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Pilot Program for Military-Purpose Nondevelopmental Items

The Department of Defense has issued an interim rule that amends the Defense Federal Acquisition Regulation Supplement to implement Section 866 of the National Defense Authorization Act for Fiscal Year 2011 (PL 111-383), which authorized the Secretary of Defense to establish a pilot program to assess the feasibility and advisability of acquiring military-purpose nondevelopmental items. Under the pilot program, DoD may enter into contracts with nontraditional defense contractors for the purpose of enabling DoD to acquire items that otherwise might not have been available to DoD; assisting DoD in the rapid acquisition and fielding of capabilities needed to meet urgent operational needs; and protecting the interests of the United States in paying fair and reasonable prices for the item or items acquired. The pilot program is designed to test whether the streamlined procedures, similar to those available for commercial items, can serve as an effective incentive for nontraditional defense contractors to channel investment and innovation into areas that are useful to DoD and provide items developed exclusively at private expense to meet validated military requirements.

Nontraditional Contractors Targeted

The program is implemented at new DFARS Subpart 212.71, Pilot Program for Acquisition of Military Purpose Nondevelopmental Items, which consists of DFARS 212.7100 through DFARS 212.7103. New DFARS 212.7102-1, Contracts under the program, authorizes contracting officers to enter into contracts with nontraditional defense contractors for the acquisition of military-purpose nondevelopmental items and states the requirements for contracts entered into under the program. New DFARS 212.7102-2 outlines reporting requirements, while new DFARS 212.7102-3 provides the authority for the program expires on January 6, 2016. The rule also adds a new solicitation provision, DFARS 252.212-7002, which is prescribed by new DFARS 212.7103. Additional compliance and reporting requirements are added to the DFARS companion resource, Procedures, Guidance, and Information, at PGI 212.7102 and PGI 212.7102-3. The effective date of the interim rule is June 29, 2011. Comments referencing DFARS Case 2011-D034 are due August 29, 2011. For the text of the rule, see 70,016.654.




(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )


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