[Federal Register Volume 64, Number 100 (Tuesday, May 25, 1999)]
[Rules and Regulations]
[Pages 28109-28110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13039]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 232 and 237

[DFARS Case 99-D008]


Defense Federal Acquisition Regulation Supplement; Contracts 
Crossing Fiscal Years

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to permit contracting officers to enter into contracts for the 
procurement of severable services that cross fiscal years. The Federal 
Acquisition Regulation (FAR) authorizes the heads of executive agencies 
to enter into such contracts. This DFARS rule delegates the authority 
to DoD contracting officers.

EFFECTIVE DATE: May 25, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Haberlin, 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 99-D008.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule adds guidance at DFARS 232.703-3 and 237.106 to 
supplement the FAR rule that was published as Item VIII of Federal 
Acquisition Circular 97-09 on October 30, 1998 (63 FR 58600). The FAR 
rule implemented Section 801 of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85). Section 801 amended 10 U.S.C. 
2410a to provide authority to enter into contracts for the procurement 
of severable services that cross fiscal years. The FAR rule permits the 
head of an executive agency to enter into such contracts. This

[[Page 28110]]

DFARS rule delegates the authority to DoD contracting officers.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577 and publication for 
public comment is not required. However, comments from small entities 
concerning the affected DFARS subparts will be considered in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 99-D008.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
does not impose any information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 232 and 237

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

    Therefore, 48 CFR Parts 232 and 237 are amended as follows:
    1. The authority citation for 48 CFR Parts 232 and 237 continues to 
read as follows:

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

PART 232--CONTRACT FINANCING

    2. Section 232.703-3 is added to read as follows:


232.703-3  Contracts crossing fiscal years.

    (b) The contracting officer may enter into a contract, exercise an 
option, or place an order under a contract for severable services for a 
period that begins in one fiscal year and ends in the next fiscal year 
if the period of the contract awarded, option exercised, or order 
placed does not exceed 1 year (10 U.S.C. 2410a).

PART 237--SERVICE CONTRACTING

    3. Section 237.106 is revised to read as follows:


237.106  Funding and term of service contracts.

    (1) Personal service contracts for expert or consultant services 
shall not exceed 1 year. The nature of the duties must be--
    (i) Temporary (not more than 1 year); or
    (ii) Intermittent (not cumulatively more than 130 days in 1 year).
    (2) The contracting officer may enter into a contract, exercise an 
option, or place an order under a contract for severable services for a 
period that begins in one fiscal year and ends in the next fiscal year 
if the period of the contract awarded, option exercised, or order 
placed does not exceed 1 year (10 U.S.C. 2410a).

[FR Doc. 99-13039 Filed 5-24-99; 8:45 am]
BILLING CODE 5000-04-M