[Federal Register Volume 67, Number 146 (Tuesday, July 30, 2002)]
[Rules and Regulations]
[Pages 49254-49255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19083]


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DEPARTMENT OF DEFENSE

48 CFR Parts 215 and 253

[DFARS Case 2002-D012]


Defense Federal Acquisition Regulation Supplement; Weighted 
Guidelines Form

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to revise the information on 
DD Form 1547, Record of Weighted Guidelines Application. The revisions 
correspond to changes to DoD profit policy published in the Federal 
Register on April 26, 2002.

EFFECTIVE DATE: July 30, 2002.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra Haberlin, OUSD (AT&L) DP 
(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062. 
Telephone (703) 602-0289; facsimile (703) 602-0350. Please cite DFARS 
Case 2002-D012.

SUPPLEMENTARY INFORMATION:  

A. Background

    DoD published a final rule in the Federal Register on April 26, 
2002 (67 FR 20688), under DFARS Case 2000-D018. That rule amended 
policy for computation of profit objectives by reducing the value 
assigned to facilities capital employed for equipment, eliminating the 
values assigned to facilities capital employed for buildings, 
increasing the values for performance risk, and adding a special factor 
for cost efficiency.
    This final rule amends DD Form 1547, Record of Weighted Guidelines 
Application, and corresponding completion instructions, to reflect the 
changes to profit policy published on April 26, 2002.
    DD Form 1547, and other forms prescribed by the DFARS, are not 
included in the Code of Federal Regulations. The forms are available 
electronically via the Internet at http://web1.whs.osd.mil/icdhome/ddeforms.htm.
    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 rule will not have a significant cost or administrative impact 
on contractors or offerors, or a significant effect beyond the internal 
operating procedures of DoD. Therefore, publication for public comment 
is not required. However, DoD will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 5 
U.S.C. 610. Such comments should cite DFARS Case 2002-D012.

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 Parts 215 and 253

    Government procurement.

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

    Therefore, 48 CFR Parts 215 and 253 are amended as follows:
    1. The authority citation for 48 CFR Parts 215 and 253 continues to 
read as follows:

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

PART 215--CONTRACTING BY NEGOTIATION

    2. Section 215.404-71-2 is amended in paragraph (b) introductory 
text by revising the table to read as follows:

[[Page 49255]]

215.404-71-2  Performance risk.

* * * * *
    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                                     Assigned                                         Profit
         Item            Contractor risk factors     weighting    Assigned value  Base (item 20)     objective
----------------------------------------------------------------------------------------------------------------
21....................  Technical...............             (1)             (2)             N/A             N/A
22....................  Management/Cost Control.             (1)             (2)             N/A             N/A
23....................  Performance Risk                     N/A             (3)             (4)             (5)
                         (Composite).
----------------------------------------------------------------------------------------------------------------

* * * * *


215.404-71-3  [Amended]

    3. Section 215.404-71-3 is amended as follows:
    a. In paragraph (b) introductory text, in the table, by 
redesignating Items 25 and 26 as Items 24 and 25, respectively;
    b. In paragraph (c)(2) by removing ``(Block 26)'' and adding in its 
place ``(Block 25)''; and
    c. In paragraph (c)(5), in the second sentence, by removing ``Block 
26'' and adding in its place ``Block 25''.

    4. Section 215.404-71-4 is amended in paragraph (b) introductory 
text by revising the table to read as follows:


215.404-71-4  Facilities capital employed.

* * * * *
    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                  Contractor facilities capital                       Amount          Profit
             Item                           employed              Assigned value     employed        objective
----------------------------------------------------------------------------------------------------------------
26............................  Land............................             N/A             (2)             N/A
27............................  Buildings.......................             N/A             (2)             N/A
28............................  Equipment.......................             (1)             (2)             (3)
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* * * * *


215.404-71-5  [Amended]

    5. Section 215.404-71-5 is amended in paragraph (a), in the last 
sentence, by adding, before the period, ``(Block 29)''.


215.404-72  [Amended]

    6. Section 215.404-72 is amended as follows:
    a. In the heading of paragraph (b)(1), in the parenthetical, by 
removing ``Blocks 21-24'' and adding in its place ``Blocks 21-23''; and
    b. In the heading of paragraph (b)(2), in the parenthetical, by 
removing ``Block 25'' and adding in its place ``Block 24''.


215.407-4  [Amended]

    7. Section 215.407-4 is amended in paragraph (c)(1) by revising the 
second parenthetical to read ``(http://www.dcma.hq.dla.mil/)''.

PART 253--FORMS

    8. Section 253.215-70 is amended by revising paragraphs (c)(12) and 
(c)(15) to read as follows:


253.215-70  DD Form 1547, Record of Weighted Guidelines Application.

* * * * *
    (c) * * *
    (12) Block 12--use code. Enter the appropriate code for use of the 
weighted guidelines method--

------------------------------------------------------------------------
                         Description                              Code
------------------------------------------------------------------------
Standard weighted guidelines method (215.404-71-2(c)(1)).....          2
Alternate structured approach (215.404-73)...................          4
Modified weighted guidelines approach (215.404-72)...........          5
Technology incentive (215.404-71-2(c)(2))....................          6
------------------------------------------------------------------------

* * * * *
    (15) Block 30--total profit objective. Enter the total of Blocks 
23, 24, 25, 27, 28, and 29. This section is not required to be 
completed when using an alternate structured approach (215.404-73).
* * * * *

[FR Doc. 02-19083 Filed 7-29-02; 8:45 am]
BILLING CODE 5001-08-P