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DOD/DARC | RIN: 0750-AI59 | Publication ID: Spring 2017 |
Title: Offset Costs (DFARS Case 2015-D028) | |
Abstract:
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement to implement section 812 of the National Defense Authorization Act for Fiscal Year 2016 to clarify that certain indirect offset costs under an offset agreement are deemed reasonable for purposes of Federal Acquisition Regulation (FAR) parts 15 and 31. The rule provides guidelines to contracting officers when an indirect offset is a condition of a foreign military sales (FMS) acquisition. Specifically, the rule sets forth that all offset costs that involve benefits provided by the U.S. defense contractor to the FMS customer that are unrelated to the item being purchased under the Letter of Offer and Acceptance (indirect offset costs) are deemed reasonable for purposes of FAR parts 15 and 31, with no further analysis necessary on the part of the contracting officer, provided that the U.S. defense contractor submits to the contracting officer a signed offset agreement or other documentation showing that the FMS customer has made the provision of an indirect offset of a certain dollar value a condition of the FMS acquisition. Further, submission of certified cost or pricing data shall not be required to the extent such data relates to an indirect offset. One respondent submitted a public comment in response to the proposed rule. Five respondents submitted public comments on the interim rule. The rule is not expected to increase costs for contractors, because the rule merely clarifies that contracting officers are not responsible for making a determination of price reasonableness for indirect offset costs, for which they have no purview, under FMS agreements. The rule will not have a significant economic impact on small entities, because indirect offset agreements are not incorporated into FMS contracts wtih small entitities. |
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Agency: Department of Defense(DOD) | Priority: Substantive, Nonsignificant |
RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Final Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 48 CFR 202 48 CFR 215 48 CFR 225 48 CFR 252 | |
Legal Authority: 41 U.S.C. 1303 Pub. L. 114-92, sec. 812 10 U.S.C. 2306a(b)(1) |
Legal Deadline:
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: Federal |
Federalism: No | |
Included in the Regulatory Plan: No | |
International Impacts: This regulatory action will be likely to have international trade and investment effects, or otherwise be of international interest. | |
RIN Data Printed in the FR: No | |
Agency Contact: Jennifer Hawes Defense Acquisition Regulations System Department of Defense 3060 Defense Pentagon, Room 3B941, Washington, DC 20301-3060 Phone:571 372-6115 Email: jennifer.l.hawes2.civ@mail.mil |