Defense Federal Acquisition Regulation Supplement; Government-Assigned Serial Number Marking (DFARS Case 2008-D047), 22727-22728 [2010-9889]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 75, Number 83 (Friday, April 30, 2010)]
[Proposed Rules]
[Pages 22727-22728]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-9889]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 211 and 252

RIN 0750-AG55


Defense Federal Acquisition Regulation Supplement; Government-
Assigned Serial Number Marking (DFARS Case 2008-D047)

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

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require contractors to apply 
Government-assigned serial numbers in human-readable format on major 
end items, when required by law, regulation, or military operational 
necessity.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 29, 2010, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D047, 
using any of the following methods:
    Federal eRulemaking Portal: https://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: dfars@osd.mil. Include DFARS Case 2008-D047 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), Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD proposes to amend the DFARS 211.274 to require contractors to 
apply Government-assigned serial numbers, such as tail numbers/hull 
numbers and equipment registration, in human-readable format on major 
end items, when required by law, regulation, or military operational 
necessity. The rule establishes a standard DoD method of specifying 
Government-assigned serial numbers contractually, and requires the 
contractor to associate these serial numbers with the Unique Item 
Identifier (UII) assigned by the contractor and to register them in the 
DoD Item Unique Identification (IUID) Registry along with the UII. The 
rule also requires agreement between the Government and contractor 
prior to use of the serial numbers in constructing the end item UII.
    Application of these Government serial numbers is a standard 
practice because crew members and maintenance technicians have to 
distinguish visually individual end items during operations. The serial 
numbers are applied at minimal cost typically by painting them on an 
exterior surface with a stencil resulting in a human-readable format. 
The rule eliminates any ambiguity between the UII and the use of the 
Government-assigned serial number.
    The rule also proposes a new clause, Use of Government-Assigned 
Serial Numbers, in solicitations and contracts that contain the clause 
at 252.211-7003, Item Identification and Valuation, and that require 
the contractor to mark major end items under the terms and conditions 
of the contract. The Government-assigned method of serialization 
outlined in this proposed rule allows the Government to use its 
internal serialization as a data key to existing DoD property 
management, logistics, and maintenance systems.
    This regulatory action was subject to review under section 6(b) of 
Executive Order 12866, Regulatory Planning and Review, dated September 
30, 1993.

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:
    This proposed rule is not expected 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 any 
start-up costs that contractors will incur to comply with the rule are 
expected to be minimal, and should be offset by the reduced 
administrative costs that are expected to result from implementation of 
this rule. The objective of the rule is to improve the accountability 
and control of DoD assets. The proposed clause at 252.211-70XX, Use of 
Government-Assigned Serial Numbers, requires the Contractor to mark the 
Government-assigned serial numbers on those major end items as 
specified by line item in the Schedule, in accordance with the 
technical instructions for the placement and method of application 
identified in the terms and conditions of the contract, and to register 
the Government-assigned serial number along with the major end item's 
UII at the time of delivery in accordance with the provisions of the 
clause at DFARS 252.211-7003(d). Since DoD requires that the use of 
Government-assigned serial numbers be limited to satisfy requirements 
of law or regulation, or to facilitate the identification of major end 
items consistent with military operational requirements, e.g., aircraft 
tail numbers or ship hull numbers in military operations, the number of 
small entities impacted by this rule is not expected to be substantial. 
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 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 2008-D047) in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) does not apply because 
the rule does not impose additional information collection requirements 
that

[[Page 22728]]

require the approval of the Office of Management and Budget under 44 
U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 211 and 252

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

    Therefore, DoD proposes to amend 48 CFR parts 211 and 252 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


211.274-5  [Redesignated as 211.274-6]

    2. Redesignate section 211.274-5 as 211.274-6.
    3. Add section 211.274-5 to read as follows:


211.274-5  Policy for assignment of Government-assigned serial numbers.

    It is DoD policy that contractors apply Government-assigned serial 
numbers, such as tail numbers/hull numbers and equipment registration 
numbers in human-readable format, on major end items when required by 
law, regulation, or military operational necessity. The latest version 
of MIL-STD-130, Marking of U.S. Military Property, shall be used for 
the marking of human-readable information.
    4. In newly redesignated 211.274-6, add paragraph (c) to read as 
follows:


211.274-6  Contract clauses.

* * * * *
    (c) Use the clause at 252.211-70XX, 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 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.211-7003  [Amended]

    5. Amend section 252.211-7003 by removing ``211.274-5'' from the 
introductory text and adding in its place ``211.274-6''.


252.211-7007  [Amended]

    5. Amend section 252.211-7007 by removing ``211.274-5'' from the 
introductory text and adding in its place ``211.274-6''.
    6. Add section 252.211-70XX to read as follows:


252.211-70XX  Use of Government-Assigned Serial Numbers.

    As prescribed in 211.274-6(c), use the following clause:

USE OF GOVERNMENT-ASSIGNED SERIAL NUMBERS (DATE)

    (a) Definitions. As used in this clause--
    Government-assigned serial number means a combination of letters 
or numerals in a fixed human-readable information format (text) 
conveying information about a major end item, which is provided to a 
Contractor by the requiring activity with accompanying technical 
data instructions for marking the Government-assigned serial number 
on major end items to be delivered to the Government.
    Major end item means a final combination of component parts and/
or materials which is ready for its intended use and of such 
importance to operational readiness that review and control of 
inventory management functions (procurement, distribution, 
maintenance, disposal, and asset reporting) is required at all 
levels of life-cycle management. Major end items include aircraft; 
ships; boats; motorized wheeled, tracked, and towed vehicles for use 
on highway or rough terrain; weapon and missile end items; 
ammunition; and sets, assemblies, or end items having a major end 
item as a component.
    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.
    (b) The Contractor shall mark the Government-assigned serial 
numbers on those major end items as specified by line item in the 
Schedule, in accordance with the technical instructions for the 
placement and method of application identified in the terms and 
conditions of the contract.
    (c) The Contractor shall register the Government-assigned serial 
number along with the major end item's UII at the time of delivery 
in accordance with the provisions of the clause at DFARS 252.211-
7003(d).
    (d) The Contractor shall establish the UII for major end items 
for use throughout the life of the major end item. The Contractor 
may elect, but is not required, to use the Government-assigned 
serial number to construct the UII.
    (End of Clause)

[FR Doc. 2010-9889 Filed 4-29-10; 8:45 am]
BILLING CODE 5001-08-P