June 11 2004 Copyright 2004 Business Research Services Inc. 202-364-6473 All rights reserved.

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Bigger Set-Asides for Architects, Engineers

The Defense Department will set aside architect-engineer contracts up to $300,000 for small businesses under an interim rule effective June 8.

The previous limit for set-asides was $85,000.

The amendment to the Defense Federal Acquisition Regulation Supplement implements a provision of the 2004 Defense Authorization Act. It applies to military construction and family housing projects.

Comments on the interim rule may be submitted by August 9. The rule is DFARS Case 2003-D105.

Other changes and proposed changes in DFARS announced in the June 8 Federal Register:

•DOD has issued a final rule providing for the award of a follow-on production contract, without competition, to participants in an “other transaction” agreement for a prototype project, if the agreement was entered into through use of competitive procedures, provided for at least one-third non-Federal cost share, and meets certain other conditions of law.

•DOD has issued a final rule to eliminate requirements for contract administration offices to perform production surveillance on contractors that have only Criticality Designator C (low-urgency) contracts. The department said this change will permit contract administration offices to devote more resources to critical and high-risk contracts.

•DOD has issued an interim rule providing that a contractor is not required to furnish written assurance that technical data delivered to the government is complete and accurate and satisfies the requirements of the contract. This implements Section 844 of 2004 Defense Authorization Act. The department said, “This change reduces paperwork for contractors, but does not diminish the contractor’s obligation to provide technical data that is complete and adequate, and that complies with contract requirements.”

The interim rule is DFARS Case 2003-D104. Comments are due by Aug. 9.

•A proposed rule would update text pertaining to the acquisition of commercial items. This is part of the department’s initiative to streamline the DFARS. The proposal is DFARS Case 2003-D074. Comments are due by Aug. 9.

•Also as part of the DFARS transformation, DOD has issued a proposed rule to clarify requirements for reporting of contract performance outside the United States. The rule is DFARS Case 2004-D001. Comments are due by Aug. 9.

Comments may be submitted to www.regulations.gov.


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