Commercial Determination Approval (DFARS Case 2011-D041)

Summary:

DCN 20120312 includes a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to require higher-level approval for commercial item determinations for acquisitions exceeding $1 million when the determination is based on "of a type" or "offered for sale" language contained in the definition of commercial item. The rule also clarifies approval requirements for determinations for acquisitions of services exceeding $1 million using part 12 procedures but which do not meet the definition of commercial item.

Supplementary Information:

I.  Background

DoD is revising the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a recommendation made by the Panel on Contracting Integrity and included in its 2009 Report to Congress concerning compliance with the DFARS documentation requirements for commercial item determinations. The Panel on Contracting Integrity working group concluded, after reviewing a sampling of commercial contract awards, that contracting officer determinations are not always sufficiently documented in accordance with DFARS 212.102.

DoD is issuing a final rule because this rule does not have a significant effect beyond the internal operating procedures of DoD and does not have a significant cost or administrative impact on contractors or offerors. This rule addresses DoD's internal approval process for contracting officer determinations made pursuant to DFARS part 12 for actions in excess of $1 million.

Dates:

The Effective Date for this final rule is 12 March 2012.

Click here to read the entire Federal Register notice for this rule.