DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20050222

This is the new DFAR change notice form the DPAP office.

DoD published the following changes and proposed changes to the DFARS on February 22, 2005 :

Interim Rule :

Provision of Information to Cooperative Agreement Holders (DFARS Case 2004-D025)

Increases, from $500,000 to $1,000,000, the threshold at which DoD contracts must include a requirement for the contractor to provide to cooperative agreement holders, upon their request, a list of the contractor's employees who are responsible for entering into subcontracts. Amends the prescription for use of the clause at DFARS 252.205-7000, Provision of Information to Cooperative Agreement Holders, to reflect the new dollar threshold. This change implements Section 816 of the National Defense Authorization Act for Fiscal Year 2005.

Affected subparts/sections: 205.4


Final Rules :

Government Source Inspection Requirements (DFARS Case 2002-D032)

Eliminates Government source inspection requirements for contracts or delivery orders valued below $250,000, unless mandated by DoD regulation, required by a memorandum of agreement between the acquiring department or agency and the contract administration agency, or determined necessary by the contracting officer because of the technical nature and criticality of the item being acquired. The objective is to focus diminishing contract management resources on high-risk areas, while providing flexibility for exceptions where needed.

Affected subparts/sections: Part 246 Table of Contents; 246.4

Resolving Tax Problems (DFARS Case 2003-D032)

Relocates text to the new DFARS companion resource, Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi. The relocated text contains guidance on resolution of tax issues and information on tax relief agreements between the United States and foreign governments.

Affected subparts/sections: 229.1; PGI 229.1


Bonds (DFARS Case 2003-D033)

Updates DFARS text on the use of bonds for financial protection against losses under DoD contracts. The change clarifies that fidelity and forgery bonds are authorized for use when necessary for protection of the Government or the contractor or when the investigative and claims services of a surety company are desired.

Affected subparts/sections: 228.1



Technical Amendment :

Corrects typographical errors in the headings of DFARS sections 209.270-3 and 209.270-4.

Affected subparts/sections: 209.2

Proposed Rules :

Acquisition of Ball and Roller Bearings (DFARS Case 2003-D021)

Proposed change improves the clarity of domestic source restrictions on the acquisition of ball and roller bearings by addressing only the exceptions, waivers, and waiver authority available to the contracting officer under current law; and by making the restrictions inapplicable to bearings that are commercial components of non-commercial end items or components.


Specialized Service Contracting (DFARS Case 2003-D041)

Proposed change relocates to PGI, procedures for defining the geographic area to be covered by mortuary services contracts, and procedures for distribution of those contracts; deletes a contract clause containing facility requirements for mortuary services, as these requirements are adequately addressed in State law; and deletes unnecessarily restrictive text on contracting for laundry and dry cleaning services.



Advisory and Assistance Services (DFARS Case 2003-D042)

Proposed change deletes a definition of advisory and assistance services that is used primarily for budgeting and reporting purposes and is adequately addressed in financial management regulations; deletes obsolete text on contracting for engineering and technical services and requesting activity responsibilities; and relocates to PGI, a list of DoD publications that govern the conduct of audits.


Acquisition of Telecommunications Services (DFARS Case 2003-D055)

Proposed change revises DFARS text on the acquisition of telecommunications services to update terminology, delete obsolete text, and add text addressing DoD's authority to enter into contracts for telecommunications resources. Adds to PGI, historical documents on delegated authority from the General Services Administration for the procurement of communications services.

Acquisition of Utility Services (DFARS Case 2003-D069)

Proposed change deletes DFARS text on the use of competitive procedures and delegated authority to acquire utility services, as these issues are adequately addressed in the FAR; deletes obsolete text on preaward contract reviews; and relocates to PGI, procedures and corresponding definitions related to connection charges and award of separate contracts for utility services.


Utility Rates Established by Regulatory Bodies (DFARS Case 2003-D096)

Proposed change clarifies that utility rates established by independent regulatory bodies may be relied upon as fair and reasonable; and clarifies requirements for use of contract clauses addressing changes in rates for regulated and unregulated utility services.


These changes are available at the Defense Procurement and Acquisition Policy DFARs page.