[Federal Register Volume 69, Number 180 (Friday, September 17, 2004)]
[Rules and Regulations]
[Pages 55991-55992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21018]


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DEPARTMENT OF DEFENSE

48 CFR Part 237

[DFARS Case 2003-D103]


Defense Federal Acquisition Regulation Supplement; Personal 
Services Contracts

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement Sections 721 and 
841 of the National Defense Authorization Act for Fiscal Year 2004. 
Section 721 provides permanent authority for DoD to enter into personal 
services contracts for health care at locations outside of DoD medical 
treatment facilities. Section 841 adds authority for DoD to enter into 
contracts for personal services that are to be performed outside the 
United States or that directly support the mission of a DoD 
intelligence or counter-intelligence organization or the special 
operations command.

DATES: Effective date: September 17, 2004.
    Comment date: Comments on the interim rule should be submitted to 
the address shown below on or before November 16, 2004, to be 
considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2003-D103, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Defense Acquisition Regulations Web site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for 
submitting comments.
     E-mail: [email protected]. Include DFARS Case 2003-D103 in the 
subject line of the message.
     Fax: Primary: (703) 602-7887; Alternate: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Ms. 
Teresa Brooks, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Teresa Brooks, (703) 602-0326.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule amends DFARS Subpart 237.1 to implement Sections 
721 and 841 of the National Defense Authorization Act for Fiscal Year 
2004 (Pub. L. 108-136).
    Section 721 amends 10 U.S.C. 1091(a)(2) to provide permanent 
authority for DoD to enter into personal services contracts for health 
care at locations outside of DoD medical treatment facilities (such as 
military entrance processing stations). The law previously provided for 
this authority to expire on December 31, 2003.
    Section 841 amends 10 U.S.C. 129b to add authority for DoD to enter 
into contracts for personal services that (1) are to be provided by 
individuals outside the United States to support DoD activities and 
programs outside the United States; (2) directly support the mission of 
a DoD intelligence or counter-intelligence organization; or (3) 
directly support the mission of the DoD special operations command. 
This authority applies if the services to be procured are urgent or 
unique and would not be practical to obtain by other means.
    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 does not expect this rule to have a significant economic impact 
on a substantial number of small entities within the meaning of the 
Regulatory

[[Page 55992]]

Flexibility Act, 5 U.S.C. 601, et seq., because application of the rule 
is limited to personal services contracts for (1) health care at 
locations outside of DoD medical treatment facilities, or (2) urgent or 
unique services that are to be performed outside the United States, or 
are in direct support of intelligence missions, when it would not be 
practical for DoD to obtain these services by other means. 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 subpart in accordance with 5 U.S.C. 610. Such comments 
should be submitted separately and should cite DFARS Case 2003-D103.

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.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements Sections 721 and 841 of the National 
Defense Authorization Act for Fiscal Year 2004 (Pub. L. 108-136). 
Section 721 provides permanent authority for DoD to enter into personal 
services contracts for health care at locations outside of DoD medical 
treatment facilities. Section 841 adds authority for DoD to enter into 
contracts for urgent or unique personal services that (1) are to be 
provided by individuals outside the United States to support DoD 
activities and programs outside the United States; (2) directly support 
the mission of a DoD intelligence or counter-intelligence organization; 
or (3) directly support the mission of the DoD special operations 
command. Sections 721 and 841 became effective upon enactment on 
November 24, 2003. Comments received in response to this interim rule 
will be considered in the formation of the final rule.

List of Subjects in 48 CFR Part 237

    Government procurement.

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


0
Therefore, 48 CFR part 237 is amended as follows:

0
1. The authority citation for 48 CFR part 237 continues to read as 
follows:

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

PART 237--SERVICE CONTRACTING

0
2. Section 237.104 is amended as follows:
0
a. In paragraph (b)(i) introductory text, in the first sentence, by 
removing ``Public Law 101-165, section 9002'' and adding in its place 
``10 U.S.C. 129b'';
0
b. In paragraph (b)(ii)(A)(1) by removing ``and'';
0
c. By redesignating paragraph (b)(ii)(A)(2) as paragraph (b)(ii)(A)(3);
0
d. By adding a new paragraph (b)(ii)(A)(2);
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e. By revising paragraph (b)(ii)(C); and
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f. By adding paragraphs (b)(iii) and (b)(iv) to read as follows:


237.104  Personal services contracts.

    (b) * * *
    (ii) * * *
    (A) * * *
    (2) Health care services at locations outside of medical treatment 
facilities (such as the provision of medical screening examinations at 
military entrance processing stations); and
* * * * *
    (C) Approval requirements for--
    (1) Direct health care personal services contracts (see paragraphs 
(b)(ii)(A)(1) and (2) of this section) and a pay cap are in DoDI 
6025.5, Personal Services Contracts for Health Care Providers.
    (i) A request to enter into a personal services contract for direct 
health care services must be approved by the commander of the medical/
dental treatment facility where the services will be performed.
    (ii) A request to enter into a personal services contract for a 
location outside of a medical treatment facility must be approved by 
the chief of the medical facility who is responsible for the area in 
which the services will be performed.
    (2) Services of clinical counselors, family advocacy program staff, 
and victim's services representatives (see paragraph (b)(ii)(A)(3) of 
this section), shall be in accordance with agency procedures.
* * * * *
    (iii) (A) In accordance with 10 U.S.C. 129b(d), an agency may enter 
into a personal services contract if--
    (1) The personal services--
    (i) Are to be provided by individuals outside the United States, 
regardless of their nationality;
    (ii) Directly support the mission of a defense intelligence 
component or counter-intelligence organization of DoD; or
    (iii) Directly support the mission of the special operations 
command of DoD; and
    (2) The head of the contracting activity provides written approval 
for the proposed contract. The approval shall include a determination 
that addresses the following:
    (i) The services to be procured are urgent or unique;
    (ii) It would not be practical to obtain such services by other 
means; and
    (iii) For acquisition of services in accordance with paragraph 
(b)(iii)(A)(1)(i) of this section, the services to be acquired are 
necessary and appropriate for supporting DoD activities and programs 
outside the United States.
    (B) The contracting officer shall ensure that the applicable 
requirements of paragraph (b)(iii)(A)(2) of this section have been 
satisfied and shall include the approval documentation in the contract 
file.
    (iv) The requirements of 5 U.S.C. 3109, Employment of Experts and 
Consultants; Temporary or Intermittent, do not apply to contracts 
entered into in accordance with paragraph (b)(iii) of this section.
* * * * *

[FR Doc. 04-21018 Filed 9-16-04; 8:45 am]
BILLING CODE 5001-08-P