[Federal Register Volume 71, Number 132 (Tuesday, July 11, 2006)]
[Rules and Regulations]
[Pages 39010-39011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10851]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 239 and 252

[DFARS Case 2003-D068]


Defense Federal Acquisition Regulation Supplement; Acquisition of 
Information Technology

AGENCY: Defense Acquisition Regulations System, 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 update text on the 
acquisition of information technology. This rule is a result of a 
transformation initiative undertaken by DoD to dramatically change the 
purpose and content of the DFARS.

EFFECTIVE DATE: July 11, 2006.

FOR FURTHER INFORMATION CONTACT: Mr. Bill Sain, Defense Acquisition 
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0293; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D068.

SUPPLEMENTARY INFORMATION:

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 
http://www.acq.osd.mil/dpap/dars/dfars/transformation/index.htm htm.
    This final rule is a result of the DFARS Transformation initiative. 
The DFARS changes--
    [cir] Remove text that is obsolete or unnecessary;
    [cir] Clarify text addressing charges for special construction or 
assembly related to telecommunications services;
    [cir] Clarify the text of clauses used in basic agreements for 
telecommunications services; and
    [cir] Remove text addressing the acquisition of telecommunications 
services from foreign carriers and examples of instances where 
additional information may be necessary to determine price 
reasonableness. Text on these subjects has been relocated to the DFARS 
companion resource, Procedures, Guidance, and Information (PGI), 
available at http://www.acq.osd.mil/dpap/dars/pgi dpap/dars/pgi.
    DoD published a proposed rule at 70 FR 54698 on September 16, 2005. 
DoD received no comments on the proposed rule. DoD has adopted the 
proposed rule as a final rule, with an additional change at DFARS 
239.7406(c) to add a reference to PGI text containing examples of 
instances where additional information may be necessary to determine 
price reasonableness.
    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 updates and clarifies DFARS text, but makes no 
significant change to DoD policy for the acquisition of information 
technology.

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 239 and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR parts 239 and 252 are amended as follows:

[[Page 39011]]

0
1. The authority citation for 48 CFR parts 239 and 252 continues to 
read as follows:

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

PART 239--ACQUISITION OF INFORMATION TECHNOLOGY


239.7200  [Removed]

0
2. Section 239.7200 is removed.

0
3. Section 239.7201 is added to read as follows:


239.7201  Solicitation requirements.

    Contracting officers shall ensure that all applicable Federal 
Information Processing Standards are incorporated into solicitations.


239.7202  [Removed]

0
4. Section 239.7202 is removed.

0
5. Section 239.7400 is amended by revising the second sentence to read 
as follows:


239.7400  Scope.

    * * * Telecommunications services meet the definition of 
information technology.

0
6. Section 239.7402 is amended by revising paragraph (a) and adding 
paragraph (c) to read as follows:


239.7402  Policy.

    (a) Acquisition. DoD policy is to acquire telecommunications 
services from common and noncommon telecommunications carriers--
    (1) On a competitive basis, except when acquisition using other 
than full and open competition is justified;
    (2) Recognizing the regulations, practices, and decisions of the 
Federal Communications Commission (FCC) and other governmental 
regulatory bodies on rates, cost principles, and accounting practices; 
and
    (3) Making provision in telecommunications services contracts for 
adoption of--
    (i) FCC approved practices; or
    (ii) The generally accepted practices of the industry on those 
issues concerning common carrier services where--
    (A) The governmental regulatory body has not expressed itself;
    (B) The governmental regulatory body has declined jurisdiction; or
    (C) There is no governmental regulatory body to decide.
* * * * *
    (c) Foreign carriers. For information on contracting with foreign 
carriers, see PGI 239.7402(c).


239.7403  and 239.7404 [Removed and Reserved]

0
7. Sections 239.7403 and 239.7404 are removed and reserved.

0
8. Section 239.7406 is amended by revising paragraph (c) to read as 
follows:


239.7406  Cost or pricing data and information other than cost or 
pricing data.

* * * * *
    (c) Contracting officers shall obtain sufficient information to 
determine that the prices are reasonable in accordance with FAR 15.403-
3 or 15.403-4. See PGI 239.7406 for examples of instances where 
additional information may be necessary to determine price 
reasonableness.

0
9. Section 239.7408-1 is amended in paragraph (e) by revising the last 
sentence to read as follows:


239.7408-1  General.

* * * * *
    (e) * * * The contracting officer must approve special construction 
charges before final payment.

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10. Section 239.7408-2 is amended by revising paragraph (a) to read as 
follows:


239.7408-2  Applicability of construction labor standards for special 
construction.

    (a) The construction labor standards in FAR Subpart 22.4 ordinarily 
do not apply to special construction. However, if the special 
construction includes construction, alteration, or repair (as defined 
in FAR 22.401) of a public building or public work, the construction 
labor standards may apply. Determine applicability under FAR 22.402.
* * * * *

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11. Section 239.7409 is amended in paragraph (b) by revising the second 
sentence to read as follows:


239.7409  Special assembly.

* * * * *
    (b) * * * The contracting officer should negotiate special assembly 
rates and charges before starting service. * * *

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12. Section 239.7411 is amended by revising paragraph (d) to read as 
follows:


239.7411  Contract clauses.

* * * * *
    (d) Use the clause at 252.239-7016, Telecommunications Security 
Equipment, Devices, Techniques, and Services, in solicitations and 
contracts when performance of a contract requires secure 
telecommunications.

Subpart 239.75 [Removed]

0
13. Subpart 239.75 is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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14. Section 252.239-7013 is revised to read as follows:


252.239-7013  Obligation of the Government.

    As prescribed in 239.7411(c), use the following clause:

OBLIGATION OF THE GOVERNMENT (JUL 2006)

    (a) This basic agreement is not a contract. The Government 
incurs no monetary liability under this agreement.
    (b) The Government incurs liability only upon issuance of a 
communication service authorization, which is the contract and 
incorporates the terms of this agreement.


(End of clause)

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15. Section 252.239-7015 is revised to read as follows:


252.239-7015  Continuation of communication service authorizations.

    As prescribed in 239.7411(c), use the following clause:

CONTINUATION OF COMMUNICATION SERVICE AUTHORIZATIONS (JUL 2006)

    (a) All communication service authorizations issued by------
incorporating Basic Agreement Number ------, dated ------, are 
modified to incorporate this basic agreement.
    (b) Communication service authorizations currently in effect 
which were issued by the activity in paragraph (a) of this clause 
incorporating other agreements with the Contractor may also be 
modified to incorporate this agreement.
    (c) This basic agreement is not a contract.


(End of clause)

 [FR Doc. E6-10851 Filed 7-10-06; 8:45 am]
BILLING CODE 5001-08-P