[Federal Register Volume 75, Number 245 (Wednesday, December 22, 2010)]
[Proposed Rules]
[Pages 80426-80430]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32099]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 211, 212, and 252
[DFARS Case 2009-D043]
Defense Federal Acquisition Regulation Supplement; Reporting of
Government-Furnished Property
AGENCY: Defense Acquisition Regulations System; Department of Defense
(DoD).
[[Page 80427]]
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD proposes to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to revise and expand reporting
requirements for Government-furnished property to include items
uniquely and non-uniquely identified, and to clarify policy for
contractor access to Government supply sources.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before February 22, 2011, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2009-D043,
using any of the following methods:
o Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by inputting
``DFARS Case 2009-D043'' under the heading ``Enter keyword or ID'' and
selecting ``Search.'' Select the link ``Submit a Comment'' that
corresponds with ``DFARS Case 2009-D043.'' Follow the instructions
provided at the ``Submit a Comment'' screen. Please include your name,
company name (if any), and ``DFARS Case 2009-D043'' on your attached
document.
E-mail: [email protected]. Include DFARS Case 2009-D043 in the subject
line of the message.
Fax: 703-602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms. Mary
Overstreet, OUSD(AT&L)DPAP/DARS, 3060 Defense Pentagon, Room 3B855,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check http://www.regulations.gov approximately two to three days after submission to
verify posting (except allow 30 days for posting of comments submitted
by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, OUSD (AT&L) DPAP/
DARS, 3060 Defense Pentagon, Room 3B855, Washington, DC 20301-3060.
Telephone 703-602-0311; facsimile 703-602-0350. Please cite DFARS Case
2009-D043.
SUPPLEMENTARY INFORMATION:
A. Background
Current DFARS policy requires contractors to report to the DoD Item
Unique Identification (IUID) Registry property that is classified as
equipment, special tooling, and special test equipment items valued at
$5,000 or more, and items valued at less than $5,000 when required in
accordance with contract terms and conditions. In lieu of these dollar
thresholds, reporting requirements are being revised and expanded to
require contractors to report Government-furnished property (GFP) with
existing unique item identification to the DoD IUID Registry; and all
GFP without an existing unique item identification shall be reported to
the DoD GFP Hub.
The clause at 252.211-7007, Reporting of Government-Furnished
Equipment in the DoD Item Unique Identification (IUID) Registry, is
being renamed as ``Reporting of Government-Furnished Property,''
revised to expand definitions, and provide guidance on reporting of GFP
to the DoD IUID Registry or the GFP Hub. This clause applies to
commercial contracts that have GFP and reporting applicability, and is
added to the list of solicitation provisions and contract clauses
applicable to the acquisition of commercial items at 212.301.
Additionally, the clause at 252.251-7000 is revised to require
electronic receipts of property obtained from a Government supply
source.
B. Regulatory Flexibility Act
DoD has prepared an initial regulatory flexibility analysis
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained
from the point of contact specified herein. The analysis is summarized
as follows:
The objective of the rule is to improve the accountability and
control of DoD assets. This rule proposes to amend the Defense Federal
Acquisition Regulation Supplement to revise and expand reporting
requirements for Government-furnished equipment to include GFP that is
both uniquely and non-uniquely identified, and clarifies policy for
contractor access to Government supply sources. The proposed clause
requires contractors to identify and report Government-furnished
property with existing unique item identification to the DoD IUID
Registry; and all GFP without an existing unique item identification
shall be reported to the DoD GFP Hub. At this time, DoD is unable to
estimate the number of small entities to which this rule will apply.
Therefore, DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D043) in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 96-511) applies because the
rule imposes information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq. The information collection requirements under this proposed
rule were formerly approved by the Office of Management and Budget,
under clearance number 0704-0246. The requirements of this proposed
rule are expected to have only a marginal impact, and are not expected
to change the overall burden hours approved under clearance number
0704-0246. The rule removes the mandatory $5,000 unit acquisition cost
dollar threshold for reporting. This does not significantly impact
items valued at less than $5,000 in unit acquisition cost as they were
also previously required to be reported if they were serially managed,
mission essential, sensitive, or controlled inventory. While the
proposed rule adds reporting of Government-furnished material and
reparables, this additional requirement is expected to be offset by
removal of the $5,000 mandatory reporting threshold. Interested parties
are invited to provide comments on the potential impact.
List of Subjects in 48 CFR Parts 211, 212, and 252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR parts 211, 212, and 252 as
follows:
1. The authority citation for 48 CFR parts 211, 212, and 252,
continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
PART 211--DESCRIBING AGENCY NEEDS
2. Amend section 211.274-2, by revising paragraph (b)(2)(ii) to
read as follows:
211.274-2 Policy for unique item identification.
* * * * *
(b)(2)(ii) The DoD Unique Identification Policy Office must receive
a copy of the determination and findings required by paragraph
(b)(2)(i) of this subsection. Send the copy to DPAP/Program Development
and Implementation, Deputy Director, 3060
[[Page 80428]]
Defense Pentagon, 3B855, Washington, DC 20301-3060; or by facsimile to
703-602-6047.
3. Revise section 211.274-4 to read as follows:
211.274-4 Policy for reporting of Government-furnished property.
(a) It is DoD policy that all Government-furnished property be
recorded in the DoD Item Unique Identification (IUID) Registry or GFP
Hub, as defined in the clause at 252.211-7007, Reporting of Government-
Furnished Property, as follows:
(1) All property with an existing assigned Unique Item Identifier
(UII) shall be reported to the DoD IUID Registry.
(2) All property without an existing assigned UII shall be reported
to the GFP Hub.
(b) The following items are not required to be reported:
(1) Contractor-acquired property as defined in FAR part 45;
(2) Property under any statutory leasing authority;
(3) Property to which the Government has acquired a lien or title
solely because of partial, advance, progress, or performance-based
payments;
(4) Intellectual property or software; and
(5) Real property.
4. Revise section 211.274-6 to read as follows:
211.274-6 Contract clauses.
(a)(1) Use the clause at 252.211-7003, Item Identification and
Valuation, in solicitations and contracts that--
(i) Require item identification or valuation, or both, in
accordance with 211.274-2 and 211.274-3; or
(ii) Are cost-reimbursement contracts that may result in the
acquisition of contractor-acquired property (see FAR 45.101).
(2) Complete paragraph (c)(1)(ii) of the clause with the contract
line, subline, or exhibit line item number and description of any
item(s) below $5,000 in unit acquisition cost for which DoD unique item
identification or a DoD-recognized unique identification equivalent is
required in accordance with 211.274-2(a)(2) or (3).
(3) Complete paragraph (c)(1)(iii) of the clause with the
applicable attachment number, when DoD unique item identification or a
DoD-recognized unique identification equivalent is required in
accordance with 211.274-2(a)(4) for DoD serially managed subassemblies,
components, or parts embedded within deliverable items.
(4) Use the clause with its Alternate I if--
(i) An exception in 211.274-2(b) applies; or
(ii) Items are to be delivered to the Government and none of the
criteria for placing a unique item identification mark applies.
(b) Use the clause at 252.211-7007, Reporting of Government-
Furnished Property, in solicitations and contracts that contain the
clause at--
(1) FAR 52.245-1, Government Property; or
(2) FAR 52.245-2, Government Property Installation Operation
Services.
(c) Use the clause at 252.211-7008, Use of Government-Assigned
Serial Numbers, in solicitations and contracts that--
(1) Contain the clause at 252.211-7003, Item Identification and
Valuation; and
(2) Require the contractor to mark major end items under the terms
and conditions of the contract.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
5. Revise section 212.301 to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) The following additional provisions and clauses apply to DoD
solicitations and contracts for the acquisition of commercial items. If
the offeror has completed the provisions listed in paragraph (f)(i) or
(ii) of this section electronically as part of its annual
representations and certifications at https://orca.bpn.gov, the
contracting officer may consider this information instead of requiring
the offeror to complete these provisions for a particular solicitation.
(i) Use one of the following provisions as prescribed in part 225:
(A) 252.225-7000, Buy American Act--Balance of Payments Program
Certificate.
(B) 252.225-7020, Trade Agreements Certificate.
(C) 252.225-7035, Buy American Act--Free Trade Agreements--Balance
of Payments Program Certificate.
(ii) Use the provision at 252.212-7000, Offeror Representations and
Certifications--Commercial Items, in all solicitations for commercial
items exceeding the simplified acquisition threshold. If an exception
to 10 U.S.C. 2410i applies to a solicitation exceeding the simplified
acquisition threshold (see 225.7603), indicate on an addendum that
``The certification in paragraph (b) of the provision at 252.212-7000
does not apply to this solicitation.''
(iii) Use the clause at 252.212-7001, Contract Terms and Conditions
Required to Implement Statutes or Executive Orders Applicable to
Defense Acquisitions of Commercial Items, in all solicitations and
contracts for commercial items, completing paragraphs (a) and (b), as
appropriate.
(iv) Provisions and clauses prescribed elsewhere in DFARS as
follows:
(A) Use the provision at 252.209-7001, Disclosure of Ownership or
Control by the Government of a Terrorist Country, as prescribed in
209.104-70(a).
(B) Use the clause at 252.211-7003, Item Identification and
Valuation, as prescribed in 211.274-6.
(C) Use the clause at 252.211-7006, Radio Frequency Identification,
as prescribed in 211.275-3.
(D) Use the clause at 252.211-7007, Reporting of Government-
Furnished Property, as prescribed in DFARS 211.274-6.
(E) Use the provision at 252.225-7010, Commercial Derivative
Military Article--Specialty Metals Compliance Certificate, as
prescribed in 225.7003-5(b).
(F) Use the clause at 252.225-7040, Contractor Personnel Authorized
to Accompany U.S. Armed Forces Deployed Outside the United States, as
prescribed in 225.7402-4.
(G) Use the clause at 252.225-7043, Antiterrorism/Force Protection
Policy for Defense Contractors Outside the United States, in
solicitations and contracts that include the clause at 252.225-7040.
(H) Use the clause at 252.232-7009, Mandatory Payment by
Governmentwide Commercial Purchase Card, as prescribed in 232.1110.
(I) Use the clause at 252.232-7010, Levies on Contract Payments, as
prescribed in 232.7102.
(J) Use the clause at 252.232-7011, Payments in Support of
Emergencies and Contingency Operations, as prescribed in 232.908.
(K) Use the clause at 252.246-7003, Notification of Potential
Safety Issues, as prescribed in 246.371.
(L) Use the provision at 252.247-7026, Evaluation Preference for
Use of Domestic Shipyards--Applicable to Acquisition of Carriage by
Vessel for DoD Cargo in the Coastwise or Noncontiguous Trade, as
prescribed in 247.574(e).
(M) Use the clause at 252.247-7027, Riding Gang Member
Requirements, as prescribed in 247.574(f).
[[Page 80429]]
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
6. Revise section 252.211-7007 to read as follows:
252.211-7007 Reporting of Government-Furnished Property.
As prescribed in 211.274-6(b), use the following clause:
Reporting of Government-Furnished Property (Date)
(a) Definitions. As used in this clause--
Acquisition cost, for Government-furnished property, means the
amount identified in the contract, or in the absence of such
identification, the item's fair market value.
Commercial and Government entity (CAGE) code means--
(1) A code assigned by the Defense Logistics Information Service
(DLIS) to identify a commercial or Government entity; or
(2) A code assigned by a member of the North Atlantic Treaty
Organization that DLIS records and maintains in the CAGE master
file. This type of code is known as an ``NCAGE code.''
Government-furnished property (GFP) means property in the
possession of, or directly acquired by, the Government and
subsequently furnished to the contractor for performance of a
contract, including performance by subcontractors and at prime
contractor alternate locations. Government-furnished property
includes reparables, e.g., spares and property furnished for repair,
maintenance, overhaul, or modification; and Government-furnished
material that is requisitioned from Government supply sources
without reimbursement by the contractor.
GFP Hub means an automated data base for capturing records of
Government-furnished property sent on a non-reimbursable basis to a
contractor without a unique item identifier assigned.
Item means a single hardware article or a single unit formed by
a grouping of subassemblies, components, or constituent parts.
IUID Registry means--
(1) The authoritative source of Government unit acquisition cost
for items with unique item identifiers acquired after January 1,
2004, for unique item identifier pedigree data established at
delivery, as defined by DFARS 252.211-7003;
(2) The master data source for Government-furnished property;
and
(3) An authoritative source for establishing the full cost of
end-item equipment.
National stock number (NSN) means a 13-digit stock number used
to identify items of supply. It consists of a 4-digit Federal Supply
Code and a 9-digit National Item Identification Number.
Nomenclature means--
(1) The combination of a Government-assigned type designation
and an approved item name;
(2) Names assigned to kinds and groups of products; or
(3) Formal designations assigned to products by customer or
supplier (such as model number, or model type, design
differentiation, specific design series or configuration).
Part or identifying number (PIN) means the identifier assigned
by the original design activity, or by the controlling nationally
recognized standard, that uniquely identifies (relative to that
design activity) a specific item.
Serial number means an assigned designation that provides a
means of identifying a specific individual item.
Special test equipment means either single or multipurpose
integrated test units engineered, designed, fabricated, or modified
to accomplish special purpose testing in performing a contract. It
consists of items or assemblies of equipment including foundations
and similar improvements necessary for installing special test
equipment, and standard or general purpose items or components that
are interconnected and interdependent so as to become a new
functional entity for special testing purposes. Special test
equipment does not include material, special tooling, real property,
or equipment items used for general testing purposes, or property
that with relatively minor expense can be made suitable for general
purpose use.
Special tooling means jigs, dies, fixtures, molds, patterns,
taps, gauges, and all components of these items, including
foundations and similar improvements necessary for installing
special tooling, and which are of such a specialized nature that
without substantial modification or alteration their use is limited
to the development or production of particular supplies or parts
thereof or to the performance of particular services. Special
tooling does not include material, special test equipment, real
property, equipment, machine tools, or similar capital items.
Supply condition code means a classification of materiel in
terms of readiness for issue and use or to identify action underway
to change the status of materiel.
Supply condition code A--serviceable means new, used, repaired,
or reconditioned materiel which is serviceable and issuable to all
customers without limitation or restriction; includes materiel with
more than 6 months shelf life remaining.
Supply condition code F--unserviceable (repairable) means
economically reparable materiel which requires repair, overhaul, or
reconditioning; includes reparable items which are radioactively
contaminated.
Supply condition code G--unserviceable (incomplete) means
materiel requiring additional parts or components to complete the
end item prior to issue.
Supply condition code H--unserviceable (beyond repair) means
materiel which has been determined to be unserviceable and does not
meet repair criteria; includes condemned items which are
radioactively contaminated.
Supply condition code J--suspended (misidentified or misdirected
to the facility) means materiel in stock which has been suspended
from issue pending condition classification or analysis, where the
true condition is not known.
Type designation means a combination of letters and numbers
arranged in a specific sequence to provide a short significant
method of identification.
Unique item identifier (UII) means a set of data elements
permanently marked on an item that is globally unique and
unambiguous and never changes, in order to provide traceability of
the item throughout its total life cycle. The term includes a
concatenated UII or a DoD recognized unique identification
equivalent.
Unit of issue means the physical measurement of count or
quantity (such as each, dozen, gallon, or kilogram) in which an item
is procured, stored, and released.
(b) Requirement for reporting of Government-furnished property
(GFP) to the DoD Item Unique Identification (IUID) Registry or GFP
Hub. Except as provided in paragraph (c) of this clause, the
contractor shall report to the DoD IUID Registry or the GFP Hub, as
appropriate--
(1) All GFP with an existing Unique Item Identifier (UII)
assigned shall be reported to the DoD IUID Registry.
(2) All GFP without an existing UII assigned shall be reported
to the GFP Hub.
(c) Exceptions. Paragraph (b) of this clause does not apply to--
(1) Contractor-acquired property that has not been delivered to,
and accepted by, the Government;
(2) Property under any statutory leasing authority;
(3) Property to which the Government has acquired a lien or
title solely because of partial, advance, progress, or performance-
based payments;
(4) Intellectual property or software; or
(5) Real property.
(d) When required by contract terms and conditions, the
contractor shall assign a UII to each item of GFP, including those
items previously reported to the GFP Hub. Upon UII assignment and
reporting, the contractor shall debit the property record from the
GFP Hub.
(e) Procedures for establishing UIIs. To permit reporting of
virtual UIIs to the DoD IUID Registry, the Contractor's property
management system shall enable the following data elements in
addition to those required by paragraphs (f)(1)(iii)(A)(1) through
(3), (5), (7), (8), and (10) of the Government Property clause of
this contract (FAR 52.245-1):
(1) Parent UII.
(2) UII as required by FAR 52.245-1(f)(1)(iii)(A)(4).
(3) Received/sent (shipped) date as required by FAR 52.245-
1(f)(1)(iii)(A)(9).
(4) Category code, if applicable (``ST'' for special tooling,
``STE'' for special test equipment).
(5) Supply condition code (``A'' for serviceable, ``F'' for
unserviceable (repairable), ``G'' for unserviceable (incomplete),
``H'' for unserviceable (beyond repair), ``J'' suspended
(misidentified or misdirected to the facility).
(6) Accountable contract number (as required by FAR 52.245-
1(f)(1)(iii)(A)(6)).
(7) Commercial and Government Entity (CAGE) code on the
accountable contract.
(8) Mark record.
[[Page 80430]]
(i) Bagged or tagged code (for items too small to individually
tag or mark).
(ii) Contents (the type of information recorded on the item,
e.g., item internal control number).
(iii) Effective date (date the mark is applied).
(iv) Added or removed code/flag.
(v) Marker code (designates which code is used in the marker
identifier, e.g., D=CAGE, UN=DUNS, LD=DODAAC).
(vi) Marker identifier, e.g., Contractor's CAGE code or DUNS
number.
(vii) Medium code; how the data is recorded, e.g., barcode,
contact memory button.
(viii) Value, e.g., actual text or data string that is recorded
in its human-readable form.
(ix) Set (used to group marks when multiple sets exist).
(f) Procedures for reporting of Government-furnished property to
the IUID Registry or the GFP Hub. Except as provided in paragraph
(c) of this clause--
(1) GFP with a UII assigned--The Contractor shall establish and
report to the IUID Registry the information required by FAR clause
52.245-1, paragraphs (e) and (f)(1)(iii), in accordance with the
data submission procedures at http://www.acq.osd.mil/dpap/pdi/uid/data_submission_information.html.
(2) GFP without a UII assigned--The Contractor shall submit the
following information in accordance with the instructions at http://www.acq.osd.mil/dpap/pdi/uid/data_submission_information.html.
Common data elements include the following:
(i) Description/nomenclature.
(ii) Type designation, if assigned.
(iii) NSN.
(iv) PIN.
(v) CAGE code of reporting contractor.
(vi) Supply condition code per paragraph (e)(5) of this clause.
(vii) Unit acquisition cost.
(viii) Contract number.
(ix) Quantity.
(x) Unit of issue.
(xi) Serial number, if assigned.
(g) Procedures for updating the DoD IUID Registry. The
Contractor shall update the DoD IUID Registry at https://www.bpn.gov/iuid for changes in status, mark, custody, condition
code, or disposition of items--
(1) Delivered or shipped from the Contractor's plant, under
Government instructions, except when shipment is to a subcontractor
or other location of the Contractor;
(2) Consumed or expended, reasonably and properly, or otherwise
accounted for, in the performance of the contract as determined by
the Government property administrator, including reasonable
inventory adjustments;
(3) Disposed of; or
(4) Transferred to a follow-on or other contract. (End of
clause)
7. Amend section 252.251-7000 by removing ``(NOV 2004)'' and adding
in its place ``(XXX-XXXX)'', revising introductory paragraph (c), and
revising paragraphs (d) through (f) to read as follows:
252.251-7000 Ordering From Government Supply Sources.
* * * * *
(c) When placing orders for Government stock [on a reimbursable
basis], the Contractor shall--
* * *
(d) When placing orders for Government stock on a non-
reimbursable basis, the Contractor shall--
(1) Comply with the requirements of the Contracting Officer's
authorization.
(2) When using electronic transactions to submit requisitions on
a non-reimbursable basis only, orders shall be placed by authorizing
contract number using the Defense Logistics Management System (DLMS)
Supplement to Federal Implementation Convention 511R, Requisition;
and receipts shall be acknowledged by authorizing contract number
using the DLMS Supplement 527R, Receipt, Inquiry, Response and
Material Receipt Acknowledgement.
(e) Only the Contractor may request authorization for
subcontractor use of Government supply sources. The Contracting
Officer will not grant authorizations for subcontractor use without
approval of the Contractor.
(f) Government invoices shall be submitted to the Contractor's
billing address, and Contractor payments shall be sent to the
Government remittance address specified below:
Contractor's Billing Address (include point of contact and
telephone number):
Government Remittance Address (include point of contact and
telephone number):
(End of clause)
[FR Doc. 2010-32099 Filed 12-21-10; 8:45 am]
BILLING CODE 5001-08-P