Programs (MDAPs) and Major Automated Information System 
(MAIS) Acquisition Programs''; by redesignating paragraphs (b) (12), 
(15), and (17) as paragraphs (b) (13), (16), and (18), respectively; in 
newly designated paragraph (b)(13)(iv) by removing the reference ``DoDI 
5000.2, Defense Acquisition Management Policies and Procedures'' and 
inserting in its place ``DoD 5000.2-R, Mandatory Procedures for Major 
Defense Acquisition Programs (MDAPs) and Major Automated Information 
System (MAIS) Acquisition Programs''; in newly designated paragraph 
(b)(16) by revising the title to read ``Environmental and energy 
conservation objectives.''; in newly designated paragraph 
(b)(18)(A)(1)(ii) by removing the reference ``(b)(17)(A)(1)(i)'' and 
inserting ``(b)(18)(A)(1)(i)'' in its place; and by adding paragraph 
(b)(18)(D). The revised and added text reads as follows:


207.105   Contents of written acquisition plans.

    For acquisitions covered by 207.103(c)(i) (A) and (B), correlate 
the plan to the DoD Future Years Defense Program, applicable budget 
submissions, and the decision coordinating paper/program

[[Page 50452]]

memorandum, as appropriate. It is incumbent upon the planner to 
coordinate the plan with all those who have a responsibility for the 
development, management, or administration of the acquisition. The 
acquisition plan should be provided to the contract administration 
organization to facilitate resource allocation and planning for the 
evaluation, identification, and management of contractor performance 
risk.
 * * * * *
    (b) * * *
    (18) * * *
    (D) Contract administration. Discuss the level of Government 
administration anticipated or currently performed and any change 
proposed by the contract administration office.
    10. Section 207.470 is amended by revising paragraph (b) to read as 
follows:


207.470   Statutory requirements.

 * * * * *
    (b) Leasing of commercial vehicles and associated equipment. Except 
as provided in paragraph (a) of this section, the contracting officer 
may use leasing in the acquisition of commercial vehicles and 
associated equipment whenever the contracting officer determines that 
leasing of such vehicles is practicable and efficient (10 US.C. 2401a).

PART 209--CONTRACTOR QUALIFICATIONS

    11. Section 209.103 is amended by adding paragraph (c) to read as 
follows:


209.103  Policy.

* * * * *
    (c) The additional cost of contract administration and audit due to 
a contractor's performance risk may be considered in evaluating the 
contractor's price.


209.103-70  [Amended]

    11a. Section 209.103-70 is amended by removing the phrase ``in FAR 
part 13''.


209.403  [Amended]

    12. Section 209.403 is amended in paragraph (1) by revising the 
phrase ``Advanced Research Projects Agency--The Director'' to read 
``Defense Advanced Research Projects Agency--The Director''; and by 
revising the phrase ``Defense Nuclear Agency--The Director'' to read 
``Defense Special Weapons Agency--The Director''.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301  [Amended]

    13. Section 212.301 amended by removing paragraph (f)(i) and 
redesignating paragraphs (f)(ii) through (f)(iv) as paragraphs (f)(i) 
through (f)(iii), respectively. Newly designated paragraph (f)(ii) is 
amended in the first sentence by removing the phrase ``in FAR part 
13''.

PART 214--SEALED BIDDING


214.406-3  [Amended]

    14. Section 214.406-3 is amended in paragraph (e)(i) by revising 
the phrase ``Advanced Research Projects Agency:'' to read ``Defense 
Advanced Research Projects Agency:'', and by revising the abbreviation 
``ARPA'' to read ``DARPA''; and in paragraph (e)(vi) by revising the 
phrase ``Defense Nuclear Agency:'' to read ``Defense Special Weapons 
Agency:'' and by revising the abbreviation ``DNA'' to read ``DSWA''.

PART 215--CONTRACTING BY NEGOTIATION

    15. Section 215.605 is amended by revising paragraph (b) to read as 
follows:


215.605  Evaluation factors and subfactors.

    (b)(2)(A) In acquisitions which require use of the clause at FAR 
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan, the extent of participation of small and small 
disadvantaged business in performance of the contact shall be addressed 
in source selection.
    (1) For acquisitions other than those based only on cost or price 
competition, the contracting officer shall evaluate the extent to which 
offerors identify and commit to small business and to small 
disadvantaged business, historically black college and university, or 
minority institution performance of the contract, whether as a joint 
venture, teaming arrangement, or subcontractor.
    (2) Criteria for evaluation may include--
    (i) The extent which such firms are specifically identified in 
proposals;
    (ii) The extent of commitment to use such firms (for example, 
enforceable commitments are to be weighted more heavily than non-
enforceable ones);
    (iii) The complexity and variety of the work small firms are to 
perform;
    (iv) The realism of the proposal;
    (v) When not otherwise required by 215.608(a)(2), past performance 
of the offerors in complying with requirements of the clauses at FAR 
52.219-8, Utilization of Small, Small Disadvantaged and Women-Owned 
Small Business Concerns, and 52.219-9, Small, Small Disadvantaged and 
Women-Owned Small Business Subcontracting Plan; and
    (vi) The extent of participation of such firms in terms of the 
value of the total acquisition.
    (3) Proposals addressing the extent of small and small 
disadvantaged business performance may be separate from subcontracting 
plans submitted pursuant to the clause at FAR 52.219-9 and should be 
structured to allow for consideration of offers from small businesses.
    (4) When an evaluation includes the criterion in paragraph 
(b)(2)(A)(2)(i) of this section, the small, small disadvantaged, or 
women-owned small businesses considered in the evaluation shall be 
listed in any subcontracting plan submitted pursuant to FAR 52.219-9 to 
facilitate compliance with 252.219-7003(g).
    (B) The costs or savings related to contract administration and 
audit may be considered when the offeror's past performance or 
performance risk is likely to result in significant costs or savings.
* * * * *

PART 219--SMALL BUSINESS PROGRAMS

    16. Subpart 219.7 is amended by revising the title to read as 
follows:

Subpart 219.7--Subcontracting with Small Business, Small 
Disadvantaged Business and Women-Owned Small Business Concerns

    17. Section 219.7201 is amended by revising the second sentence to 
read as follows:


219.7201  Administration of the test program.

    * * * The focal point for the test program is the Director, Small 
and Disadvantaged Business Utilization (SADBU), Office of the Deputy 
Under Secretary of Defense (International and Commercial Programs). * * 
*

PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

    18. Subpart 223.8 is added to read as follows:

Subpart 223.8--Ozone-Depleting Substances


223.803  Policy.

    Section 211.271, Elimination of use of class I ozone-depleting 
substances,

[[Page 50453]]

places restrictions on award or modification of DoD contracts requiring 
the use of class I ozone-depleting substances. These restrictions are 
in addition to any imposed by the Clean Air Act and apply after June 1, 
1993, to all DoD contracts, regardless of place of performance.

PART 225--FOREIGN ACQUISITION


225.403  [Amended]

    19. Section 225.403 is amended in paragraph (d)(1)(B) (3) by 
inserting the work ``Subpart'' immediately before the reference 
``225.71''.
    20. Subpart 225.9 is added to read as follows:

Subpart 225.9--Additional Foreign Acquisition Clauses


225.970  Clause deviations in overseas contracts.

    See 201.402(2) for approval authority for clause deviations in 
overseas contracts with governments of North Atlantic Treaty 
Organization (NATO) countries or other allies or with United Nations or 
NATO organizations.
    21. Section 225.7001 is amended by revising paragraph (a) to read 
as follows:


225.7001  Definitions.

* * * * *
    (a) Bearing components and miniature and instrument ball bearings 
are defined in the clause at 252.225-7016, Restriction on Acquisition 
of Ball and Roller Bearings.
* * * * *
    22. Section 225.7002-2 is amended by revising paragraphs (e) and 
(f) to read as follows:


225.7002-2  Exceptions.

* * * * *
    (e) Acquisitions using simplified acquisition procedures.
    (f) Acquisitions of end items incidentally incorporating cotton or 
wool, for which the estimated value of the cotton or wool is not more 
than 10 percent of the total price of the end item; provided the 
estimated value of the cotton or wool does not exceed the simplified 
acquisition threshold.
* * * * *
    23. Section 225.7002-3 is revised to read as follows:


225.7002-3  Contract clauses.

    Unless an exception is known to apply--
    (a) Use the clause at 252.225-7012, Preference for Certain Domestic 
Commodities, in all solicitations and contracts which meet or exceed 
the simplified acquisition threshold.
    (b) Use the clause at 252.225-7014, Preference for Domestic 
Specialty Metals, in all solicitations and contracts over the 
simplified acquisition threshold that require delivery of an article 
containing specialty metals. Use the clause with its Alternate I in all 
solicitations and contracts over the simplified acquisition threshold 
requiring delivery, for one of the following major programs, of an 
article containing specialty metals--
    (1) Aircraft;
    (2) Missile and space systems;
    (3) Ships;
    (4) Tank-automotive;
    (5) Weapons; or
    (6) Ammunition.
    (c) Use the clause at 252.225-7015, Preference for Domestic Hand or 
Measuring Tools, in all solicitations and contracts over the simplified 
acquisition threshold calling for delivery of hand or measuring tools.


225.7002-4  [Removed]

    24. Section 225.7002-4 is removed.


225.7011-4  [Amended]

    25. Section 225.7011-4 is amended in the introductory text of 
paragraph (b) by removing the phrase ``The Pentagon'' and inserting in 
its place the phrase ``7100 Defense Pentagon''


225.7012-3  [Amended]

    26. Section 225.7012-3 is amended by revising the section title to 
read ``Contract clause.'' and by redesignating paragraphs (1) and (2) 
as paragraphs (a) and (b), respectively.
    27. Section 225.7019-2 is revised to read as follows:


225.7019-2  Exceptions.

    (a) The restriction in 225.7019-1(a) does not apply to--
    (1) Acquisitions using simplified acquisition procedures, unless 
ball or roller bearings or bearing components are the end items being 
purchased;
    (2) Purchases of commercial items incorporating ball or roller 
bearings;
    (3) Miniature and instrument ball bearings when necessary to meet 
urgent military requirements;
    (4) Items acquired overseas for use overseas; or
    (5) Ball and roller bearings or bearing components or items 
containing bearings for use in a cooperative or co-production project 
under an international agreement. This exception does not apply to 
miniature and instrument ball bearings.
    (b) The restriction in 225.7019-1(b) does not apply to contracts 
for acquisition of commercial items or subcontracts for acquisition of 
commercial items or subcontracts for acquisition of commercial items or 
commercial components (see 212.503(a)(xi) and 212.504(a)(xxxvi)).
    28. Section 225.7019-3 is amended by revising the introductory text 
of paragraph (a)(2) and adding paragraph (a)(3) to read as follows:


225.7019-3  Waiver.

    (a) * * *
    (2) For multiyear contracts or contracts exceeding 12 months, 
except those for miniature and instrument ball bearings, only if--
* * * * *
    (3) For miniature and instrument ball bearings, only if the 
contractor agrees to acquire a like quantity and type of domestic 
manufacture for nongovernmental use.
* * * * *
    29. Sections 225.7102, 225.7103, and 225.7104 are revised to read 
as follows:


225.7102  Policy.

    DoD requirements for the following forging items, whether as end 
items or components, shall be acquired from domestic sources (as 
described in the clause at 252.225-7025) to the maximum extent 
practicable--

------------------------------------------------------------------------
                   Items                             Categories         
------------------------------------------------------------------------
Ship propulsion shafts....................  Excludes service and landing
                                             craft shafts.              
Periscope tubes...........................  All.                        
Ring forgings for bull gears..............  All greater than 120 inches 
                                             in diameter.               
------------------------------------------------------------------------

225.7103  Exceptions.

    The policy in 225.7102 does not apply to acquisitions--
    (a) Using simplified acquisition procedures, unless the restricted 
item is the end item being purchased;
    (b) Overseas for overseas use; or
    (c) When the quantity acquired exceeds the amount needed to 
maintain the U.S. defense mobilization base (provided such quantity is 
an economical purchase quantity). The restriction to domestic sources 
does not apply to the quantity above that required to maintain the 
base, in which case, qualifying country sources may compete.


225.7104  Waiver.

    Upon request from a prime contractor, the contracting officer may 
waive the requirement for domestic manufacture of the items covered by 
the policy in 225.7102.


225.7303  [Amended]

    30. Section 225.7303 is amended in the title by removing the 
abbreviation

[[Page 50454]]

``(FMS)''; in the first sentence by revising the phrase ``foreign 
military sale'' to read ``FMS''; and in the second sentence by revising 
the phrase ``a foreign military sale'' to read ``an FMS''.

PART 227--PANTENTS, DATA, AND COPYRIGHTS


227.7004  [Amended]

    31. Section 227.7004 is amended in paragraph (c)(6) by revising the 
phrase ``Defense Nuclear Agency'' to read ``Defense Special Weapons 
Agency''.


227.7009-1  [Amended]

    32. Section 227.7009-1 is amended by removing paragraph (a); by 
redesignating paragraphs (b) through (f) as paragraphs (a) through (e), 
respectively; and in newly designated paragraph (d) by revising the 
reference ``FAR 33.014'' to read ``FAR subpart 33.2''.

PART 228--BONDS AND INSURANCE


228.171, 228.171-1, 228.171-2, and 228.171-3  [Removed]

    33. Sections 228.171, 228.171-1, 228.171-2, and 228.171-3 are 
removed.


228.311-1  [Removed]

    34. Section 228.311-1 is removed.


228.311-2  [Redesignated]

    35. Section 228.311-2 is redesignated as 228.311-1.
    36. Section 228.370 is amended by revising the title to read as 
follows:


228.370  Additional clauses.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

    37. Section 231.205-6 is amended in paragraph (a)(2) by revising 
the parenthetical phrase to read ``(Section 8117 of Pub. L. 103-335)'' 
and in paragraph (f)(1) by revising the first sentence to read as 
follows:


231.205-6  Compensation for personal services.

* * * * *
    (f)(1) Costs for bonuses or other payments in excess of the normal 
salary paid by the contractor to an employee, that are part of 
restructuring costs associated with a business combination, are 
unallowable under DoD contracts funded by fiscal year 1996 
appropriations (Section 8122 of Pub. L. 104-61). * * *


231.205-70  [Amended]

    38. Section 231.205-70 is amended in paragraph (d)(2) by removing 
the phrase ``paragraph (c)(1)(iv) of this subsection'' and inserting 
``231.205-70(c)(1)(iv)'' in its place.


231.205-71  [Amended]

    39. Section 231.205-71 is amended in paragraph (b) by removing the 
phrase ``Assistant Secretary of Defense for Economic Security'' and 
inserting in its place the phrase ``Deputy Under Secretary of Defense 
for Industrial Affairs and Installations''.

PART 232--CONTRACT FINANCING

    40. Section 232.803 is amended by revising paragraph (d) to read as 
follows:


232.803  Policies.

* * * * *
    (d) Pursuant to Section 3737(e) of the Revised Statutes (41 U.S.C. 
15), and in accordance with Presidential delegation dated October 3, 
1995, Secretary of Defense delegation dated February 5, 1996, and Under 
Secretary of Defense for Acquisition and Technology delegation dated 
February 23, 1996, the Director of Defense Procurement determined on 
May 10, 1996, that a need exists for DoD to agree not to reduce or set 
off any money due or to become due under the contract when the proceeds 
under the contract have been assigned in accordance with the Assignment 
of Claims provision of the contract. This determination was published 
in the Federal Register on June 11, 1996, as required by law. 
Nevertheless, if departments/agencies decide it is in the Government's 
interests, or if the contracting officer makes a determination in 
accordance with FAR 32.803(d) concerning a significantly indebted 
offeror, they may exclude the no-setoff commitment.

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING

    41. Section 235.006 is amended by revising paragraphs (a) and 
(b)(iv) to read as follows:


235.006  Contracting methods and contract type.

    (a) All contracts under the Manufacturing Technology Program (see 
DoDI 4200.15, Manufacturing Technology Program) shall be awarded using 
competitive procedures (10 U.S.C. 2525).
    (b) * * *
    (iv) A cost-sharing arrangement (see FAR 16.303) must be used for 
contracts awarded in support of the Manufacturing Technology Program, 
unless an alternative is approved by the Secretary of Defense (10 
U.S.C. 2525). Approval by the Secretary of Defense to use other than a 
cost-sharing arrangement for the Manufacturing Technology Program must 
be based on a determination that the contract is for a program that--
    (A) Is not likely to have any immediate and direct commercial 
application;
    (B) Is of sufficiently high risk to discourage cost sharing by non-
Federal Government sources; or
    (C) Will be carried out by an institution of higher education.


235.7002  [Amended]

    42. Section 235.7002 is amended in paragraph (a)(4) by revising the 
phrase ``Defense Nuclear Agency'' to read ``Defense Special Weapons 
Agency''.


235.7003  [Amended]

    43. Section 235.7003 is amended in paragraph (b)(4)(ii) by revising 
the phrase ``Defense Nuclear Agency:'' to read ``Defense Special 
Weapons Agency:''; and by revising the phrase ``Acquisition Management 
Office'' to read `'Acquisition Management Directorate''.

PART 239--ACQUISITION OF INFORMATION RESOURCES

    44. Section 239.7501-2 is revised to read as follows:


239.7501-2  Restriction.

    Section 8028 of the FY 1992 Defense Appropriations Act (Pub. L. 
102-172) and similar sections of the FY 1993, FY 1994, and FY 1995 
Defense appropriations acts prohibit use of DoD appropriations for 
acquisition of major automated information systems, unless the systems 
have successfully completed oversight reviews required by DoD 
regulations.

PART 242--CONTRACT ADMINISTRATION

    45. Section 242.302 is amended in paragraph (a)(19) by revising the 
reference `'252.225-7008'' to read ``252.225-7009'' and by adding 
paragraph (a)(67) to read as follows:


242.302  Contract administration functions.

    (a) * * *
    (67) Also support program offices and buying activities in 
precontractual efforts leading to a solicitation or award.
* * * * *


242.803  [Amended]

    46. Section 242.803 is amended at the end of paragraph (b)(i)(C) by 
changing the period to a semicolon.
    47. Section 242.1106 is amended by revising paragraph (a)(i) to 
read as follows:


242.1106  Reporting requirements.

    (a) * * *

[[Page 50455]]

    (i) DoD 5000.2-R, Mandatory Procedures for Major Defense 
Acquisition Programs (MDAPs) and Major Automated Information System 
(MAIS) Acquisition Programs; and
* * * * *
    48. Section 242.1107-70 is revised to read as follows:


242.1107-70  Additional clauses.

    When cost/schedule status reporting (C/SSR) is required on 
acquisitions for other than major systems (i.e., the Contract Data 
Requirements List includes DI-MGMT-81467), use in solicitations and 
resulting contracts the clause at 252.242-7005, Cost/Schedule Status 
Report.
    49. Section 242.7202 is amended by revising paragraph (d) to read 
as follows:


242.7202  Policy.

* * * * *
    (d) Conforms to the standards at 252.242-7004(f) when the 
contractor has cost-reimbursement or fixed-price contracts exceeding 
the simplified acquisition threshold, with progress or other contract 
financing provisions, except when all of the contracts and subcontracts 
are awarded under the set-aside or Section 8(a) procedures of FAR part 
19.
    50. Section 242.7203 is revised to read as follows:


242.7203  MMAS disclosure, demonstration, and maintenance requirements.

    (a) A large business contractor is subject to MMAS disclosure, 
demonstration, and maintenance if in its preceding fiscal year the 
contractor received DoD prime contracts or subcontracts (including 
modifications) totaling--
    (1) $70 million or more; or
    (2) $30 million or more (but less than $70 million), and the 
contracting officer determines it to be in the best interests of the 
Government (e.g., contractor disclosure, demonstration, or other 
activities indicate significant MMAS problems exist).
    (b) After the administrative contracting officer determines the 
contractor's MMAS is adequate (see 242.7204(b)), written disclosure 
will not be required for the next MMAS review unless the contractor's 
policies, procedures, or practices have changed in the interim 
period(s). Similarly, once the contractor demonstrates that its MMAS 
contains no significant deficiencies, demonstration requirements for 
subsequent reviews may be satisfied if internal audits are reasonably 
current and contain sufficient transaction tests to demonstrate MMAS 
compliance with each standard.


242.7204  [Amended]

    51. Section 242.7204 is amended in paragraph (a)(1) by revising the 
reference ``242.7203'' to read ``242.7203(a)''; and in paragraph (a)(2) 
by revising the reference ``242.7203(b)'' to read ``242.7203(a)(2)''.


242.7206  [Amended]

    52. Section 242.7206 is amended in the introductory text by 
removing the phrase ``in FAR part 13''.

PART 244--SUBCONTRACTING POLICIES AND PROCEDURES


244.303  [Removed]

    53. Section 244.303 is removed.


244.304  [Amended]

    54. Section 244.304 is amended in the introductory text of 
paragraph (b) by removing the abbreviation ``PSA'' and inserting in its 
place the phrase ``purchasing system analyst (PSA)''.

PART 249--TERMINATION OF CONTRACTS


249.7001  [Amended]

    55. Section 249.7001 is amended in paragraph (b)(4) by revising the 
phrase ``Advanced Research Projects Agency--CMO'' to read ``Defense 
Advanced Research Projects Agency--CMO''; and in paragraph (b)(9) by 
revising the phrase ``Defense Nuclear Agency--Chief, Office of 
Procurement, OATR'' to read ``Defense Special Weapons Agency--
Acquisition Management Directorate (AM)''.

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS


250.303  [Amended]

    56. Section 250.303 is amended in paragraph (5) by revising the 
phrase ``Advanced Research Projects Agency--'' to read ``Defense 
Advanced Research Projects Agency--''; and in paragraph (10) by 
revising the phrase ``Defense Nuclear Agency--'' to read ``Defense 
Special Weapons Agency--'', by revising the abbreviation ``DNA'' to 
read ``DSWA'', and by revising the abbreviation ``OAPR'' to read 
``AM''.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7000  [Amended]

    57. Section 252.212-7000 is amended in the introductory text by 
revising the reference ``212.301(f)(iii)'' to read ``212.301(f)(ii)''.


252.212-7001  [Amended]

    58. Section 252.212-7001 is amended in the introductory text by 
revising the reference ``212.301(f)(iv)'' to read ``212.301(f)(iii)''.


252.225-7012  [Amended]

    59. Section 252.225-7012 is amended in the introductory text by 
revising the reference ``225.7002-4(a)'' to read ``225.7002-3(a)''.


252.225-7013  [Removed and Reserved]

    60. Section 252.225-7013 is removed and reserved.


252.225-7014  [Amended]

    61. Section 252.225-7014 is amended in the introductory text by 
revising the reference ``225.7002-4(c)'' to read ``225.7002-3(b)''; and 
in the introductory text of ALTERNATE I by revising the reference 
``225.7002-4(c)'' to read ``225.7002-3(b)''.


252.225-7015  [Amended]

    62. Section 252.225-7015 is amended in the introductory text by 
revising the reference ``225.7002-4(d)'' to read ``225.7002-3(c)''.
    63. Section 252.225-7016 is revised to read as follows:


252.225-7016  Restriction on Acquisition of Ball and Roller Bearings.

    As prescribed in 225.7019-4, use the following clause:

Restriction on Acquisition of Ball and Roller Bearings (Sep 1996)

    (a) Definitions.
    As used in this clause--
    (1) ``Bearing components'' means the bearing element, retainer, 
inner race, or outer race.
    (2) ``Miniature and instrument ball bearings'' means all rolling 
contact ball bearings with a basic outside diameter (exclusive of 
flange diameters) of 30 millimeters or less, regardless of material, 
tolerance, performance, or quality characteristics.
    (b) The Contractor agrees that all ball and roller bearings and 
ball and roller bearing components (including miniature and 
instrument ball bearings) delivered under this contract, either as 
end items or components of end items, shall be wholly manufactured 
in the United States or Canada. Unless otherwise specified, raw 
materials, such as preformed bar, tube, or rod stock and lubricants, 
need not be mined or produced in the United States or Canada.
    (c) The restriction in paragraph (b) of this clause does not 
apply to the extent that the end items or components containing ball 
or roller bearings are commercial items. The commercial item 
exception does not include items designed or developed under a 
Government contract or contracts where the end item is bearings and 
bearing components.
    (d) The restriction in paragraph (b) of this clause may be 
waived upon request from the

[[Page 50456]]

Contractor in accordance with subsection 225.7019-3 of the Defense 
Federal Acquisition Regulation Supplement. If the restriction is 
waived for miniature and instrument ball bearings, the Contractor 
agrees to acquire a like quantity and type of domestic manufacture 
for nongovernmental use.
    (e) The Contractor agrees to retain records showing compliance 
with this restriction until 3 years after final payment and to make 
records available upon request of the Contracting Office.
    (f) The Contractor agrees to insert this clause, including this 
paragraph (f), in every subcontract and purchase order issued in 
performance of this contract, unless items acquired are--
    (1) Commercial items other than ball or roller bearings; or
    (2) Items that do not contain ball or roller bearings.

(End of clause)

    64. Section 252.225-7025 is revised to read as follows:


252.225-7025  Foreign Source Restrictions.

    As prescribed in 225.7105, use the following clause:

Foreign Source Restrictions (Sep 1996)

    (a) Definitions.
    As used in this clause--
    (1) Domestic manufacture means manufactured in the United States 
or Canada if the Canadian firm--
    (i) Normally produces similar items or is currently producing 
the item in support of DoD contracts (as prime or subcontractor); 
and
    (ii) Agrees to become (upon receiving a contract/order) a 
planned producer under DoD's Industrial Preparedness Program (IPP), 
if it is not already a planned producer for the item.
    (2) Forging items means--

------------------------------------------------------------------------
                   Items                             Categories         
------------------------------------------------------------------------
Ship propulsion shafts....................  Excludes service and landing
                                             craft shafts.              
Periscope tubes...........................  All.                        
Ring forgings for bull gears..............  All greater than 120 inches 
                                             in diameter.               
------------------------------------------------------------------------

    (b) The Contractor agrees that end items and their components 
delivered under this contract shall contain forging items that are 
of domestic manufacture only.
    (c) The restriction in paragraph (b) of this clause may be 
waived upon request from the Contractor in accordance with section 
225.7104 of the Defense Federal Acquisition Regulation Supplement.
    (d) The Contractor agrees to retain records showing compliance 
with this restriction until 3 years after final payment and to make 
records available upon request of the Contracting Officer.
    (e) The Contractor agrees to insert this clause, including this 
paragraph (e), in subcontracts and purchase orders issued in 
performance of this contract, when products purchased contain 
restricted forging items.

(End of clause)

    65. Section 252.228-7001 is amended by revising the clause date to 
read ``(SEP 1996)''; by revising paragraph (d)(2); in paragraph (e) by 
removing ``$1,000'' both places it appears and inserting ``$25,000'' in 
its places; in the introductory text of paragraph (h) by removing the 
phrase ``In the event the'' and inserting in its place the phrase ``In 
the event of''; and by revising paragraph (i)(1), the introductory text 
of paragraph (i)(2), and paragraph (k). The revised text reads as 
follows:


252.228-7001  Ground and flight risk.

* * * * *
    (d) * * *
    (2) Is sustained during flight if the flight crew members have 
not been approved in writing by the Government Flight 
Representative, who has been authorized in accordance with the 
combined regulation entitled ``Contractor's Flight and Ground 
Operations'' (Air Force Regulation 55-22, Army Regulation 95-20, 
NAVAIR Instruction 3710.1C, and Defense Logistics Agency Manual 
8210.1);
* * * * *
    (i) * * *
    (1) Require that the aircraft be replaced or restored by the 
Contractor to the condition immediately prior to the damage, in 
which event the Contracting Officer will make an equitable 
adjustment in the contract price and the time for contract 
performance; or
    (2) Terminate this contract with respect to the aircraft, in 
which event the Contractor shall be paid the contract price for the 
aircraft (or, if applicable, any work to be performed on the 
aircraft) less any amount the Contracting Officer determines--
* * * * *
    (k) The Contractor agrees to be bound by the operating 
procedures contained in the combined regulation entitled 
``Contractor's Flight and Ground Operations'' in effect on the date 
of contract award.

(End of clause)

    66. Section 252.228-7002 is amended by revising the clause date to 
read ``(SEP 1996)''; and by revising section title, the introductory 
text of paragraph (c), and paragraph (e) to read as follows:


252.228-7002  Aircraft flight risk.

* * * * *
    (c) Unless the flight crew members previously have been approved 
in writing by the Government Flight Representative, who has been 
authorized in accordance with the combined regulation entitled 
``Contractor's Flight and Ground Operations'' (Air Force Regulation 
55-22, Army Regulation 95-20, NAVAIR Instruction 3710.1C, and 
Defense Logistics Agency Manual 8210.1), the Contractor shall not 
be--
* * * * *
    (e) The Contractor agrees to be bound by the operating 
procedures contained in the combined regulation entitled 
``Contractor's Flight and Found Operations'' in effect on the date 
of contract award.

(End of clause)


252.228-7006 and 252.228-7007  [Removed]

    67. Sections 252.228-7006 and 252.228-7007 are removed.
    68. Section 252.242-7004 is amended by revising the clause date to 
read ``(SEP 1996)''; by adding paragraph (a)(3); and by revising 
paragraphs (c)(2)(i), (c)(2)(ii), (f)(7)(i), and (f)(7)(ii), and 
paragraph (f)(7)(iii) introductory text to read as follows:


252.242-7004   Material management and accounting system.

* * * * *
    (a) * * *
    (3) ``Contractor'' means a business unit as defined in section 
31.001 of the Federal Acquisition Regulation (FAR).
* * * * *
    (c) * * *
    (2) * * *
    (i) $70 million or more; or
    (ii) $30 million or more (but less than $70 million), and is 
notified in writing by the Contracting Officer that paragraphs (d) 
and (e) apply.
    (f) * * *
    (7) * * *
    (i) The Contractor shall maintain and disclose written policies 
describing the transfer methodology and the loan/pay-back technique.
    (ii) The costing methodology may be standard or actual cost, or 
any of the inventory costing methods in 48 CFR 9904.411-50(b). 
Consistency shall be maintained across all contract and customer 
types, and from accounting period to accounting period for initial 
charging and transfer charging.
    (iii) The system should transfer parts and associated costs 
within the same billing period. In the few instances where this may 
not be appropriate, the Contractor may accomplish the material 
transaction using a loan/pay-back technique. The ``loan/pay-back 
technique'' means that the physical part is moved temporarily from 
the contract, but the cost of the part remains on the contract. The 
procedures for the loan/pay-back technique must be approved by the 
Administrative Contracting Officer. When the technique is used, the 
Contractor shall have controls to ensure--
* * * * *

PART 253--FORMS


253.204-70  [Amended]

    69. Section 253.204-70 is amended in paragraph (c)(4)(ix)(B)(9) by 
revising the reference ``FAR 6.302-3(a)(2)(i)'' to read ``FAR 6.302-
3(a)(2)''.


Appendix B to Chapter 2--[Amended]

    70. Appendix B to Chapter 2 is amended in Part 5 by revising in the 
title the phrase ``DEFENSE NUCLEAR

[[Page 50457]]

AGENCY'' to read ``DEFENSE SPECIAL WEAPONS AGENCY''; and by revising 
the abbreviation ``DNA'' to read ``DSWA'' both places it appears.


Appendix C to Chapter 2--[Removed and Reserved]

    71. Appendix C to Chapter 2 is removed and reserved.


Appendix G to Chapter 2--[Amended]

    72. Appendix G to Chapter 2 is amended in Part 1, Section G-101, 
paragraph (c), by removing the address ``**Defense Nuclear Agency, 
Chief, Contract Division, Defense Nuclear Agency, Washington, DC 20305-
1000'' and inserting in its place the address ``**Defense Special 
Weapons Agency, Director, Acquisition Management Directorate, Defense 
Special Weapons Agency, 6801 Telegraph Road, Alexandria, VA 22310-
3398''.
    73. Appendix G to Chapter 2 is amended in Part 2 by revising entry 
DASG60-CB to read as follows:

PART 2--ARMY ACTIVITY ADDRESS NUMBERS

* * * * *
DASG60-CB
    USA Space and Strategic Defense Command, Deputy Commander, ATTN: 
CSSD-CM, P.O. Box 1500, Huntsville, AL 35807-3801
* * * * *
    74. Appendix G to Chapter 2 is amended in Part 3 by removing entry 
N66032--LK and the address that follows; by revising the entries for 
activity address numbers N00022, N31149, N52855, N61463, N62472, 
N66022, N66972, N67596, and N68409; and by adding entries for activity 
address numbers N00038, N0610A, N39088, N43636, N48984, N53863, N55105, 
N55271, N57092, N66101, N68317, N68326, N68389, N68482, N68573, and 
N68939. The revised and added text reads as follows:

PART 3--NAVY ACTIVITY ADDRESS NUMBERS

* * * * *
N00022--ML*, MQ*, NV*, MLZ
    Chief of Naval Personnel, Washington, DC 20370-2000
* * * * *
N00038 (MAJ00011)--LB-5
    U.S. Commander-in-Chief, Pacific, HQ Support Division, Box 64017, 
Code J145, Camp H.N. Smith, HI 96861-4017
* * * * *
N0610A (MAJ00062)--L98
    Commanding Officer, Naval Diving and Salvage Training Center, 350 
South Crag Road, Panama City, FL 32407-7016
* * * * *
N31149 (MAJ00024)--EHA-B
    Naval Sea Logistics Center Detachment, Philadelphia Naval Base, 
Philadelphia, PA 19112-5061
* * * * *
N39088 (MAJ00022)--NVF
    Navy Recruiting Orientation Unit, 206 South Avenue, Suite C, 
Pensacola, FL 32508-5102
* * * * *
N43646 (MAJ00023)--4JB
    Defense Printing Service, Detachment Branch Office, 5403 Southside 
Drive, Louisville, KY 40214
* * * * *
N48984 (MAJ00023)--L5E
    Defense Printing Service, Detachment Office, 901 South Drive, Scott 
Air Force Base, IL 62225-5106
* * * * *
N52855--LZ
    Special Boat Unit 11, FPO AP 96601-4517
* * * * *
N53863 (MAJ00060)--LHH
    Commander, Surface Warfare Development Group, 2200 Amphibious 
Drive, Norfolk, VA 23521-2850
* * * * *
N55105 (MAJ00060)--NMC
    Amphibious Construction Batallion Two, 1815 Seabee Drive, Norfolk, 
VA 23701
* * * * *
N55271 (MAJ00070)--LP8
    Commander, Combat Logistics Group One (N716), Building 221-2W, NSC, 
Oakland, CA 94625-5309
* * * * *
N57092 (MAJ00070)--V5U
    Naval Inshore Undersea Warfare Group One, Building 184, Box 
357140NOLF, Imperial Beach, CA 92135-7140
* * * * *
N61463 (MAJ00060)--LHB-D, LH2-4
    Supply Officer, COMNAVBASE Supply, 1530 Gilbert Street, Suite 8, 
Norfolk, VA 23511-2793
* * * * *
N62472--JP
    Naval Facilities Engineering Command, Northern Division, 10 
Industrial Highway, Mail Stop # 82k Lester, PA 19113
* * * * *
N66022 (MAJ00018)--MDW
    Naval Dental Center, San Diego, CA 92136-5147
* * * * *
N66101 (MAJ00018)--J5B-D
    U.S. Naval Hospital ROTA, PSC 819, Box 18, FPO AE 09645-2500
* * * * *
N66972 (MAJ00022)--MQ2
    Commanding Officer, Navy Recruiting District, 8525 N.W. 53red 
Terrace, Suite 201, Miami, FL 33166
N67596 (MAJ00022)--NVD
    Commanding Officer, Navy Recruiting District, 10500 N. U.S. Highway 
281, Suite 108, San Antonio, TX 78216-3630
* * * * *
N68317 (MAJ00062)--R03
    Naval Administrative Unit, 1 Amsterdam Road, Scotia NY 12302-9460
* * * * *
N68326 (MAJ00018)--MDA
    Naval Dental Center, 2707 Sheridan Road, Bldg 73, Great Lakes, IL 
60088-5258
* * * * *
N68389 (MAJ00011)--LB4
    Commander, Joint Intelligence Center, Pacific/DSL, P.O. Box 500, 
Bldg 352, Makalapa Drive, Pearl Harbor, HI 96860-7450
* * * * *
N68409 (MAJ00018)--QAU
    Naval Dental Center, San Francisco, CA 94130-5030
* * * * *
N68482 (MAJ00022)
    Department of the Navy, BUPERS Det DAPMAL, Bldg 11, Naval Training 
Center, 32110 Perry Road, Suite 110, San Diego, CA 92133-1521
* * * * *
N68573 (MAJ00023)--4JM
    Navy Exchange Service Center, NAVABASE, Norfolk, Bldg CD-1, 9222 
Hamption Blvd, Norfolk, VA 23511-6390
* * * * *
N68939 (MAJ00012)--V8R
    Naval Information Systems Management Center, Washington Navy Yard, 
Bldg 176-4, Washington, DC 20374-5070
* * * * *
    75. Appendix G to Chapter 2 is amended by revising Part 9 to read 
as follows:

PART 9--DEFENSE SPECIAL WEAPONS AGENCY ACTIVITY ADDRESS NUMBERS

DSWA01--8Z
    Defense Special Weapons Agency, Headquarters, ATTN; Acquisition 
Management Directorate (AM), 6801 Telegraph Road, Alexandria, VA 22310-
3398 (ZD30)
DSWA02--0N
    Defense Special Weapons Agency, Field Command, ATTN: Acquisition 
Management Office (FCA), 1680 Texas Street, S.E., Kirtland AFB, NM 
87115-5669

[[Page 50458]]

(ZD31)

    76. Appendix G to Chapter 2 is amended in Part 10 by revising under 
entry ``MDA972--WS'' the abbreviation ``ARPA'' to ``DARPA''.


Appendix I to Chapter 2  [Amended]

    77. Appendix I to Chapter 2 is amended in section I-102, paragraphs 
(a) and (b), and in section I-103, paragraph (a), by revising the date 
``September 30, 1995'' to read ``September 30, 1996''.

[FR Doc. 96-24064 Filed 9-25-96; 8:45 am]
BILLING CODE 5000-04-M