II. Discussion and Analysis

The following paragraphs address the four categories of comments and DoD responses:

1.  DD 1921-2, Progress Curve Report

Comment: A respondent noted that DD Form 1921-2 Progress Curve Report, required to be submitted by offerors, in accordance with paragraph (a)(3) of DFARS 252.234-70XX in the proposed rule, is designed to collect unit/lot cost data and is, therefore, not applicable to contracts that do not procure units or lots. The respondent recommended revising the solicitation requirements.

Response: DoD agrees that the DD 1921-2 is not required to be submitted with the contractor's pricing proposal and has revised DFARS provision 252.234-7003 in the final rule accordingly.

2.  The DD 1921-3, Contractor Business Data Report

a.  Basis for Reporting

Comment: A respondent noted that paragraph (a)(3) of DFARS 252.234-70YY in the proposed rule directs ``the Contractor (to) use DD Form 1921-3, Contractor Business Data Report, as the basis for reporting in accordance with the required CSDR data item descriptions (DIDs)." DD Form 1921-3, Contractor Business Data Report, is not a basis for reporting, but is a report to be prepared and submitted by the contractor in accordance with DID DI-FNCL-81765A. The respondent suggested removing the reference to DD Form 1921-3.

Response: DoD agrees and deleted the requirement for DD Form 1921-

3,  Contractor Business Data Report, from clause 252.234-7004 in the final rule.

b.  Exempt Below $50 Million

Comment: One respondent asked if a subcontractor is exempt from reporting if it incurs less than $50 million on a program, or if the reporting requirements apply to all levels of subcontractors regardless of level of participation in the program.

Response: DoD revised the solicitation provision and contract clause to clarify applicability to subcontracts.

c.  Specific Guidance Is Necessary

Comment: One respondent had numerous questions concerning the completion of DD Form 1921-3.

Response: Questions relating to DD Form 1921-3 preparation guidance are outside the scope of this rule and should be referred directly to the Defense Cost and Resource Center. References to DD Form 1921-3 have been removed from this final rule.

3.  Solicitation Provision and Contract Clause Prescriptions

Comment: A respondent noted that ``Paragraphs (a) and (b) of 234.7101, Solicitation provision and contract clause, appear to be intended to distinguish between solicitation instructions and contract requirements, as well as Contractor Cost Data Reporting (CCDR) thresholds (> $50M) versus Software Resources Data Reporting (SRDR) thresholds (> $20M)." Accordingly, the respondent suggested revising the paragraphs to clarify the distinctions.

Response: DoD agrees and has revised the cited paragraphs accordingly.

4.  Contractor Cost and Data Reporting Application

Comment: One respondent asked whether cost allocations are going to be considered valid contract costs and if this supersedes FAR 31.201.

The respondent also asked what allowance is provided for contractors with accounting software that does not accommodate the additional data fields necessary to map the offeror's accounting system to the CCDR data item descriptions.

Response: DoD notes that the 5000 series regulations express a strong preference for actual cost data. However, the use of cost allocations is not prohibited; clause 252.234-7003 asks for actual cost data to be used "to the maximum extent possible" (emphasis added). On the second point, DoD notes that the required mapping does not necessitate unique software applications. DoD expects its contractors to use standard and readily available electronic software applications such as electronic spreadsheets (e.g., MS-Excel[supreg]) or word processing formats (e.g., MS-Word[supreg]).