[Federal Register Volume 62, Number 41 (Monday, March 3, 1997)]
[Rules and Regulations]
[Pages 9375-9376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5143]


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DEPARTMENT OF DEFENSE

48 CFR Part 239

[DFARS Case 96-D011]


Defense Federal Acquisition Regulation Supplement; Automatic Data 
Processing Equipment Leasing Costs

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to remove references to an obsolete Federal Acquisition Regulation 
(FAR) cost principle pertaining to automatic data processing equipment 
(ADPE) leasing costs, and to remove corresponding contractor 
documentation and Government oversight requirements.

DATES: Effective date: March 3, 1997.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before May 2, 1997, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Sandra G. Haberlin, 
PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 96-
D011 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Sandra G. Haberlin, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim DFARS rule supplements the interim FAR rule published 
as Item I of Federal Acquisition Circular 90-44 on December 31, 1996 
(61 FR 79287). The FAR rule deleted the cost principle at FAR 31.205-2, 
Automatic Data Processing Equipment Leasing Costs. The cost principle 
was incorporated into the FAR when ADPE was an emerging technology, had 
limited applications, and was a substantial cost element on Government 
contracts. In the current technological environment, however, where 
ADPE hardware costs are no longer such a significant expense and 
computer systems have become ubiquitous in the workplace, the detailed 
scrutiny previously required under FAR 31.205-2 is no longer considered 
necessary.
    This interim DFARS rule removes references to FAR 31.205-2, and 
removes corresponding contractor documentation and Government oversight 
requirements in Subpart 239.73, Acquisition of Automatic Data 
Processing Equipment by DoD contractors.

B. Regulatory Flexibility Act

    This interim rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because most 
contracts awarded to small entities use simplified acquisition 
procedures or are awarded on a competitive, fixed-price basis, and do 
not require application of the FAR or DFARS cost principles. Therefore, 
an initial regulatory flexibility analysis has not been performed. 
Comments are invited from small businesses and other interested 
parties. Comments from small entities concerning the affected DFARS 
subpart also will be considered in accordance with 5 U.S.C. 610. Such 
comments should be submitted separately and should cite DFARS Case 96-
D011 in correspondence.

C. Paperwork Reduction Act

    This rule reduces, by 106,006 hours, the information collection 
requirements previously approved by the Office of Management and Budget 
under Clearance Number 0704-0341.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
This action is necessary because the cost principle, Automatic Data 
Processing Equipment Leasing Costs, was deleted from the FAR on 
December 31, 1996. It is necessary that a DFARS rule be published 
expeditiously to remove references to the obsolete cost principle, and 
to remove corresponding contractor documentation and Government 
oversight requirements. However, comments received in response to the 
publication of this interim rule will be considered in formulating the 
final rule.

[[Page 9376]]

List of Subjects in 48 CFR Part 239

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

    Therefore, 48 CFR Part 239 is amended as follows:
    1. The authority citation for 48 CFR Part 239 continues to read as 
follows:

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

PART 239--ACQUISITION OF INFORMATION TECHNOLOGY

    2. The title of Part 239 is revised to read as set forth above.
    3. Section 239.7300 is revised to read as follows:


239.7300  Scope of subpart.

    This subpart prescribes approval requirements for automatic data 
processing equipment (ADPE) purchased by contractors for use in 
performing DoD contracts.
    4. Section 239.7301 is amended by revising paragraph (a) to read as 
follows:


239.7301  Applicability.

    (a) This subpart applies when the contractor purchases ADPE and 
title will pass to the Government.
* * * * *
    5. Section 239.7302 is amended by revising the introductory text of 
paragraph (b) and paragraph (b)(1) to read as follows:


239.7302  Approvals and screening.

* * * * *
    (b) If the contractor proposes acquiring ADPE subject to 239.7301, 
and the unit acquisition cost is $50,000 or more--
    (1) The contracting officer shall require the contractor to submit, 
through the administrative contracting officer, the documentation in 
239.7303.
* * * * *
    6. Section 239.7303 is revised to read as follows:


239.7303  Contractor documentation.

    Contracting officers may tailor the documentation requirements in 
paragraphs (a) through (d) of this section.
    (a) List of existing ADPE and an analysis of its use. (1) List of 
each component identified by manufacturer, type, model number, 
location, date of installation, and how acquired (lease, purchase, 
Government-furnished). Identify those acquired specifically to perform 
a Government contract.
    (2) Reliability and usage data on each component for the past 12 
months.
    (3) Identification of users supported by each component, including 
how much time each user requires the component and the related contract 
or task involved.
    (b) List of new ADPE needed and reasons why it is needed. (1) 
Estimates of the new equipment's useful life.
    (2) List of tasks the new equipment is needed for and why, 
including estimated monthly usage for each major task or project.
    (3) Anticipated software and telecommunications requirements.
    (c) Selection of computer equipment. (1) If the acquisition is 
competitive--
    (i) List sources solicited and proposals received;
    (ii) Show how the evaluation was performed; and
    (iii) Provide an explanation if the selected offer is not the 
lowest evaluated offer.
    (2) If the acquisition is not competitive, state why.
    (d) Cost. State the ADPE cost.


239.7304, 239.7305, and Table 39-1  [Removed]

    7. Sections 239.7304 and 239.7305 and Table 39-1 are removed.

[FR Doc. 97-5143 Filed 2-28-97; 8:45 am]
BILLING CODE 5000-04-M