[Federal Register Volume 66, Number 176 (Tuesday, September 11, 2001)]
[Proposed Rules]
[Page 47159]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22428]


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DEPARTMENT OF DEFENSE

48 CFR Part 244

[DFARS Case 2000-D028]


Defense Federal Acquisition Regulation Supplement; Subcontract 
Commerciality Determinations

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to clarify the responsibilities of 
contractors and administrative contracting officers regarding 
determinations as to whether a subcontract item meets the definition of 
``commercial item'' specified in the Federal Acquisition Regulation 
(FAR).

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before November 13, 2001, to be 
considered in the information of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide 
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an 
alternative, respondents may e-mail comments to: [email protected]. 
Please cite DFARS Case 2000-D028 in the subject line of 3-mailed 
comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulation Council, 
Attn: Mr. Rick Layser, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. Please 
cite DFARS Case 2000-D028.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Mr. Rick Layser, (703) 602-0293.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes amendments to the DFARS to specify that--
    (1) The contractor will determine whether a particular subcontract 
item meets the definition of ``commercial item''; and
    (2) When conducting a contractor purchasing system review, the 
administrative contracting officer will review the adequacy of 
rationale documenting commercial item determinations to ensure 
compliance with the definition of ``commercial item'' in FAR 2.101.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The proposed 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 the rule 
merely clarifies responsibilities regarding commercial item 
determinations for subcontracts. Therefore, DoD has not performed an 
initial regulatory flexibility analysis. DoD invites comments from 
small businesses and other interested parties. DoD also will consider 
comments from small entities concerning the affected DFARS subparts in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2000-D028.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 Part 244

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR part 244 as follows:
    1. The authority citation for 48 CFR part 244 continues to read as 
follows:

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

PART 244--SUBCONTRACTING POLICIES AND PROCEDURES

    2. Section 244.303 is added to read as follows:


244.303  Extent of review.

    Also review the adequacy of rationale documenting commercial item 
determinations to ensure compliance with the definition of ``commercial 
item'' in FAR 2.101.
    3. Section 244.402 is added to read as follows:


244.402  Policy requirements.

    (a) Contractors must determine whether a particular subcontract 
item meets the definition of a commercial item (but see FAR 15.403-
1(c)(3)). Contractors are expected to exercise reasonable business 
judgment in making such determinations, consistent with the guidelines 
for conducting market research in FAR part 10.

[FR Doc. 01-22428 Filed 9-10-01; 8:45 am]
BILLING CODE 5000-04-M