Defense Federal Acquisition Regulation Supplement (DFARS); Warranty Tracking of Serialized Items, DFARS Case 2009-D018, 33166-33170 [2011-14104]

Download as PDF srobinson on DSK4SPTVN1PROD with RULES 33166 Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Rules and Regulations does this represent? What percentage of these wireless devices are standard (original) equipment on vessels and engines? What are the installation and maintenance costs (labor and equipment) of wireless devices? What is the expected lifespan of wireless devices? Are there any special performance or failure issues unique to wireless devices? 18. How would this proposal change boater preference for wireless engine cut-off switch devices? Would boaters choose more expensive wireless systems over standard non-wireless systems? If so, why and how many? 19. As a result of this proposal, would vessel and engine manufacturers adopt wireless technology as standard equipment? 20. Would this proposal increase the use and wear of engine cut-off switch devices over and above the manufacturer’s recommended use? Would this proposal increase the replacement costs of engine cut-off switch devices? 21. What is the risk of unintended activations of engine cut-off switch devices? What is the current estimated rate of unintended activations? What are the impacts of unintended activations? Are there any injuries or fatalities associated with unintended activations? 22. What is the risk of engine cut-off switch device failure (i.e., engine does not cut off when operator is ejected)? What is the current estimated rate of engine cut-off switch device failures? What are the impacts of engine cut-off switch device failures? Are there any injuries or fatalities associated with engine cut-off switch device failures? 23. What data or information exists that could be used to estimate compliance rates of this proposal? What data exists to estimate how compliance with proposal will change from initial phase-in to full implementation? 24. How would the challenge to visually inspect from a distance whether an engine cut-off switch device is being used affect compliance with engine cutoff switch device requirements? 25. What are the compliance rates with State laws that require use of engine cut-off switch devices? 26. What is the voluntary use rate of engine cut-off switch devices in States without engine cut-off switch device laws? 27. Five States (Alabama, Arkansas, Illinois, Louisiana, and Nevada) currently require boaters to use engine cut-off devices on certain recreational vessels. What other State laws are being developed for engine cut-off switch device regulations? Please provide any data or information from the VerDate Mar<15>2010 20:41 Jun 07, 2011 Jkt 223001 implementation or development of these State regulations to assist the Coast Guard as it considers whether to require engine cut-off switch device use. 28. What are the costs associated with implementation of State laws requiring mandatory use of engine cut-off switch devices? 29. What is the effectiveness based on the reduction in fatalities, injuries, and property damage from recent changes in State laws regarding the use of engine cut-off switch devices? Dated: June 2, 2011. Kevin S. Cook, Rear Admiral, U.S. Coast Guard, Director of Prevention Policy. [FR Doc. 2011–14140 Filed 6–7–11; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 211, 246, and 252 RIN 0750–AG74 Defense Federal Acquisition Regulation Supplement (DFARS); Warranty Tracking of Serialized Items, DFARS Case 2009–D018 Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a policy memorandum of the Undersecretary of Defense for Acquisition, Technology and Logistics dated February 6, 2007, which required definition of the requirements to track warranties for Item Unique Identification-required items in the DoD Item Unique Identification Registry. This final rule stresses that the enforcement of warranties is essential to the effectiveness and efficiency of DoD’s material readiness. DATES: Effective date: June 8, 2011. FOR FURTHER INFORMATION CONTACT: Mr. Julian Thrash, 703–602–0310. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background The Undersecretary of Defense for Acquisition, Technology and Logistics issued a policy memorandum dated February 6, 2007, which instructed the Director of Defense Procurement and Acquisition Policy to define the requirements to track warranties for Item Unique Identification-required PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 items in the DoD Item Unique Identification Registry. The capability to track warranties will significantly enhance the ability of DoD to— • Identify and enforce warranties; • Ensure sufficient durations of warranties for specific goods; and • Realize improved material readiness. DoD issued a proposed rule in the Federal Register at 75 FR 52917 on August 30, 2010, to address the requirement to more effectively track warranties for Item Unique Identification items. The comment period closed October 29, 2010. II. Public Comment One respondent submitted comments to the proposed rule, which are discussed below. Comment: The respondent states that while the unique item identification requirement was not established for the purpose of tracking warranty items, its use as a warranty-tracking methodology would result in increased costs for contractors and the Government. The addition of warranted items to DFARS 211.274–2 will expand the criteria for selecting the items to be uniquely identified. Today, that determination is based almost completely on the value of the item. Warranted items may or may not meet the value criterion established for determining what should be uniquely identified and marked. An application of unique item identification to warranted items may cause a part to be covered by unique item identification under a contract calling for warranty and not covered by unique item identification on another contract without warranty. Response: This requirement applies to any ‘‘warranted serialized item,’’ and a clarifying change was made at 211.274– 2(4)(iii) by adding the term ‘‘any warranted serialized item.’’ Comment: The respondent also recommends that DoD not publish a final rule on warranty tracking of serialized items. Response: DoD requires a more effective way to track warranties for Item Unique Identification items. Presently, DoD lacks the enterprise capability to provide visibility and accountability of warranty data associated with acquired goods. The tracking of warranties, from the identification of the requirement to the expiration date of the warranted item, will significantly enhance the ability of DoD to take full advantage of warranties when they are part of an acquisition. This will result in reduced costs, ability to recognize benefits, and the ability to compare performance against E:\FR\FM\08JNR1.SGM 08JNR1 Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Rules and Regulations srobinson on DSK4SPTVN1PROD with RULES Government-specified warranties. The consequence of not collecting this data is that warranty management of mission critical assets is not optimized, which may have a significant impact during time of war or in response to contingencies. When this capability is developed, it is expected that warranty information will be collected and shared by acquisition organizations to document and improve warranty management. Additionally, as counterfeit items, particularly electronics parts increase, this traceability of items to a warranty will assist all members of the supply chain to manage risk appropriately. This traceability also leads to ensuring the Government receives the supplies purchased, reducing the number of counterfeit items. Based upon the above, DoD published a final rule. III. Additional Technical Changes Required During the final rule development, DoD restructured the layout of the rule to reduce burden to contractors and to facilitate data capture. This change required moving the tables from the clause at 252.246–7006, Warranty Tracking of Serialized Items, to 246.710–70, Warranty attachment. This will enable data capture through the use of the warranty attachments. DoD has posted schema to the DPAP/Program Development and Implementation Web site at https://www.acq.osd.mil/dpap/ pdi/eb/gfp.html, to facilitate this process. A summary of the required technical changes follows— • DFARS 211.274–2, Policy for unique item identification—added the term ‘‘any warranted serialized item’’ to clarify that this rule applies to serialized warranted items, regardless of the value. The existence of a warranty does not solely create a criterion for Item Unique Identification applicability. • DFARS 246.701, Definitions— added references to definitions for ‘‘duration,’’ ‘‘enterprise,’’ ‘‘enterprise identifier,’’ ‘‘fixed expiration,’’ ‘‘issuing agency,’’ ‘‘item type,’’ ‘‘starting event,’’ ‘‘serialized item,’’ ‘‘unique item identifier,’’ ‘‘usage,’’ ‘‘warranty administrator,’’ ‘‘warranty guarantor,’’ ‘‘warranty repair source,’’ and ‘‘warranty tracking’’ as being defined in the clause at 252.246–7006. • DFARS 246.710, Solicitation provision and contract clauses, paragraph (5)—replaced previous references to tables I and II as the warranty attachments were added to DFARS 246.710–70. Related subparagraphs were revised accordingly to incorporate tables I and II, which were previously referred to in the VerDate Mar<15>2010 20:41 Jun 07, 2011 Jkt 223001 provision at 252.246–7005, and included in the clause at 252.246–7006. Electronic business systems are being expanded to capture the data elements needed to support warranty tracking through the use of an attachment format. The procurement data strategy, the DoD method to implement data capture, relies on attachment file formats. This format can be embedded in the contract data file by the contract writing system, or sent in parallel as a separate attachment. To facilitate data capture, the tables for warranty data have been translated into an XML attachment schema published by DPAP, and available at this website: https:// www.acq.osd.mil/dpap/pdi/eb/gfp.html. This schema will enable data flow from system to system. Data flow from a clause is not possible because the clause is text, not data. Extracting the data requirements from the clause and carrying it separately in an attachment will make the flowing of the data to the various business systems possible without modifying every DoD contract writing system. • DFARS 246.710–70, Warranty attachment—a new section was added to provide two attachments and completion instructions to replace two tables previously included in the proposed clause at 252.247–70YY. The two new attachments are ‘‘Attachment __: Warranty Tracking Information,’’ and ‘‘Attachment __: Warranty Repair Source Instructions.’’ • The ‘‘Warranty Tracking Information’’ attachment title is supplemented to include ‘‘Solicitation or Contract Number [To be filled in by the contracting officer].’’ Further, this attachment indicates that data marked ‘‘*’’ is to be completed by the requiring activity if a warranty is specified by the Government otherwise all offerors are to complete those elements as part of their offers. Data marked by ‘‘**’’ is to be completed by the contractor at the time of award. A reference to ‘‘***’’ was added for data to be completed at or after the time of award. The definition for ‘‘warranty administrator enterprise identifier’’ was revised to include the term ‘‘globally unique’’ identifier code. • The ‘‘Warranty Repair Source Instructions’’ attachment title is supplemented to include ‘‘Solicitation or Contract Number [To be filled in by the contracting officer].’’ Additionally, the numbering for the table notes was revised for that table only. The definition for ‘‘warranty administrator enterprise identifier’’ was revised for clarity to include the term ‘‘globally unique’’ identifier code rather than using the term ‘‘non-repeatable.’’ Also, a note for ‘‘instructions’’ was moved from PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 33167 the table, and made a stand-alone note under the table. • 252.211–7003(a), Item Identification and Valuation—the definition of ‘‘issuing agency’’ was revised for clarity to include the term a ‘‘globally unique’’ identifier code rather than using the term ‘‘non-repeatable.’’ • 252.246–7005, Notice of Warranty Tracking of Serialized Items, was revised to replace references to tables I and II, which were incorporated into DFARS 246.710 as a warranty attachment. • 252.246–7006, Warranty Tracking of Serialized Items— • Paragraph (a), the definition of ‘‘DoD Item Unique Identification Registry’’ was not required for the clause and was removed. The definition of ‘‘issuing agency’’ was revised to include the term ‘‘globally unique’’ identifier code for clarity. • Paragraph (b) was revised to remove references to tables I and II as these tables are incorporated into 246.710–70 as a warranty attachment to facilitate data flow. IV. Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. V. Regulatory Flexibility Act DoD has prepared a final regulatory flexibility analysis consistent with 5 U.S.C. 604 et seq. A copy of the analysis may be obtained from the point of contact specified herein and is summarized below. The objective of this rule was for DoD to develop a more effective way to track warranties for Item Unique Identification items. DoD has lacked the enterprise capability that would provide visibility and accountability of warranty data associated with acquired goods. The tracking of warranties, from the identification of the requirement to the expiration date of the warranted item, will significantly enhance the ability of E:\FR\FM\08JNR1.SGM 08JNR1 33168 Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Rules and Regulations DoD to take full advantage of warranties when they are part of an acquisition, resulting in the ability to— • Identify and enforce warranties; • Ensure sufficient durations of warranties for specific goods; and • Realize improved material readiness. In FY 2009, DoD issued approximately 16,000 solicitations that use warranty clauses. In response to those solicitations, DoD estimates that approximately 76,000 offers may have been received (66,000 from small business, 10,000 from other than small business). Of that total, DoD estimates that 50% of the time the Government will provide the required warranty information for 38,000 offers (33,000 small and 5,000 other than small businesses). Therefore, approximately 33,000 small entities may be impacted by the rule. This rule was published as a proposed rule in the Federal Register at 75 FR 52971, on August 30, 2010. No comments were received from small entities on the affected DFARS subpart with regard to small businesses. We anticipate that there will be limited, if any, additional costs imposed on small businesses unless there is a covered claim filed against a particular contractor. IV. Paperwork Reduction Act The provision at 252.246–7005, Notice of Warranty Tracking of Serialized Items and the clause at 252.246–7006, Warranty Tracking of Serialized Items, contain new information collection requirements. The Office of Management and Budget has approved the information collection requirements under Control Number 0704–0481, Warranty Tracking of Serialized Items. List of Subjects in 48 CFR Parts 211, 246, and 252 Government procurement. srobinson on DSK4SPTVN1PROD with RULES Mary Overstreet, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR parts 211, 246, and 252 are amended as follows: ■ 1. The authority citation for 48 CFR parts 211, 246, and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. VerDate Mar<15>2010 20:41 Jun 07, 2011 Jkt 223001 PART 211—DESCRIBING AGENCY NEEDS 2. Amend section 211.274–2 as follows: ■ (a) Amend paragraph (a)(4)(i) to remove ‘‘and’’ after the semicolon; ■ (b) Amend paragraph (a)(4)(ii) to add the word ‘‘and’’ after the semicolon; ■ (c) Add new paragraph (a)(4)(iii) to read as set forth below. ■ 211.271–2 Policy for unique item identification. (a) * * * (4) * * * (iii) Any warranted serialized item. PART 246—QUALITY ASSURANCE 3. Revise section 246.701 to read as follows: ■ 246.701 Definitions. As used in this subpart— Acceptance as used in this subpart and in the warranty clauses at FAR 52.246–17, Warranty of Supplies of a Noncomplex Nature; FAR 52.246–18, Warranty of Supplies of a Complex Nature; FAR 52.246–19, Warranty of Systems and Equipment Under Performance Specifications or Design Criteria; and FAR 52.246–20, Warranty of Services, includes the execution of an official document (e.g., DD Form 250, Material Inspection and Receiving Report) by an authorized representative of the Government. Defect means any condition or characteristic in any supply or service furnished by the contractor under the contract that is not in compliance with the requirements of the contract. Duration, enterprise, enterprise identifier, fixed expiration, issuing agency, item type, starting event, serialized item, unique item identifier, usage, warranty administrator, warranty guarantor, warranty repair source, and warranty tracking are defined in the clause at 252.246–7006, Warranty Tracking of Serialized Items. ■ 4. Amend section 246.710 to: ■ (a) Revise the section title; and ■ (b) Add new paragraph (5)(i). The additions and revisions read as follows: 246.710 Solicitation provision and contract clauses. * * * * * (5)(i) In addition to 252.211–7003, Item Identification and Valuation, which is prescribed in 211.274– 6(a), PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 use the following provision and clause in solicitations and contracts when it is anticipated that the resulting contract will include a warranty for serialized items: (A) 252.246–7005, Notice of Warranty Tracking of Serialized Items (include only if offerors will be required to enter data with the offer); and (B) 252.246–7006, Warranty Tracking of Serialized Items. (ii) If the Government specifies a warranty, include in the solicitation the appropriate warranty attachment from DFARS 246.710–70. The contracting officer shall request the requiring activity to provide information to ensure that Attachment __, Warranty Tracking Information, is populated with data specifying the Government’s required warranty provision by contract line item number, subline item number, or exhibit line item number prior to solicitation. In such case do not include 252.246–7005 in the solicitation. (iii) If the Government does not specify a warranty, include 252.246– 7005 in the solicitation, and the warranty attachment from DFARS 246.710–70. The contractor may offer a warranty and shall then populate Attachment _, Warranty Tracking Information, as appropriate, as part of its offer as required by 252.246–7005. (iv) All warranty tracking information that is indicated with a single asterisk (*) in Attachment __, Warranty Tracking Information, shall be completed prior to award. Data indicated with two asterisks (**) may be completed at the time of award. Data indicated with three asterisks (***) may be completed at or after the time of award. (v) The contractor shall provide warranty repair source instructions (as prescribed in the attachment) no later than the time of delivery. ■ 5. Add new section 246.710–70 to read as follows: 246.710–70 Warranty attachment. This is the prescribed attachment and format required and referenced in the provision at 252.246–7005, Notice of Warranty Tracking of Serialized Items, and the clause at 252.246–7006, Warranty Tracking of Serialized Items. The contracting officer shall number the attachment upon issuance of the solicitation and include the solicitation or contract number. AttachmenT l: Warranty Tracking Information E:\FR\FM\08JNR1.SGM 08JNR1 Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Rules and Regulations 33169 SOLICITATION OR CONTRACT NUMBER [To be filled in by the contracting officer] Warranty term Item type (note (a)) ** CLIN SLIN OR ELIN * Warranty item UII *** Starting event (note (b)) * Usage (note (c)) * Quantity * Duration (note (d)) * Unit * Quantity * Fixed expiration (note (e)) Unit * Date * Warranty Administrator Enterprise Identifier Code Type (note (f)) ** Warranty Administrator Enterprise Identifier (note (g)) ** Warranty Guarantor Enterprise Identifier Code Type (note (h)) ** Warranty Guarantor Enterprise Identifier (note (i)) ** * To be completed by the requiring activity, if warranty is specified by the Government. Otherwise, all offerors are to complete as part of their offers. ** To be completed by the contractor at the time of award. *** To be completed by the contractor at the time of award (if known) or at the time Attachment l, Warranty Repair Source Instructions is submitted. Notes: (a) Item Type. C—component procured separate from end item. S—subassembly procured separate from end Item or subassembly. E—embedded in component, subassembly or end item parent. P—parent end item. (b) Starting Event. A—Acceptance. I—Installation. F—First Use. O—Other. Warranty term—Choose one of the following: (c) Usage (for warrantees where effectivity is in terms of operating time or cycles). (d) Duration (for warrantees that expire after a set period of time). (e) Date (for warrantees with a fixed expiration date). (f) Warranty Administrator Enterprise Identifier Code Type 0–9—GS1 Company Prefix. D—CAGE. LB—ATIS–0322000. LH—EHIBCC. RH—HIBCC. UN—DUNS. (g) Warranty administrator enterprise identifier—A globally unique identifier code assigned to an enterprise by an issuing agency (e.g., Dun & Bradstreet’s Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS–0322000) Number, European Health Industry Business Communication Council (EHIBCC) and Health Industry Business Communication Council (HIBCC)).l (h) Warranty Guarantor Enterprise Identifier Code Type 0–9—GS1 Company Prefix. D—CAGE. LB—ATIS–0322000. LH—EHIBCC. RH—HIBCC. UN—DUNS. (i) Warranty guarantor enterprise identifier—A globally unique identifier code assigned to an enterprise by an Issuing Agency (e.g., Dun & Bradstreet’s Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS–0322000) Number, European Health Industry Business Communication Council (EHIBCC) and Health Industry Business Communication Council (HIBCC)). Attachment l: Warranty Repair Source Instructions CONTRACT NUMBER: [To be filled in by the contracting officer] CLIN, SLIN or ELIN * Warranty Repair Source Enterprise Identifier Code Type (note (a)) ** Warranty Repair Source Enterprise Identifier (note (b)) ** Shipping address for warranty returns Name ** Address line 1 ** Address line 2 ** City/county ** State/province ** Postal code ** Country ** Instructions (note (c)) ** srobinson on DSK4SPTVN1PROD with RULES * To be completed by the requiring activity, if warranty is specified by the Government. Otherwise, all offerors are to complete as part of their offers. ** To be completed by the Contractor at the time of award and/or at the time of delivery. Notes: (a) Warranty Repair Source Enterprise Identifier Code Type 0–9—GS1 Company Prefix. D—CAGE. LB—ATIS–0322000. LH—EHIBCC. RH—HIBCC. UN—DUNS. (b) Warranty repair source enterprise identifier—A globally unique identifier code assigned to an enterprise by an issuing agency (e.g., Dun & Bradstreet’s Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS–0322000) Number, European Health Industry Business Communication Council (EHIBCC) and Health Industry Business Communication Council (HIBCC)). (c) Instructions—For each warranty repair source enterprise identifier, include the shipping address for returning warranty items, or include instructions for accessing a web site to obtain prepaid shipping labels for returning warranty items to the designated source of warranty repair. * * * * * PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 6. Amend section 252.211–7003 as follows: ■ VerDate Mar<15>2010 20:41 Jun 07, 2011 (a) Amend the clause date by removing ‘‘(AUG 2008)’’ and adding in its place ‘‘(JUN 2011)’’; ■ (b) Amend paragraph (a) by revising the definition of ‘‘Issuing agency’’ as shown below. ■ Jkt 223001 PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 252.211–7003 Valuation. * Item Identification and * * * * (a) * * * Issuing agency means an organization responsible for assigning a globally unique identifier to an enterprise (e.g., E:\FR\FM\08JNR1.SGM 08JNR1 33170 Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Rules and Regulations Dun & Bradstreet’s Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/ Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS–0322000) Number), European Health Industry Business Communication Council (EHIBCC) and Health Industry Business Communication Council (HIBCC)), as indicated in the Register of Issuing Agency Codes for ISO/IEC 15459, located at https://www.nen.nl/web/ Normen-ontwikkelen/ISOIEC-15459Issuing-Agency-Codes.htm. * * * * * 7. Add section 252.246–7005 to read as follows: ■ 252.246–7005 Notice of Warranty Tracking of Serialized Items. As prescribed in 246.710(5)(i)(A), use the following provision: Notice of Warranty Tracking of Serialized Items (Jun 2011) (a) Definition. Unique item identifier and warranty tracking are defined in the clause at 252.246–7006, Warranty Tracking of Serialized Items. (b) Reporting of data for warranty tracking and administration. The offeror shall provide the information required by Attachment l, Warranty Tracking Information, (indicated by a single asterisk (*)), on each contract line item number, subline item number, or exhibit line item number for warranted items. The offeror shall provide all information required by Attachment l, Warranty Repair Source Instruction, prior to, but not later than when the warranted items are presented for receipt and/or acceptance. The ‘‘Warranty Item Unique Item Identifier data category may also be completed in conjunction with Attachment _, Warranty Repair Source Instruction. Information required in the warranty attachment shall include such information as duration, enterprise, enterprise identifier, first use, fixed expiration, installation, issuing agency, item type, starting event, serialized item, unique item identifier, usage, warranty administrator, warranty guarantor, warranty repair source, and warranty tracking. The offeror shall submit the data for warranty tracking to the Contracting Officer. srobinson on DSK4SPTVN1PROD with RULES (End of provision) 6. Add section 252.246–7006 to read as follows: ■ 252.246–7006 Warranty Tracking of Serialized Items. As prescribed in 246.710(5)(i)(B), use the following clause: VerDate Mar<15>2010 20:41 Jun 07, 2011 Jkt 223001 Warranty Tracking of Serialized Items (Jun 2011) (a) Definitions. As used in this clause— Duration means the warranty period. This period may be a stated period of time, amount of usage, or the occurrence of a specified event, after formal acceptance of delivery, for the Government to assert a contractual right for the correction of defects. Enterprise means the entity (e.g., a manufacturer or vendor) responsible for granting the warranty and/or assigning unique item identifiers to serialized warranty items. Enterprise identifier means a code that is uniquely assigned to an enterprise by an issuing agency. First use means the initial or first-time use of a product by the Government. Fixed expiration means the date the warranty expires and the Contractor’s obligation to provide for a remedy or corrective action ends. Installation means the date a unit is inserted into a higher level assembly in order to make that assembly operational. Issuing agency means an organization responsible for assigning a globally unique identifier to an enterprise (e.g., Dun & Bradstreet’s Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS–0322000) Number), European Health Industry Business Communication Council (EHIBCC) and Health Industry Business Communication Council (HIBCC)), as indicated in the Register of Issuing Agency Codes for ISO/IEC 15459, located at https://www.nen.nl/web/Normenontwikkelen/ISOIEC-15459-Issuing-AgencyCodes.htm. Item type means a coded representation of the description of the item being warranted, consisting of the codes C—component procured separate from end item, S— subassembly procured separate from end item or subassembly, E—embedded in component, subassembly or end item parent, and P—parent end item. Starting event means the event or action that initiates the warranty. Serialized item means each item produced is assigned a serial number that is unique among all the collective tangible items produced by the enterprise, or each item of a particular part, lot, or batch number is assigned a unique serial number within that part, lot, or batch number assignment within the enterprise identifier. The enterprise is responsible for ensuring unique serialization within the enterprise identifier or within the part, lot, or batch numbers, and that serial numbers, once assigned, are never used again. Unique item identifier means a set of data elements marked on an item that is globally unique and unambiguous. Usage means the quantity and an associated unit of measure that specifies the PO 00000 Frm 00050 Fmt 4700 Sfmt 4700 amount of a characteristic subject to the contractor’s obligation to provide for remedy or corrective action, such as a number of miles, hours, or cycles. Warranty administrator means the organization specified by the guarantor for managing the warranty. Warranty guarantor means the enterprise that provides the warranty under the terms and conditions of a contract. Warranty repair source means the organization specified by a warranty guarantor for receiving and managing warranty items that are returned by a customer. Warranty tracking means the ability to trace a warranted item from delivery through completion of the effectivity of the warranty. (b) Reporting of data for warranty tracking and administration. The Contractor shall provide all information required by Attachment __, Warranty Tracking Information on each contract line item number, subline item number, or exhibit line item number for warranted items. The Contractor shall provide all information required by Attachment __, Warranty Repair Source Instructions, prior to, but not later than when the warranted items are presented for receipt and/or acceptance. The ‘‘Warranty Item Unique Item Identifier’’ data category may also be completed in conjunction with Attachment __, Warranty Repair Source Instructions. Information required in the warranty attachment shall include such information as duration, enterprise, enterprise identifier, first use, fixed expiration, installation, issuing agency, item type, starting event, serialized item, unique item identifier, usage, warranty administrator, warranty guarantor, warranty repair source, and warranty tracking. The Contractor shall submit the data for warranty tracking to the Contracting Officer with a copy to the requiring activity and the Contracting Officer Representative. (c) Reservation of rights. The terms of this clause shall not be construed to limit the Government’s rights or remedies under any other contract clause. (End of clause) * * * * * [FR Doc. 2011–14104 Filed 6–7–11; 8:45 am] BILLING CODE 5001–08–P DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 212 RIN 0750–AH23 Defense Federal Acquisition Regulation Supplement; Inclusion of Option Amounts in Limitations on Authority of the Department of Defense to Carry Out Certain Prototype Projects (DFARS Case 2011–D024) Defense Acquisition Regulations System, Department of Defense (DoD). AGENCY: E:\FR\FM\08JNR1.SGM 08JNR1

Agencies

[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Rules and Regulations]
[Pages 33166-33170]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14104]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 211, 246, and 252

RIN 0750-AG74


Defense Federal Acquisition Regulation Supplement (DFARS); 
Warranty Tracking of Serialized Items, DFARS Case 2009-D018

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

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule to amend the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement a policy 
memorandum of the Undersecretary of Defense for Acquisition, Technology 
and Logistics dated February 6, 2007, which required definition of the 
requirements to track warranties for Item Unique Identification-
required items in the DoD Item Unique Identification Registry. This 
final rule stresses that the enforcement of warranties is essential to 
the effectiveness and efficiency of DoD's material readiness.

DATES: Effective date: June 8, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. Julian Thrash, 703-602-0310.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Undersecretary of Defense for Acquisition, Technology and 
Logistics issued a policy memorandum dated February 6, 2007, which 
instructed the Director of Defense Procurement and Acquisition Policy 
to define the requirements to track warranties for Item Unique 
Identification-required items in the DoD Item Unique Identification 
Registry. The capability to track warranties will significantly enhance 
the ability of DoD to--
     Identify and enforce warranties;
     Ensure sufficient durations of warranties for specific 
goods; and
     Realize improved material readiness.
    DoD issued a proposed rule in the Federal Register at 75 FR 52917 
on August 30, 2010, to address the requirement to more effectively 
track warranties for Item Unique Identification items. The comment 
period closed October 29, 2010.

II. Public Comment

    One respondent submitted comments to the proposed rule, which are 
discussed below.
    Comment: The respondent states that while the unique item 
identification requirement was not established for the purpose of 
tracking warranty items, its use as a warranty-tracking methodology 
would result in increased costs for contractors and the Government. The 
addition of warranted items to DFARS 211.274-2 will expand the criteria 
for selecting the items to be uniquely identified. Today, that 
determination is based almost completely on the value of the item. 
Warranted items may or may not meet the value criterion established for 
determining what should be uniquely identified and marked. An 
application of unique item identification to warranted items may cause 
a part to be covered by unique item identification under a contract 
calling for warranty and not covered by unique item identification on 
another contract without warranty.
    Response: This requirement applies to any ``warranted serialized 
item,'' and a clarifying change was made at 211.274-2(4)(iii) by adding 
the term ``any warranted serialized item.''
    Comment: The respondent also recommends that DoD not publish a 
final rule on warranty tracking of serialized items.
    Response: DoD requires a more effective way to track warranties for 
Item Unique Identification items. Presently, DoD lacks the enterprise 
capability to provide visibility and accountability of warranty data 
associated with acquired goods. The tracking of warranties, from the 
identification of the requirement to the expiration date of the 
warranted item, will significantly enhance the ability of DoD to take 
full advantage of warranties when they are part of an acquisition. This 
will result in reduced costs, ability to recognize benefits, and the 
ability to compare performance against

[[Page 33167]]

Government-specified warranties. The consequence of not collecting this 
data is that warranty management of mission critical assets is not 
optimized, which may have a significant impact during time of war or in 
response to contingencies. When this capability is developed, it is 
expected that warranty information will be collected and shared by 
acquisition organizations to document and improve warranty management. 
Additionally, as counterfeit items, particularly electronics parts 
increase, this traceability of items to a warranty will assist all 
members of the supply chain to manage risk appropriately. This 
traceability also leads to ensuring the Government receives the 
supplies purchased, reducing the number of counterfeit items. Based 
upon the above, DoD published a final rule.

III. Additional Technical Changes Required

    During the final rule development, DoD restructured the layout of 
the rule to reduce burden to contractors and to facilitate data 
capture. This change required moving the tables from the clause at 
252.246-7006, Warranty Tracking of Serialized Items, to 246.710-70, 
Warranty attachment. This will enable data capture through the use of 
the warranty attachments. DoD has posted schema to the DPAP/Program 
Development and Implementation Web site at https://www.acq.osd.mil/dpap/pdi/eb/gfp.html, to facilitate this process. A summary of the required 
technical changes follows--
     DFARS 211.274-2, Policy for unique item identification--
added the term ``any warranted serialized item'' to clarify that this 
rule applies to serialized warranted items, regardless of the value. 
The existence of a warranty does not solely create a criterion for Item 
Unique Identification applicability.
     DFARS 246.701, Definitions--added references to 
definitions for ``duration,'' ``enterprise,'' ``enterprise 
identifier,'' ``fixed expiration,'' ``issuing agency,'' ``item type,'' 
``starting event,'' ``serialized item,'' ``unique item identifier,'' 
``usage,'' ``warranty administrator,'' ``warranty guarantor,'' 
``warranty repair source,'' and ``warranty tracking'' as being defined 
in the clause at 252.246-7006.
     DFARS 246.710, Solicitation provision and contract 
clauses, paragraph (5)--replaced previous references to tables I and II 
as the warranty attachments were added to DFARS 246.710-70. Related 
subparagraphs were revised accordingly to incorporate tables I and II, 
which were previously referred to in the provision at 252.246-7005, and 
included in the clause at 252.246-7006. Electronic business systems are 
being expanded to capture the data elements needed to support warranty 
tracking through the use of an attachment format. The procurement data 
strategy, the DoD method to implement data capture, relies on 
attachment file formats. This format can be embedded in the contract 
data file by the contract writing system, or sent in parallel as a 
separate attachment. To facilitate data capture, the tables for 
warranty data have been translated into an XML attachment schema 
published by DPAP, and available at this website: https://www.acq.osd.mil/dpap/pdi/eb/gfp.html. This schema will enable data flow 
from system to system. Data flow from a clause is not possible because 
the clause is text, not data. Extracting the data requirements from the 
clause and carrying it separately in an attachment will make the 
flowing of the data to the various business systems possible without 
modifying every DoD contract writing system.
     DFARS 246.710-70, Warranty attachment--a new section was 
added to provide two attachments and completion instructions to replace 
two tables previously included in the proposed clause at 252.247-70YY. 
The two new attachments are ``Attachment ----: Warranty Tracking 
Information,'' and ``Attachment ----: Warranty Repair Source 
Instructions.''
     The ``Warranty Tracking Information'' attachment title is 
supplemented to include ``Solicitation or Contract Number [To be filled 
in by the contracting officer].'' Further, this attachment indicates 
that data marked ``*'' is to be completed by the requiring activity if 
a warranty is specified by the Government otherwise all offerors are to 
complete those elements as part of their offers. Data marked by ``**'' 
is to be completed by the contractor at the time of award. A reference 
to ``***'' was added for data to be completed at or after the time of 
award. The definition for ``warranty administrator enterprise 
identifier'' was revised to include the term ``globally unique'' 
identifier code.
     The ``Warranty Repair Source Instructions'' attachment 
title is supplemented to include ``Solicitation or Contract Number [To 
be filled in by the contracting officer].'' Additionally, the numbering 
for the table notes was revised for that table only. The definition for 
``warranty administrator enterprise identifier'' was revised for 
clarity to include the term ``globally unique'' identifier code rather 
than using the term ``non-repeatable.'' Also, a note for 
``instructions'' was moved from the table, and made a stand-alone note 
under the table.
     252.211-7003(a), Item Identification and Valuation--the 
definition of ``issuing agency'' was revised for clarity to include the 
term a ``globally unique'' identifier code rather than using the term 
``non-repeatable.''
     252.246-7005, Notice of Warranty Tracking of Serialized 
Items, was revised to replace references to tables I and II, which were 
incorporated into DFARS 246.710 as a warranty attachment.
     252.246-7006, Warranty Tracking of Serialized Items--
     Paragraph (a), the definition of ``DoD Item Unique 
Identification Registry'' was not required for the clause and was 
removed. The definition of ``issuing agency'' was revised to include 
the term ``globally unique'' identifier code for clarity.
     Paragraph (b) was revised to remove references to tables I 
and II as these tables are incorporated into 246.710-70 as a warranty 
attachment to facilitate data flow.

IV. Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is not a significant regulatory action and, 
therefore, was not subject to review under Section 6(b) of Executive 
Order 12866, Regulatory Planning and Review, dated September 30, 1993. 
This rule is not a major rule under 5 U.S.C. 804.

V. Regulatory Flexibility Act

    DoD has prepared a final regulatory flexibility analysis consistent 
with 5 U.S.C. 604 et seq. A copy of the analysis may be obtained from 
the point of contact specified herein and is summarized below. The 
objective of this rule was for DoD to develop a more effective way to 
track warranties for Item Unique Identification items. DoD has lacked 
the enterprise capability that would provide visibility and 
accountability of warranty data associated with acquired goods. The 
tracking of warranties, from the identification of the requirement to 
the expiration date of the warranted item, will significantly enhance 
the ability of

[[Page 33168]]

DoD to take full advantage of warranties when they are part of an 
acquisition, resulting in the ability to--
     Identify and enforce warranties;
     Ensure sufficient durations of warranties for specific 
goods; and
     Realize improved material readiness.
    In FY 2009, DoD issued approximately 16,000 solicitations that use 
warranty clauses. In response to those solicitations, DoD estimates 
that approximately 76,000 offers may have been received (66,000 from 
small business, 10,000 from other than small business). Of that total, 
DoD estimates that 50% of the time the Government will provide the 
required warranty information for 38,000 offers (33,000 small and 5,000 
other than small businesses). Therefore, approximately 33,000 small 
entities may be impacted by the rule.
    This rule was published as a proposed rule in the Federal Register 
at 75 FR 52971, on August 30, 2010. No comments were received from 
small entities on the affected DFARS subpart with regard to small 
businesses. We anticipate that there will be limited, if any, 
additional costs imposed on small businesses unless there is a covered 
claim filed against a particular contractor.

IV. Paperwork Reduction Act

    The provision at 252.246-7005, Notice of Warranty Tracking of 
Serialized Items and the clause at 252.246-7006, Warranty Tracking of 
Serialized Items, contain new information collection requirements. The 
Office of Management and Budget has approved the information collection 
requirements under Control Number 0704-0481, Warranty Tracking of 
Serialized Items.

List of Subjects in 48 CFR Parts 211, 246, and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 211, 246, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 211, 246, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 211--DESCRIBING AGENCY NEEDS

0
2. Amend section 211.274-2 as follows:
0
(a) Amend paragraph (a)(4)(i) to remove ``and'' after the semicolon;
0
(b) Amend paragraph (a)(4)(ii) to add the word ``and'' after the 
semicolon;
0
(c) Add new paragraph (a)(4)(iii) to read as set forth below.


211.271-2  Policy for unique item identification.

    (a) * * *
    (4) * * *
    (iii) Any warranted serialized item.

PART 246--QUALITY ASSURANCE

0
3. Revise section 246.701 to read as follows:


246.701  Definitions. As used in this subpart--

    Acceptance as used in this subpart and in the warranty clauses at 
FAR 52.246-17, Warranty of Supplies of a Noncomplex Nature; FAR 52.246-
18, Warranty of Supplies of a Complex Nature; FAR 52.246-19, Warranty 
of Systems and Equipment Under Performance Specifications or Design 
Criteria; and FAR 52.246-20, Warranty of Services, includes the 
execution of an official document (e.g., DD Form 250, Material 
Inspection and Receiving Report) by an authorized representative of the 
Government.
    Defect means any condition or characteristic in any supply or 
service furnished by the contractor under the contract that is not in 
compliance with the requirements of the contract.
    Duration, enterprise, enterprise identifier, fixed expiration, 
issuing agency, item type, starting event, serialized item, unique item 
identifier, usage, warranty administrator, warranty guarantor, warranty 
repair source, and warranty tracking are defined in the clause at 
252.246-7006, Warranty Tracking of Serialized Items.

0
4. Amend section 246.710 to:
0
(a) Revise the section title; and
0
(b) Add new paragraph (5)(i).
    The additions and revisions read as follows:


246.710  Solicitation provision and contract clauses.

* * * * *
    (5)(i) In addition to 252.211-7003, Item Identification and 
Valuation, which is prescribed in 211.274- 6(a), use the following 
provision and clause in solicitations and contracts when it is 
anticipated that the resulting contract will include a warranty for 
serialized items:
    (A) 252.246-7005, Notice of Warranty Tracking of Serialized Items 
(include only if offerors will be required to enter data with the 
offer); and
    (B) 252.246-7006, Warranty Tracking of Serialized Items.
    (ii) If the Government specifies a warranty, include in the 
solicitation the appropriate warranty attachment from DFARS 246.710-70. 
The contracting officer shall request the requiring activity to provide 
information to ensure that Attachment ----, Warranty Tracking 
Information, is populated with data specifying the Government's 
required warranty provision by contract line item number, subline item 
number, or exhibit line item number prior to solicitation. In such case 
do not include 252.246-7005 in the solicitation.
    (iii) If the Government does not specify a warranty, include 
252.246-7005 in the solicitation, and the warranty attachment from 
DFARS 246.710-70. The contractor may offer a warranty and shall then 
populate Attachment --, Warranty Tracking Information, as appropriate, 
as part of its offer as required by 252.246-7005.
    (iv) All warranty tracking information that is indicated with a 
single asterisk (*) in Attachment ----, Warranty Tracking Information, 
shall be completed prior to award. Data indicated with two asterisks 
(**) may be completed at the time of award. Data indicated with three 
asterisks (***) may be completed at or after the time of award.
    (v) The contractor shall provide warranty repair source 
instructions (as prescribed in the attachment) no later than the time 
of delivery.
0
5. Add new section 246.710-70 to read as follows:


246.710-70  Warranty attachment.

    This is the prescribed attachment and format required and 
referenced in the provision at 252.246-7005, Notice of Warranty 
Tracking of Serialized Items, and the clause at 252.246-7006, Warranty 
Tracking of Serialized Items. The contracting officer shall number the 
attachment upon issuance of the solicitation and include the 
solicitation or contract number.

AttachmenT --: Warranty Tracking Information

[[Page 33169]]



                                                                                 Solicitation or Contract Number
                                                                          [To be filled in by the contracting officer]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Warranty term                                                            Warranty
                                                                     --------------------------------------------------------------------    Warranty       Warranty     Guarantor     Warranty
                                             Item type     Warranty                Usage  (note (c)) *    Duration  (note       Fixed     Administrator  Administrator   Enterprise   Guarantor
            CLIN SLIN OR ELIN *              (note (a))    item UII     Starting  ---------------------        (d)) *         expiration    Enterprise     Enterprise    Identifier   Enterprise
                                                 **          ***         event                         ---------------------  (note (e))    Identifier     Identifier    Code Type    Identifier
                                                                       (note (b))  Quantity *   Unit *                      -------------   Code Type    (note (g)) **   (note (h))   (note (i))
                                                                           *                            Quantity *   Unit *     Date *    (note (f)) **                      **           **
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 * To be completed by the requiring activity, if warranty is specified by the Government. Otherwise, all offerors are to complete as part of their offers.
** To be completed by the contractor at the time of award.
*** To be completed by the contractor at the time of award (if known) or at the time Attachment --, Warranty Repair Source Instructions is submitted.
Notes:
(a) Item Type.
C--component procured separate from end item.
S--subassembly procured separate from end Item or subassembly.
E--embedded in component, subassembly or end item parent.
P--parent end item.
(b) Starting Event.
A--Acceptance.
I--Installation.
F--First Use.
O--Other.
Warranty term--Choose one of the following:
(c) Usage (for warrantees where effectivity is in terms of operating time or cycles).
(d) Duration (for warrantees that expire after a set period of time).
(e) Date (for warrantees with a fixed expiration date).
(f) Warranty Administrator Enterprise Identifier Code Type 0-9--GS1 Company Prefix.
D--CAGE.
LB--ATIS-0322000.
LH--EHIBCC.
RH--HIBCC.
UN--DUNS.
(g) Warranty administrator enterprise identifier--A globally unique identifier code assigned to an enterprise by an issuing agency (e.g., Dun & Bradstreet's Data Universal Numbering System
  (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North
  American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS-0322000) Number, European Health Industry Business Communication Council (EHIBCC) and
  Health Industry Business Communication Council (HIBCC)).--
(h) Warranty Guarantor Enterprise Identifier Code Type 0-9--GS1 Company Prefix.
D--CAGE.
LB--ATIS-0322000.
LH--EHIBCC.
RH--HIBCC.
UN--DUNS.
(i) Warranty guarantor enterprise identifier--A globally unique identifier code assigned to an enterprise by an Issuing Agency (e.g., Dun & Bradstreet's Data Universal Numbering System (DUNS)
  Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North American
  Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS-0322000) Number, European Health Industry Business Communication Council (EHIBCC) and Health
  Industry Business Communication Council (HIBCC)).

Attachment --: Warranty Repair Source Instructions

                                                                                        Contract Number:
                                                                          [To be filled in by the contracting officer]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Warranty                                          Shipping address for warranty returns
                                                                  Repair      Warranty  -------------------------------------------------------------------------------------------
                                                                  Source       Repair
                                                                Enterprise     Source                                                                                               Instructions
                     CLIN, SLIN or ELIN *                       Identifier   Enterprise                 Address      Address    City/county     State/    Postal code                 (note (c))
                                                                Code Type    Identifier    Name **     line 1 **    line 2 **        **      province **       **       Country **       **
                                                                (note (a))   (note (b))
                                                                    **           **
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 * To be completed by the requiring activity, if warranty is specified by the Government. Otherwise, all offerors are to complete as part of their offers.
** To be completed by the Contractor at the time of award and/or at the time of delivery.
Notes:
(a) Warranty Repair Source Enterprise Identifier Code Type 0-9--GS1 Company Prefix.
D--CAGE.
LB--ATIS-0322000.
LH--EHIBCC.
RH--HIBCC.
UN--DUNS.
(b) Warranty repair source enterprise identifier--A globally unique identifier code assigned to an enterprise by an issuing agency (e.g., Dun & Bradstreet's Data Universal Numbering System
  (DUNS) Number, GS1 Company Prefix, Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the Coded Representation of the North
  American Telecommunications Industry Manufacturers, Suppliers, and Related Service Companies (ATIS-0322000) Number, European Health Industry Business Communication Council (EHIBCC) and
  Health Industry Business Communication Council (HIBCC)).
(c) Instructions--For each warranty repair source enterprise identifier, include the shipping address for returning warranty items, or include instructions for accessing a web site to obtain
  prepaid shipping labels for returning warranty items to the designated source of warranty repair.

* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. Amend section 252.211-7003 as follows:
0
(a) Amend the clause date by removing ``(AUG 2008)'' and adding in its 
place ``(JUN 2011)'';
0
(b) Amend paragraph (a) by revising the definition of ``Issuing 
agency'' as shown below.


252.211-7003  Item Identification and Valuation.

* * * * *
    (a) * * *
    Issuing agency means an organization responsible for assigning a 
globally unique identifier to an enterprise (e.g.,

[[Page 33170]]

Dun & Bradstreet's Data Universal Numbering System (DUNS) Number, GS1 
Company Prefix, Allied Committee 135 NATO Commercial and Government 
Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the 
Coded Representation of the North American Telecommunications Industry 
Manufacturers, Suppliers, and Related Service Companies (ATIS-0322000) 
Number), European Health Industry Business Communication Council 
(EHIBCC) and Health Industry Business Communication Council (HIBCC)), 
as indicated in the Register of Issuing Agency Codes for ISO/IEC 15459, 
located at https://www.nen.nl/web/Normen-ontwikkelen/ISOIEC-15459-Issuing-Agency-Codes.htm.
* * * * *

0
7. Add section 252.246-7005 to read as follows:


252.246-7005  Notice of Warranty Tracking of Serialized Items.

    As prescribed in 246.710(5)(i)(A), use the following provision:

Notice of Warranty Tracking of Serialized Items (Jun 2011)

    (a) Definition. Unique item identifier and warranty tracking are 
defined in the clause at 252.246-7006, Warranty Tracking of 
Serialized Items.
    (b) Reporting of data for warranty tracking and administration. 
The offeror shall provide the information required by Attachment --, 
Warranty Tracking Information, (indicated by a single asterisk (*)), 
on each contract line item number, subline item number, or exhibit 
line item number for warranted items. The offeror shall provide all 
information required by Attachment --, Warranty Repair Source 
Instruction, prior to, but not later than when the warranted items 
are presented for receipt and/or acceptance. The ``Warranty Item 
Unique Item Identifier data category may also be completed in 
conjunction with Attachment --, Warranty Repair Source Instruction. 
Information required in the warranty attachment shall include such 
information as duration, enterprise, enterprise identifier, first 
use, fixed expiration, installation, issuing agency, item type, 
starting event, serialized item, unique item identifier, usage, 
warranty administrator, warranty guarantor, warranty repair source, 
and warranty tracking. The offeror shall submit the data for 
warranty tracking to the Contracting Officer.


(End of provision)

0
6. Add section 252.246-7006 to read as follows:


252.246-7006  Warranty Tracking of Serialized Items.

    As prescribed in 246.710(5)(i)(B), use the following clause:

Warranty Tracking of Serialized Items (Jun 2011)

    (a) Definitions. As used in this clause--
    Duration means the warranty period. This period may be a stated 
period of time, amount of usage, or the occurrence of a specified 
event, after formal acceptance of delivery, for the Government to 
assert a contractual right for the correction of defects.
    Enterprise means the entity (e.g., a manufacturer or vendor) 
responsible for granting the warranty and/or assigning unique item 
identifiers to serialized warranty items.
    Enterprise identifier means a code that is uniquely assigned to 
an enterprise by an issuing agency.
    First use means the initial or first-time use of a product by 
the Government.
    Fixed expiration means the date the warranty expires and the 
Contractor's obligation to provide for a remedy or corrective action 
ends.
    Installation means the date a unit is inserted into a higher 
level assembly in order to make that assembly operational.
    Issuing agency means an organization responsible for assigning a 
globally unique identifier to an enterprise (e.g., Dun & 
Bradstreet's Data Universal Numbering System (DUNS) Number, GS1 
Company Prefix, Allied Committee 135 NATO Commercial and Government 
Entity (NCAGE)/Commercial and Government Entity (CAGE) Code, or the 
Coded Representation of the North American Telecommunications 
Industry Manufacturers, Suppliers, and Related Service Companies 
(ATIS-0322000) Number), European Health Industry Business 
Communication Council (EHIBCC) and Health Industry Business 
Communication Council (HIBCC)), as indicated in the Register of 
Issuing Agency Codes for ISO/IEC 15459, located at https://www.nen.nl/web/Normen-ontwikkelen/ISOIEC-15459-Issuing-Agency-Codes.htm.
    Item type means a coded representation of the description of the 
item being warranted, consisting of the codes C--component procured 
separate from end item, S--subassembly procured separate from end 
item or subassembly, E--embedded in component, subassembly or end 
item parent, and P--parent end item.
    Starting event means the event or action that initiates the 
warranty.
    Serialized item means each item produced is assigned a serial 
number that is unique among all the collective tangible items 
produced by the enterprise, or each item of a particular part, lot, 
or batch number is assigned a unique serial number within that part, 
lot, or batch number assignment within the enterprise identifier. 
The enterprise is responsible for ensuring unique serialization 
within the enterprise identifier or within the part, lot, or batch 
numbers, and that serial numbers, once assigned, are never used 
again.
    Unique item identifier means a set of data elements marked on an 
item that is globally unique and unambiguous.
    Usage means the quantity and an associated unit of measure that 
specifies the amount of a characteristic subject to the contractor's 
obligation to provide for remedy or corrective action, such as a 
number of miles, hours, or cycles.
    Warranty administrator means the organization specified by the 
guarantor for managing the warranty.
    Warranty guarantor means the enterprise that provides the 
warranty under the terms and conditions of a contract.
    Warranty repair source means the organization specified by a 
warranty guarantor for receiving and managing warranty items that 
are returned by a customer.
    Warranty tracking means the ability to trace a warranted item 
from delivery through completion of the effectivity of the warranty.
    (b) Reporting of data for warranty tracking and administration. 
The Contractor shall provide all information required by Attachment 
----, Warranty Tracking Information on each contract line item 
number, subline item number, or exhibit line item number for 
warranted items. The Contractor shall provide all information 
required by Attachment ----, Warranty Repair Source Instructions, 
prior to, but not later than when the warranted items are presented 
for receipt and/or acceptance. The ``Warranty Item Unique Item 
Identifier'' data category may also be completed in conjunction with 
Attachment ----, Warranty Repair Source Instructions. Information 
required in the warranty attachment shall include such information 
as duration, enterprise, enterprise identifier, first use, fixed 
expiration, installation, issuing agency, item type, starting event, 
serialized item, unique item identifier, usage, warranty 
administrator, warranty guarantor, warranty repair source, and 
warranty tracking. The Contractor shall submit the data for warranty 
tracking to the Contracting Officer with a copy to the requiring 
activity and the Contracting Officer Representative.
    (c) Reservation of rights. The terms of this clause shall not be 
construed to limit the Government's rights or remedies under any 
other contract clause.


(End of clause)
* * * * *
[FR Doc. 2011-14104 Filed 6-7-11; 8:45 am]
BILLING CODE 5001-08-P
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