Final Rules - DOD Issues Four Final Rules Revising and Repealing Several DFARS Clauses and Their Related Prescriptions

Revised-DFARS 252.2019-7009, “Section 8(a) Direct Award”

On October 31, 2018, the Department of Defense (DOD) issued a final rule to remove an obsolete requirement from Defense Federal Acquisition Regulation Supplement (DFARS) 252.219-7009, “Section 8(a) Direct Award.” Currently the clause requires 8(a) contractors to obtain written approval from the Small Business Administration (SBA) and the contracting officer prior to subcontracting the performance of any contract requirements. The requirement, however, no longer exists in SBA’s regulations.

Repealed-DFARS 252.236-7009, “Option for Supervision and Inspection Services”

On October 31, 2018, DOD issued a second final rule to-

*Remove DFARS 252.236-7009, “Option for Supervision and Inspection Services”;

*Remove the associated clause prescription at DFARS 236.609-70(a)(1); and

*Revise a cross reference in the introductory text to DFARS 252.236-7011.

DFARS 252.236-7009 was used in fixed-price solicitations and contracts for architect-engineering services when the architect may also be required to provide supervision and inspection services during construction. DOD determined that the need for architect-engineers to perform supervision and inspection services during construction was uncommon.

Repealed-DFARS 252.211-7000, “Acquisition Streamlining”

On October 31, 2018, DOD issued a third final rule to remove DFARS 252.211-7000, “Acquisition Streamlining,” and to remove the associated prescription at DFARS 211.002-70. DFARS 252.211-7000 was included in all solicitations and contracts for systems acquisition programs and required contractors to:

*Prepare acquisition streamlining recommendations in accordance with the performance work statement.

*Format and submit the recommendations in accordance with the contract data requirements list of the contract, and

*Include the clause in all subcontracts valued over $1.5 million that are awarded in the performance of the contract.

Repealed-DFARS 252.228-7004, “Bonds or Other Security”

On October 31, 2018, DOD issued a fourth final rule to remove DFARS 252.228-7004, “Bonds or Other Security,” and the associated clause prescription at DFARS 228.170. The Miller Act requires⁵requires contractors on certain construction contracts to post bonds that guarantee performance of the contract and payment to subcontractors and supplies. DOD noted that several FAR clauses are available to implement these requirements on construction contracts. Specifically, DOD cited the clause at FAR 52.228-16, “Performance and Payment Bonds-Other than Construction,” and the provision at FAR 52.228-1, “Bid Guarantee,” which provide the information contained in the repealed DFARS clause and can be included in solicitations and contracts that involve dismantling, demolition, or removal of improvements.

Reference the following website:

Https://www.ncmahq.org/stay-informed/contract-management-magazine

December 2018 Contract Management Issue