Defense Federal Acquisition Regulation Supplement: Proposal Adequacy Checklist (DFARS Case 2011-D042), 75512-75517 [2011-30907]

Download as PDF 75512 Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules PART 17—MEDICAL 1. The authority citation for part 17 continues to read as follows: Authority: 38 U.S.C. 501, and as noted in specific sections. 2. Amend § 17.170 by: a. Revising paragraph (a). b. Removing paragraph (b). c. Redesignating paragraph (c) as new paragraph (b) and adding a paragraph heading. d. Redesignating paragraph (d) as new paragraph (c) and adding a paragraph heading. e. In newly redesignated paragraph (c), removing ‘‘paragraph (c)’’ each time it appears and adding, in its place, ‘‘paragraph (b)’’. d. Redesignating paragraph (e) as new paragraph (d) and revising newly redesignated paragraph (d). e. Redesignating paragraph (f) as new paragraph (e) and revising newly redesignated paragraph (e). f. Adding an authority citation at the end of the section. The revisions and addition read as follows: srobinson on DSK4SPTVN1PROD with PROPOSALS § 17.170 Autopsies. (a) General. (1) Except as otherwise provided in this section, the Director of a VA facility may order an autopsy on a decedent who died while undergoing VA care authorized by § 17.38, ‘‘Medical Benefits Package’’, or § 17.52, ‘‘Hospital care and medical services in non-VA facilities’’, if the Director determines that an autopsy is required for VA purposes for the following reasons: (i) Completion of official records; or (ii) Advancement of medical knowledge. (2) VA may order an autopsy to be performed only if consent is first obtained under one of the following circumstances: (i) Consent is granted by the surviving spouse or next of kin of the decedent; (ii) Consent is implied where a known surviving spouse or next of kin does not respond within a specified period of time to VA’s request for permission to conduct an autopsy; (iii) Consent is implied where a known surviving spouse or next of kin does not inquire after the well-being of the deceased veteran for a period of at least 6 months before the date of the veteran’s death; or (iv) Consent is implied where there is no known surviving spouse or next of kin of the deceased veteran. (b) Death resulting from crime. * * * (c) Jurisdiction. * * * (d) Applicable law. (1) The laws of the state where the autopsy will be performed are to be used to identify the VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 person who is authorized to grant VA permission to perform the autopsy and, if more than one person is identified, the order of precedence among such persons. (2) When the next of kin, as defined by the laws of the state where the autopsy will be performed, consists of a number of persons such as children, parents, brothers and sisters, etc., permission to perform an autopsy may be accepted when granted by the person in the appropriate class who assumes the right and duty of burial. (e) Death outside a VA facility. The Director of a VA facility may order an autopsy on a veteran who was undergoing VA care authorized by §§ 17.38 or 17.52, and whose death did not occur in a VA facility. Such authority also includes transporting the body at VA’s expense to the facility where the autopsy will be performed, and the return of the body. Consent for the autopsy will be obtained as stated in paragraph (d) of this section. The Director must determine that such autopsy is reasonably required for VA purposes for the following reasons: (1) The completion of official records; or (2) Advancement of medical knowledge. (Authority: 38 U.S.C. 501, 1703, 1710) [FR Doc. 2011–31031 Filed 12–1–11; 8:45 am] BILLING CODE 8320–01–P Submit comments identified by DFARS Case 2011–D042, using any of the following methods: Æ Regulations.gov: http://www. regulations.gov. Submit comments via the Federal eRulemaking portal by entering ‘‘DFARS Case 2011–D042 under the heading ‘‘Enter keyword or ID’’ and selecting ‘‘Search.’’ Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘DFARS Case 2011– D042.’’ Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘DFARS Case 2011– D011’’ on your attached document. Æ E-mail: dfars@osd.mil. Include DFARS Case 2011–D011 in the subject line of the message. Æ Fax: 703–614–1254. Æ Mail: Defense Acquisition Regulations System, Attn: Dustin Pitsch, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon, Washington, DC 20301–3060. Comments received generally will be posted without change to http:// www.regulations.gov, including any personal information provided. To confirm receipt of your comment(s), please check http:// www.regulations.gov, approximately two to three days after submission to verify posting (except allow 30 days for posting of comments submitted by mail). ADDRESSES: Mr. Dustin Pitsch, telephone 703–602–0289. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 215 and 252 RIN 0750–AH47 Defense Federal Acquisition Regulation Supplement: Proposal Adequacy Checklist (DFARS Case 2011–D042) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. AGENCY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to incorporate a proposal adequacy checklist for proposals in response to solicitations that require submission of certified cost or pricing data. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before January 31, 2012, to be considered in the formation of a final rule. SUMMARY: PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 I. Background This proposed rule supports one of DoD’s Better Buying Power initiatives by incorporating the requirement for a proposal adequacy checklist into the Defense Federal Acquisition Regulation Supplement (DFARS) at section 215.408, and an associated solicitation provision at DFARS 252.215–70XX, to ensure offerors take responsibility for submitting thorough, accurate, and complete proposals. The provision should be included in solicitations that require the submission of certified cost or pricing data. II. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs E:\FR\FM\02DEP1.SGM 02DEP1 75513 Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. III. 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. However, an Initial Regulatory Flexibility Analysis has been performed and is summarized as follows: This proposed rule amends the DFARS to add a checklist for DoD contractors to complete under solicitations that require the submission of certified cost or pricing data, if the contracting officer chooses to use the provision. This rule will implement one of DoD’s Better Buying Power initiatives. The objective of the rule is to ensure that offerors submit thorough, accurate, and complete proposals. By completing the checklist, offerors will be able to self validate the adequacy of their proposals. The legal basis for the rule is 41 U.S.C. 1303. The rule will apply to actions where cost and pricing data is required, at the discretion of the contracting officer. Based on data collected in FPDS–NG for FY2008–FY2010, there are on average 905 actions per year that met the criteria where the proposal adequacy checklist could be utilized. On average, 420 of those actions were with small business concerns. The rule imposes no new reporting requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. No alternatives were identified that would meet the objectives of the rule. Excluding the small number of small business concerns that may be subject to the rule would not be in the best interest of the small business concerns or the Government, because the proposal adequacy checklist was created directly from requirements already in the Federal Acquisition Regulation. While the checklist does not add burden, it provides a useful tool for ensuring proposal adequacy. DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities. DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (DFARS Case 2011–D042), in correspondence. IV. Paperwork Reduction Act The rule contains information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35; however, these changes to the DFARS do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 9000–0013, entitled ‘‘Cost or Pricing Data Exemption Information.’’ List of Subjects in 48 CFR Parts 215 and 252 Government procurement. Mary Overstreet, Editor, Defense Acquisition Regulations System. 1. The authority citation for 48 CFR parts 215 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 215—CONTRACTING BY NEGOTIATION 2. Amend Section 215.408 to add new paragraph (3) to read as follows: 215.408 Solicitation provisions and contract clauses. * * * * * (3) When the solicitation requires the submission of certified cost and pricing data, the contracting officer should include 252.215–70XX, Proposal Adequacy Checklist, in the solicitation. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 3. Add section 252.215–70XX to read as follows: 252.215–70XX Checklist. Proposal Adequacy As prescribed in 215.408(3), use the following provision: PROPOSAL ADEQUACY CHECKLIST (DATE) The offeror shall complete the following checklist, providing location of requested information, or an explanation of why the requested information is not provided. Completion of this checklist in no way reduces the responsibility to fully comply with all of the requirements of 41 U.S.C. chapter 35, Truthful Cost or Pricing Data, and any other special requirements of the solicitation. Therefore, 48 CFR parts 215 and 252 are proposed to be amended as follows: PROPOSAL ADEQUACY CHECKLIST References Proposal page No. Submission item GENERAL INSTRUCTIONS srobinson on DSK4SPTVN1PROD with PROPOSALS 1. Paragraph A(1) FAR 15.408, Table 15–2, Section I. Is there a properly completed first page of the proposal per FAR 15.408 Table 15–2 I.A or as specified in the solicitation? 2. Paragraph A(7) FAR 15.408, Table 15–2, Section I. Does the proposal identify the need for Government-furnished material/tooling/test equipment? Include the lending contract number and Contracting Officer contact information if known. VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 E:\FR\FM\02DEP1.SGM 02DEP1 If not provided EXPLAIN (may use continuation pages) 75514 Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules PROPOSAL ADEQUACY CHECKLIST—Continued Proposal page No. References Submission item 3. Paragraph A(8) FAR 15.408, Table 15–2, Section I. Does the proposal include identification of any CAS non-compliances, or other estimating deficiencies that may impact the proposed price? 4. Paragraph A(8) FAR 15.408, Table 15–2, Section I. Does the proposal disclose any other known activity that could materially impact the costs; such as, existing excess material, changes in production methods, make-or-buy decisions, company re-organizations, new business, or new technology? 5. Paragraph B FAR 15.408, Table 15–2, Section I. Is an Index of all certified cost or pricing data and information accompanying or identified in the proposal provided and appropriately referenced? 6. FAR 15.403–1(b) ................................. Are there any exceptions to submission of certified cost or pricing data pursuant to FAR 15.403–1(b)? If so, is supporting documentation included in the proposal? 7. Paragraph C(2)(i) FAR 15.408, Table 15–2, Section I. Does the proposal disclose the judgmental factors applied and the mathematical or other methods used in the estimate, including those used in projecting from known data? 8. Paragraph C(2)(ii) FAR 15.408, Table 15–2, Section I. Does the proposal disclose the nature and amount of any contingencies included in the proposed price? 9. Paragraph D FAR 15.408, Table 15–2, Section I. Does the proposal explain the basis of all cost estimating relationships (CERs) (labor hours or material) proposed on other than a discrete basis? 10. Paragraphs D and E FAR 15.408, Table 15–2, Section I. Is there a summary of total cost by element of cost and are the elements of cost cross-referenced to the supporting cost or pricing data? (Breakdowns for each cost element must be consistent with your cost accounting system.) 11. Paragraph D FAR 15.408, Table 15– 2, Section I. Is total price by cost element provided by year? Identify if by Calendar Year (CY) or Government Fiscal Year (GFY) or both, as required. 12. Paragraphs D and E FAR 15.408, Table 15–2, Section I. If more than one Contract Line Item Number (CLIN) or sub Contract Line Item Number (sub-CLIN) is proposed as required by the RFP, are there summary total amounts covering all line items for each element of cost and is it crossreferenced to the supporting cost or pricing data? 13. Paragraph E FAR 15.408, Table 15– 2, Section I. Are CLIN prices by cost element provided by year? Identify if by CY or GFY or both, as required. 14. Paragraph E FAR 15.408, Table 15– 2, Section I. Are recurring and non-recurring costs segregated at both the CLIN/sub-CLIN and total cost levels? 15. Paragraph F FAR 15.408, Table 15– 2, Section I. Does the proposal identify any incurred costs for work performed before the submission of the proposal? 16. Paragraph G FAR 15.408, Table 15– 2, Section I. Is there a Government forward pricing rate agreement (FPRA)? If so, identify and include. srobinson on DSK4SPTVN1PROD with PROPOSALS COST ELEMENTS MATERIALS AND SERVICES 17. Paragraph AFAR 15.408, Table 15– 2, Section II. Does the proposal include a description of supplies or services and the basis on which the supply or service meets the Government’s requirements? 18. Paragraph A FAR 15.408, Table 15– 2, Section II. Does the proposal include a consolidated summary of individual material and services to include the basis for pricing? The offeror’s consolidated summary shall include raw materials, parts, components, assemblies, subcontracts and services to be produced or performed by others, identifying as a minimum the item, source, quantity, and price. VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 E:\FR\FM\02DEP1.SGM 02DEP1 If not provided EXPLAIN (may use continuation pages) Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules 75515 PROPOSAL ADEQUACY CHECKLIST—Continued References Proposal page No. Submission item SUBCONTRACTS (Purchased materials or services) 19. ......................................................... Does the proposal identify those actions for which assist audits have been requested by the contractor or a subcontractor and identify the request date and scheduled receipt date? 20. FAR 15.404–3(c) ............................... Per the thresholds of FAR 15.404–3(c), Subcontract Pricing Considerations, does the proposal include a copy of the applicable subcontractor’s proposal(s)? 21. Paragraph A FAR 15.408, Table 15– 2, Section II. Is the subcontractor Price/Cost Analysis establishing the reasonableness of each proposed subcontract included with the proposal? 22. If the offeror’s Price/Cost Analyses are not provided with the proposal, does the proposal include a matrix identifying dates for receipt of subcontractor proposal, completion of fact finding for purposes of Price/Cost Analysis, and submission of the Price/Cost Analysis? ......................................................... COMMERCIAL ITEM DETERMINATIONS 23. FAR 2.101 FAR 15.403–1 (b)(3) or (b)(5). Are commercial items being proposed either at the prime or subcontractor level that would be exempt from certified cost or pricing data requirements? 24. FAR 2.101 .......................................... Has the contractor specifically identified the type of commercial item claim (FAR 2.101 commercial item definition, paragraphs (1) through (8)), and the basis on which the item meets the definition? 25. FAR 2.101 FAR 15.403–1 ................. For modified commercial items (FAR 2.101 commercial item definition paragraph (3)); did the contractor classify the modification(s) as either— • A modification of a type customarily available in the commercial marketplace (paragraph (3)(i)); or • A minor modification (paragraph (3)(ii)) of a type not customarily available in the commercial marketplace made to meet Federal Government requirements not exceeding the thresholds in FAR 15.403–1(c)(3)(iii)(B)? (see note below) 26. FAR 2.101 .......................................... For proposed commercial items ‘‘of a type’’, or ‘‘evolved’’ or modified (FAR 2.101 commercial item definition paragraphs (1) through (3)), did the contractor provide a technical description of the differences between the proposed item and the comparison item(s)? 27. FAR 15.402(a)(2) FAR 15.403– 1(c)(3)(ii) FAR 15.403–3(c) FAR 15.404–3(b) FAR 15.404–3(c) FAR 15.406–2. Does the proposal include a determination of price reasonableness for all commercial items offered? ADEQUATE PRICE COMPETITION srobinson on DSK4SPTVN1PROD with PROPOSALS 28. Paragraph A(1) FAR 15.408, Table 15–2, Section II. Does the proposal support the degree of competition and the basis for establishing the source and reasonableness of price for each subcontract or purchase order priced on a competitive basis exceeding the threshold for certified cost or pricing data? INTERORGANIZATIONAL TRANSFERS 29. Paragraph A.(2) FAR 15.408, Table 15–2, Section II. VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 For inter-organizational transfers proposed at cost, does the proposal include a complete cost proposal in compliance with Table 15–2? PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 E:\FR\FM\02DEP1.SGM 02DEP1 If not provided EXPLAIN (may use continuation pages) 75516 Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules PROPOSAL ADEQUACY CHECKLIST—Continued Proposal page No. References Submission item 30. FAR 31.205–26(e) FAR 15.403–1 ..... For inter-organizational transfers proposed at price in accordance with FAR 31.205–26(e), does the proposal provide an analysis by the prime that supports the exception from certified cost or pricing data in accordance with FAR 15.403– 1? DIRECT LABOR 31. Paragraph B FAR 15.408, Table 15– 2, Section II. Does the proposal include a time phased (i.e.; monthly, quarterly) breakdown of labor hours, rates and costs by category or skill level? If labor is the allocation base for indirect costs, the labor cost must be summarized in order that the applicable overhead rate can be applied. 32. Paragraph B FAR 15.408, Table 15– 2, Section II. For labor Basis of Estimates (BOEs), does the proposal include labor categories, labor hours, task descriptions, Statement of Work reference, applicable CLIN, Work Breakdown Structure, rationale for estimate, applicable history, and time-phasing? 33. Paragraphs B and C, FAR 15.408, Table 15–2, Section II. Does the proposal include all rates and factors by year that are utilized in the development of the proposal and the basis of those rates and factors (FPRA/FPRP)? The Offeror shall identify the official submittal of such rate and factor data. 34. FAR subpart 22.10 ............................ If covered by the Service Contract Labor Standards statute (41 U.S.C. chapter 67), are the rates in the proposal in compliance with the minimum rates specified in the statute? INDIRECT COSTS 35. Paragraph C FAR 15.408, Table 15– 2, Section II. Does the proposal indicate the basis of estimate for proposed indirect costs? (Support for the indirect rates could consist of cost breakdowns, trends, and budgetary data.) OTHER COSTS 36. Paragraph D FAR 15.408, Table 15– 2, Section II. Does the proposal include other direct costs and the basis for pricing? If travel is included does the proposal include number of trips, number of people, number of days per trip, locations, and rates (e.g. airfare, per diem, hotel, car rental, etc)? 37. Paragraph E FAR 15.408, Table 15– 2, Section II. If royalties exceed $1,500 does the proposal provide the information/data identified by Table 15–2? 38. Paragraph F FAR 15.408, Table 15– 2, Section II. When facilities capital cost of money is proposed, does the proposal include submission of Form CASB-CMF or reference to an FPRP/FPRA and show the calculation of the proposed amount? FORMATS FOR SUBMISSION OF LINE ITEM SUMMARIES srobinson on DSK4SPTVN1PROD with PROPOSALS 39. FAR 15.408, Table 15–2, Section III Are all cost element breakdowns provided using the applicable format prescribed in FAR 15.408, Table 15–2 III? (or alternative format if specified in the RFP) 40. Paragraph B FAR 15.408, Table 15– 2, Section III. If the proposal is for a modification or change order, have cost of work deleted (credits) and cost of work added (debits) been provided in the format described in FAR 15.408, Table 15–2.III.B? 41. Paragraph C FAR 15.408, Table 15– 2, Section III. For price revisions/redeterminations, does the proposal follow the format in FAR 15.408, Table 15–2.III.C? VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\02DEP1.SGM 02DEP1 If not provided EXPLAIN (may use continuation pages) Federal Register / Vol. 76, No. 232 / Friday, December 2, 2011 / Proposed Rules 75517 PROPOSAL ADEQUACY CHECKLIST—Continued References Proposal page No. Submission item OTHER 42. FAR 16.4 ............................................ If an incentive contract type, does the proposal include offeror proposed target cost, target profit or fee, share ratio, and, when applicable, minimum/maximum fee, ceiling price? 43. FAR 15.404–4(c)(4)(i) ........................ Is proposed fee in accordance with statutory guidance? 44. FAR 16.203–4(a)(1) ........................... If Economic Price Adjustments are being proposed, does the proposal show the rationale and application for the proposed indices? 45. FAR 32.1000 ...................................... If the offeror is proposing Performance-Based Payments have they provided an expenditure profile, proposed events and their projected dates, proposed values for each event, completion criteria, and identification of which events are severable or cumulative? 46. FAR 15.408(n) ................................... Excessive Pass-through Charges—Identification of Subcontract Effort: If the offeror intends to subcontract more than 70% of the total cost of work to be performed, does the proposal identify: (i) The amount of the offeror’s indirect costs and profit applicable to the work to be performed by the proposed subcontractor(s); and (ii) a description of the added value provided by the offeror as related to the work to be performed by the proposed subcontractor(s)? 47. Does the proposal identify the location and point of contact for any certified cost or pricing data referenced in, but not provided with, the proposal? ......................................................... (End of provision) [FR Doc. 2011–30907 Filed 12–1–11; 8:45 am] srobinson on DSK4SPTVN1PROD with PROPOSALS BILLING CODE 5001–06–P VerDate Mar<15>2010 17:14 Dec 01, 2011 Jkt 226001 PO 00000 Frm 00014 Fmt 4702 Sfmt 9990 E:\FR\FM\02DEP1.SGM 02DEP1 If not provided EXPLAIN (may use continuation pages)

Agencies

[Federal Register Volume 76, Number 232 (Friday, December 2, 2011)]
[Proposed Rules]
[Pages 75512-75517]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-30907]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 215 and 252

RIN 0750-AH47


Defense Federal Acquisition Regulation Supplement: Proposal 
Adequacy Checklist (DFARS Case 2011-D042)

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

ACTION: Proposed rule.

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

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement to incorporate a proposal adequacy checklist for 
proposals in response to solicitations that require submission of 
certified cost or pricing data.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 31, 2012, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2011-D042, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2011-D042 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2011-D042.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2011-D011'' on your attached document.
    [cir] E-mail: dfars@osd.mil. Include DFARS Case 2011-D011 in the 
subject line of the message.
    [cir] Fax: 703-614-1254.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Dustin 
Pitsch, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check http://www.regulations.gov, approximately two to three days after submission 
to verify posting (except allow 30 days for posting of comments 
submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Dustin Pitsch, telephone 703-602-
0289.

SUPPLEMENTARY INFORMATION: 

I. Background

    This proposed rule supports one of DoD's Better Buying Power 
initiatives by incorporating the requirement for a proposal adequacy 
checklist into the Defense Federal Acquisition Regulation Supplement 
(DFARS) at section 215.408, and an associated solicitation provision at 
DFARS 252.215-70XX, to ensure offerors take responsibility for 
submitting thorough, accurate, and complete proposals. The provision 
should be included in solicitations that require the submission of 
certified cost or pricing data.

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs

[[Page 75513]]

and benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is a significant regulatory action and, therefore, 
was subject to review under section 6(b) of E.O. 12866, Regulatory 
Planning and Review, dated September 30, 1993. This rule is not a major 
rule under 5 U.S.C. 804.

III. 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. 
However, an Initial Regulatory Flexibility Analysis has been performed 
and is summarized as follows:
    This proposed rule amends the DFARS to add a checklist for DoD 
contractors to complete under solicitations that require the submission 
of certified cost or pricing data, if the contracting officer chooses 
to use the provision. This rule will implement one of DoD's Better 
Buying Power initiatives.
    The objective of the rule is to ensure that offerors submit 
thorough, accurate, and complete proposals. By completing the 
checklist, offerors will be able to self validate the adequacy of their 
proposals. The legal basis for the rule is 41 U.S.C. 1303.
    The rule will apply to actions where cost and pricing data is 
required, at the discretion of the contracting officer. Based on data 
collected in FPDS-NG for FY2008-FY2010, there are on average 905 
actions per year that met the criteria where the proposal adequacy 
checklist could be utilized. On average, 420 of those actions were with 
small business concerns.
    The rule imposes no new reporting requirements. The rule does not 
duplicate, overlap, or conflict with any other Federal rules.
    No alternatives were identified that would meet the objectives of 
the rule. Excluding the small number of small business concerns that 
may be subject to the rule would not be in the best interest of the 
small business concerns or the Government, because the proposal 
adequacy checklist was created directly from requirements already in 
the Federal Acquisition Regulation. While the checklist does not add 
burden, it provides a useful tool for ensuring proposal adequacy.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D042), in 
correspondence.

IV. Paperwork Reduction Act

    The rule contains information collection requirements that require 
the approval of the Office of Management and Budget under the Paperwork 
Reduction Act (44 U.S.C. chapter 35; however, these changes to the 
DFARS do not impose additional information collection requirements to 
the paperwork burden previously approved under OMB Control Number 9000-
0013, entitled ``Cost or Pricing Data Exemption Information.''

List of Subjects in 48 CFR Parts 215 and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 215 and 252 are proposed to be amended as 
follows:
    1. The authority citation for 48 CFR parts 215 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 215--CONTRACTING BY NEGOTIATION

    2. Amend Section 215.408 to add new paragraph (3) to read as 
follows:


215.408  Solicitation provisions and contract clauses.

* * * * *
    (3) When the solicitation requires the submission of certified cost 
and pricing data, the contracting officer should include 252.215-70XX, 
Proposal Adequacy Checklist, in the solicitation.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Add section 252.215-70XX to read as follows:


252.215-70XX  Proposal Adequacy Checklist.

    As prescribed in 215.408(3), use the following provision:

PROPOSAL ADEQUACY CHECKLIST (DATE)

    The offeror shall complete the following checklist, providing 
location of requested information, or an explanation of why the 
requested information is not provided. Completion of this checklist 
in no way reduces the responsibility to fully comply with all of the 
requirements of 41 U.S.C. chapter 35, Truthful Cost or Pricing Data, 
and any other special requirements of the solicitation.

                                           Proposal Adequacy Checklist
----------------------------------------------------------------------------------------------------------------
                                                                                                 If not provided
                                                                                Proposal page   EXPLAIN (may use
             References                           Submission item                    No.          continuation
                                                                                                     pages)
----------------------------------------------------------------------------------------------------------------
                                              GENERAL INSTRUCTIONS
----------------------------------------------------------------------------------------------------------------
1. Paragraph A(1) FAR 15.408, Table   Is there a properly completed first     ................  ................
 15-2, Section I.                      page of the proposal per FAR 15.408
                                       Table 15-2 I.A or as specified in the
                                       solicitation?
----------------------------------------------------------------------------------------------------------------
2. Paragraph A(7) FAR 15.408, Table   Does the proposal identify the need     ................  ................
 15-2, Section I.                      for Government-furnished material/
                                       tooling/test equipment? Include the
                                       lending contract number and
                                       Contracting Officer contact
                                       information if known.
----------------------------------------------------------------------------------------------------------------

[[Page 75514]]

 
3. Paragraph A(8) FAR 15.408, Table   Does the proposal include               ................  ................
 15-2, Section I.                      identification of any CAS non-
                                       compliances, or other estimating
                                       deficiencies that may impact the
                                       proposed price?
----------------------------------------------------------------------------------------------------------------
4. Paragraph A(8) FAR 15.408, Table   Does the proposal disclose any other    ................  ................
 15-2, Section I.                      known activity that could materially
                                       impact the costs; such as, existing
                                       excess material, changes in
                                       production methods, make-or-buy
                                       decisions, company re-organizations,
                                       new business, or new technology?
----------------------------------------------------------------------------------------------------------------
5. Paragraph B FAR 15.408, Table 15-  Is an Index of all certified cost or    ................  ................
 2, Section I.                         pricing data and information
                                       accompanying or identified in the
                                       proposal provided and appropriately
                                       referenced?
----------------------------------------------------------------------------------------------------------------
6. FAR 15.403-1(b)..................  Are there any exceptions to submission  ................  ................
                                       of certified cost or pricing data
                                       pursuant to FAR 15.403-1(b)? If so,
                                       is supporting documentation included
                                       in the proposal?
----------------------------------------------------------------------------------------------------------------
7. Paragraph C(2)(i) FAR 15.408,      Does the proposal disclose the          ................  ................
 Table 15-2, Section I.                judgmental factors applied and the
                                       mathematical or other methods used in
                                       the estimate, including those used in
                                       projecting from known data?
----------------------------------------------------------------------------------------------------------------
8. Paragraph C(2)(ii) FAR 15.408,     Does the proposal disclose the nature   ................  ................
 Table 15-2, Section I.                and amount of any contingencies
                                       included in the proposed price?
----------------------------------------------------------------------------------------------------------------
9. Paragraph D FAR 15.408, Table 15-  Does the proposal explain the basis of  ................  ................
 2, Section I.                         all cost estimating relationships
                                       (CERs) (labor hours or material)
                                       proposed on other than a discrete
                                       basis?
----------------------------------------------------------------------------------------------------------------
10. Paragraphs D and E FAR 15.408,    Is there a summary of total cost by     ................  ................
 Table 15-2, Section I.                element of cost and are the elements
                                       of cost cross-referenced to the
                                       supporting cost or pricing data?
                                       (Breakdowns for each cost element
                                       must be consistent with your cost
                                       accounting system.)
----------------------------------------------------------------------------------------------------------------
11. Paragraph D FAR 15.408, Table 15- Is total price by cost element          ................  ................
 2, Section I.                         provided by year? Identify if by
                                       Calendar Year (CY) or Government
                                       Fiscal Year (GFY) or both, as
                                       required.
----------------------------------------------------------------------------------------------------------------
12. Paragraphs D and E FAR 15.408,    If more than one Contract Line Item     ................  ................
 Table 15-2, Section I.                Number (CLIN) or sub Contract Line
                                       Item Number (sub-CLIN) is proposed as
                                       required by the RFP, are there
                                       summary total amounts covering all
                                       line items for each element of cost
                                       and is it cross-referenced to the
                                       supporting cost or pricing data?
----------------------------------------------------------------------------------------------------------------
13. Paragraph E FAR 15.408, Table 15- Are CLIN prices by cost element         ................  ................
 2, Section I.                         provided by year? Identify if by CY
                                       or GFY or both, as required.
----------------------------------------------------------------------------------------------------------------
14. Paragraph E FAR 15.408, Table 15- Are recurring and non-recurring costs   ................  ................
 2, Section I.                         segregated at both the CLIN/sub-CLIN
                                       and total cost levels?
----------------------------------------------------------------------------------------------------------------
15. Paragraph F FAR 15.408, Table 15- Does the proposal identify any          ................  ................
 2, Section I.                         incurred costs for work performed
                                       before the submission of the
                                       proposal?
----------------------------------------------------------------------------------------------------------------
16. Paragraph G FAR 15.408, Table 15- Is there a Government forward pricing   ................  ................
 2, Section I.                         rate agreement (FPRA)? If so,
                                       identify and include.
----------------------------------------------------------------------------------------------------------------
                                                  COST ELEMENTS
                                             MATERIALS AND SERVICES
----------------------------------------------------------------------------------------------------------------
17. Paragraph AFAR 15.408, Table 15-  Does the proposal include a             ................  ................
 2, Section II.                        description of supplies or services
                                       and the basis on which the supply or
                                       service meets the Government's
                                       requirements?
----------------------------------------------------------------------------------------------------------------
18. Paragraph A FAR 15.408, Table 15- Does the proposal include a             ................  ................
 2, Section II.                        consolidated summary of individual
                                       material and services to include the
                                       basis for pricing? The offeror's
                                       consolidated summary shall include
                                       raw materials, parts, components,
                                       assemblies, subcontracts and services
                                       to be produced or performed by
                                       others, identifying as a minimum the
                                       item, source, quantity, and price.
----------------------------------------------------------------------------------------------------------------

[[Page 75515]]

 
                                 SUBCONTRACTS (Purchased materials or services)
----------------------------------------------------------------------------------------------------------------
19..................................  Does the proposal identify those        ................  ................
                                       actions for which assist audits have
                                       been requested by the contractor or a
                                       subcontractor and identify the
                                       request date and scheduled receipt
                                       date?
----------------------------------------------------------------------------------------------------------------
20. FAR 15.404-3(c).................  Per the thresholds of FAR 15.404-3(c),  ................  ................
                                       Subcontract Pricing Considerations,
                                       does the proposal include a copy of
                                       the applicable subcontractor's
                                       proposal(s)?
----------------------------------------------------------------------------------------------------------------
21. Paragraph A FAR 15.408, Table 15- Is the subcontractor Price/Cost         ................  ................
 2, Section II.                        Analysis establishing the
                                       reasonableness of each proposed
                                       subcontract included with the
                                       proposal?
----------------------------------------------------------------------------------------------------------------
22..................................  If the offeror's Price/Cost Analyses    ................  ................
                                       are not provided with the proposal,
                                       does the proposal include a matrix
                                       identifying dates for receipt of
                                       subcontractor proposal, completion of
                                       fact finding for purposes of Price/
                                       Cost Analysis, and submission of the
                                       Price/Cost Analysis?
----------------------------------------------------------------------------------------------------------------
                                         COMMERCIAL ITEM DETERMINATIONS
----------------------------------------------------------------------------------------------------------------
23. FAR 2.101 FAR 15.403-1 (b)(3) or  Are commercial items being proposed     ................  ................
 (b)(5).                               either at the prime or subcontractor
                                       level that would be exempt from
                                       certified cost or pricing data
                                       requirements?
----------------------------------------------------------------------------------------------------------------
24. FAR 2.101.......................  Has the contractor specifically         ................  ................
                                       identified the type of commercial
                                       item claim (FAR 2.101 commercial item
                                       definition, paragraphs (1) through
                                       (8)), and the basis on which the item
                                       meets the definition?
----------------------------------------------------------------------------------------------------------------
25. FAR 2.101 FAR 15.403-1..........  For modified commercial items (FAR      ................  ................
                                       2.101 commercial item definition
                                       paragraph (3)); did the contractor
                                       classify the modification(s) as
                                       either--
                                       A modification of a type       ................  ................
                                       customarily available in the
                                       commercial marketplace (paragraph
                                       (3)(i)); or
                                       A minor modification           ................  ................
                                       (paragraph (3)(ii)) of a type not
                                       customarily available in the
                                       commercial marketplace made to meet
                                       Federal Government requirements not
                                       exceeding the thresholds in FAR
                                       15.403-1(c)(3)(iii)(B)? (see note
                                       below)
----------------------------------------------------------------------------------------------------------------
26. FAR 2.101.......................  For proposed commercial items ``of a    ................  ................
                                       type'', or ``evolved'' or modified
                                       (FAR 2.101 commercial item definition
                                       paragraphs (1) through (3)), did the
                                       contractor provide a technical
                                       description of the differences
                                       between the proposed item and the
                                       comparison item(s)?
----------------------------------------------------------------------------------------------------------------
27. FAR 15.402(a)(2) FAR 15.403-      Does the proposal include a             ................  ................
 1(c)(3)(ii) FAR 15.403-3(c) FAR       determination of price reasonableness
 15.404-3(b) FAR 15.404-3(c) FAR       for all commercial items offered?
 15.406-2.
----------------------------------------------------------------------------------------------------------------
                                           ADEQUATE PRICE COMPETITION
----------------------------------------------------------------------------------------------------------------
28. Paragraph A(1) FAR 15.408, Table  Does the proposal support the degree    ................  ................
 15-2, Section II.                     of competition and the basis for
                                       establishing the source and
                                       reasonableness of price for each
                                       subcontract or purchase order priced
                                       on a competitive basis exceeding the
                                       threshold for certified cost or
                                       pricing data?
----------------------------------------------------------------------------------------------------------------
                                          INTERORGANIZATIONAL TRANSFERS
----------------------------------------------------------------------------------------------------------------
29. Paragraph A.(2) FAR 15.408,       For inter-organizational transfers      ................  ................
 Table 15-2, Section II.               proposed at cost, does the proposal
                                       include a complete cost proposal in
                                       compliance with Table 15-2?
----------------------------------------------------------------------------------------------------------------

[[Page 75516]]

 
30. FAR 31.205-26(e) FAR 15.403-1...  For inter-organizational transfers      ................  ................
                                       proposed at price in accordance with
                                       FAR 31.205-26(e), does the proposal
                                       provide an analysis by the prime that
                                       supports the exception from certified
                                       cost or pricing data in accordance
                                       with FAR 15.403-1?
----------------------------------------------------------------------------------------------------------------
                                                  DIRECT LABOR
----------------------------------------------------------------------------------------------------------------
31. Paragraph B FAR 15.408, Table 15- Does the proposal include a time        ................  ................
 2, Section II.                        phased (i.e.; monthly, quarterly)
                                       breakdown of labor hours, rates and
                                       costs by category or skill level? If
                                       labor is the allocation base for
                                       indirect costs, the labor cost must
                                       be summarized in order that the
                                       applicable overhead rate can be
                                       applied.
----------------------------------------------------------------------------------------------------------------
32. Paragraph B FAR 15.408, Table 15- For labor Basis of Estimates (BOEs),
 2, Section II.                        does the proposal include labor
                                       categories, labor hours, task
                                       descriptions, Statement of Work
                                       reference, applicable CLIN, Work
                                       Breakdown Structure, rationale for
                                       estimate, applicable history, and
                                       time-phasing?
----------------------------------------------------------------------------------------------------------------
33. Paragraphs B and C, FAR 15.408,   Does the proposal include all rates     ................  ................
 Table 15-2, Section II.               and factors by year that are utilized
                                       in the development of the proposal
                                       and the basis of those rates and
                                       factors (FPRA/FPRP)? The Offeror
                                       shall identify the official submittal
                                       of such rate and factor data.
----------------------------------------------------------------------------------------------------------------
34. FAR subpart 22.10...............  If covered by the Service Contract      ................  ................
                                       Labor Standards statute (41 U.S.C.
                                       chapter 67), are the rates in the
                                       proposal in compliance with the
                                       minimum rates specified in the
                                       statute?
----------------------------------------------------------------------------------------------------------------
                                                 INDIRECT COSTS
----------------------------------------------------------------------------------------------------------------
35. Paragraph C FAR 15.408, Table 15- Does the proposal indicate the basis    ................  ................
 2, Section II.                        of estimate for proposed indirect
                                       costs? (Support for the indirect
                                       rates could consist of cost
                                       breakdowns, trends, and budgetary
                                       data.)
----------------------------------------------------------------------------------------------------------------
                                                   OTHER COSTS
----------------------------------------------------------------------------------------------------------------
36. Paragraph D FAR 15.408, Table 15- Does the proposal include other direct  ................  ................
 2, Section II.                        costs and the basis for pricing? If
                                       travel is included does the proposal
                                       include number of trips, number of
                                       people, number of days per trip,
                                       locations, and rates (e.g. airfare,
                                       per diem, hotel, car rental, etc)?
----------------------------------------------------------------------------------------------------------------
37. Paragraph E FAR 15.408, Table 15- If royalties exceed $1,500 does the     ................  ................
 2, Section II.                        proposal provide the information/data
                                       identified by Table 15-2?
----------------------------------------------------------------------------------------------------------------
38. Paragraph F FAR 15.408, Table 15- When facilities capital cost of money   ................  ................
 2, Section II.                        is proposed, does the proposal
                                       include submission of Form CASB-CMF
                                       or reference to an FPRP/FPRA and show
                                       the calculation of the proposed
                                       amount?
----------------------------------------------------------------------------------------------------------------
                                  FORMATS FOR SUBMISSION OF LINE ITEM SUMMARIES
----------------------------------------------------------------------------------------------------------------
39. FAR 15.408, Table 15-2, Section   Are all cost element breakdowns         ................  ................
 III.                                  provided using the applicable format
                                       prescribed in FAR 15.408, Table 15-2
                                       III? (or alternative format if
                                       specified in the RFP)
----------------------------------------------------------------------------------------------------------------
40. Paragraph B FAR 15.408, Table 15- If the proposal is for a modification   ................  ................
 2, Section III.                       or change order, have cost of work
                                       deleted (credits) and cost of work
                                       added (debits) been provided in the
                                       format described in FAR 15.408, Table
                                       15-2.III.B?
----------------------------------------------------------------------------------------------------------------
41. Paragraph C FAR 15.408, Table 15- For price revisions/redeterminations,   ................  ................
 2, Section III.                       does the proposal follow the format
                                       in FAR 15.408, Table 15-2.III.C?
----------------------------------------------------------------------------------------------------------------

[[Page 75517]]

 
                                                      OTHER
----------------------------------------------------------------------------------------------------------------
42. FAR 16.4........................  If an incentive contract type, does     ................  ................
                                       the proposal include offeror proposed
                                       target cost, target profit or fee,
                                       share ratio, and, when applicable,
                                       minimum/maximum fee, ceiling price?
----------------------------------------------------------------------------------------------------------------
43. FAR 15.404-4(c)(4)(i)...........  Is proposed fee in accordance with
                                       statutory guidance?
----------------------------------------------------------------------------------------------------------------
44. FAR 16.203-4(a)(1)..............  If Economic Price Adjustments are       ................  ................
                                       being proposed, does the proposal
                                       show the rationale and application
                                       for the proposed indices?
----------------------------------------------------------------------------------------------------------------
45. FAR 32.1000.....................  If the offeror is proposing             ................  ................
                                       Performance-Based Payments have they
                                       provided an expenditure profile,
                                       proposed events and their projected
                                       dates, proposed values for each
                                       event, completion criteria, and
                                       identification of which events are
                                       severable or cumulative?
----------------------------------------------------------------------------------------------------------------
46. FAR 15.408(n)...................  Excessive Pass-through Charges--        ................  ................
                                       Identification of Subcontract Effort:
                                       If the offeror intends to subcontract
                                       more than 70% of the total cost of
                                       work to be performed, does the
                                       proposal identify: (i) The amount of
                                       the offeror's indirect costs and
                                       profit applicable to the work to be
                                       performed by the proposed
                                       subcontractor(s); and (ii) a
                                       description of the added value
                                       provided by the offeror as related to
                                       the work to be performed by the
                                       proposed subcontractor(s)?
----------------------------------------------------------------------------------------------------------------
47..................................  Does the proposal identify the          ................  ................
                                       location and point of contact for any
                                       certified cost or pricing data
                                       referenced in, but not provided with,
                                       the proposal?
----------------------------------------------------------------------------------------------------------------

(End of provision)

 [FR Doc. 2011-30907 Filed 12-1-11; 8:45 am]
BILLING CODE 5001-06-P