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107

Personal services authority for direct health care
providers

584

110

111

112

Standardized rates of subsistence allowance and
commutation instead of uniforms for members of
the Senior Reserve Officers' Training Corps
Reserve Officers' Training Corps program for sec-
ondary educational institutions
Indebtedness of military personnel

586

592

598

113

114

Indebtedness procedures of military personnel
Reserve components common personnel data sys-
tem (RCCPDS) ...

601

618

115

Assignment to and transfer between Reserve cat-
egories, and discharge from Reserve status

659

132

142

143

Initial active duty for training in Reserve compo-
nents

Copyrighted sound and video recordings
DoD policy on organizations that seek to represent
or organize members of the Armed Forces in ne-
gotiation or collective bargaining

6663

664

144

Service by members of the Armed Forces on State
and local juries

667

145

146

147

148

149

Cooperation with the Office of Special Counsel of
the Merit Systems Protection Board
Compliance of DoD members, employees, and fam-
ily members outside the United States with
court orders

Adjudicative guidelines for determining eligibility
for access to classified information

National policy and implementation of reciprocity
of facilities

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Part 157

158

Dissemination of DoD technical information
Guidelines for systematic declassification review
of classified information in permanently valu-
able DoD records

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787

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162

165

Productivity Enhancing Capital Investment (PECI)
Recoupment of nonrecurring costs on sales of U.S.
items

873

877

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172

Disposition of proceeds from DoD sales of surplus
personal property

928

173

Competitive information certificate and profit re-
duction clause

934

SUBCHAPTER G-CLOSURES AND REALIGNMENT

174 175

Revitalizing base closure communities ...

938

Revitalizing base closure communities-base clo-
sure community assistance

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Military support to civil authorities (MSCA)
The DoD Explosives Safety Board

964

975

SUBCHAPTERS I-K [RESERVED]

SUBCHAPTER L-ENVIRONMENT

187

Environmental effects abroad of major Depart-
ment of Defense actions

979

188

Environmental effects in the United States of DoD
actions ......

988

189

190

Mineral exploration and extraction on DoD lands
Natural Resources Management Program

994

996

PART 1 [RESERVED]

PART 2-PILOT PROGRAM POLICY

Sec.

2.1 Purpose.

2.2 Statutory relief for participating pro

grams.

2.3 Regulatory relief for participating programs.

2.4 Designation of participating programs. 2.5 Criteria for designation of participating programs.

AUTHORITY: 10 U.S.C. 2340 note.

SOURCE: 62 FR 17549, Apr. 10, 1997, unless otherwise noted.

§2.1 Purpose.

Section 809 of Public Law 101-510, "National Defense Authorization Act for Fiscal Year 1991," as amended by section 811 of Public Law 102-484, "National Defense Authorization Act for Fiscal Year 1993” and Public Law 103160, "National Defense Authorization Act for Fiscal Year 1994," authorizes the Secretary of Defense to conduct the Defense Acquisition Pilot Program. In accordance with section 809 of Public Law 101-510, the Secretary may designate defense acquisition programs for participation in the Defense Acquisition Pilot Program.

(a) The purpose of the pilot programs is to determine the potential for increasing the efficiency and effectiveness of the acquisition process. Pilot programs shall be conducted in accordance with the standard commercial, industrial practices. As used in this policy, the term "standard commercial, industrial practice" refers to any acquisition management practice, process, or procedure that is used by commercial companies to produce and sell goods and services in the commercial marketplace. This definition purposely implies a broad range of potential activities to adopt commercial practices, including regulatory and statutory streamlining, to eliminate unique Government requirements and practices such as government-unique contracting policies and practices, governmentunique specifications and standards,

and reliance on cost determination rather than price analysis.

(b) Standard commercial, industrial practices include, but are not limited to:

(1) Innovative contracting policies and practices;

(2)

Performance and commercial specifications and standards;

(3) Innovative budget policies; (4) Establishing fair and reasonable prices without cost data;

(5) Maintenance of long-term relationships with quality suppliers;

(6) Acquisition of commercial and non-developmental items (including components); and

(7) Other best commercial practices. §2.2 Statutory relief for participating programs.

(a) Within the limitations prescribed, the applicability of any provision of law or any regulation prescribed to implement a statutory requirement may be waived for all programs participating in the Defense Acquisition Pilot Program, or separately for each participating program, if that waiver or limit is specifically authorized to be waived or limited in a law authorizing appropriations for a program designated by statute as a participant in the Defense Acquisition Pilot Program.

(b) Only those laws that prescribe procedures for the procurement of supplies or services; a preference or requirement for acquisition from any source or class of sources; any requirement related to contractor performance; any cost allowability, cost accounting, or auditing requirements; or any requirement for the management of, testing to be performed under, evaluation of, or reporting on a defense acquisition program may be waived.

(c) The requirements in section 809 of Public Law 101-510, as amended by section 811 of Public Law 102-484, the requirements in any law enacted on or after the enactment of Public Law 101510 (except to the extent that a waiver or limitation is specifically authorized for such a defense acquisition program by statute), and any provision of law that ensures the financial integrity of

the conduct of a Federal Government program or that relates to the authority of the Inspector General of the Department of Defense may not be considered for waiver.

§2.3 Regulatory relief for participating programs.

(a) A program participating in the Defense Acquisition Pilot Program will not be subject to any regulation, policy, directive, or administrative rule or guideline relating to the acquisition activities of the Department of Defense other than the Federal Acquisition Regulation (FAR)1, the Defense FAR Supplement (DFARS)2, or those regulatory requirements added by the Under Secretary of Defense for Acquisition and Technology, the Head of the Component, or the DoD Component Acquisition Executive.

(b) Provisions of the FAR and/or DFARS that do not implement statutory requirements may be waived by the Under Secretary of Defense for Acquisition and Technology using appropriate administrative procedures. Provisions of the FAR and DFARS that implement statutory requirements may be waived or limited in accordance with the procedures for statutory relief previously mentioned.

(c) Regulatory relief includes relief from use of government-unique specifications and standards. Since a major objective of the Defense Acquisition Pilot Program is to promote standard, commercial industrial practices, functional performance and commercial specifications and standards will be used to the maximum extent practical. Federal or military specifications and standards may be used only when no practical alternative exists that meet the user's needs. Defense acquisition officials (other than the Program Manager or Commodity Manager) may only require the use of military specifications and standards with advance approval from the Under Secretary of Defense for Acquisition and Technology, the Head of the DoD Component, or the DoD Component Acquisition Executive.

1 Copies of this Department of Defense publication may be obtained from the Government Printing Office, Superintendent of Documents, Washington, DC 20402.

2 See footnote 1 to §2.3(a).

§2.4 Designation of participating pro

grams.

(a) Pilot programs may be nominated by a DoD Component Head or Component Acquisition Executive for participation in the Defense Acquisition Pilot Program. The Under Secretary of Defense for Acquisition and Technology shall determine which specific programs will participate in the pilot program and will transmit to the Congressional defense committees a written notification of each defense acquisition program proposed for participation in the pilot program. Programs proposed for participation must be specifically designated as participants in the Defense Acquisition Pilot Program in a law authorizing appropriations for such programs and provisions of law to be waived must be specifically authorized for waiver.

(b) Once included in the Defense Acquisition Pilot Program, decision and approval authority for the participating program shall be delegated to the lowest level allowed in the acquisition regulations consistent with the total cost of the program (e.g., under DoD Directive 5000.1, 3 an acquisition program that is a major defense acquisition program would be delegated to the appropriate Component Acquisition Executive as an acquisition category IC program)

(c) At the time of nomination approval, the Under Secretary of Defense for Acquisition and Technology will establish measures to judge the success of a specific program, and will also establish a means of reporting progress towards the measures.

§2.5 Criteria for designation of participating programs.

(a) Candidate programs must have an approved requirement, full program funding assured prior to designation, and low risk. Nomination of a candidate program to participate in the Defense Acquisition Pilot Program should occur as early in the program's life-cycle as possible. Developmental programs will only be considered on an exception basis.

3 Copies may be obtained, at cost, from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161.

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