Defense Federal Acquisition Regulation Supplement; Reports of Government Property (DFARS Case 2005-D015), 70906-70909 [E8-27779]
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70906
Federal Register / Vol. 73, No. 227 / Monday, November 24, 2008 / Rules and Regulations
(DFARS) to update references and the
list of Army contracting activities.
DATES: Effective Date: November 24,
2008.
Ms.
Michele Peterson, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3D139, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone 703–602–0311;
facsimile 703–602–7887.
SUPPLEMENTARY INFORMATION: This final
rule amends DFARS text as follows:
Æ 201.201–1. Updates the reference to
the DoD publication addressing the
operation of the Defense Acquisition
Regulations Council.
Æ 202.101. Updates the list of Army
contracting activities.
Æ 213.301. Updates the Web link to
the DoD Government charge card
guidebook.
Æ 215.404–71–4. Updates crossreferences.
FOR FURTHER INFORMATION CONTACT:
List of Subjects in 48 CFR Parts 201,
202, 213, and 215
PART 213—SIMPLIFIED ACQUISITION
PROCEDURES
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
213.301
[Amended]
4. Section 213.301 is amended in
paragraph (4), in the first sentence, by
removing https://www.acq.osd.mil/dpap/
pcard/pcardguidebook.htm and adding
in its place https://www.acq.osd.mil/
dpap/pdi/pc/docs/
dod_charge_card_guide_20080819.doc.
■
Therefore, 48 CFR Parts 201, 202, 213,
and 215 are amended as follows:
■ 1. The authority citation for 48 CFR
Parts 201, 202, 213, and 215 continues
to read as follows:
■
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 215—CONTRACTING BY
NEGOTIATION
PART 201—FEDERAL ACQUISITION
REGULATIONS SYSTEM
201.201–1
U.S. Army Aviation and Missile Life
Cycle Management Command
U.S. Army Communications-Electronics
Life Cycle Management Command
U.S. Army Corps of Engineers
U.S. Army Expeditionary Contracting
Command
U.S. Army Intelligence and Security
Command
U.S. Army Joint Munitions and
Lethality Life Cycle Management
Command
U.S. Army Medical Command
U.S. Army Medical Research and
Materiel Command
U.S. Army Mission and Installation
Contracting Command
U.S. Army Research, Development, and
Engineering Command
U.S. Army Space and Missile Defense
Command
U.S. Army Sustainment Command
U.S. Army Tank-Automotive and
Armaments Life Cycle Management
Command
*
*
*
*
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215.404–71–4
[Amended]
5. Section 215.404–71–4 is amended
in paragraph (e)(1) as follows:
■ a. By removing ‘‘paragraph (c)’’ and
adding in its place ‘‘paragraph (f)’’; and
■ b. By removing ‘‘paragraph (d)’’ and
adding in its place ‘‘paragraph (g)’’.
■
[Amended]
2. Section 201.201–1 is amended in
paragraph (c) by removing ‘‘DoDI
5000.63’’ and adding in its place ‘‘DoD
Instruction 5000.35’’.
■
PART 202—DEFINITIONS OF WORDS
AND TERMS
3. Section 202.101 is amended in the
definition of ‘‘Contracting activity’’ by
revising the list with the heading
‘‘ARMY’’ to read as follows:
[FR Doc. E8–27789 Filed 11–21–08; 8:45 am]
BILLING CODE 5001–08–P
■
202.101
*
*
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
Definitions.
*
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48 CFR Parts 211, 245, and 252
*
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Army
RIN 0750–AF24
Headquarters, U.S. Army Contracting
Command
Joint Contracting Command—Iraq/
Afghanistan
National Guard Bureau
Program Executive Office for
Simulation, Training, and
Instrumentation
Defense Federal Acquisition
Regulation Supplement; Reports of
Government Property (DFARS Case
2005–D015)
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19:21 Nov 21, 2008
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Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
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ACTION:
Final rule.
SUMMARY: DoD has adopted as final,
with changes, an interim rule amending
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
update requirements for reporting of
Government property in the possession
of DoD contractors. The rule replaces
DD Form 1662 reporting requirements
with requirements for DoD contractors
to electronically submit, to the Item
Unique Identification (IUID) Registry,
the IUID data applicable to the
Government property in the contractor’s
possession.
DATES: Effective Date: November 24,
2008.
FOR FURTHER INFORMATION CONTACT: Mr.
Michael Benavides, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3D139, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone 703–602–1302;
facsimile 703–602–7887. Please cite
DFARS Case 2005–D015.
SUPPLEMENTARY INFORMATION:
A. Background
DoD published an interim rule at 72
FR 52293 on September 13, 2007, to
require reporting of DoD property in the
possession of contractors through use of
the DoD IUID Registry. Three sources
submitted comments on the interim
rule. A discussion of the comments is
provided below.
1. Marking Requirements
a. Comment: Concerning the clause at
DFARS 252.211–7007 and the
requirement to create a unique item
identifier (UII) for certain Government
property, physically mark it, and load
the required data into the IUID Registry
when an item is shipped: There needs
to be a notification mechanism on
shipping paperwork to identify an item
in a given shipment that is IUID
compliant. Without some type of
information on the documentation
indicating that a UII is present, the
physical mark could be overlooked and
the receiver might create a new UII
using its data elements and load the
item into the Registry, causing multiple
entries for a single item. Under the
interim rule, the physical mark is the
only indicator to a receiver that a UII is
present and must be read to obtain the
number for look-up in the Registry. This
would seem to be inadequate.
DoD Response: To avoid any
confusion, the marking requirement has
been excluded from the final rule.
Therefore, the recommended
notification mechanism is unnecessary.
b. Comment: The interim rule
imposes a requirement on contractors to
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arbitrarily mark items furnished by the
Government but received by the
contractor without a physical marking.
Prior to marking an item with a UII, a
contractor would need to perform an
appropriate analysis to determine the
method, content, and location of the
mark. In many cases, the contractor that
receives Government-furnished items is
not the manufacturer of the items and
does not have design authority or
sufficient technical knowledge to
conduct an analysis and determine the
appropriate marking. Moreover, many of
the items in the aerospace and defense
industry are flight safety critical items
for which contractors cannot accept the
responsibility/liability of altering the
items. Specific requirements for
marking of ‘‘unmarked’’ items should be
addressed on a contract-by-contract
basis so that the contractor does not
void any warranties or adversely affect
the form, fit, or function of the item.
DoD Response: The clause at DFARS
252.211–7007 has been amended to
address only reporting requirements.
The final rule contains no marking
requirements.
c. Comment: Paragraph (d)(5) of the
clause at DFARS 252.211–7007 requires
re-marking of previously tagged or
bagged embedded items that are
subsequently removed from use. This
paragraph should be deleted. Once
identified, an item is always identified.
This information should be provided as
a bill of material for all UII items,
including embedded UIIs as part of the
contract.
DoD Response: Marking requirements
have been excluded from the final rule.
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2. Items Subject to Reporting
Requirements
a. Comment: The DFARS rule should
clearly exclude reparables, since
reparables do not meet the definition of
property in the possession of contractors
as defined in the Item Unique
Identification Property Guidebook; i.e.,
reparables are not provided to the
contractor for performance of a contract
but rather for repair. This should be
addressed at DFARS 211.274–4(b). In
addition, Government-furnished
material that is not part of the end item
deliverable in a bill of materials should
not be subject to reporting under the
rule. This should also be addressed at
DFARS 211.274–4(b). Express
recognition of these exclusions will
provide clarification and will enable the
Government to obtain the full cost of a
deliverable end item that is in keeping
with the intent, in part, of the Chief
Financial Officer’s Act of 1990 (Pub. L.
101–576).
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DoD Response: The final rule
excludes reparables and Governmentfurnished material from IUID reporting
requirements, in addition to the
following: Items with an acquisition
value of less than $5,000 that are not
serially managed, mission essential,
sensitive, or controlled inventory,
unless the terms and conditions of the
contract state otherwise; contractoracquired property; property under any
statutory leasing authority; property to
which the Government has acquired a
lien or title solely because of partial,
advance, progress, or performance-based
payments; intellectual property or
software; and real property.
b. Comment: At DFARS 252.211–
7007(b)(4), add the words ‘‘for use’’ so
that the paragraph reads: ‘‘The
Contractor shall assign and register a UII
and the master item data for any
subassembly, component, or part that
does not have an existing UII when it is
removed for use from a parent item and
remains with the Contractor as a standalone item.’’ This will eliminate any
requirement to identify items that are
removed for disposition.
DoD Response: The referenced
paragraph (b)(4) has been excluded from
the final rule. The rule has been revised
to clarify the types of property that
require reporting to the DoD IUID
Registry, i.e., equipment, special
tooling, special test equipment.
3. Reporting Mechanism
Comment: Although the rules for UII
creation and marking are similar for
new procurement items and legacy
items, the mechanism for loading UII
data to the IUID Registry for legacy
items (e.g., reparable items not yet
registered) differs from the mechanism
for loading new procurement items,
which is accomplished through Wide
Area WorkFlow (WAWF). Specifically,
the Material Inspection and Receiving
Report required for acceptance of
service items (e.g., contract line items
for the repair of Government items) is
not to be used to submit IUID data for
supply items. That is, a contractor may
not report via WAWF a new UII for a
Government-owned item that the
contractor has repaired. Please provide
clarification to reflect this difference
and provide guidance for the
registration of IUID data for legacy
items, specifically addressing repaired
items.
DoD Response: The rule has been
revised to clarify the mechanism for
reporting items to the DoD IUID
Registry. Specifically, that reporting is
via direct input to the DoD IUID
Registry, not via WAWF. WAWF was
built as the input mechanism for the
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70907
acquisition of new items (not
Government-furnished equipment).
Additionally, the final rule excludes
reparables from IUID reporting
requirements.
4. Data Submission Requirements
a. Comment: At 252.211–7007(b)(7),
add the phrase ‘‘the version oflll,
cited in the Contract Schedule’’ to the
end of the first sentence, so that the
sentence reads: ‘‘The Contractor shall
submit the UII and the master item data
into the IUID Registry in accordance
with the data submission procedures in
the Item Unique Identification of
Government Property Guidebook at:
https://www.acq.osd.mil/dpap/pdi/UID/
guides.html the version oflll, cited
in the Contract Schedule.’’ This would
be similar to the language used to
invoke the applicable version of MIL–
STD–130 at DFARS 252.211–7003. Also
suggest adding Section IV of the
document entitled DD 1662 Transition
Instruction (August 23, 2005). This will
clarify data to be provided when
information is entered into the Registry.
DoD Response: The rule has been
revised to more clearly specify data
submission requirements, and the
reference to the Government Property
Guidebook has been excluded from the
final rule. Accordingly, there is no need
to add Section IV of the document
entitled DD 1662 Transition Instruction
(August 23, 2005).
b. Comment: The first sentence in
paragraph (c)(1) of the clause at DFARS
252.211–7007 should be revised to state
that updates to the IUID Registry should
be accomplished ‘‘in accordance with
the recognized data submission methods
on the IUID Web site.’’
DoD Response: The contract clause in
the final rule clearly specifies reporting
requirements and also provides a
reference to the DoD IUID Registry Web
site.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared a final regulatory
flexibility analysis consistent with 5
U.S.C. 604. A copy of the analysis may
be obtained from the point of contact
specified herein. The analysis is
summarized as follows:
This rule amends the DFARS to
require DoD contractors to electronically
submit, to the DoD IUID Registry, the
IUID data applicable to the Government
property in the contractor’s possession.
The previous, paper-based DD Form
1662 reporting system did not provide
DoD with sufficient information to
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validate the existence, completeness, or
valuation of Government property in the
possession of contractors. The objective
of the rule is to improve the
accountability and control of DoD
assets. DoD considers use of the IUID
Registry to be the most practical and
beneficial reporting method for both
Government and industry. Continued
reliance on the prior paper-based
reporting method would not permit the
level of accountability that DoD needs to
comply with statutory and regulatory
requirements related to the management
of Government property. DoD already
has adopted the use of IUID technology
as the standard marking approach for all
items in DoD’s inventory system.
Therefore, it logically follows that DoD
property in the possession of contractors
should also be recorded and reported
using IUID technology.
C. Paperwork Reduction Act
The information collection
requirements associated with contractor
reporting of Government property have
been approved by the Office of
Management and Budget, under
Clearance Number 0704–0246, for use
through April 30, 2009. The
requirements of this rule are not
expected to significantly change the
burden hours approved under Clearance
Number 0704–0246.
List of Subjects in 48 CFR Parts 211,
245, and 252
Government procurement.
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 211—DESCRIBING AGENCY
NEEDS
2. Section 211.274–4 is revised to read
as follows:
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(b)(1) Use the clause at 252.211–7007,
Reporting of Government-Furnished
Equipment in the DoD Item Unique
Identification (IUID) Registry, in
solicitations and contracts that contain
the clause at—
*
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*
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Section 252.211–7007 is revised to
read as follows:
■
REPORTING OF GOVERNMENTFURNISHED EQUIPMENT IN THE
DOD ITEM UNIQUE IDENTIFICATION
(IUID) REGISTRY (NOV 2008)
Accordingly, the interim rule
amending 48 CFR parts 211, 245, and
252, which was published at 72 FR
52293 on September 13, 2007, is
adopted as a final rule with the
following changes:
■ 1. The authority citation for 48 CFR
Parts 211, 245, and 252 continues to
read as follows:
211.274–4 Policy for reporting of
Government-furnished equipment in the
DoD Item Unique Identification (IUID)
Registry.
It is DoD policy that Governmentfurnished equipment be recorded in the
DoD IUID Registry, except for—
(a) Items with an acquisition cost of
less than $5,000 that are not identified
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Contract clauses.
*
As prescribed in 211.274–5(b), use the
following clause:
■
19:21 Nov 21, 2008
211.274–5
252.211–7007 Reporting of GovernmentFurnished Equipment in the DoD Item
Unique Identification (IUID) Registry.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
VerDate Aug<31>2005
as serially managed, mission essential,
sensitive, or controlled inventory,
unless the terms and conditions of the
contract state otherwise;
(b) Government-furnished material;
(c) Reparables;
(d) Contractor-acquired property as
defined in FAR Part 45;
(e) Property under any statutory
leasing authority;
(f) Property to which the Government
has acquired a lien or title solely
because of partial, advance, progress, or
performance-based payments;
(g) Intellectual property or software;
and
(h) Real property.
■ 3. Section 211.274–5 is amended by
revising paragraph (b)(1) introductory
text to read as follows:
(a) Definitions. As used in this clause—
2D data matrix symbol means the 2dimensional Data Matrix ECC 200 as
specified by International Standards
Organization/International Electrotechnical
Commission (ISO/IEC) Standard 16022:
Information Technology—International
Symbology Specification—Data Matrix.
Acquisition cost, for Government-furnished
equipment, means the amount identified in
the contract, or in the absence of such
identification, the item’s fair market value.
Concatenated unique item identifier
means—
(1) For items that are serialized within the
enterprise identifier, the linking together of
the unique identifier data elements in order
of the issuing agency code, enterprise
identifier, and unique serial number within
the enterprise identifier; e.g., the enterprise
identifier along with the contractor’s
property internal identification, i.e., tag
number is recognized as the serial number;
or
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(2) For items that are serialized within the
original part, lot, or batch number, the
linking together of the unique identifier data
elements in order of the issuing agency code;
enterprise identifier; original part, lot, or
batch number; and serial number within the
original part, lot, or batch number.
Equipment means a tangible item that is
functionally complete for its intended
purpose, durable, nonexpendable, and
needed for the performance of a contract.
Equipment is not intended for sale, and does
not ordinarily lose its identity or become a
component part of another article when put
into use.
Government-furnished equipment means
an item of special tooling, special test
equipment, or equipment, in the possession
of, or directly acquired by, the Government
and subsequently furnished to the Contractor
(including subcontractors and alternate
locations) for the performance of a contract.
Item means equipment, special tooling, or
special test equipment, to include such
equipment, special tooling, or special test
equipment that is designated as serially
managed, mission essential, sensitive, or
controlled inventory (if previously identified
as such in accordance with the terms and
conditions of the contract).
Item unique identification (IUID) means a
system of assigning, reporting, and marking
DoD property with unique item identifiers
that have machine-readable data elements to
distinguish an item from all other like and
unlike items.
IUID Registry means the DoD data
repository that receives input from both
industry and Government sources and
provides storage of, and access to, data that
identifies and describes tangible Government
personal property.
Material means property that may be
consumed or expended during the
performance of a contract, component parts
of a higher assembly, or items that lose their
individual identity through incorporation
into an end item. Material does not include
equipment, special tooling, or special test
equipment.
Reparable means an item, typically in
unserviceable condition, furnished to the
Contractor for maintenance, repair,
modification, or overhaul.
Sensitive item means an item potentially
dangerous to public safety or security if
stolen, lost, or misplaced, or that shall be
subject to exceptional physical security,
protection, control, and accountability.
Examples include weapons, ammunition,
explosives, controlled substances, radioactive
materials, hazardous materials or wastes, or
precious metals.
Serially managed item means an item
designated by DoD to be uniquely tracked,
controlled, or managed in maintenance,
repair, and/or supply systems by means of its
serial number.
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
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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.
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.
Virtual UII means the UII data elements
assigned to an item that is not marked with
a DoD compliant 2D data matrix symbol, e.g.,
enterprise identifier, part number, and serial
number; or the enterprise identifier along
with the Contractor’s property internal
identification, i.e., tag number.
(b) Requirement for item unique
identification of Government-furnished
equipment. Except as provided in paragraph
(c) of this clause—
(1) Contractor accountability and
management of Government-furnished
equipment shall be performed at the item
level; and
(2) Unless provided by the Government,
the Contractor shall establish a virtual UII or
a DoD recognized unique identification for
items that are—
(i) Valued at $5,000 or more in unit
acquisition cost; or
(ii) Valued at less than $5,000 in unit
acquisition cost and are serially managed,
mission essential, sensitive, or controlled
inventory, as identified in accordance with
the terms and conditions of the contract.
(c) Exceptions. Paragraph (b) of this clause
does not apply to—
(1) Government-furnished material;
(2) Reparables;
(3) Contractor-acquired property;
(4) Property under any statutory leasing
authority;
(5) Property to which the Government has
acquired a lien or title solely because of
partial, advance, progress, or performancebased payments;
(6) Intellectual property or software; or
(7) Real property.
(d) 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
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required by paragraph (f)(1)(iii) of the
Government Property clause of this contract
(FAR 52.245–1):
(1) Parent UII.
(2) Concatenated UII.
(3) Received/Sent (shipped) date.
(4) Status code.
(5) Current part number (if different from
the original part number.
(6) Current part number effective date.
(7) Category code (‘‘E’’ for equipment).
(8) Contract number.
(9) Commercial and Government Entity
(CAGE) code.
(10) Mark record.
(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); for the purpose of this
clause, this defaults to ‘‘one (1)’’.
(e) 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, 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)
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 212, 215, 247, and 252
RIN 0750–AF75
Defense Federal Acquisition
Regulation Supplement; Carriage
Vessel Overhaul, Repair, and
Maintenance (DFARS Case 2007–D001)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
SUMMARY: DoD has adopted as final,
with changes, an interim rule amending
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement Section 1017 of the National
Defense Authorization Act for Fiscal
Year 2007. Section 1017 requires DoD to
establish an evaluation criterion, for use
in obtaining carriage of cargo by vessel,
that considers the extent to which an
offeror has had overhaul, repair, and
maintenance work for covered vessels
performed in shipyards located in the
United States or Guam.
DATES: Effective Date: November 24,
2008.
Mr.
Mark Gomersall, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3D139, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone 703–602–0302;
facsimile 703–602–7887. Please cite
DFARS Case 2007–D001.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
A. Background
DoD published an interim rule at 72
FR 49204 on August 28, 2007, to
implement Section 1017 of the National
Defense Authorization Act for Fiscal
Year 2007 (Pub. L. 109–364). Section
1017 requires DoD to issue an
acquisition policy that establishes, as a
criterion required to be considered in
obtaining carriage of cargo by vessel for
DoD, the extent to which an offeror of
such carriage has had overhaul, repair,
and maintenance work for covered
vessels performed in shipyards located
in the United States or Guam.
Nine sources submitted comments on
the interim rule. A discussion of the
comments is provided below.
1. Comment: Some respondents took
exception to the rule’s use of the term
‘‘evaluation factor or subfactor’’ with
regard to consideration of the amount of
work an offeror has performed in U.S.
shipyards. The respondents suggested
E:\FR\FM\24NOR1.SGM
24NOR1
]]>Agencies
[Federal Register Volume 73, Number 227 (Monday, November 24, 2008)]
[Rules and Regulations]
[Pages 70906-70909]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27779]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 211, 245, and 252
RIN 0750-AF24
Defense Federal Acquisition Regulation Supplement; Reports of
Government Property (DFARS Case 2005-D015)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD has adopted as final, with changes, an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to update requirements for reporting of Government property in the
possession of DoD contractors. The rule replaces DD Form 1662 reporting
requirements with requirements for DoD contractors to electronically
submit, to the Item Unique Identification (IUID) Registry, the IUID
data applicable to the Government property in the contractor's
possession.
DATES: Effective Date: November 24, 2008.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Benavides, Defense
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139,
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-
1302; facsimile 703-602-7887. Please cite DFARS Case 2005-D015.
SUPPLEMENTARY INFORMATION:
A. Background
DoD published an interim rule at 72 FR 52293 on September 13, 2007,
to require reporting of DoD property in the possession of contractors
through use of the DoD IUID Registry. Three sources submitted comments
on the interim rule. A discussion of the comments is provided below.
1. Marking Requirements
a. Comment: Concerning the clause at DFARS 252.211-7007 and the
requirement to create a unique item identifier (UII) for certain
Government property, physically mark it, and load the required data
into the IUID Registry when an item is shipped: There needs to be a
notification mechanism on shipping paperwork to identify an item in a
given shipment that is IUID compliant. Without some type of information
on the documentation indicating that a UII is present, the physical
mark could be overlooked and the receiver might create a new UII using
its data elements and load the item into the Registry, causing multiple
entries for a single item. Under the interim rule, the physical mark is
the only indicator to a receiver that a UII is present and must be read
to obtain the number for look-up in the Registry. This would seem to be
inadequate.
DoD Response: To avoid any confusion, the marking requirement has
been excluded from the final rule. Therefore, the recommended
notification mechanism is unnecessary.
b. Comment: The interim rule imposes a requirement on contractors
to
[[Page 70907]]
arbitrarily mark items furnished by the Government but received by the
contractor without a physical marking. Prior to marking an item with a
UII, a contractor would need to perform an appropriate analysis to
determine the method, content, and location of the mark. In many cases,
the contractor that receives Government-furnished items is not the
manufacturer of the items and does not have design authority or
sufficient technical knowledge to conduct an analysis and determine the
appropriate marking. Moreover, many of the items in the aerospace and
defense industry are flight safety critical items for which contractors
cannot accept the responsibility/liability of altering the items.
Specific requirements for marking of ``unmarked'' items should be
addressed on a contract-by-contract basis so that the contractor does
not void any warranties or adversely affect the form, fit, or function
of the item.
DoD Response: The clause at DFARS 252.211-7007 has been amended to
address only reporting requirements. The final rule contains no marking
requirements.
c. Comment: Paragraph (d)(5) of the clause at DFARS 252.211-7007
requires re-marking of previously tagged or bagged embedded items that
are subsequently removed from use. This paragraph should be deleted.
Once identified, an item is always identified. This information should
be provided as a bill of material for all UII items, including embedded
UIIs as part of the contract.
DoD Response: Marking requirements have been excluded from the
final rule.
2. Items Subject to Reporting Requirements
a. Comment: The DFARS rule should clearly exclude reparables, since
reparables do not meet the definition of property in the possession of
contractors as defined in the Item Unique Identification Property
Guidebook; i.e., reparables are not provided to the contractor for
performance of a contract but rather for repair. This should be
addressed at DFARS 211.274-4(b). In addition, Government-furnished
material that is not part of the end item deliverable in a bill of
materials should not be subject to reporting under the rule. This
should also be addressed at DFARS 211.274-4(b). Express recognition of
these exclusions will provide clarification and will enable the
Government to obtain the full cost of a deliverable end item that is in
keeping with the intent, in part, of the Chief Financial Officer's Act
of 1990 (Pub. L. 101-576).
DoD Response: The final rule excludes reparables and Government-
furnished material from IUID reporting requirements, in addition to the
following: Items with an acquisition value of less than $5,000 that are
not serially managed, mission essential, sensitive, or controlled
inventory, unless the terms and conditions of the contract state
otherwise; contractor-acquired property; property under any statutory
leasing authority; property to which the Government has acquired a lien
or title solely because of partial, advance, progress, or performance-
based payments; intellectual property or software; and real property.
b. Comment: At DFARS 252.211-7007(b)(4), add the words ``for use''
so that the paragraph reads: ``The Contractor shall assign and register
a UII and the master item data for any subassembly, component, or part
that does not have an existing UII when it is removed for use from a
parent item and remains with the Contractor as a stand-alone item.''
This will eliminate any requirement to identify items that are removed
for disposition.
DoD Response: The referenced paragraph (b)(4) has been excluded
from the final rule. The rule has been revised to clarify the types of
property that require reporting to the DoD IUID Registry, i.e.,
equipment, special tooling, special test equipment.
3. Reporting Mechanism
Comment: Although the rules for UII creation and marking are
similar for new procurement items and legacy items, the mechanism for
loading UII data to the IUID Registry for legacy items (e.g., reparable
items not yet registered) differs from the mechanism for loading new
procurement items, which is accomplished through Wide Area WorkFlow
(WAWF). Specifically, the Material Inspection and Receiving Report
required for acceptance of service items (e.g., contract line items for
the repair of Government items) is not to be used to submit IUID data
for supply items. That is, a contractor may not report via WAWF a new
UII for a Government-owned item that the contractor has repaired.
Please provide clarification to reflect this difference and provide
guidance for the registration of IUID data for legacy items,
specifically addressing repaired items.
DoD Response: The rule has been revised to clarify the mechanism
for reporting items to the DoD IUID Registry. Specifically, that
reporting is via direct input to the DoD IUID Registry, not via WAWF.
WAWF was built as the input mechanism for the acquisition of new items
(not Government-furnished equipment). Additionally, the final rule
excludes reparables from IUID reporting requirements.
4. Data Submission Requirements
a. Comment: At 252.211-7007(b)(7), add the phrase ``the version
of------, cited in the Contract Schedule'' to the end of the first
sentence, so that the sentence reads: ``The Contractor shall submit the
UII and the master item data into the IUID Registry in accordance with
the data submission procedures in the Item Unique Identification of
Government Property Guidebook at: https://www.acq.osd.mil/dpap/pdi/UID/guides.html the version of------, cited in the Contract Schedule.''
This would be similar to the language used to invoke the applicable
version of MIL-STD-130 at DFARS 252.211-7003. Also suggest adding
Section IV of the document entitled DD 1662 Transition Instruction
(August 23, 2005). This will clarify data to be provided when
information is entered into the Registry.
DoD Response: The rule has been revised to more clearly specify
data submission requirements, and the reference to the Government
Property Guidebook has been excluded from the final rule. Accordingly,
there is no need to add Section IV of the document entitled DD 1662
Transition Instruction (August 23, 2005).
b. Comment: The first sentence in paragraph (c)(1) of the clause at
DFARS 252.211-7007 should be revised to state that updates to the IUID
Registry should be accomplished ``in accordance with the recognized
data submission methods on the IUID Web site.''
DoD Response: The contract clause in the final rule clearly
specifies reporting requirements and also provides a reference to the
DoD IUID Registry Web site.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared a final regulatory flexibility analysis consistent
with 5 U.S.C. 604. A copy of the analysis may be obtained from the
point of contact specified herein. The analysis is summarized as
follows:
This rule amends the DFARS to require DoD contractors to
electronically submit, to the DoD IUID Registry, the IUID data
applicable to the Government property in the contractor's possession.
The previous, paper-based DD Form 1662 reporting system did not provide
DoD with sufficient information to
[[Page 70908]]
validate the existence, completeness, or valuation of Government
property in the possession of contractors. The objective of the rule is
to improve the accountability and control of DoD assets. DoD considers
use of the IUID Registry to be the most practical and beneficial
reporting method for both Government and industry. Continued reliance
on the prior paper-based reporting method would not permit the level of
accountability that DoD needs to comply with statutory and regulatory
requirements related to the management of Government property. DoD
already has adopted the use of IUID technology as the standard marking
approach for all items in DoD's inventory system. Therefore, it
logically follows that DoD property in the possession of contractors
should also be recorded and reported using IUID technology.
C. Paperwork Reduction Act
The information collection requirements associated with contractor
reporting of Government property have been approved by the Office of
Management and Budget, under Clearance Number 0704-0246, for use
through April 30, 2009. The requirements of this rule are not expected
to significantly change the burden hours approved under Clearance
Number 0704-0246.
List of Subjects in 48 CFR Parts 211, 245, and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Accordingly, the interim rule amending 48 CFR parts 211, 245, and 252,
which was published at 72 FR 52293 on September 13, 2007, is adopted as
a final rule with the following changes:
0
1. The authority citation for 48 CFR Parts 211, 245, and 252 continues
to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 211--DESCRIBING AGENCY NEEDS
0
2. Section 211.274-4 is revised to read as follows:
211.274-4 Policy for reporting of Government-furnished equipment in
the DoD Item Unique Identification (IUID) Registry.
It is DoD policy that Government-furnished equipment be recorded in
the DoD IUID Registry, except for--
(a) Items with an acquisition cost of less than $5,000 that are not
identified as serially managed, mission essential, sensitive, or
controlled inventory, unless the terms and conditions of the contract
state otherwise;
(b) Government-furnished material;
(c) Reparables;
(d) Contractor-acquired property as defined in FAR Part 45;
(e) Property under any statutory leasing authority;
(f) Property to which the Government has acquired a lien or title
solely because of partial, advance, progress, or performance-based
payments;
(g) Intellectual property or software; and
(h) Real property.
0
3. Section 211.274-5 is amended by revising paragraph (b)(1)
introductory text to read as follows:
211.274-5 Contract clauses.
* * * * *
(b)(1) Use the clause at 252.211-7007, Reporting of Government-
Furnished Equipment in the DoD Item Unique Identification (IUID)
Registry, in solicitations and contracts that contain the clause at--
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Section 252.211-7007 is revised to read as follows:
252.211-7007 Reporting of Government-Furnished Equipment in the DoD
Item Unique Identification (IUID) Registry.
As prescribed in 211.274-5(b), use the following clause:
REPORTING OF GOVERNMENT-FURNISHED EQUIPMENT IN THE DOD ITEM UNIQUE
IDENTIFICATION (IUID) REGISTRY (NOV 2008)
(a) Definitions. As used in this clause--
2D data matrix symbol means the 2-dimensional Data Matrix ECC
200 as specified by International Standards Organization/
International Electrotechnical Commission (ISO/IEC) Standard 16022:
Information Technology--International Symbology Specification--Data
Matrix.
Acquisition cost, for Government-furnished equipment, means the
amount identified in the contract, or in the absence of such
identification, the item's fair market value.
Concatenated unique item identifier means--
(1) For items that are serialized within the enterprise
identifier, the linking together of the unique identifier data
elements in order of the issuing agency code, enterprise identifier,
and unique serial number within the enterprise identifier; e.g., the
enterprise identifier along with the contractor's property internal
identification, i.e., tag number is recognized as the serial number;
or
(2) For items that are serialized within the original part, lot,
or batch number, the linking together of the unique identifier data
elements in order of the issuing agency code; enterprise identifier;
original part, lot, or batch number; and serial number within the
original part, lot, or batch number.
Equipment means a tangible item that is functionally complete
for its intended purpose, durable, nonexpendable, and needed for the
performance of a contract. Equipment is not intended for sale, and
does not ordinarily lose its identity or become a component part of
another article when put into use.
Government-furnished equipment means an item of special tooling,
special test equipment, or equipment, in the possession of, or
directly acquired by, the Government and subsequently furnished to
the Contractor (including subcontractors and alternate locations)
for the performance of a contract.
Item means equipment, special tooling, or special test
equipment, to include such equipment, special tooling, or special
test equipment that is designated as serially managed, mission
essential, sensitive, or controlled inventory (if previously
identified as such in accordance with the terms and conditions of
the contract).
Item unique identification (IUID) means a system of assigning,
reporting, and marking DoD property with unique item identifiers
that have machine-readable data elements to distinguish an item from
all other like and unlike items.
IUID Registry means the DoD data repository that receives input
from both industry and Government sources and provides storage of,
and access to, data that identifies and describes tangible
Government personal property.
Material means property that may be consumed or expended during
the performance of a contract, component parts of a higher assembly,
or items that lose their individual identity through incorporation
into an end item. Material does not include equipment, special
tooling, or special test equipment.
Reparable means an item, typically in unserviceable condition,
furnished to the Contractor for maintenance, repair, modification,
or overhaul.
Sensitive item means an item potentially dangerous to public
safety or security if stolen, lost, or misplaced, or that shall be
subject to exceptional physical security, protection, control, and
accountability. Examples include weapons, ammunition, explosives,
controlled substances, radioactive materials, hazardous materials or
wastes, or precious metals.
Serially managed item means an item designated by DoD to be
uniquely tracked, controlled, or managed in maintenance, repair,
and/or supply systems by means of its serial number.
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
[[Page 70909]]
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.
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.
Virtual UII means the UII data elements assigned to an item that
is not marked with a DoD compliant 2D data matrix symbol, e.g.,
enterprise identifier, part number, and serial number; or the
enterprise identifier along with the Contractor's property internal
identification, i.e., tag number.
(b) Requirement for item unique identification of Government-
furnished equipment. Except as provided in paragraph (c) of this
clause--
(1) Contractor accountability and management of Government-
furnished equipment shall be performed at the item level; and
(2) Unless provided by the Government, the Contractor shall
establish a virtual UII or a DoD recognized unique identification
for items that are--
(i) Valued at $5,000 or more in unit acquisition cost; or
(ii) Valued at less than $5,000 in unit acquisition cost and are
serially managed, mission essential, sensitive, or controlled
inventory, as identified in accordance with the terms and conditions
of the contract.
(c) Exceptions. Paragraph (b) of this clause does not apply to--
(1) Government-furnished material;
(2) Reparables;
(3) Contractor-acquired property;
(4) Property under any statutory leasing authority;
(5) Property to which the Government has acquired a lien or
title solely because of partial, advance, progress, or performance-
based payments;
(6) Intellectual property or software; or
(7) Real property.
(d) 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 paragraph (f)(1)(iii) of the
Government Property clause of this contract (FAR 52.245-1):
(1) Parent UII.
(2) Concatenated UII.
(3) Received/Sent (shipped) date.
(4) Status code.
(5) Current part number (if different from the original part
number.
(6) Current part number effective date.
(7) Category code (``E'' for equipment).
(8) Contract number.
(9) Commercial and Government Entity (CAGE) code.
(10) Mark record.
(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); for the
purpose of this clause, this defaults to ``one (1)''.
(e) 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, 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)
[FR Doc. E8-27779 Filed 11-21-08; 8:45 am]
BILLING CODE 5001-08-P
