[Federal Register Volume 72, Number 11 (Thursday, January 18, 2007)]
[Proposed Rules]
[Pages 2250-2251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-612]
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DEPARTMENT OF DEFENSE
Department of the Navy
48 CFR Part 5234
[No. USN-2006-0069]
Department of the Navy Acquisition Regulations: Continuous
Process Improvements (CPI)
AGENCY: Department of the Navy, DoD.
ACTION: Advance notice of proposed rulemaking.
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SUMMARY: The Deputy for Acquisition Management, Office of the Assistant
Secretary of the Navy (Research, Development and Acquisition) is
issuing this advance notice of proposed rulemaking (ANPR) to solicit
comments that can be used to assist the Department of the Navy (DON) in
drafting a proposed Navy Marine Corps Acquisition Regulation Supplement
contract clause or statement of work requirements that will incentivize
contractors to pursue and implement CPI on DON major defense contracts.
In particular, the primary focus will be to incentivize proactive
business process improvement activities that identify increased
efficiencies, cost avoidance, and cost savings, and provide the
greatest motivation for contractors to share related savings with the
DON to the maximum extent practicable.
DATES: Comment Date: Interested parties should submit comments on or
before March 19, 2007, to be considered in the formulation of any
proposed rule.
The DON invites interested parties from both the private and public
sector to provide comments on the effective use of incentives to
encourage and reward contractor CPI initiatives aimed toward exceeding
key objectives or performance parameters on DON major defense
contracts. Comments are especially welcomed on the specific issues
discussed in the SUPPLEMENTARY INFORMATION section of this notice. See,
in particular, the questions posed under ``Solicitation of Public
Comment.''
ADDRESSES: Interested parties may submit comments, identified by docket
number and title, by any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Federal Docket Management System Office, 1160
Defense Pentagon, Washington, DC 20301-1160.
Instructions: All submissions received must include the agency
name, docket number, and title for this Federal Register document. The
general policy for comments and other submissions from members of the
public is to make these submissions available for public viewing on the
Internet at http://www.regulations.gov as they are received without
change, including any personal identifiers or contact information.
Please cite ``Continuous Process Improvements'' in all correspondence
related to this issue.
FOR FURTHER INFORMATION CONTACT: Department of the Navy, Office of the
Assistant Secretary of the Navy (Research, Development & Acquisition),
Deputy for Acquisition Management, Attn: Mr. Clarence Belton, Policy,
1000 Navy Pentagon, Room BF992, Washington, DC 20350-1000, telephone
number 703-693-4006.
SUPPLEMENTARY INFORMATION:
A. Background
Companies that have implemented CPI methods and tools have
significantly reduced waste and non-value added activities, improved
cycle time, produced repeatable processes, reduced variation, and
improved customer satisfaction.
This process has led to improved products and services at a reduced
cost. The Navy and Marine Corps, as customers of goods and services,
should receive a fair share of the reduced costs. A contract clause
should benefit companies that are aggressive in implementing CPI tools
and methods with quantifiable improved output. The purpose of this ANPR
is to solicit comments and suggestions on contract requirements aimed
at motivating and
[[Page 2251]]
rewarding contractors for implementing CPI. After consideration of the
comments submitted in writing, the DON may publish a draft proposed
rule for additional public comments.
B. Solicitation of Public Comment
The DON seeks to better understand how to incentivize contractors
to incorporate best business practices related to CPI and how such
contract requirements are used commercially and when their use would be
in the best interest of the Government. The DON has developed questions
to obtain this information as part of this ANPR.
Accordingly, the DON invites the public to provide comments
addressing the appropriate use of specific contract provisions to
incentivize contractors to aggressively pursue and initiate CPI that
identify increased efficiencies, cost avoidance, and cost savings.
Comments are also requested on the use of solicitation provisions,
source selection criteria, and performance incentives that will provide
contractors with the greatest motivation to share related savings with
the Government to the maximum extent practicable. The DON especially
welcomes feedback to the following questions:
1. What contractual mechanisms can the Government use to
incentivize contractors to implement CPI?
2. What are some of the contract provisions currently being used in
supplier and other subcontracts to incentivize CPI?
3. How can the Government motivate contractors who implement CPI to
share in related savings to the maximum extent practicable?
4. Are cost reimbursement or flexibly priced contracts more
suitable for providing incentives for contractors to implement CPI that
identify increased efficiencies, cost avoidance, and cost savings, and
for providing the highest motivation to share in those related savings
to the maximum extent practicable? Why or why not? What about firm
fixed-priced contracts?
Dated: January 11, 2007.
M.A. Harvison,
Lieutenant Commander, Judge Advocate General's Corps, U.S. Navy,
Federal Register Liaison Officer.
[FR Doc. E7-612 Filed 1-17-07; 8:45 am]
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