[Federal Register Volume 69, Number 56 (Tuesday, March 23, 2004)]
[Rules and Regulations]
[Pages 13478-13479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-6237]


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

DEPARTMENT OF DEFENSE

48 CFR Part 217

[DFARS Case 2002-D041]


Defense Federal Acquisition Regulation Supplement; Multiyear 
Contracting Authority Revisions

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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

SUMMARY: DoD has adopted as final, without change, an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement section 820 of the National Defense Authorization Act for 
Fiscal Year 2003. Section 820 restricts the use of multiyear contracts 
for supplies to only those for complete and usable end items, and 
restricts the use of advance procurement to only those long-lead items 
necessary in order

[[Page 13479]]

to meet a planned delivery schedule for complete major end items.

EFFECTIVE DATE: March 23, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. Teresa Brooks, Defense Acquisition 
Regulations Council, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; 
facsimile (703) 602-0350. Please cite DFARS Case 2002-D041.

SUPPLEMENTARY INFORMATION: 

A. Background

    DoD published an interim rule at 68 FR 50474 on August 21, 2003. 
The rule amended DFARS Subpart 217.1 to implement Section 820 of the 
National Defense Authorization Act for Fiscal Year 2003 (Pub. L. 107-
314). Section 820 amended the multiyear contracting authority at 10 
U.S.C. 2306b(i) to specify that DoD may obligate funds for procurement 
of an end item under a multiyear contract only if the item is a 
complete and usable end item; and that DoD may obligate funds for 
advance procurement of property only for those long-lead items 
necessary to meet a planned delivery schedule for complete major end 
items that are programmed under the contract to be acquired with funds 
appropriated for a subsequent fiscal year (including an economic order 
quantity of such long-lead items when authorized by law).
    DoD received no comments on the interim rule. Therefore, DoD is 
adopting the interim rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

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 the rule primarily pertains to DoD planning and budget 
considerations with regard to multiyear contracts.

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 217

    Government procurement.

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

Interim Rule Adopted as Final Without Change

0
Accordingly, the interim rule amending 48 CFR part 217, which was 
published at 68 FR 50474 on August 21, 2003, is adopted as a final rule 
without change.

[FR Doc. 04-6237 Filed 3-22-04; 8:45 am]
BILLING CODE 5001-08-P