October 17 2003 Copyright 2003 Business Research Services Inc. 202-364-6473 All rights reserved.

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New Fiscal Year, New Procurement Rules

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council released final versions of several interim procurement rules that took effect at the beginning of the new fiscal year Oct. 1.

In addition, the Defense Department issued an interim rule that requires the department to buy services only through performance-based contracts, as required by the 2002 National Defense Authorization Act.

The rule is DFARS Case 2002-D024. Comments are due Dec. 1.

The councils issued a final rule requiring all contractors to register with the Defense Department’s Central Contractor Registration. The rule requires agencies to modify existing contracts that extend beyond Dec. 31 to require contractors to register in the CCR.

Contractors must obtain a DUNS number from Dun and Bradstreet Inc. in order to register.

Also made final was the rule allowing simplified procurement procedures for purchases of products or services used to defend or recover from terrorism or nuclear, biological, chemical or radiological attack. The rule temporarily increases the micro-purchase threshold up to $7,500 and allows the use of streamlined procedures for purchases up to $250,000.

Another final rule requires contractors to notify agency contracting officers if the government overpays an invoice or a contract financing agreement. The rule will go into effect Oct. 31.

The council also issued an “advance notice of rulemaking” asking for comments on share-in-savings contracts. The E-Government Act passed by Congress last year authorized the use of those contracts for IT acquisitions through 2005.

Share-in-savings requires a contractor to finance improvements up front, then receive a portion of the money saved by the government.

The notice is FAR case 2003-008. Comments are due Oct. 31.


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