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DOD/DARC RIN: 0750-AH02 Publication ID: Spring 2011 
Title: ●Alternative Line-Item Structure (DFARS Case 2010-D017) 
Abstract: This rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to provide an offeror the opportunity to propose an alternative contract line-item structure from what is described in the solicitation that reflects the offeror's business practices for selling and billing commercial items and initial provisioning of spares for weapon systems. An offeror's proposed alternative-line item structure must be consistent with DFARS 204.71, which provides explicit guidance on the use of contract line items and subline items. Establishing a process that provides offerors an opportunity to propose an alternative contract line item structure is a first step in the transformation towards manageable variation in the transactions across DoD. DoD identified the need to propose an alternative line-item structure during process reviews and working group sessions which were chartered by the Defense Finance and Accounting System, for the purposes of examining issues causing problems in the receipt and acceptance phase for contract deliverables and payments.. The line-item structure in a solicitation is not always sufficient for delivery, payment, and subsequent inventory management of the items delivered. For example, the contract line item may be for a desktop computer, but the actual items delivered, invoiced, and inventoried may reflect a separate monitor, keyboard, and central processing unit. The resultant misalignment of transaction detail (i.e., contract line item, invoiced unit, delivery and inventory unit) is the cause of failures in the electronic processes of the DoD's business enterprise requiring manual intervention with potential delays in contractor payment. This rule is designed to address this recurring problem by allowing offerors to propose changes in their offer to the solicitation's line-item structure. DoD expects that formalizing the ability to propose an alternative line-item structure in a standard DFARS provision for commercial items and initial provisioning spares for weapon systems will prevent future contract administration and payment problems. Because this change will not add to, or delete from existing requirements or authorities for entities to include alternative line-item structures in their offers, economic impact is anticipated to be minimal. 
Agency: Department of Defense(DOD)  Priority: Substantive, Nonsignificant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 48 CFR     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 410 USC 421   
Legal Deadline:  None
Action Date FR Cite
Interim Final Rule  06/00/2011    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Ynette R. Shelkin
Editor, Defense Acquisition Regulations System
Department of Defense
Defense Acquisition Regulations Council
OUSD/AT&L DPAP/DARS, 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060
Phone:571 372-6089