DFARS Changes: Subcontracting Test Program Extended The Defense Department has extended its subcontracting test program for an additional five years, through 2010, as required by Congress. The test program allows 15 large prime contractors to negotiate annual company-wide or division-wide small business subcontracting plans, rather than submitting a separate plan for each contract. Although the program is 12 years old, the Government Accountability Office reported last year that DOD has is not determined whether it is achieving its goals and has established no metrics to find out. (SAA, 5/14/04) It was intended to provide more small business opportunities and reduce the administrative burden for prime contractors. The final rule is DFARS Case 2004-D029. Other changes in the Defense Federal Acquisition Regulation Supplement: DFARS Case 2004-D021: DOD has issued an interim rule to implement Section 804 of the 2005 Defense Authorization Act, limiting the award of contracts for the performance of acquisition functions closely associated with inherently governmental DFARS Case 2004-D032: DOD has issued a final rule to implement Section 324 of the 2005 Defense Authorization Act, allowing the military to use contract security guards for an additional year, through fiscal 2006. Contractors may be hired to meet the increased need for security since September 11, 2001. DFARS Case 2003-D030: DOD has issued a final rule to update text pertaining to major systems acquisition, earned value management systems, and cost/schedule status reporting. Several other proposed rules are a result of the Defense Department’s initiative to update and transform the DFARS: DFARS Case 2003-D071: proposed rule to remove procedures for breaking out components of end items for future acquisitions. These procedures will be relocated to the new DFARS guidance document. DFARS Case 2003-D077: proposed rule to update text pertaining to contracting by negotiation. DFARS Case 2003-D024: proposed rule to update text pertaining to contract modifications. DFARS Case 2003-D008: proposed rule to update text pertaining to the acquisition of supplies and services from foreign sources. DFARS Case 2004-D034: proposed rule to remove text addressing restrictions on the acquisition of totally enclosed lifeboat survival systems. Comments on the proposed rules are due May 23 and may be sent to dfars@osd.mil