Federal Acquisition Regulation; Uniform Procurement Identification, 61739-61742 [2014-24240]

Agencies

• DEPARTMENT OF DEFENSE
• General Services Administration
• National Aeronautics and Space Administration

[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Rules and Regulations]
[Pages 61739-61742]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24240]



[[Page 61739]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2 and 4

[FAC 2005-77; FAR Case 2012-023; Item III; Docket 2012-0023, Sequence 
1]
RIN 9000-AM60


Federal Acquisition Regulation; Uniform Procurement 
Identification

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement a uniform Procurement 
Instrument Identification (PIID) numbering system, which will require 
the use of Activity Address Codes (AACs) as the unique identifier for 
contracting offices and other offices, in order to standardize 
procurement transactions across the Federal Government.

DATES: Effective: November 13, 2014.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst, 
at 202-501-0650, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-77, FAR Case 2012-
023.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 78 FR 34020 on June 6, 2013, to implement recommendation 
number 3 of the Government Accountability and Transparency Board (GAT 
Board). Recommendation number 3 was to implement a uniform award 
identification system among various financial transactions conducted 
across the Federal Government by a number of communities, e.g., 
procurement, grants, and finance. This final FAR rule is consistent 
with the goals of GAT Board recommendation 3 for the procurement 
community. Application of the GAT Board recommendation for the other 
communities is not the subject of this rule. Four respondents submitted 
comments on the proposed rule. Three of these respondents were 
representatives of Federal agencies.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule. A discussion of the comments and the 
changes made to the rule as a result of those comments are provided as 
follows:

A. Summary of Significant Changes From the Proposed Rule

    1. At FAR 4.1601 the implementation deadline for new unique 
procurement instrument identifiers has been rescheduled and will now be 
no later than October 1, 2017. In the proposed rule there was a FAR 
multistep transition process being proposed, but the Councils have 
delayed the implementation date and deleted what was identified at FAR 
4.1601 as the ``transition'' requirement, so that all agencies will be 
responsible for completing the transition to the PIID procedures of 
this rule by October 1, 2017.
    2. At FAR 4.1601 the ``End state'' requirement is modified to read 
``No later than October 1, 2017, agencies shall comply with paragraph 
(a) of this section and use the requirements in 4.1602 and 4.1603 for 
all new solicitations and awards.'' This clarifies that the rule does 
not intend to modify the identifiers for existing solicitations or 
contracts.

B. Analysis of Public Comments

1. System Compatibility
    Comment: One respondent expressed concern that this rule will 
require expensive modifications to agency contracting writing software 
and financial systems. The respondent also indicated that the changes 
required by the rule could cause problems interacting with other 
Government systems. The respondent also expressed concern about the 
requirement to convert all contract actions already in effect to the 
new structure by October 1, 2016, and the effects this will have across 
other enterprise systems as well as effects on maintaining historical 
and legacy information.
    Response: The final rule has been changed so it only applies to new 
solicitations and contracts, and with a modified implementation 
deadline of October 1, 2017 (see FAR 4.1601(b)(2)). This does not 
preclude agencies from implementing the changes in advance (see FAR 
4.1601(b)(2)). Agencies are being provided additional time to comply 
with the new requirements to be sure that all systems compatibility 
issues can be resolved.
2. Applicability
    Comment: One respondent recommended not applying the new 
requirements to historical documents due to the major system changes 
and cross referencing issues that would result. Another respondent 
considered the prospect of modifying existing awards to be infeasible 
due to the changes that would be necessary across other systems such as 
SAM, FPDS-NG, FAADS Plus/USASpending.gov, FedBizOpps, and Grants.gov.
    Response: The final rule only applies the new requirements to new 
solicitations and contracts, with an implementation deadline of October 
1, 2017 (see FAR 4.1601(b)(2)).
3. Contract Modifications
    Comment: One respondent raised concerns regarding how systems would 
be able to handle modifying current actions to the new paradigm and how 
this would affect historical data on these actions. The respondent was 
also concerned with the number of contract modifications being limited 
to 1,000. Another respondent noted that moving from a two character 
modification number to a four character modification number would not 
be possible due to system constraints.
    Response: The prescribed numbering format for supplementary PIIDs, 
at FAR 4.1603(b), allows for up to 9,999 solicitation amendments and 
99,999 contract modifications. In addition, the final rule has been 
modified to allow agencies until October 1, 2017, to comply with the 
new requirements, giving agencies additional time to modify existing 
systems.
4. Implementation
    Comment: One respondent detailed a number of specific, significant, 
and costly changes to current systems to comply with the proposed 
changes. The respondent also noted that there would be costs associated 
with necessary training of staff to use the new system. The respondent 
projected the cost of this rule to their agency as $4,155,000 for labor 
and systems and an additional $80,000 for training. Another respondent 
asked what mitigation strategies are in place in the event that one or 
several of the integration partner's systems are not ready to support 
the proposed changes.
    Response: It is understood that this rule may have a significant 
cost for implementation; however, the GAT Board, Office of Management 
and Budget (OMB) and the FAR Council

[[Page 61740]]

have determined that in order to achieve the noted accountability and 
transparency goals of the rule, the changes must be made. Office of 
Federal Procurement Policy (OFPP) will monitor agency progress in 
implementing this rule to ascertain if any changes are required.
5. FAR 4.1602(c), Clarification Concerning ``Additional Agency 
Information''
    Comment: One respondent requested clarification of what is meant by 
the language at FAR 4.1602(c) regarding ``Additional agency specific 
identification information.''
    Response: This language is included in the rule to make it clear 
that agencies will likely establish additional requirements at their 
FAR supplement level.
6. FAR 4.1603, Clarification Concerning ``Until It Has Been 
Determined''
    Comment: One respondent requested clarification of what is meant by 
the language at FAR 4.1603(b)(2)(iii) regarding ``until it has been 
determined.''
    Response: This language is included in the rule to make it clear 
that modification numbers should not be created in advance of the need 
for the modification.
7. Impact on Contractor Systems
    Comment: One respondent noted that many contractors have structured 
their award numbering system to mirror the Government's, and will need 
to make associated revisions to their systems, which could have 
associated cost implications.
    Response: If a contractor chose to structure their contract 
management system to mirror an agency's contract writing system, then 
they may find it necessary to modify their system capabilities to match 
the new contract identification requirements.
8. Impacts on Assistance Awards
    Comment: One respondent stated that assistance actions are not 
covered by the FAR, but should this proposed rule become final, for 
consistency purposes, it will be critical that parallel efforts be 
taken to ensure that assistance actions follow a similar numbering 
format.
    Response: Assistance actions are outside of the scope of this rule. 
However, this comment has been provided to OMB for consideration.
9. Address Activity Codes
    Comment: One respondent noted that for Address Activity Codes 
(AAC), DoD agencies begin with an alpha character and non-DoD agencies 
begin with a two-digit number. The respondent asked if there is a 
consistent hierarchy for the remaining positions.
    Response: The FAR does not prescribe a hierarchy for the remaining 
positions in an AAC, as this is left to agency procedures in accordance 
with the Federal supply program. Information on locating an existing 
AAC or obtaining a new AAC is located at FAR 4.1603(a)(1).

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 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). E.O. 
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 E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601, et seq. The FRFA is summarized as follows:

    This rule is needed to further the President's commitment to 
make the Federal Government transparent and accountable to the 
American people. The rule requires use of a standardized procurement 
instrument identification (PIID) number configuration across the 
federal procurement community. The numbering configuration will 
contain an Activity Address Code unique to each contracting office. 
This change will lead to increases in data traceability and 
transparency, thereby broadening the Government's ability to report 
procurement data accurately and to provide more effective oversight 
of reporting responsibilities.
    The final rule is internal to the Government procedures and does 
not directly impose any requirements on the vendor community. 
However, the rule may affect certain entities if those entities have 
arranged any of their business systems to utilize, accept, or 
otherwise recognize the PIID of agencies they interact with, if 
those agencies do not currently use the PIID configuration of this 
rule.
    In FY11 awards were made to 67,280 unique vendors, of which 
48,281 were small businesses. These small businesses likely interact 
with agencies that do not currently use the proposed uniform 
procurement identification configuration.
    One respondent stated that small businesses that do the majority 
of their business with the Government will be adversely affected by 
changes to the Government systems as they have structured their 
systems to mirror the Government. The final rule extends the 
implementation deadline for agencies to allow for a more efficient 
transition; however, contractors with system limitations may incur 
some cost to adapt to the changes.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy 
of the FRFA to the Chief Counsel for Advocacy of the Small Business 
Administration.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 2 and 4

    Government procurement.

    Dated: September 30, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide Policy.
    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2 and 4 as set 
forth below:

0
1. The authority citation for 48 CFR parts 2 and 4 continues to read as 
follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 in paragraph (b)(2) by adding, in alphabetical 
order, the definition ``Activity Address Code (AAC)'' to read as 
follows:


2.101  Definitions.

* * * * *
    (b) * * *
    (2) * * *
    Activity Address Code (AAC) means a distinct six-position code 
consisting of a combination of alpha and/or numeric characters assigned 
to identify specific agency offices, units, activities, or 
organizations by the General Services Administration for civilian 
agencies and by the Department of Defense for defense agencies.
* * * * *

PART 4--ADMINISTRATIVE MATTERS

0
3. Amend section 4.605 by--

[[Page 61741]]

0
a. Removing from paragraph (a) ``4.1601,'' and adding ``4.601 to 
4.1603,'' in its place; and
0
b. Adding paragraph (e).
    The addition reads as follows:


4.605  Procedures.

* * * * *
    (e) Office codes. Agencies shall by October 1, 2015--
    (1) Use the Activity Address Code (AAC), as defined in 2.101, 
assigned to the issuing contracting office as the contracting office 
code, and
    (2) Use the AAC assigned to the program/funding office providing 
the predominance of funding for the contract action as the program/
funding office code.

0
4. Revise section 4.1601 to read as follows:


4.1601  Policy.

    (a) Establishment of a Procurement Instrument Identifier (PIID). 
Agencies shall have in place a process that ensures that each PIID used 
to identify a solicitation or contract action is unique Governmentwide, 
and will remain so for at least 20 years from the date of contract 
award. The PIID shall be used to identify all solicitation and contract 
actions. The PIID shall also be used to identify solicitation and 
contract actions in designated support and reporting systems (e.g., 
Federal Procurement Data System, System for Award Management), in 
accordance with regulations, applicable authorities, and agency 
policies and procedures.)
    (b) Transition of PIID numbering. No later than October 1, 2017, 
agencies shall comply with paragraph (a) of this section and use the 
requirements in 4.1602 and 4.1603 for all new solicitations and 
contract awards. Until an agency's transition is complete, it shall 
maintain its 2013 PIID format that is on record with the General 
Services Administration's Integrated Award Environment Program Office 
(which maintains a registry of the agency unique identifier scheme). 
The 2013 PIID format consisted of alpha characters in the first 
positions to indicate the agency, followed by alpha-numeric characters; 
the 2017 format instead has the AAC in the beginning 6 positions.
    (c) Change in the Procurement Instrument Identifier after its 
assignment. (1) Agencies shall not change the PIID unless one of the 
following two circumstances apply:
    (i) The PIID serial numbering system is exhausted. In this 
instance, the contracting officer may assign a new PIID by issuing a 
contract modification.
    (ii) Continued use of a PIID is administratively burdensome (e.g., 
for implementations of new agency contract writing systems). In this 
instance, the contracting officer may assign a new PIID by issuing a 
contract modification.
    (2) The modification shall clearly identify both the original and 
the newly assigned PIID. Issuance of a new PIID is an administrative 
change (see 43.101).

0
5. Amend section 4.1602 by revising paragraph (c) to read as follows:


4.1602  Identifying the PIID and supplementary PIID.

* * * * *
    (c) Additional agency specific identification information. If 
agency procedures require additional identification information in 
solicitations, contracts, or other related procurement instruments for 
administrative purposes, separate and clearly identify the additional 
information from the PIID.

0
6. Add section 4.1603 to read as follows:


4.1603  Procedures.

    (a) Elements of a PIID. The PIID consists of a combination of 
thirteen to seventeen alpha and/or numeric characters sequenced to 
convey certain information. Do not use special characters (such as 
hyphens, dashes, or spaces).
    (1) Positions 1 through 6. The first six positions identify the 
department/agency and office issuing the instrument. Use the AAC 
assigned to the issuing office for positions 1 through 6. Civilian 
agency points of contact for obtaining an AAC are on the AAC Contact 
list maintained by the General Services Administration and can be found 
at https://www.gsa.gov/graphics/fas/Civilian_contacts.pdf. For 
Department of Defense (DoD) inquiries, contact the service/agency 
Central Service Point or DoDAAC Monitor, or if unknown, email 
DODAADHQ@DLA.MIL for assistance.
    (2) Positions 7 through 8. The seventh and eighth positions are the 
last two digits of the fiscal year in which the procurement instrument 
is issued or awarded. This is the date the action is signed, not the 
effective date if the effective date is different.
    (3) Position 9. Indicate the type of instrument by entering one of 
the following upper case letters in position nine. Departments and 
independent agencies may assign those letters identified for department 
use below in accordance with their agency policy; however, any use must 
be applied to the entire department or agency.

------------------------------------------------------------------------
                                                              Letter
                       Instrument                          designation
------------------------------------------------------------------------
(i) Blanket purchase agreements........................               A
(ii) Invitations for bids..............................               B
(iii) Contracts of all types except indefinite-delivery                C
 contracts (see subpart 16.5)..........................
(iv) Indefinite-delivery contracts (including Federal                 D
 Supply Schedules, Governmentwide acquisition contracts
 (GWACs), and multi-agency contracts)..................
(v) Reserved for future Federal Governmentwide use.....               E
(vi) Task orders, delivery orders or calls under--.....               F
     Indefinite-delivery contracts (including
     Federal Supply Schedules, Governmentwide
     acquisition contracts (GWACs), and multi-agency
     contracts);
     Blanket purchase agreements; or
     Basic ordering agreements.
(vii) Basic ordering agreements........................               G
(viii) Agreements, including basic agreements and loan                H
 agreements, but excluding blanket purchase agreements,
 basic ordering agreements, and leases. Do not use this
 code for contracts or agreements with provisions for
 orders or calls.......................................
(ix) Do not use this letter............................               I
(x) Reserved for future Federal Governmentwide use.....               J
(xi) Reserved for departmental or agency use...........               K
(xii) Lease agreements.................................               L
(xiii) Reserved for departmental or agency use.........               M
(xiv) Reserved for departmental or agency use..........               N
(xv) Do not use this letter............................               O

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(xvi) Purchase orders (assign V if numbering capacity                 P
 of P is exhausted during a fiscal year)...............
(xvii) Requests for quotations (assign U if numbering                 Q
 capacity of Q is exhausted during a fiscal year)......
(xviii) Requests for proposals.........................               R
(xix) Reserved for departmental or agency use..........               S
(xx) Reserved for departmental or agency use...........               T
(xxi) See Q, requests for quotations...................               U
(xxii) See P, purchase orders..........................               V
(xxiii) Reserved for future Federal Governmentwide use.               W
(xxiv) Reserved for future Federal Governmentwide use..               X
(xxv) Imprest fund.....................................               Y
(xxvi) Reserved for future Federal Governmentwide use..               Z
------------------------------------------------------------------------

    (4) Positions 10 through 17. Enter the number assigned by the 
issuing agency in these positions. Agencies may choose a minimum of 
four characters up to a maximum of eight characters to be used, but the 
same number of characters must be used agency-wide. If a number less 
than the maximum is used, do not use leading or trailing zeroes to make 
it equal the maximum in any system or data transmission. A separate 
series of numbers may be used for any type of instrument listed in 
paragraph (a)(3) of this section. An agency may reserve blocks of 
numbers or alpha-numeric numbers for use by its various components.
    (5) Illustration of PIID. The following illustrates a properly 
configured PIID using four characters in the final positions:
[GRAPHIC] [TIFF OMITTED] TR14OC14.003

    (b) Elements of a supplementary PIID. Use the supplementary PIID to 
identify amendments to solicitations and modifications to contracts, 
orders, and agreements.
    (1) Amendments to solicitations. Number amendments to solicitations 
sequentially using a four position numeric serial number added to the 
13-17 character PIID beginning with 0001.
    (2) Modifications to contracts, orders, and agreements. Number 
modifications to contracts, orders, and agreements using a six position 
alpha or numeric, or a combination thereof, added to the 13-17 
character PIID. For example, a modification could be numbered P00001. 
This would be added to the end of the 13-17 character PIID illustrated 
in (a)(5) of this section.
    (i) Position 1. Identify the office issuing the modification. The 
letter P shall be designated for modifications issued by the procuring 
contracting office. The letter A shall be used for modifications issued 
by the contract administration office (if other than the procuring 
contracting office).
    (ii) Positions 2 through 6. These positions may be alpha, numeric, 
or a combination thereof, in accordance with agency procedures.
    (iii) Each office authorized to issue modifications shall assign 
the supplementary identification numbers in sequence (unless provided 
otherwise in agency procedures). Do not assign the numbers until it has 
been determined that a modification is to be issued.

[FR Doc. 2014-24240 Filed 10-10-14; 8:45 am]
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