[Federal Register Volume 70, Number 201 (Wednesday, October 19, 2005)]
[Proposed Rules]
[Pages 60782-60783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20869]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 4, and 52
[FAR Case 2005-007]
RIN 9000-AK33
Federal Acquisition Regulation; Central Contractor Registration -
Taxpayer Identification Number (TIN) Validation
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to include the process of
validating a Central Contractor Registration (CCR) registrant's
taxpayer identification number (TIN) with the Internal Revenue Service
(IRS) to improve data accuracy in the Federal procurement system.
Additionally, the proposed amendment removes outdated language
requiring modifications of contracts prior to December 31, 2003,
regarding CCR.
DATES: Interested parties should submit written comments to the FAR
Secretariat on or before December 19, 2005 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2005-007 by any of
the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the FAR case number to submit comments.
E-mail: [email protected]. Include FAR case 2005-
007 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2005-
007 in all correspondence related to this case. All comments received
will be posted without change to http://www.acqnet.gov/far/ProposedRules/proposed.htm, including any personal and/or business
confidential information provided.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Mr. Michael O. Jackson, Procurement
Analyst, at (202) 208-4949. Please cite FAR case 2005-007.
SUPPLEMENTARY INFORMATION:
A. Background
Vendor registration in the CCR as a pre-requisite for being awarded
a contract has been required in the Department of Defense since 1998,
for Civilian Agencies since 2003. Since CCR's inception, validation of
registrants' TINs with the IRS has been contemplated in order to
improve data accuracy throughout the Federal procurement system. This
capability, although actively pursued, was never implemented as the
Internal Revenue Code (I.R.C.) restricts disclosure of TINs without the
taxpayer's consent, which due to technology at the time, would have
been costly and inefficient to pursue. However, in its Fall 2004
``Report to Senate Committee on Governmental Affairs Permanent
Subcommittee on Investigations,'' the Federal Contractor Tax Compliance
Task Force (which included the Office of Management and Budget, the
Department of Treasury, the Department of Defense, the General Services
Administration, the Department of Justice, and the IRS) recommended
that `` . . . a consent-based TIN validation under I.R.C. Sec. 6103
should be instituted.'' The capability for a near real-time/real-time,
web-based solution integrating the CCR with an IRS validation is now
able to be pursued due to advancements in technology. The FAR was
recommended to be updated to specifically identify the validation of
the TINs as a part of CCR registration.
Additionally, Subpart 4.11, Central Contractor Registration,
contains language that was included when this subpart was implemented
in the FAR in 2003. This outdated language required modifications of
contracts by December 31, 2003, to include CCR registration
requirements. As this date is past, the case removes the associated
language.
The rule is proposing to amend the FAR by--
1. Modifying FAR 2.101 to indicate that the validation requirement
for ``registered in CCR'' includes TIN matching.
2. Removing FAR 4.1103(a)(3)(i) thru 4.1103(a)(3)(ii) and a part of
4.1104 to
[[Page 60783]]
remove the language requiring action by December 31, 2003.
3. Adding detail to the FAR clause at 52.204-7, Central Contractor
Registration, to specifically identify validation of the TIN as a part
of the definition ``Registered in the CCR Database,'' and to indicate
that consent is part of that process.
4. Removing Alternate I to FAR clause 52.204-7, Central Contractor
Registration.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., as no
new requirements are being placed on the vendor community. An Initial
Regulatory Flexibility Analysis has, therefore, not been performed. We
invite comments from small businesses and other interested parties. The
Councils will consider comments from small entities concerning the
affected FAR Parts 2, 4, and 52 in accordance with 5 U.S.C. 610.
Interested parties must submit such comments separately and should cite
5 U.S.C. 601, et seq. (FAR case 2005-007), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 2, 4, and 52
Government procurement.
Dated: October 12, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2, 4,
and 52 as set forth below:
1. The authority citation for 48 CFR parts 2, 4, and 52 continues
to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by revising paragraph (2) of the definition
``Registered in the CCR database'' to read as follows:
2.101 Definitions.
* * * * *
Registered in the CCR database * * *
* * * * *
(2) The Government has validated all mandatory data fields, to
include validation of the Taxpayer Identification Number (TIN) with the
Internal Revenue Service (IRS), and has marked the record ``Active''.
The contractor will be required to provide consent for TIN validation
to the Government as a part of the CCR registration process.
* * * * *
PART 4--ADMINISTRATIVE MATTERS
4.1103 [Amended]
3. Amend section 4.1103 by removing paragraph (a)(3) and
redesignating paragraphs (b), (c), (d), and (e) as (a)(3), (b), (c) and
(d), respectively.
4.1104 [Amended]
4. Amend section 4.1104 by removing the last sentence.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Amend section 52.204-7 by revising the date of the clause; in
paragraph (a) by revising paragraph (2) of the definition ``Registered
in the CCR database''; and by removing Alternate I. The revised text
reads as follows:
52.204-7 Central Contractor Registration.
* * * * *
Central Contractor Registration (DATE)
(a) * * *
* * * * *
Registered in the CCR database * * *
* * * * *
(2) The Government has validated all mandatory data fields, to
include validation of the Taxpayer Identification Number (TIN) with the
Internal Revenue Service (IRS), and has marked the record ``Active''.
The Contractor will be required to provide consent for TIN validation
to the Government as a part of the CCR registration process.
[FR Doc. 05-20869 Filed 10-18-05; 8:45 am]
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