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27646 Federal Register / Vol. 71, No.

92 / Friday, May 12, 2006 / Rules and Regulations

Executive Order 12866, dated DEPARTMENT OF DEFENSE material inspection and receiving
September 30, 1993. reports; and
Defense Acquisition Regulations • Delete text on preparation of quality
B. Regulatory Flexibility Act System assurance instructions, use of quality
DoD certifies that this final rule will inspection approval stamps, and
48 CFR Part 246 information on types of quality
not have a significant economic impact
evaluation data. Text on these subjects
on a substantial number of small entities [DFARS Case 2003–D027]
has been relocated to the new DFARS
within the meaning of the Regulatory
Defense Federal Acquisition companion resource, Procedures,
Flexibility Act, 5 U.S.C. 601, et seq., Guidance, and Information (PGI),
because the rule updates and Regulation Supplement; Quality
Assurance available at http://www.acq.osd.mil/
streamlines DFARS text, but makes no dpap/dars/pgi.
significant change to DoD policy for the AGENCY: Defense Acquisition DoD published a proposed rule at 70
acquisition of telecommunications Regulations System, Department of FR 29710 on May 24, 2005. DoD
services. Defense (DoD). received no comments on the proposed
C. Paperwork Reduction Act ACTION: Final rule. rule. Therefore, DoD has adopted the
proposed rule as a final rule without
The Paperwork Reduction Act does SUMMARY: DoD has issued a final rule change.
not apply, because the rule does not amending the Defense Federal This rule was not subject to Office of
impose any information collection Acquisition Regulation Supplement Management and Budget review under
requirements that require the approval (DFARS) to update text pertaining to Executive Order 12866, dated
Government contract quality assurance September 30, 1993.
of the Office of Management and Budget
requirements. This rule is a result of a
under 44 U.S.C. 3501, et seq. B. Regulatory Flexibility Act
transformation initiative undertaken by
List of Subjects in 48 CFR Part 239 DoD to dramatically change the purpose DoD certifies that this final rule will
and content of the DFARS. not have a significant economic impact
Government procurement. DATES: Effective Date: May 12, 2006. on a substantial number of small entities
within the meaning of the Regulatory
Michele P. Peterson, FOR FURTHER INFORMATION CONTACT: Ms.
Flexibility Act, 5 U.S.C. 601, et seq.,
Editor, Defense Acquisition Regulations Deborah Tronic, Defense Acquisition
because the rule updates and
System. Regulations System, OUSD (AT&L)
streamlines DFARS text, but makes no
DPAP (DARS), IMD 3C132, 3062
■Therefore, 48 CFR part 239 is significant change to DoD policy
Defense Pentagon, Washington, DC
amended as follows: regarding contract quality assurance
20301–3062. Telephone (703) 602–0289;
requirements.
facsimile (703) 602–0350. Please cite
PART 239—ACQUISITION OF DFARS Case 2003–D027. C. Paperwork Reduction Act
INFORMATION TECHNOLOGY
SUPPLEMENTARY INFORMATION: The Paperwork Reduction Act does
■ 1. The authority citation for 48 CFR A. Background not apply, because the rule does not
Part 239 continues to read as follows: impose any information collection
DFARS Transformation is a major requirements that require the approval
Authority: 41 U.S.C. 421 and 48 CFR DoD initiative to dramatically change of the Office of Management and Budget
Chapter 1. the purpose and content of the DFARS. under 44 U.S.C. 3501, et seq.
The objective is to improve the
■ 2. Section 239.7407 is added to read efficiency and effectiveness of the List of Subjects in 48 CFR Part 246
as follows: acquisition process, while allowing the Government procurement.
acquisition workforce the flexibility to
239.7407 Type of contract. Michele P. Peterson,
innovate. The transformed DFARS will
Editor, Defense Acquisition Regulations
When acquiring telecommunications contain only requirements of law, DoD-
System.
services, the contracting officer may use wide policies, delegations of FAR
a basic agreement (see FAR 16.702) in authorities, deviations from FAR ■Therefore, 48 CFR Part 246 is
requirements, and policies/procedures amended follows:
conjunction with communication
service authorizations. When using this that have a significant effect beyond the
PART 246—QUALITY ASSURANCE
method, follow the procedures at PGI internal operating procedures of DoD or
239.7407. a significant cost or administrative ■ 1. The authority citation for 48 CFR
impact on contractors or offerors. Part 246 continues to read as follows:
239.7407–1 and 239.7407–2 [Removed] Additional information on the DFARS Authority: 41 U.S.C. 421 and 48 CFR
Transformation initiative is available at Chapter 1.
■ 3. Sections 239.7407–1 and 239.7407– http://www.acq.osd.mil/dpap/dars/
2 are removed. dfars/transformation/index.htm. 246.101 [Removed]
[FR Doc. 06–4466 Filed 5–11–06; 8:45 am] This final rule is a result of the ■ 2. Section 246.101 is removed.
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DFARS Transformation initiative. The ■ 3. Section 246.102 is amended by
DFARS changes— revising paragraph (1) to read as follows:
• Update and clarify requirements for
Government contract quality assurance 246.102 Policy.
and use of warranties; * * * * *
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• Delete unnecessary definitions and (1) Develop and manage a systematic,


unnecessary text on technical cost-effective Government contract
requirements matters, responsibilities of quality assurance program to ensure that
contract administration offices, and contract performance conforms to

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Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Rules and Regulations 27647

specified requirements. Apply paragraph (c) of this subsection, the 246.601 General.
Government quality assurance to all quality assurance representative (QAR) See Appendix F, Material Inspection
contracts for services and products may believe that the assessment of and Receiving Report, for procedures
designed, developed, purchased, additional costs is warranted. If so, the and instructions for the use,
produced, stored, distributed, operated, representative shall recommend that the preparation, and distribution of—
maintained, or disposed of by contracting officer take the necessary
contractors. action and provide a recommendation (1) The Material Inspection and
as to the amount of additional costs. Receiving Report (DD Form 250 series);
* * * * *
Costs are based on the applicable and
■ 4. Section 246.103 is revised to read
Federal agency, foreign military sale, or (2) Supplier’s commercial shipping/
as follows:
public rate in effect at the time of the packing lists used to evidence
246.103 Contracting office delay, reinspection, or retest. Government contract quality assurance.
responsibilities. (b) If the contracting officer agrees 246.670 and 246.671 [Removed]
(1) The contracting office must with the QAR, the contracting officer
coordinate with the quality assurance shall— ■ 13. Sections 246.670 and 246.671 are
activity before changing any quality (1) Notify the contractor, in writing, of removed.
requirement. the determination to exercise the
(2) The activity responsible for 246.702 and 246.703 [Removed]
Government’s right under the clause at
technical requirements may prepare FAR 52.246–2, Inspection of Supplies— ■ 14. Sections 246.702 and 246.703 are
instructions covering the type and Fixed-Price; and removed.
extent of Government inspections for (2) Demand payment of the costs in
acquisitions that are complex, have accordance with the collection ■ 15. Sections 246.704 through 246.706
critical applications, or have unusual procedures contained in FAR Subpart are revised to read as follows:
requirements. Follow the procedures at 32.6. 246.704 Authority for use of warranties.
PGI 246.103(2) for preparation of (c) In making a determination to
instructions. (1) The chief of the contracting office
assess additional costs, the contracting
must approve use of a warranty, except
246.104 and 246.203 [Removed] officer shall consider—
in acquisitions for—
(1) The frequency of delays,
■ 5. Sections 246.104 and 246.203 are reinspection, or retest under both (i) Commercial items (see FAR
removed. current and prior contracts; 46.709);
■ 6. Section 246.406 is amended by (ii) Technical data, unless the
(2) The cause of such delay,
revising paragraph (2) to read as follows: reinspection, or retest; and warranty provides for extended liability
246.406 Foreign governments. (3) The expense of recovering the (see 246.708);
* * * * * additional costs. (iii) Supplies and services in fixed-
(2) International military sales (non- price type contracts containing quality
246.470–2 Quality evaluation data. assurance provisions that reference
NATO). Departments and agencies
shall— The contract administration office higher-level contract quality
(i) Perform quality assurance services shall establish a system for the requirements (see 246.202–4); or
on international military sales contracts collection, evaluation, and use of the (iv) Supplies and services in
or in accordance with existing types of quality evaluation data construction contracts when using the
agreements; specified in PGI 246.470–2. warranties that are contained in Federal,
(ii) Inform host or U.S. Government 246.470–3 through 246.470–5 [Removed] military, or construction guide
personnel and contractors on the use of specifications.
quality assurance publications; and ■ 10. Sections 246.470–3 through
(2) The chief of the contracting office
(iii) Delegate quality assurance to the 246.470–5 are removed.
shall approve the use of a warranty only
host government when satisfactory ■ 11. Section 246.472 is revised to read when the benefits are expected to
services are available. as follows: outweigh the cost.
* * * * * 246.472 Inspection stamping. 246.705 Limitations.
■ 7. Section 246.408–71 is amended by
(a) DoD quality inspection approval (a) In addition to the exceptions
revising paragraph (c) to read as follows:
marking designs (stamps) may be used provided in FAR 46.705(a), warranties
246.408–71 Aircraft. for both prime contracts and in the clause at 252.246–7001, Warranty
* * * * * subcontracts. Follow the procedures at of Data, may be used in cost-
(c) The CAO shall ensure that the PGI 246.472(a) for use of DoD inspection reimbursement contracts.
contractor possesses any required FAA stamps.
(b) Policies and procedures regarding 246.706 Warranty terms and conditions.
certificates prior to acceptance.
the use of National Aeronautics and (b)(5) Markings. For non-commercial
246.408–72 [Removed] Space Administration (NASA) quality items, use MIL–STD–129, Marking for
■ 8. Section 246.408–72 is removed. status stamps are contained in NASA Shipments and Storage, and MIL–STD–
publications. When requested by NASA 130, Identification Marking of U.S.
■ 9. Sections 246.470–1 and 246.470–2
centers, the DoD inspector shall use Military Property, when marking
are revised to read as follows:
NASA quality status stamps in warranty items.
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246.470–1 Assessment of additional costs. accordance with current NASA


requirements. ■ 16. Section 246.710 is amended by
(a) Under the clause at FAR 52.246– revising paragraph (1) to read as follows:
2, Inspection of Supplies—Fixed-Price, ■ 12. Section 246.601 is added to read
after considering the factors in as follows:

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27648 Federal Register / Vol. 71, No. 92 / Friday, May 12, 2006 / Rules and Regulations

(1) Use a clause substantially the same Rights in Technical Data and Computer warranty clauses prescribed in FAR Part
as the clause at 252.246–7001, Warranty Software, when there is a need for 46.
of Data, in solicitations and contracts greater protection or period of liability * * * * *
that include the clause at 252.227–7013, than provided by the inspection and [FR Doc. 06–4468 Filed 5–11–06; 8:45 am]
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