[Federal Register Volume 64, Number 57 (Thursday, March 25, 1999)]
[Rules and Regulations]
[Pages 14398-14399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7136]


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DEPARTMENT OF DEFENSE

48 CFR Parts 211 and 252

[DFARS Case 97-D014]


Defense Federal Acquisition Regulation Supplement; Single Process 
Initiative

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to facilitate the use of management and manufacturing processes that 
DoD has accepted under the Single Process Initiative (SPI). SPI 
provides for industry submission and DoD review of alternatives to 
military and Federal specifications and standards.

EFFECTIVE DATE: March 25, 1999.

FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, Defense Acquisition 
Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax 
(703) 602-0350. Please cite DFARS Case 97-D014.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule amends DFARS 211.273-2, 211.273-3, and 252.211-7005 to 
finalize the interim rule that was published in the Federal Register on 
August 20, 1997 (62 FR 44223), with a request for comments. Four 
sources submitted comments on the interim rule. All comments were 
considered in the development of the final rule.
    The final rule differs from the interim rule in that it clarifies 
that an SPI management council includes contractor representation in 
addition to DoD representation; provides that, before offers are due, 
offerors may obtain verification that an SPI process is acceptable for 
a particular procurement; provides an Internet site where accepted SPI 
processes are listed; and clarifies documentation requirements for 
offerors proposing to the use SPI processes.

B. Regulatory Flexibility Act

    DoD certifies that this final rule 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 industry participation in the DoD Single Process Initiative is 
voluntary. Approximately 310 contractors are involved in the 
initiative. It is estimated that 10 percent of those contractors are 
small businesses.

C. Paperwork Reduction Act

    The Office of Management and Budget has approved the information 
collection requirements associated with this rule under OMB Control 
Number 0704-0398, for use through January 31, 2001.

[[Page 14399]]

List of Subjects in 48 CFR Parts 211 and 252

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

    Therefore, 48 CFR Parts 211 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 211 and 252 continues to 
read as follows:

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

PART 211--DESCRIBING AGENCY NEEDS

    2. Section 211.273-2 is amended by revising paragraph (b) to read 
as follows:


211.273-2  Policy.

* * * * *
    (b) DoD acceptance of an SPI process follows the decision of a 
Management Council, which includes representatives of the contractor, 
the Defense Contract Management Command, the Defense Contract Audit 
Agency, and the military departments.
* * * * *
    3. Section 211.273-3 is revised to read as follows:


211.273-3  Procedures.

    (a) Solicitations for previously developed items shall encourage 
offerors to identify SPI processes for use in lieu of military or 
Federal specifications and standards cited in the solicitation. Use of 
the clause at 252.211-7005 satisfies this requirement.
    (b) Contracting officers shall ensure that--
    (1) Concurrence of the requiring activity is obtained for any 
proposed substitutions prior to contract award;
    (2) Any necessary additional information regarding the SPI process 
identified in the proposal is obtained from the cognizant 
administrative contracting officer; and
    (3) In competitive procurements, prospective offerors are provided 
the opportunity to obtain verification that an SPI process is an 
acceptable replacement for a military or Federal specification or 
standard for the particular procurement prior to the date specified for 
receipt of offers.
    (c) Any determination that an SPI process is not acceptable for a 
specific procurement shall be made prior to contract award at the head 
of the contracting activity or program executive officer level. This 
authority may not be delegated.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.211-7005 is revised to read as follows:


252.211-7005  Substitutions for military or Federal specifications and 
standards

    As prescribed in 211.273-4, use the following clause:

SUBSTITUTIONS FOR MILITARY OR FEDERAL SPECIFICATIONS AND STANDARDS (MAR 
1999)

    (a) Definition. ``SPI process,'' as used in this clause, means a 
management or manufacturing process that has been accepted 
previously by the Department of Defense under the Single Process 
Initiative (SPI) for use in lieu of a specific military or Federal 
specification or standard at specific facilities. Under SPI, these 
processes are reviewed and accepted by a Management Council, which 
includes representatives of the Contractor, the Defense Contract 
Management Command, the Defense Contract Audit Agency, and the 
military departments.
    (b) Offerors are encouraged to propose SPI processes in lieu of 
military or Federal specifications and standards cited in the 
solicitation. A listing of SPI processes accepted at specific 
facilities is available via the Internet in PDF format at http://
www.dcmc.hq.dla.mil/spi/dbreport/modified.pdf and in Excel format at 
http://www.dcmc.hg.dla.mil/spi/dbreport/modified.xls.
    (c) An offeror proposing to use an SPI process in lieu of 
military or Federal specifications or standards cited in the 
solicitation shall--
    (1) Identify the specific military or Federal specification or 
standard for which the SPI process has been accepted;
    (2) Identify each facility at which the offeror proposes to use 
the specific SPI process in lieu of military or Federal 
specifications or standards cited in the solicitation;
    (3) Identify the contract line items, subline items, components, 
or elements affected by the SPI process; and
    (4) If the proposed SPI process has been accepted at the 
facility at which it is proposed for use, but is not yet listed at 
the Internet site specified in paragraph (b) of this clause, submit 
documentation of Department of Defense acceptance of the SPI 
process.
    (d) Absent a determination that an SPI process is not acceptable 
for this procurement, the Contract shall use the following SPI 
processes in lieu of military or Federal specifications or 
standards:

(Offeror insert information for each SPI process)

SPI Process:-----------------------------------------------------------

Facility:--------------------------------------------------------------

Military or Federal Specification or Standard:-------------------------

Affected Contract Line Item Number, Subline Item Number, Component, or 
Element:---------------------------------------------------------------

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    (e) If a prospective offeror wishes to obtain, prior to the time 
specified for receipt of offers, verification that an SPI process is 
an acceptable replacement for military or Federal specifications or 
standards required by the solicitation, the prospective offeror--
    (1) May submit the information required by paragraph (d) of this 
clause to the Contracting Officer prior to submission of an offer; 
but
    (2) Must submit the information to the Contracting Officer at 
least 10 working days prior to the date specified for receipt of 
offers.

(End of clause)

[FR Doc. 99-7136 Filed 3-24-99; 8:45 am]
BILLING CODE 5000-04-M