Defense Federal Acquisition Regulation Supplement; Management of Unpriced Change Orders (DFARS Case 2008-D034), 37669-37671 [E9-17955]
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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules
section 605 of the Regulatory Flexibility
Act, sections 603 and 604 do not apply.
List of Subjects
29 CFR Part 4001
Pensions.
29 CFR Part 4022
Pension insurance, Pensions.
For the reasons given above, PBGC
proposes to amend 29 CFR parts 4001
and 4022 as follows.
PART 4001—TERMINOLOGY
1. The authority citation for part 4001
continues to read as follows:
Authority: 29 U.S.C. 1301, 1302(b)(3).
2. In § 4001.2, add a new definition in
alphabetical order to read as follows:
§ 4001.2
Definitions
*
*
*
*
*
PPA 2006 bankruptcy termination
means a plan termination to which
section 404 of the Pension Protection
Act of 2006 applies. Section 404 of the
Pension Protection Act of 2006 applies
to any plan termination in which the
termination date occurs while
bankruptcy proceedings are pending
with respect to the contributing sponsor
of the plan, if the bankruptcy
proceedings were initiated on or after
September 16, 2006. Bankruptcy
proceedings are pending, for this
purpose, if a contributing sponsor has
filed or has had filed against it a petition
seeking liquidation or reorganization in
a case under title 11, United States
Code, or under any similar Federal law
or law of a State or political subdivision,
and the case has not been dismissed as
of the termination date of the plan.
*
*
*
*
*
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE-EMPLOYER
PLANS
3. The authority citation for part 4022
continues to read as follows:
mstockstill on DSKH9S0YB1PROD with PROPOSALS
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
4. In § 4022.2, amend the first
paragraph by removing the words ‘‘plan
year, proposed termination date,
substantial owner’’ and adding in their
place ‘‘plan year, PPA 2006 bankruptcy
termination, proposed termination date,
statutory hybrid plan, substantial
owner.’’
5. Add new § 4022.11 to subpart A to
read as follows:
VerDate Nov<24>2008
18:20 Jul 28, 2009
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37669
§ 4022.11 Guarantee of benefits relating to
uniformed service.
DEPARTMENT OF DEFENSE
This section applies to a benefit of a
participant who becomes reemployed
after service in the uniformed services
that is covered by the Uniformed
Services Employment and
Reemployment Rights Act of 1994
(USERRA).
(a) A benefit described in paragraph
(b) of this section that would satisfy the
requirements of § 4022.3(a) and (c)
(together with any benefit earned for the
period preceding military service)
except for the fact that the participant
was not reemployed on or before the
termination date will be deemed to
satisfy those requirements if PBGC
determines, based upon a demonstration
by the participant or otherwise, that he
or she became reemployed after the
termination date and entitled to the
benefit under USERRA.
(b) A benefit described in this
paragraph (b) is a benefit attributable to
a period of service commencing before
the termination date and ending on the
termination date during which the
participant was serving in the
uniformed services as defined in 38
U.S.C. 4303(13) (or was in a subsequent
reemployment eligibility period) and to
which the participant is entitled under
USERRA.
(c) Example: A plan’s vesting
requirement is 5 years of service with
the employer. A participant has
completed 4 years of service when he
leaves employment for uniformed
service. The plan terminates while the
participant is in military service. As of
the termination date, the participant
would have had 5 years of service and
5 years of benefit accruals if he had
remained continuously employed. Upon
reemployment after the termination date
but within the time limits set by
USERRA, the participant would have
had 6 years of service under the plan for
vesting and benefit accrual purposes, if
the plan had not terminated. PBGC
would treat the participant as having a
vested, nonforfeitable plan benefit with
5 years of vesting service and benefit
accruals as of the termination date.
(d) In the case of a PPA 2006
bankruptcy termination, ‘‘bankruptcy
filing date’’ is substituted for
‘‘termination date’’ each place that
‘‘termination date’’ appears in this
section.
Defense Acquisition Regulations
System
Issued in Washington, DC, this 24th day of
July 2009.
Vincent K. Snowbarger,
Acting Director, Pension Benefit Guaranty
Corporation.
[FR Doc. E9–18074 Filed 7–28–09; 8:45 am]
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48 CFR Parts 215, 217, and 243
RIN 0750–AG27
Defense Federal Acquisition
Regulation Supplement; Management
of Unpriced Change Orders (DFARS
Case 2008–D034)
AGENCY: Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule with request for
comments.
SUMMARY: DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
address requirements for DoD
management and oversight of unpriced
change orders in a manner consistent
with the management and oversight
requirements that apply to other
undefinitized contract actions.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before
September 28, 2009, to be considered in
the formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2008–D034,
using any of the following methods:
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: dfars@osd.mil. Include
DFARS Case 2008–D034 in the subject
line of the message.
Fax: 703–602–7887.
Mail: Defense Acquisition Regulations
System, Attn: Ms. Cassandra Freeman,
OUSD (AT&L) DPAP (DARS), IMD
3D139, 3062 Defense Pentagon,
Washington, DC 20301–3062.
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 https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Cassandra Freeman, 703–602–8383.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Subpart 217.74 prescribes
policies and procedures for the
management and oversight of
undefinitized contract actions. Unpriced
change orders, issued in accordance
with FAR Part 43 and DFARS Part 243,
are presently excluded from the scope of
E:\FR\FM\29JYP1.SGM
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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules
DFARS Subpart 217.74. In recognition
of the need for full accountability of
unpriced change orders, this proposed
rule adds policy addressing
management, oversight, and limitations
on the use of unpriced change orders,
similar to the policy that applies to
other undefinitized contract actions.
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 does not expect this proposed
rule to have a significant economic
impact on a substantial number of small
entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq., because the proposed rule
reinforces existing requirements for
appropriate management and timely
definitization of contract actions.
Therefore, DoD has not performed an
initial regulatory flexibility analysis.
DoD invites comments from small
businesses and other interested parties.
DoD also will consider comments from
small entities concerning the affected
DFARS subparts in accordance with 5
U.S.C. 610. Such comments should be
submitted separately and should cite
DFARS Case 2008–D034.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply, because the proposed rule
does not contain 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 215,
217, and 243
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
mstockstill on DSKH9S0YB1PROD with PROPOSALS
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
[Amended]
Jkt 217001
Definitions.
*
*
*
*
*
(a) * * *
(2) * * * For policy relating to
definitization of change orders, see
243.204–70.
*
*
*
*
*
(d) * * * For policy relating to
definitization of change orders, see
243.204–70.
4. Section 217.7402 is revised to read
as follows:
217.7402
Exceptions.
(a) The following undefinitized
contract actions (UCAs) are not subject
to this subpart. However, the
contracting officer shall apply the policy
and procedures to them to the
maximum extent practicable (also see
paragraph (b) of this section):
(1) UCAs for foreign military sales.
(2) Purchases at or below the
simplified acquisition threshold.
(3) Special access programs.
(4) Congressionally mandated longlead procurement contracts.
(b) If the contracting officer
determines that it is impracticable to
adhere to the policy and procedures of
this subpart for a particular contract
action in one of the categories in
paragraph (a)(1), (3), or (4) of this
section, the contracting officer shall
provide prior notice, through agency
channels, to the Deputy Director,
Defense Procurement and Acquisition
Policy (Contract Policy and
International Contracting), 3060 Defense
Pentagon, Washington, DC 20301–3060.
5. Section 243.204 is revised to read
as follows:
243.204
Administration.
Follow the procedures at PGI 243.204
for administration of change orders.
[Redesignated as 243.204–71]
6. Section 243.204–70 is redesignated
as section 243.204–71.
7. A new section 243.204–70 is added
to read as follows:
2. Section 215.404–71–3 is amended
in paragraph (d)(2), in the first sentence,
by revising the parenthetical to read
‘‘(also see 217.7404–6(a) and 243.204–
70–6)’’.
18:20 Jul 28, 2009
217.7401
243.204–70
PART 215—CONTRACTING BY
NEGOTIATION
VerDate Nov<24>2008
3. Section 217.7401 is amended in
paragraph (a)(2) by adding a second
sentence and in paragraph (d) by adding
a third sentence to read as follows:
PART 243—CONTRACT
MODIFICATIONS
Therefore, DoD proposes to amend 48
CFR Parts 215, 217, and 243 as follows:
1. The authority citation for 48 CFR
Parts 215, 217, and 243 continues to
read as follows:
215.404–71–3
PART 217—SPECIAL CONTRACTING
METHODS
243.204–70
orders.
Definitization of change
8. Sections 243.204–70–1 through
243.204–70–7 are added to read as
follows:
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243.204–70–1
Scope.
(a) This subsection applies to
unpriced change orders with an
estimated value exceeding $5 million.
(b) Unpriced change orders for foreign
military sales and special access
programs are not subject to this
subsection, but the contracting officer
shall apply the policy and procedures to
them to the maximum extent
practicable. If the contracting officer
determines that it is impracticable to
adhere to the policy and procedures of
this subsection for an unpriced change
order for a foreign military sale or a
special access program, the contracting
officer shall provide prior notice,
through agency channels, to the Deputy
Director, Defense Procurement and
Acquisition Policy (Contract Policy and
International Contracting), 3060 Defense
Pentagon, Washington, DC 20301–3060.
243.204–70–2
Price ceiling.
Unpriced change orders shall include
a not-to-exceed price.
243.204–70–3
Definitization schedule.
(a) Unpriced change orders shall
contain definitization schedules that
provide for definitization by the earlier
of—
(1) The date that is 180 days after
issuance of the change order (this date
may be extended but may not exceed
the date that is 180 days after the
contractor submits a qualifying
proposal); or
(2) The date on which the amount of
funds obligated under the change order
is equal to more than 50 percent of the
not-to-exceed price.
(b) Submission of a qualifying
proposal in accordance with the
definitization schedule is a material
element of the contract. If the contractor
does not submit a timely qualifying
proposal, the contacting officer may
suspend or reduce progress payments
under FAR 32.503–6, or take other
appropriate action.
243.204–70–4
Limitations on obligations.
(a) The Government shall not obligate
more than 50 percent of the not-toexceed price before definitization.
However, if a contractor submits a
qualifying proposal before 50 percent of
the not-to-exceed price has been
obligated by the Government, the
limitation on obligations before
definitization may be increased to no
more than 75 percent (see 232.102–70
for coverage on provisional delivery
payments).
(b) Obligations should be consistent
with the contractor’s requirements for
the undefinitized period.
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Federal Register / Vol. 74, No. 144 / Wednesday, July 29, 2009 / Proposed Rules
243.204–70–5
Exceptions.
DEPARTMENT OF COMMERCE
(a) The limitations in 243.204–70–2,
243.204–70–3, and 243.204–70–4 do not
apply to unpriced change orders for the
purchase of initial spares.
(b) The head of the agency may waive
the limitations in 243.204–70–2,
243.204–70–3, and 243.204–70–4 for
unpriced change orders if the head of
the agency determines that the waiver is
necessary to support—
(1) A contingency operation; or
(2) A humanitarian or peacekeeping
operation.
243.204–70–6
Allowable profit.
When the final price of an unpriced
change order is negotiated after a
substantial portion of the required
performance has been completed, the
head of the contracting activity shall
ensure the profit allowed reflects—
(a) Any reduced cost risk to the
contractor for costs incurred during
contract performance before negotiation
of the final price;
(b) The contractor’s reduced cost risk
for costs incurred during performance of
the remainder of the contract; and
(c) The extent to which costs have
been incurred prior to definitization of
the contract action (see 215.404–71–
3(d)(2)). The risk assessment shall be
documented in the contract file.
243.204–70–7
Plans and reports.
To provide for enhanced management
and oversight of unpriced change
orders, departments and agencies
shall—
(a) Include in the Consolidated
Undefinitized Contract Action (UCA)
Management Plan required by 217.7405,
the actions planned and taken to ensure
that unpriced change orders are
definitized in accordance with this
subsection; and
(b) Include in the Consolidated UCA
Management Report required by
217.7405, each unpriced change order
with an estimated value exceeding $5
million.
[FR Doc. E9–17955 Filed 7–28–09; 8:45 am]
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BILLING CODE 5001–08–P
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18:20 Jul 28, 2009
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National Oceanic and Atmospheric
Administration
50 CFR Parts 223 and 224
[Docket No. 0906221082–91083–01]
RIN 0648–XQ03
Listing Endangered and Threatened
Species and Designating Critical
Habitat: Notice of Finding on a Petition
To List the Largetooth Sawfish (Pristis
perotteti) as an Endangered or
Threatened Species Under the
Endangered Species Act
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce
ACTION: Notice of finding, request for
information, and initiation of status
review
AGENCY:
SUMMARY: We, NMFS, announce a 90
day finding on a petition to list
largetooth sawfish (Pristis perotteti) as
endangered or threatened under the
Endangered Species Act (ESA). We find
that the petition presents substantial
scientific and commercial information
indicating the petitioned action may be
warranted. We will conduct a status
review of largetooth sawfish to
determine if the petitioned action is
warranted. To ensure that the status
review is comprehensive, we are
soliciting scientific and commercial data
regarding this species (see below).
DATES: Information and comments on
the subject action must be received by
September 28, 2009.
ADDRESSES: You may submit comments,
identified by the code 0648–XQ03,
addressed to: Shelley Norton, Natural
Resource Specialist, by any of the
following methods:
• Electronic Submissions: Submit all
electronic comments via the Federal
eRulemaking Portal https://
www.regulations.gov
• Facsimile (fax): 727–824–5309
• Mail: NMFS, Southeast Regional
Office, 263 13th Avenue South, St
Petersburg, FL 33701
• Hand delivery: You may hand
deliver written comments to our office
during normal business hours at the
street address given above.
Instructions: All comments received
are a part of the public record and may
be posted to https://www.regulations.gov
without change. All personally
identifiable information (for example,
name, address, etc.) voluntarily
submitted by the commenter may be
publicly accessible. Do not submit
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37671
confidential business information or
otherwise sensitive or protected
information. NMFS will accept
anonymous comments (enter N/A in the
required fields if you wish to remain
anonymous). Attachments to electronic
comments will be accepted in Microsoft
Word, Excel, Corel WordPerfect, or
Adobe PDF file formats only.
FOR FURTHER INFORMATION CONTACT:
Shelley Norton, NMFS, Southeast
Region, (727) 824–5312; or Sean
Ledwin, NMFS, Office of Protected
Resources, (301) 713–1401.
SUPPLEMENTARY INFORMATION:
Background
On April 24th, 2009, we received a
petition from WildEarth Guardians
requesting that the Secretary of
Commerce (Secretary) list largetooth
sawfish (P. perotteti) as endangered or
threatened throughout its range and
designate critical habitat concurrent
with listing. We identified largetooth
sawfish as a candidate species under the
ESA on June 23, 1999 (64 FR 33466). On
November 30, 1999, we received a
petition from the Center for Marine
Conservation (now the Ocean
Conservancy) requesting that we list the
North American populations of
largetooth and smalltooth sawfish (P.
pectinata) as endangered. On March 10,
2000 (65 FR 12959), we found that there
was not substantial evidence to warrant
initiation of a status review of North
American populations of largetooth
sawfish, on the basis that the petition
did not contain substantial scientific or
commercial information to indicate the
present existence of such a population
eligible for listing. WildEarth Guardians’
current petition also requests that the
Secretary re-examine and reverse the
March 10, 2000, negative 90–day
finding to list the North American
population of largetooth sawfish as
endangered. We will consider the
petitioner’s request as a request to
consider a North American Distinct
Population Segment (DPS), should we
determine that a 90–day ‘‘may be
warranted’’ finding regarding the
species throughout its range is not
warranted.
ESA Statutory Provisions and Policy
Considerations
Section 4(b)(3)(A) of the ESA (16
U.S.C. 1533(b)(3)(A)) requires that we
make a finding as to whether a petition
to list, delist, or reclassify a species
‘‘presents substantial scientific or
commercial information indicating the
petitioned action may be warranted.’’
ESA implementing regulations define
substantial information as the ‘‘amount
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]]>Agencies
[Federal Register Volume 74, Number 144 (Wednesday, July 29, 2009)]
[Proposed Rules]
[Pages 37669-37671]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-17955]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 215, 217, and 243
RIN 0750-AG27
Defense Federal Acquisition Regulation Supplement; Management of
Unpriced Change Orders (DFARS Case 2008-D034)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to address requirements for DoD
management and oversight of unpriced change orders in a manner
consistent with the management and oversight requirements that apply to
other undefinitized contract actions.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before September 28, 2009, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2008-D034,
using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov. Follow the
instructions for submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2008-D034 in the subject
line of the message.
Fax: 703-602-7887.
Mail: Defense Acquisition Regulations System, Attn: Ms. Cassandra
Freeman, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon,
Washington, DC 20301-3062.
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 https://www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Cassandra Freeman, 703-602-8383.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Subpart 217.74 prescribes policies and procedures for the
management and oversight of undefinitized contract actions. Unpriced
change orders, issued in accordance with FAR Part 43 and DFARS Part
243, are presently excluded from the scope of
[[Page 37670]]
DFARS Subpart 217.74. In recognition of the need for full
accountability of unpriced change orders, this proposed rule adds
policy addressing management, oversight, and limitations on the use of
unpriced change orders, similar to the policy that applies to other
undefinitized contract actions.
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 does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the proposed rule reinforces existing requirements for
appropriate management and timely definitization of contract actions.
Therefore, DoD has not performed an initial regulatory flexibility
analysis. DoD invites comments from small businesses and other
interested parties. DoD also will consider comments from small entities
concerning the affected DFARS subparts in accordance with 5 U.S.C. 610.
Such comments should be submitted separately and should cite DFARS Case
2008-D034.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply, because the proposed
rule does not contain 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 215, 217, and 243
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR Parts 215, 217, and 243 as
follows:
1. The authority citation for 48 CFR Parts 215, 217, and 243
continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 215--CONTRACTING BY NEGOTIATION
215.404-71-3 [Amended]
2. Section 215.404-71-3 is amended in paragraph (d)(2), in the
first sentence, by revising the parenthetical to read ``(also see
217.7404-6(a) and 243.204-70-6)''.
PART 217--SPECIAL CONTRACTING METHODS
3. Section 217.7401 is amended in paragraph (a)(2) by adding a
second sentence and in paragraph (d) by adding a third sentence to read
as follows:
217.7401 Definitions.
* * * * *
(a) * * *
(2) * * * For policy relating to definitization of change orders,
see 243.204-70.
* * * * *
(d) * * * For policy relating to definitization of change orders,
see 243.204-70.
4. Section 217.7402 is revised to read as follows:
217.7402 Exceptions.
(a) The following undefinitized contract actions (UCAs) are not
subject to this subpart. However, the contracting officer shall apply
the policy and procedures to them to the maximum extent practicable
(also see paragraph (b) of this section):
(1) UCAs for foreign military sales.
(2) Purchases at or below the simplified acquisition threshold.
(3) Special access programs.
(4) Congressionally mandated long-lead procurement contracts.
(b) If the contracting officer determines that it is impracticable
to adhere to the policy and procedures of this subpart for a particular
contract action in one of the categories in paragraph (a)(1), (3), or
(4) of this section, the contracting officer shall provide prior
notice, through agency channels, to the Deputy Director, Defense
Procurement and Acquisition Policy (Contract Policy and International
Contracting), 3060 Defense Pentagon, Washington, DC 20301-3060.
PART 243--CONTRACT MODIFICATIONS
5. Section 243.204 is revised to read as follows:
243.204 Administration.
Follow the procedures at PGI 243.204 for administration of change
orders.
243.204-70 [Redesignated as 243.204-71]
6. Section 243.204-70 is redesignated as section 243.204-71.
7. A new section 243.204-70 is added to read as follows:
243.204-70 Definitization of change orders.
8. Sections 243.204-70-1 through 243.204-70-7 are added to read as
follows:
243.204-70-1 Scope.
(a) This subsection applies to unpriced change orders with an
estimated value exceeding $5 million.
(b) Unpriced change orders for foreign military sales and special
access programs are not subject to this subsection, but the contracting
officer shall apply the policy and procedures to them to the maximum
extent practicable. If the contracting officer determines that it is
impracticable to adhere to the policy and procedures of this subsection
for an unpriced change order for a foreign military sale or a special
access program, the contracting officer shall provide prior notice,
through agency channels, to the Deputy Director, Defense Procurement
and Acquisition Policy (Contract Policy and International Contracting),
3060 Defense Pentagon, Washington, DC 20301-3060.
243.204-70-2 Price ceiling.
Unpriced change orders shall include a not-to-exceed price.
243.204-70-3 Definitization schedule.
(a) Unpriced change orders shall contain definitization schedules
that provide for definitization by the earlier of--
(1) The date that is 180 days after issuance of the change order
(this date may be extended but may not exceed the date that is 180 days
after the contractor submits a qualifying proposal); or
(2) The date on which the amount of funds obligated under the
change order is equal to more than 50 percent of the not-to-exceed
price.
(b) Submission of a qualifying proposal in accordance with the
definitization schedule is a material element of the contract. If the
contractor does not submit a timely qualifying proposal, the contacting
officer may suspend or reduce progress payments under FAR 32.503-6, or
take other appropriate action.
243.204-70-4 Limitations on obligations.
(a) The Government shall not obligate more than 50 percent of the
not-to-exceed price before definitization. However, if a contractor
submits a qualifying proposal before 50 percent of the not-to-exceed
price has been obligated by the Government, the limitation on
obligations before definitization may be increased to no more than 75
percent (see 232.102-70 for coverage on provisional delivery payments).
(b) Obligations should be consistent with the contractor's
requirements for the undefinitized period.
[[Page 37671]]
243.204-70-5 Exceptions.
(a) The limitations in 243.204-70-2, 243.204-70-3, and 243.204-70-4
do not apply to unpriced change orders for the purchase of initial
spares.
(b) The head of the agency may waive the limitations in 243.204-70-
2, 243.204-70-3, and 243.204-70-4 for unpriced change orders if the
head of the agency determines that the waiver is necessary to support--
(1) A contingency operation; or
(2) A humanitarian or peacekeeping operation.
243.204-70-6 Allowable profit.
When the final price of an unpriced change order is negotiated
after a substantial portion of the required performance has been
completed, the head of the contracting activity shall ensure the profit
allowed reflects--
(a) Any reduced cost risk to the contractor for costs incurred
during contract performance before negotiation of the final price;
(b) The contractor's reduced cost risk for costs incurred during
performance of the remainder of the contract; and
(c) The extent to which costs have been incurred prior to
definitization of the contract action (see 215.404-71-3(d)(2)). The
risk assessment shall be documented in the contract file.
243.204-70-7 Plans and reports.
To provide for enhanced management and oversight of unpriced change
orders, departments and agencies shall--
(a) Include in the Consolidated Undefinitized Contract Action (UCA)
Management Plan required by 217.7405, the actions planned and taken to
ensure that unpriced change orders are definitized in accordance with
this subsection; and
(b) Include in the Consolidated UCA Management Report required by
217.7405, each unpriced change order with an estimated value exceeding
$5 million.
[FR Doc. E9-17955 Filed 7-28-09; 8:45 am]
BILLING CODE 5001-08-P
