Defense Federal Acquisition Regulation Supplement; Conforming Changes-Standards of Conduct and Extraordinary Contractual Actions (DFARS Case 2008-D004), 46814-46816 [E8-18504]

Download as PDF 46814 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations 219.7103–1 [Amended] I–107 5. Section 219.7103–1 is amended in the second sentence by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I 219.7103–2 [Amended] DEPARTMENT OF DEFENSE 11. Appendix I to chapter 2 is amended in section I–107, in paragraph (j) in the second sentence, by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I [Amended] 6. Section 219.7103–2 is amended in paragraphs (d)(1), (e)(3), and (f) by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I I–108 [Amended] Defense Acquisition Regulations System 48 CFR Parts 203, 250, and 252 RIN 0750–AG01 12. Appendix I to chapter 2 is amended in section I–108, in paragraphs (c), (e), and (f), by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. Defense Federal Acquisition Regulation Supplement; Conforming Changes—Standards of Conduct and Extraordinary Contractual Actions (DFARS Case 2008–D004) I–109 AGENCY: I PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES [Amended] 13. Appendix I to chapter 2 is amended in section I–109, in paragraph (c) in the second sentence, and in paragraph (d) in the first and second sentences, by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I 7. Section 252.219–7004 is amended by revising the clause date and paragraph (c)(1) to read as follows: I Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. Appendix I to Chapter 2—Policy and Procedures for the DOD Pilot MentorProtege Program 15. Appendix I to chapter 2 is amended in section I–111, in paragraph (a), by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update text addressing contractor standards of conduct and the handling of extraordinary contractual actions. The DFARS changes are consistent with changes made to the Federal Acquisition Regulation. DATES: Effective Date: August 12, 2008. FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301–3062. Telephone 703–602–0328; facsimile 703–602–7887. Please cite DFARS Case 2008–D004. SUPPLEMENTARY INFORMATION: I–102 I–112.2 A. Background 252.219–7004 Small Business Subcontracting Plan (Test Program). * * * * * I–110.2 SMALL BUSINESS SUBCONTRACTING PLAN (TEST PROGRAM) (AUG 2008) * * * * * * * * * I–111 [Amended] I [Amended] 8. Appendix I to chapter 2 is amended in section I–102 as follows: I a. In paragraph (a)(1) by removing ‘‘Small and Disadvantaged Business Utilization (SADBU)’’ and adding in its place ‘‘Small Business Programs (SBP)’’; and I b. In paragraph (f)(3) by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I I–103 14. Appendix I to chapter 2 is amended in section I–110.2, in paragraph (a) introductory text, in paragraph (b) introductory text in the second sentence, and in paragraph (c), by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I (c) * * * (1) One copy of the SF 295 and attachments shall be submitted to Director, Small Business Programs, Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics), 201 12th Street South, Suite 406, Arlington, VA 22202; and * [Amended] [Amended] [Amended] 16. Appendix I to chapter 2 is amended in section I–112.2 as follows: I a. In paragraph (d) by removing ‘‘http://www.acq.osd.mil/sadbu/ mentor_protege’’ and adding in its place ‘‘http://www.acq.osd.mil/osbp/ mentor_protege/’’; and I b. In paragraphs (g)(1) and (2) by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. I I I–113 I–105 17. Appendix I to chapter 2 is amended in section I–113, in paragraph (b), by removing ‘‘http:// www.acq.osd.mil/sadbu/ mentor_protege’’ and adding in its place ‘‘http://www.acq.osd.mil/osbp/ mentor_protege/.’’ 9. Appendix I to chapter 2 is amended in section I–103, in paragraph (b)(3), by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’. [Amended] 10. Appendix I to chapter 2 is amended in section I–105 as follows: I a. In paragraph (a), in the first sentence, by removing ‘‘SADBU’’ and adding in its place ‘‘SBP’’; and I b. In paragraph (c) by removing ‘‘http://www.acq.osd.mil/sadbu/ mentor_protege’’ and adding in its place ‘‘http://www.acq.osd.mil/osbp/ mentor_protege/’’. ebenthall on PRODPC60 with RULES I VerDate Aug<31>2005 13:51 Aug 11, 2008 Jkt 214001 [Amended] I [FR Doc. E8–18508 Filed 8–11–08; 8:45 am] BILLING CODE 5001–08–P PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 This final rule updates DFARS text for consistency with changes made to the Federal Acquisition Regulation (FAR) as follows: Æ Removes DFARS Subpart 203.70, Contractor Standards of Conduct, and the corresponding contract clause at 252.203–7002, since policy on this subject was added to the FAR at 72 FR 65873 on November 23, 2007. Æ Adds DFARS 203.1004 to provide address information for use in completion of the clause at FAR 52.203– 14, Display of Hotline Poster(s). Æ Revises DFARS Part 250 for consistency with the structure of FAR Part 50, as revised at 72 FR 63027 on November 7, 2007. The DFARS changes update headings, numbering, and crossreferences, and reflect the dollar threshold currently specified in the FAR with regard to delegation of authority for approval of extraordinary contractual actions. This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. E:\FR\FM\12AUR1.SGM 12AUR1 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations B. Regulatory Flexibility Act This rule will not have a significant cost or administrative impact on contractors or offerors, or a significant effect beyond the internal operating procedures of DoD. Therefore, publication for public comment under 41 U.S.C. 418b is not required. However, DoD will consider comments from small entities concerning the affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 2008-D004. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply, because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. List of Subjects in 48 CFR Parts 203, 250, and 252 250.101 General. 250.101–2 Policy. 250.101–2–70 Limitations on payment. 250.101–3 Records. 250.102 Delegation of and limitations on exercise of authority. 250.102–1 Delegation of authority. 250.102–1–70 Delegations. 250.102–2 Contract adjustment boards. 250.103 Contract adjustments. 250.103–3 Contract adjustment. 250.103–5 Processing cases. 250.103–6 Disposition. 250.104 Residual powers. 250.104–3 Special procedures for unusually hazardous or nuclear risks. 250.104–3–70 Indemnification under contracts involving both research and development and other work. Authority: 41 U.S.C. 421 and 48 CFR Chapter 1. Subpart 250.1—Extraordinary Contractual Actions 250.100 Government procurement. Michele P. Peterson, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR parts 203, 250, and 252 are amended as follows: I 1. The authority citation for 48 CFR parts 203, 250, and 252 continues to read as follows: I Definitions. Secretarial level, as used in this subpart, means— (1) An official at or above the level of an Assistant Secretary (or Deputy) of Defense or of the Army, Navy, or Air Force; and (2) A contract adjustment board established by the Secretary concerned. 250.101 General. Authority: 41 U.S.C. 421 and 48 CFR Chapter 1. 250.101–2 Policy. PART 203—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST See 10 U.S.C. 2410(b) for limitations on Congressionally directed payment of a request for equitable adjustment to contract terms or a request for relief under Public Law 85–804. 250.101–2–70 2. Subpart 203.10 is added to read as follows: I 250.101–3 Limitations on payment. Records. Subpart 203.10—Contractor Code of Business Ethics and Conduct Follow the procedures at PGI 250.101–3 for preparation of records. 203.1004 250.102 Delegation of and limitations on exercise of authority. Contract clauses. (b)(2)(ii) Insert the following address in paragraph (b)(3) of the clause at FAR 52.203–14, Display of Hotline Poster(s): DoD Inspector General, ATTN: Defense Hotline, 400 Army Navy Drive, Washington, DC 22202–2884. Subpart 203.70 [Removed] 3. Subpart 203.70 is removed. 4. Part 250 is revised to read as follows: I I ebenthall on PRODPC60 with RULES PART 250—EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT Subpart 250.1—Extraordinary Contractual Actions Sec. 250.100 13:51 Aug 11, 2008 Delegation of authority. (b) Authority under FAR 50.104 to approve actions obligating $55,000 or less may not be delegated below the level of the head of the contracting activity. (d) In accordance with the acquisition authority of the Under Secretary of Defense (Acquisition, Technology, and Logistics (USD (AT&L)) under 10 U.S.C. 133, in addition to the Secretary of Defense and the Secretaries of the military departments, the USD (AT&L) may exercise authority to indemnify against unusually hazardous or nuclear risks. 250.102–1–70 Delegations. (a) Military departments. The Departments of the Army, Navy, and Air Definitions. VerDate Aug<31>2005 250.102–1 Jkt 214001 PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 46815 Force will specify delegations and levels of authority for actions under the Act and the Executive Order in departmental supplements or agency acquisition guidance. (b) Defense agencies. Subject to the restrictions on delegations of authority in 250.102–1(b) and FAR 50.102–1, the directors of the defense agencies may exercise and redelegate the authority contained in the Act and the Executive Order. The agency supplements or agency acquisition guidance shall specify the delegations and levels of authority. (1) Requests to obligate the Government in excess of $55,000 must be submitted to the USD (AT&L) for approval. (2) Requests for indemnification against unusually hazardous or nuclear risks must be submitted to the USD(AT&L) for approval before using the indemnification clause at FAR 52.250–1, Indemnification Under Public Law 85–804. (c) Approvals. The Secretary of the military department or the agency director must approve any delegations in writing. 250.102–2 Contract adjustment boards. The Departments of the Army, Navy, and Air Force each have a contract adjustment board. The board consists of a Chair and not less than two nor more than six other members, one of whom may be designated the Vice-Chair. A majority constitutes a quorum for any purpose and the concurring vote of a majority of the total board membership constitutes an action of the board. Alternates may be appointed to act in the absence of any member. 250.103 Contract adjustments. 250.103–3 Contract adjustment. (a) Contractor requests should be filed with the procuring contracting officer (PCO). However, if filing with the PCO is impractical, requests may be filed with an authorized representative, an administrative contracting officer, or the Office of General Counsel of the applicable department or agency, for forwarding to the cognizant PCO. 250.103–5 Processing cases. (1) At the time the request is filed, the activity shall prepare the record described at PGI 250.101–3(1)(i) and forward it to the appropriate official within 30 days after the close of the month in which the record is prepared. (2) The officer or official responsible for the case shall forward to the contract adjustment board, through departmental channels, the documentation described at PGI 250.103–5. E:\FR\FM\12AUR1.SGM 12AUR1 46816 Federal Register / Vol. 73, No. 156 / Tuesday, August 12, 2008 / Rules and Regulations (3) Contract adjustment boards will render decisions as expeditiously as practicable. The Chair shall sign a memorandum of decision disposing of the case. The decision shall be dated and shall contain the information required by FAR 50.103–6. The memorandum of decision shall not contain any information classified ‘‘Confidential’’ or higher. The board’s decision will be sent to the appropriate official for implementation. 250.103–6 Disposition. For requests denied or approved below the Secretarial level, follow the disposition procedures at PGI 250.103– 6. 250.104 Residual powers. 250.104–3 Special procedures for unusually hazardous or nuclear risks. 250.104–3–70 Indemnification under contracts involving both research and development and other work. When indemnification is to be provided on contracts requiring both research and development work and other work, the contracting officer shall insert an appropriate clause using the authority of both 10 U.S.C. 2354 and Public Law 85–804. (a) The use of Public Law 85–804 is limited to work which cannot be indemnified under 10 U.S.C. 2354 and is subject to compliance with FAR 50.104. (b) Indemnification under 10 U.S.C. 2354 is covered by 235.070. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.203–7002 I [Removed] 5. Section 252.203–7002 is removed. Interim rule with request for comments. ACTION: DoD has issued an interim rule amending the Defense Federal Acquisition Regulation Supplement to implement Section 827 of the National Defense Authorization Act for Fiscal Year 2008. Section 827 requires the use of competitive procedures in the acquisition of items for which Federal Prison Industries has a significant market share. DATES: Effective date: August 12, 2008. Comment date: Comments on the interim rule should be submitted in writing to the address shown below on or before October 14, 2008, to be considered in the formation of the final rule. ADDRESSES: You may submit comments, identified by DFARS Case 2008–D015, using any of the following methods: Æ Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Æ E-mail: dfars@osd.mil. Include DFARS Case 2008–D015 in the subject line of the message. Æ Fax: 703–602–7887. Æ Mail: Defense Acquisition Regulations System, Attn: Mr. Michael Benavides, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301–3062. Æ Hand Delivery/Courier: Defense Acquisition Regulations System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202–3402. Comments received generally will be posted without change to http:// www.regulations.gov, including any personal information provided. FOR FURTHER INFORMATION CONTACT: Mr. Michael Benavides, 703–602–1302. SUPPLEMENTARY INFORMATION: A. Background BILLING CODE 5001–08–P Section 827 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110–181) amended 10 U.S.C. 2410n to require the use of competitive procedures in the acquisition of items for which Federal Prison Industries (FPI) has a significant market share. Section 827 provides that FPI shall be treated as having a significant share of the market for a product if DoD, in consultation with the Office of Federal Procurement Policy, determines that the FPI share of the DoD market for the category of products including that product is greater than 5 percent. DoD has determined that FPI presently has a significant market share of the items in the following Federal Supply Classes (FSC). DoD will update the following list as necessary. Defense Acquisition Regulations System 48 CFR Part 208 ebenthall on PRODPC60 with RULES RIN 0750–AG03 Defense Federal Acquisition Regulation Supplement; Competition Requirements for Purchases From Federal Prison Industries (DFARS Case 2008–D015) Defense Acquisition Regulations System, Department of Defense (DoD). AGENCY: VerDate Aug<31>2005 13:51 Aug 11, 2008 Jkt 214001 3510 SUMMARY: [FR Doc. E8–18504 Filed 8–11–08; 8:45 am] DEPARTMENT OF DEFENSE FSC PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 5340 5935 5975 5995 6145 7110 7210 Description Laundry and Dry Cleaning Equipment. Miscellaneous Hardware. Connectors, Electrical. Electrical Hardware and Supplies. Cable, cord, wire assemblies; communications equipment. Wire and cable, Electrical. Office Furniture. Household Furnishings. This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. B. Regulatory Flexibility Act DoD has prepared an initial regulatory flexibility analysis consistent with 5 U.S.C. 603. A copy of the analysis may be obtained from the point of contact specified herein. The analysis is summarized as follows: The objective of the rule is to provide for competition in the acquisition of items for which FPI has a significant market share. The legal basis for the rule is 10 U.S.C. 2410n, as amended by Section 827 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110–181). The rule is expected to benefit small business concerns that offer items for which FPI has a significant market share, by permitting those concerns to compete for additional DoD contract awards. The rule also could adversely impact small business concerns that provide supplies and services to FPI relative to the affected items. The rule deviates from the policy in Subpart 8.6 of the Federal Acquisition Regulation with regard to the acquisition of items from FPI. This alternate DoD policy is necessary to implement Section 827 of Public Law 110–181. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subpart in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2008–D015. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply, because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, et seq. D. Determination To Issue an Interim Rule A determination has been made under the authority of the Secretary of Defense, that urgent and compelling reasons exist to publish an interim rule E:\FR\FM\12AUR1.SGM 12AUR1

Agencies

[Federal Register Volume 73, Number 156 (Tuesday, August 12, 2008)]
[Rules and Regulations]
[Pages 46814-46816]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-18504]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 203, 250, and 252

RIN 0750-AG01


Defense Federal Acquisition Regulation Supplement; Conforming 
Changes--Standards of Conduct and Extraordinary Contractual Actions 
(DFARS Case 2008-D004)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update text addressing 
contractor standards of conduct and the handling of extraordinary 
contractual actions. The DFARS changes are consistent with changes made 
to the Federal Acquisition Regulation.

DATES: Effective Date: August 12, 2008.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone 703-602-0328; facsimile 
703-602-7887. Please cite DFARS Case 2008-D004.

SUPPLEMENTARY INFORMATION: 

A. Background

    This final rule updates DFARS text for consistency with changes 
made to the Federal Acquisition Regulation (FAR) as follows:
    [cir] Removes DFARS Subpart 203.70, Contractor Standards of 
Conduct, and the corresponding contract clause at 252.203-7002, since 
policy on this subject was added to the FAR at 72 FR 65873 on November 
23, 2007.
    [cir] Adds DFARS 203.1004 to provide address information for use in 
completion of the clause at FAR 52.203-14, Display of Hotline 
Poster(s).
    [cir] Revises DFARS Part 250 for consistency with the structure of 
FAR Part 50, as revised at 72 FR 63027 on November 7, 2007. The DFARS 
changes update headings, numbering, and cross-references, and reflect 
the dollar threshold currently specified in the FAR with regard to 
delegation of authority for approval of extraordinary contractual 
actions.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

[[Page 46815]]

B. Regulatory Flexibility Act

    This rule will not have a significant cost or administrative impact 
on contractors or offerors, or a significant effect beyond the internal 
operating procedures of DoD. Therefore, publication for public comment 
under 41 U.S.C. 418b is not required. However, DoD will consider 
comments from small entities concerning the affected DFARS subparts in 
accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 
2008-D004.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 203, 250, and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR parts 203, 250, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 203, 250, and 252 continues 
to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

0
2. Subpart 203.10 is added to read as follows:

Subpart 203.10--Contractor Code of Business Ethics and Conduct


203.1004  Contract clauses.

    (b)(2)(ii) Insert the following address in paragraph (b)(3) of the 
clause at FAR 52.203-14, Display of Hotline Poster(s): DoD Inspector 
General, ATTN: Defense Hotline, 400 Army Navy Drive, Washington, DC 
22202-2884.

Subpart 203.70 [Removed]

0
3. Subpart 203.70 is removed.

0
4. Part 250 is revised to read as follows:

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS AND THE SAFETY ACT

Subpart 250.1--Extraordinary Contractual Actions

Sec.
250.100 Definitions.
250.101 General.
250.101-2 Policy.
250.101-2-70 Limitations on payment.
250.101-3 Records.
250.102 Delegation of and limitations on exercise of authority.
250.102-1 Delegation of authority.
250.102-1-70 Delegations.
250.102-2 Contract adjustment boards.
250.103 Contract adjustments.
250.103-3 Contract adjustment.
250.103-5 Processing cases.
250.103-6 Disposition.
250.104 Residual powers.
250.104-3 Special procedures for unusually hazardous or nuclear 
risks.
250.104-3-70 Indemnification under contracts involving both research 
and development and other work.

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

Subpart 250.1--Extraordinary Contractual Actions


250.100  Definitions.

    Secretarial level, as used in this subpart, means--
    (1) An official at or above the level of an Assistant Secretary (or 
Deputy) of Defense or of the Army, Navy, or Air Force; and
    (2) A contract adjustment board established by the Secretary 
concerned.


250.101  General.


250.101-2  Policy.


250.101-2-70  Limitations on payment.

    See 10 U.S.C. 2410(b) for limitations on Congressionally directed 
payment of a request for equitable adjustment to contract terms or a 
request for relief under Public Law 85-804.


250.101-3  Records.

    Follow the procedures at PGI 250.101-3 for preparation of records.


250.102  Delegation of and limitations on exercise of authority.


250.102-1  Delegation of authority.

    (b) Authority under FAR 50.104 to approve actions obligating 
$55,000 or less may not be delegated below the level of the head of the 
contracting activity.
    (d) In accordance with the acquisition authority of the Under 
Secretary of Defense (Acquisition, Technology, and Logistics (USD 
(AT&L)) under 10 U.S.C. 133, in addition to the Secretary of Defense 
and the Secretaries of the military departments, the USD (AT&L) may 
exercise authority to indemnify against unusually hazardous or nuclear 
risks.


250.102-1-70  Delegations.

    (a) Military departments. The Departments of the Army, Navy, and 
Air Force will specify delegations and levels of authority for actions 
under the Act and the Executive Order in departmental supplements or 
agency acquisition guidance.
    (b) Defense agencies. Subject to the restrictions on delegations of 
authority in 250.102-1(b) and FAR 50.102-1, the directors of the 
defense agencies may exercise and redelegate the authority contained in 
the Act and the Executive Order. The agency supplements or agency 
acquisition guidance shall specify the delegations and levels of 
authority.
    (1) Requests to obligate the Government in excess of $55,000 must 
be submitted to the USD (AT&L) for approval.
    (2) Requests for indemnification against unusually hazardous or 
nuclear risks must be submitted to the USD(AT&L) for approval before 
using the indemnification clause at FAR 52.250-1, Indemnification Under 
Public Law 85-804.
    (c) Approvals. The Secretary of the military department or the 
agency director must approve any delegations in writing.


250.102-2  Contract adjustment boards.

    The Departments of the Army, Navy, and Air Force each have a 
contract adjustment board. The board consists of a Chair and not less 
than two nor more than six other members, one of whom may be designated 
the Vice-Chair. A majority constitutes a quorum for any purpose and the 
concurring vote of a majority of the total board membership constitutes 
an action of the board. Alternates may be appointed to act in the 
absence of any member.


250.103  Contract adjustments.


250.103-3  Contract adjustment.

    (a) Contractor requests should be filed with the procuring 
contracting officer (PCO). However, if filing with the PCO is 
impractical, requests may be filed with an authorized representative, 
an administrative contracting officer, or the Office of General Counsel 
of the applicable department or agency, for forwarding to the cognizant 
PCO.


250.103-5  Processing cases.

    (1) At the time the request is filed, the activity shall prepare 
the record described at PGI 250.101-3(1)(i) and forward it to the 
appropriate official within 30 days after the close of the month in 
which the record is prepared.
    (2) The officer or official responsible for the case shall forward 
to the contract adjustment board, through departmental channels, the 
documentation described at PGI 250.103-5.

[[Page 46816]]

    (3) Contract adjustment boards will render decisions as 
expeditiously as practicable. The Chair shall sign a memorandum of 
decision disposing of the case. The decision shall be dated and shall 
contain the information required by FAR 50.103-6. The memorandum of 
decision shall not contain any information classified ``Confidential'' 
or higher. The board's decision will be sent to the appropriate 
official for implementation.


250.103-6  Disposition.

    For requests denied or approved below the Secretarial level, follow 
the disposition procedures at PGI 250.103-6.


250.104  Residual powers.


250.104-3  Special procedures for unusually hazardous or nuclear risks.


250.104-3-70  Indemnification under contracts involving both research 
and development and other work.

    When indemnification is to be provided on contracts requiring both 
research and development work and other work, the contracting officer 
shall insert an appropriate clause using the authority of both 10 
U.S.C. 2354 and Public Law 85-804.
    (a) The use of Public Law 85-804 is limited to work which cannot be 
indemnified under 10 U.S.C. 2354 and is subject to compliance with FAR 
50.104.
    (b) Indemnification under 10 U.S.C. 2354 is covered by 235.070.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.203-7002  [Removed]

0
5. Section 252.203-7002 is removed.

[FR Doc. E8-18504 Filed 8-11-08; 8:45 am]
BILLING CODE 5001-08-P