[Federal Register Volume 76, Number 35 (Tuesday, February 22, 2011)]
[Proposed Rules]
[Pages 9714-9717]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3759]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 211 and 252

RIN 0750-AH05


Defense Federal Acquisition Regulation Supplement; Passive Radio 
Frequency Identification (DFARS Case 2010-D014)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update requirements relating to the 
use of passive Radio Frequency Identification (RFID).

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before April 25, 2011, to be considered 
in the formation of the final rule.

[[Page 9715]]


ADDRESSES: Submit comments identified by DFARS Case 2010-D014, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by inputting ``DFARS Case 2010-
D014'' under the heading ``Enter keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``DFARS Case 2010-D014.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``DFARS Case 2010-D014'' on your attached document.
    [cir] E-mail: [email protected]. Include DFARS Case 2010-D014 in the 
subject line of the message.
    [cir] Fax: 703-602-0350.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Meredith 
Murphy, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
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, 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: Meredith Murphy, Defense Acquisition 
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060. Telephone 703-602-1302; facsimile 
703-602-0350.

SUPPLEMENTARY INFORMATION:

I. Background

    This DFARS case was initiated at the request of the Office of 
Logistics and Materiel Readiness (L&MR) of the Office of the Secretary 
of Defense (Acquisition, Technology, and Logistics) to revise DFARS 
211.275, Radio frequency identification, to--

--Clarify that the RFID requirement pertains solely to ``passive 
RFID'';
--Supply a link to a web site in lieu of individually listing ship-to 
addresses;
--Enable contracting officers to add tagging requirements to contracts 
shipping to DoD Activity Address Codes (DoDAACs) not specifically 
listed at the web site;
--Make pharmaceuticals subject to the Class VIII RFID tagging 
requirements; and
--Revise the clause at 252.211-7006, including the title, to reflect 
the changes above.

    As the use of passive RFID technology continues to expand and 
additional DoD sites gain the capability to use RFID identifier tags, 
the DFARS regulations associated with passive RFID are being proposed 
for complementary updates.
    First, DFARS 211.275 is being renamed and revised to clarify that 
the DoD RFID requirement relates solely to ``passive RFID'', which is 
defined in the associated clause 252.211-7006(a).
    The current DFARS lists approximately 20 specific DoD activity 
addresses and provides the authority for using other ship-to locations 
``outside the contiguous United States'' under certain circumstances. 
However, the Defense Logistics Agency and the Navy have proposed adding 
more than 200 additional sites, making it impracticable to list all DoD 
passive RFID addresses in the DFARS text or its associated clause. 
Instead, a website is proposed to be added so that contractors can 
refer to the website to find the RFID identifier for each specific DoD 
ship-to address that uses RFID technology. The new website referenced 
in the DFARS has the added benefit of enabling the addition of new 
ship-to addresses in the future without the need to revise the DFARS in 
each instance. DoD proposes to amend the revised shortened list of 
ship-to addresses at DFARS 211.275-2(a)(2) to allow contracting 
officers to add tagging requirements to contract deliverables shipping 
to DoD activity address codes not specifically included in the list, as 
needed.
    Also, the DFARS currently excludes shipments of pharmaceuticals 
from the Class VIII RFID tagging requirements. Changes are proposed 
that will include shipments of pharmaceuticals in the requirement for 
passive RFID tags. To date, this requirement has been informally 
effected via contract-specific provisions.

II. Executive Order 12866

    This is a significant regulatory action and, therefore, it was 
subject to review under Section 6 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.

III. Regulatory Flexibility Act

    DoD does not expect this 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., because the rule 
does not add to or delete the existing regulations on RFID use. 
However, DoD has performed a regulatory flexibility analysis to address 
the proposed rule changes, which are summarized as follows.
    The current DFARS lists approximately 20 specific DoD activity 
addresses and provides the authority for using other ship-to locations 
``outside the contiguous United States'' under certain circumstances. 
However, the Defense Logistics Agency and the Navy have proposed adding 
more than 200 additional sites, making it impracticable to list all DoD 
passive RFID addresses in the DFARS text or its associated clause. 
Instead, a web site is proposed to be added so that contractors can 
refer to the web site to find the RFID Identifier for each specific DoD 
ship-to address that uses RFID technology. Including the web site in 
the DFARS has the added benefit of enabling the addition of new ship-to 
addresses in the future as necessary without the need to revise the 
DFARS in each case. DoD proposes to amend the revised, shortened list 
of ship-to addresses at DFARS 211.275-2(a)(2) to allow contracting 
officers to add tagging requirements to contract deliverables shipping 
to DoDAACs not specifically included in the list as they deem 
necessary.
    The current OMB information collection justification for the clause 
associated with the current DFARS, 252.211-7006, entitled ``Radio 
Frequency Identification,'' lists the number of contractors impacted by 
the RFID requirement as 25,500. While each contractor has multiple 
submissions (one for each shipment), it takes only 1.12 seconds per 
response. The changes proposed should decrease the response time, not 
increase it. Therefore, any impact to small businesses will be both 
positive and minimal.
    The only alternative to the proposed rule is to leave the current 
DoD RFID requirements intact. However, that alternative would not 
minimize the economic impact on small entities, as does the proposed 
rule.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will consider comments from small entities concerning the 
existing regulations in subparts affected by the 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 2010-D014) in 
correspondence.

IV. Paperwork Reduction Act

    There are information collection requirements associated with the 
use of RFIDs. However, there will be no change to the existing 
information collection requirements currently approved under OMB 
Information Control Number 0704-0434, DFARS;

[[Page 9716]]

Radio Frequency Identification Advance Shipment Notices. Therefore, DoD 
has determined that the proposed rule, if adopted as a final rule, 
would have no material impact on the approved collection. However, DoD 
will accept comments on how the rule would impact either the burden or 
other aspects of the approved information collection.

List of Subjects in 48 CFR Parts 211 and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 211 and 252 are proposed to be amended as 
follows:
    1. The authority citation for 48 CFR parts 211 and 252 continues to 
read as follows:

    Authority:  41 U.S.C. 421 and 48 CFR chapter 1.

PART 211--DESCRIBING AGENCY NEEDS

    2. Section 211.275-1 is revised to read as follows:


211.275-1  Definitions.

    ``Bulk commodities,'' ``case,'' ``palletized unit load,'' ``passive 
RFID tag,'' and ``radio frequency identification'' are defined in the 
clause at 252.211-7006, Passive Radio Frequency Identification.
    3. Section 211.275-2 is revised to read as follows:


211.275-2  Policy.

    (a) Except as provided in paragraph (b) of this section, radio 
frequency identification (RFID), in the form of a passive RFID tag, is 
required for cases and palletized unit load packaging levels and any 
additional consolidation level(s) deemed necessary by the requiring 
activity for shipments of items that--
    (1) Contain items in any of the following classes of supply, as 
defined in DoD 4140.1-R, DoD Supply Chain Materiel Management 
Regulation, AP1.1.11:
    (i) Subclass of Class I--Packaged operational rations.
    (ii) Class II--Clothing, individual equipment, tentage, 
organizational tool kits, hand tools, and administrative and 
housekeeping supplies and equipment.
    (iii) Class IIIP--Packaged petroleum, lubricants, oils, 
preservatives, chemicals, and additives.
    (iv) Class IV--Construction and barrier materials.
    (v) Class VI--Personal demand items (non-military sales items).
    (vi) Subclass of Class VIII--Medical materials, including 
pharmaceuticals (excluding biologicals, and reagents--suppliers should 
limit the mixing of excluded and non-excluded materials).
    (vii) Class IX--Repair parts and components including kits, 
assemblies and subassemblies, reparable and consumable items required 
for maintenance support of all equipment, excluding medical-peculiar 
repair parts; and
    (2) Will be shipped to one of the locations listed at http://www.acq.osd.mil/log/rfid/ or to--
    (i) A location outside the contiguous United States when the 
shipment has been assigned Transportation Priority 1; or
    (ii) Any additional location(s) deemed necessary by the requiring 
activity.
    (b) The following are excluded from the requirements of paragraph 
(a) of this section:
    (1) Shipments of bulk commodities.
    (2) Shipments to locations other than Defense Distribution Depots 
when the contract includes the clause at FAR 52.213-1, Fast Payment 
Procedures.
    4. Section 211.275-3 is revised to read as follows:


211.275-3  Contract clause.

    (a) Use the clause at 252.211-7006, Passive Radio Frequency 
Identification, in solicitations and contracts that will require 
shipment of items meeting the criteria at 211.275-2.
    (b) Complete paragraph (b)(1)(ii) of the clause at DFARS 252.211-
7006 as appropriate.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 252.211-7006 is revised to read as follows:


252.211-7006  Passive Radio Frequency Identification.

    As prescribed in 211.275-3, use the following clause:

PASSIVE RADIO FREQUENCY IDENTIFICATION (DATE)

    (a) Definitions. As used in this clause--
    Advance shipment notice means an electronic notification used to 
list the contents of a shipment of goods as well as additional 
information relating to the shipment, such as passive radio 
frequency identification (RFID) or item unique identification (IUID) 
information, order information, product description, physical 
characteristics, type of packaging, marking, carrier information, 
and configuration of goods within the transportation equipment.
    Bulk commodities means the following commodities, when shipped 
in rail tank cars, tanker trucks, trailers, other bulk wheeled 
conveyances, or pipelines:
    (1) Sand.
    (2) Gravel.
    (3) Bulk liquids (water, chemicals, or petroleum products).
    (4) Ready-mix concrete or similar construction materials.
    (5) Coal or combustibles such as firewood.
    (6) Agricultural products such as seeds, grains, or animal feed.
    Case means either a MIL-STD-129 defined exterior container 
within a palletized unit load or a MIL-STD-129 defined individual 
shipping container.
    Electronic Product Code\TM\ (EPC[supreg]) means an 
identification scheme for universally identifying physical objects 
via RFID tags and other means. The standardized EPC\TM\ data 
consists of an EPC\TM\ (or EPC\TM\ identifier) that uniquely 
identifies an individual object, as well as an optional filter value 
when judged to be necessary to enable effective and efficient 
reading of the EPC\TM\ tags. In addition to this standardized data, 
certain classes of EPC\TM\ tags will allow user-defined data. The 
EPC\TM\ Tag Data Standards will define the length and position of 
this data, without defining its content.
    EPCglobal[supreg] means a subscriber-driven organization 
comprised of industry leaders and organizations focused on creating 
global standards for the adoption of passive RFID technology.
    Exterior container means a MIL-STD-129 defined container, 
bundle, or assembly that is sufficient by reason of material, 
design, and construction to protect unit packs and intermediate 
containers and their contents during shipment and storage. It can be 
a unit pack or a container with a combination of unit packs or 
intermediate containers. An exterior container may or may not be 
used as a shipping container.
    Palletized unit load means a MIL-STD-129 defined quantity of 
items, packed or unpacked, arranged on a pallet in a specified 
manner and secured, strapped, or fastened on the pallet so that the 
whole palletized load is handled as a single unit. A palletized or 
skidded load is not considered to be a shipping container. A loaded 
463L System pallet is not considered to be a palletized unit load. 
Refer to the Defense Transportation Regulation, DoD 4500.9-R, Part 
II, Chapter 203, for marking of 463L System pallets.
    Passive RFID tag means a tag that reflects energy from the 
reader/interrogator or that receives and temporarily stores a small 
amount of energy from the reader/interrogator signal in order to 
generate the tag response. The only acceptable tags are EPC Class 1 
passive RFID tags that meet the EPCglobalTM Class 1 
Generation 2 standard.
    Radio frequency identification (RFID) means an automatic 
identification and data capture technology comprising one or more 
reader/interrogators and one or more radio frequency transponders in 
which data transfer is achieved by means of suitably modulated 
inductive or radiating electromagnetic carriers.
    Shipping container means a MIL-STD-129 defined exterior 
container that meets carrier regulations and is of sufficient 
strength, by reason of material, design, and construction, to be 
shipped safely without further packing (e.g., wooden boxes or 
crates, fiber and metal

[[Page 9717]]

drums, and corrugated and solid fiberboard boxes).
    (b)(1) Except as provided in paragraph (b)(2) of this clause, 
the Contractor shall affix passive RFID tags, at the case- and 
palletized-unit-load packaging levels, for shipments of items that--
    (i) Are in any of the following classes of supply, as defined in 
DoD 4140.1-R, DoD Supply Chain Materiel Management Regulation, 
AP1.1.11:
    (A) Subclass of Class I--Packaged operational rations.
    (B) Class II--Clothing, individual equipment, tentage, 
organizational tool kits, hand tools, and administrative and 
housekeeping supplies and equipment.
    (C) Class IIIP--Packaged petroleum, lubricants, oils, 
preservatives, chemicals, and additives.
    (D) Class IV--Construction and barrier materials.
    (E) Class VI--Personal demand items (non-military sales items).
    (F) Subclass of Class VIII--Medical materials including 
pharmaceuticals, (excluding biologicals, and reagents--suppliers 
should limit the mixing of excluded and non-excluded materials).
    (G) Class IX--Repair parts and components including kits, 
assemblies and subassemblies, reparable and consumable items 
required for maintenance support of all equipment, excluding 
medical-peculiar repair parts; and
    (ii) Are being shipped to one of the locations listed at http://www.acq.osd.mil/log/rfid/or to--
    (A) A location outside the contiguous United States when the 
shipment has been assigned Transportation Priority 1 or to--
    (B) The following location(s) deemed necessary by the requiring 
activity:

----------------------------------------------------------------------------------------------------------------
  Contract line, subline, or exhibit line item
                     number                        Location name       City            State          DoDAAC
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------

     (2) The following are excluded from the requirements of 
paragraph (b)(1) of this clause:
    (i) Shipments of bulk commodities.
    (ii) Shipments to locations other than Defense Distribution 
Depots when the contract includes the clause at FAR 52.213-1, Fast 
Payment Procedures.
    (c) The Contractor shall--
    (1) Ensure that the data encoded on each passive RFID tag are 
globally unique (i.e., the tag ID is never repeated across two or 
more RFID tags) and conforms to the requirements in paragraph (d) of 
this clause;
    (2) Use passive tags that are readable; and
    (3) Ensure that the passive tag is affixed at the appropriate 
location on the specific level of packaging, in accordance with MIL-
STD-129 (Section 4.9.2) tag placement specifications.
    (d) Data syntax and standards. The Contractor shall encode an 
approved RFID tag using the instructions provided in the 
EPCTM Tag Data Standards in effect at the time of 
contract award. The EPCTM Tag Data Standards are 
available at http://www.epcglobalinc.org/standards/.
    (1) If the Contractor is an EPCglobalTM subscriber 
and possesses a unique EPCTM company prefix, the 
Contractor may use any of the identifiers and encoding instructions 
described in the most recent EPCTM Tag Data Standards 
document to encode tags.
    (2) If the Contractor chooses to employ the DoD identifier, the 
Contractor shall use its previously assigned Commercial and 
Government Entity (CAGE) code and shall encode the tags in 
accordance with the tag identifier details located at http://www.acq.osd.mil/log/rfid/tag_data.htm. If the Contractor uses a 
third-party packaging house to encode its tags, the CAGE code of the 
third-party packaging house is acceptable.
    (3) Regardless of the selected encoding scheme, the Contractor 
with which the Department holds the contract is responsible for 
ensuring that the tag ID encoded on each passive RFID tag is 
globally unique, per the requirements in paragraph (c)(1).
    (e) Advance shipment notice. The Contractor shall use Wide Area 
Workflow (WAWF), as prescribed in DFARS 252.232-7003, Electronic 
Submission of Payment Requests, to electronically submit advance 
shipment notice(s) with the RFID tag ID(s) (specified in paragraph 
(d) of this clause) in advance of the shipment in accordance with 
the procedures at https://wawf.eb.mil/.

(End of clause)

[FR Doc. 2011-3759 Filed 2-18-11; 8:45 am]
BILLING CODE 5001-08-P