[Federal Register Volume 70, Number 118 (Tuesday, June 21, 2005)]
[Proposed Rules]
[Pages 35606-35607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12097]



48 CFR Part 242

[DFARS Case 2003-D050]

Defense Federal Acquisition Regulation Supplement; Contractor 
Insurance/Pension Reviews

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update text on Government review of 
contractor insurance programs, pension plans, and other deferred 
compensation plans. This proposed rule is a result of a transformation 
initiative undertaken by DoD to dramatically change the purpose and 
content of the DFARS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 22, 2005, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2003-D050, 
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-D050 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Ms. 
Amy Williams, 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 
    All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.


A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
    This proposed rule is a result of the DFARS Transformation 
initiative. The proposed DFARS changes--
     Update and clarify requirements and responsibilities for 
Government review of a contractor's insurance programs, pension plans, 
and other deferred compensation plans; and
     Delete text addressing procedural matters relating to 
these reviews. This text will be relocated to the new DFARS companion 
resource, Procedures, Guidance, and Information (PGI), available at 
    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 Flexibility Act, 5 U.S.C. 601, et seq., because contractor 
insurance/pension review requirements apply primarily to large business 
concerns. 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-D050.

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 242

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR Part 242 as follows:


    1. The authority citation for 48 CFR Part 242 continues to read as 

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

242.7300  [Removed]

    2. Section 242.7300 is removed.
    3. Sections 242.7301 through 242.7303 are revised to read as 

242.7301  General.

    (a) The administrative contracting officer (ACO) is responsible for 
determining the allowability of insurance/pension costs in Government 
contracts and for determining the need for a Contractor/Insurance 
Pension Review (CIPR). Defense Contract Management Agency (DCMA)

[[Page 35607]]

insurance/pension specialists and Defense Contract Audit Agency (DCAA) 
auditors assist ACOs in making these determinations, conduct CIPRs when 
needed, and perform other routine audits as authorized under FAR 42.705 
and 52.215-2. A CIPR is a DCMA/DCAA joint review that--
    (1) Provides an in-depth evaluation of a contractor's--
    (i) Insurance programs;
    (ii) Pension plans;
    (iii) Other deferred compensation plans; and
    (iv) Related policies, procedures, practices, and costs; or
    (2) Concentrates on specific areas of the contractor's insurance 
programs, pension plans, or other deferred compensation plans.
    (b) DCMA is the DoD Executive Agency for the performance of all 
    (c) DCAA is the DoD agency designated for the performance of 
contract audit responsibilities related to Cost Accounting Standards 
administration as described in FAR Subparts 30.2 and 30.6 as they 
relate to a contractor's insurance program, pension plans, and other 
deferred compensation plans.

242.7302  Requirements.

    Follow the procedures at PGI 242.7302 to determine if a CIPR is 

242.7303  Responsibilities.

    Follow the procedures at PGI 242.7303 when conducting a CIPR.

[FR Doc. 05-12097 Filed 6-20-05; 8:45 am]