[Federal Register Volume 75, Number 112 (Friday, June 11, 2010)]
[Proposed Rules]
[Page 33237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14120]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 242
Defense Federal Acquisition Regulation Supplement; Contractor
Insurance/Pension Review (DFARS Case 2009-D025)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: DoD proposes to remove and relocate the requirements for
conducting a Contractor Insurance/Pension Review from Procedures,
Guidance, and Information to the Defense Acquisition Regulation
Supplement.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before August 10, 2010, to be considered
in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2009-D025,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: [email protected]. Include DFARS Case 2009-D025 in the subject
line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms. Mary
Overstreet, OUSD(AT&L)DPAP(DARS), 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.
SUPPLEMENTARY INFORMATION:
A. Background
As part of a DFARS Transformation effort, Defense Acquisition
Regulation Supplement (DFARS) Case 2003-D050, published at 71 FR 9273,
February 23, 2006, moved requirements for Contractor Insurance/Pension
Review (CIPR) from DFARS 242.7302 to Procedures, Guidance, and
Information (PGI) 242.7302. This DFARS case proposes to move
requirements for CIPR back to the DFARS from the PGI. The threshold and
requirements for conducting a CIPR are DoD-wide policy that has a
significant effect beyond the internal operating procedures of DoD.
Since conduct of a CIPR impacts industry, as contractors are required
to provide documentation to support the reviews, the requirements for
CIPR should be located in the DFARS.
B. Regulatory Flexibility Act
DoD does not expect this proposed 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. The
proposed rule merely relocates the requirements for CIPR from the PGI
to the DFARS. Therefore, an Initial Regulatory Flexibility Analysis has
not been performed. DoD invites comments from small business concerns
and other interested parties on the expected impact of this rule on
small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D025) in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 96-511) applies because
information collection requirements in the proposed rule at DFARS
subpart 242.73 are currently approved under Office of Management and
Budget Control Number 0704-0250. Relocating the requirement has no
impact on the information collection requirement.
List of Subjects in 48 CFR Part 242
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR part 242 as follows:
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
1. The authority citation for 48 CFR part 242 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
2. Revise section 242.7302 to read as follows:
242.7302 Requirements.
(a)(1) An in-depth CIPR as described at DFARS 242.7301(a)(1) shall
be conducted only when--
(i) A contractor has $50 million of qualifying sales to the
Government during the contractor's preceding fiscal year; and
(ii) The ACO, with advice from DCMA insurance/pension specialists
and DCAA auditors, determines a CIPR is needed based on a risk
assessment of the contractor's past experience and current
vulnerability.
(2) Qualifying sales are sales for which cost or pricing data were
required under 10 U.S.C. 2306a, as implemented in FAR 15.403, or that
are contracts priced on other than a firm-fixed-price or fixed-price
with economic price adjustment basis. Sales include prime contracts,
subcontracts, and modifications to such contracts and subcontracts.
(b) A special CIPR that concentrates on specific areas of a
contractor's insurance programs, pension plans, or other deferred
compensation plans shall be performed for a contractor (including, but
not limited to, a contractor meeting the requirements in paragraph (a)
of this section) when any of the following circumstances exists, but
only if the circumstance(s) may result in a material impact on
Government contract costs:
(1) Information reveals a deficiency in the contractor's insurance/
pension program.
(2) The contractor proposes or implements changes in its insurance,
pension, or deferred compensation plans.
(3) The contractor is involved in a merger, acquisition, or
divestiture.
(4) The Government needs to follow up on contractor implementation
of prior CIPR recommendations.
(c) The DCAA auditor shall use relevant findings and
recommendations of previously performed CIPRs in determining the scope
of any audits of insurance and pension costs.
(d) When a Government organization believes that a review of the
contractor's insurance/pension program should be performed, that
organization should provide a recommendation for a review to the ACO.
If the ACO concurs, the review should be performed as part of an ACO-
initiated special CIPR or as part of a CIPR already scheduled for the
near future.
[FR Doc. 2010-14120 Filed 6-10-10; 8:45 am]
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