Defense Federal Acquisition Regulation Supplement: Use of DoD Program Nomenclature (DFARS Case 2021-D002), 11803-11808 [2024-02744]

Download as PDF Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules Sec. 225.70WW Restriction on acquisition of fuel for overseas contingency operations. 225.70WW–1 Scope. 225.70WW–2 Prohibition. 225.70WW–3 Procedures. 225.70WW–4 Solicitation provision. 252.225–70XX, Restriction on Acquisition of Fuel for Overseas Contingency Operations, requires offerors to report promptly to the contracting officer, prior to award, any instance of unsupported denial of access to a facility or equipment by a hostnation government that may prevent it from complying with the terms and conditions of the solicitation. (b) See 215.101–71 for the requirement to consider using a tradeoff process. * 225.70WW–4 PART 225—FOREIGN ACQUISITION 5. Add sections 225.70WW, 225.70WW–1, 225.70WW–2, 225.70WW–3, and 225.70WW–4 to subpart 225.70 to read as follows: * * * * * ■ * * * * 225.70WW Restriction on acquisition of fuel for overseas contingency operations. 225.70WW–1 Scope. This section implements section 843 of the National Defense Authorization Act for Fiscal Year 2022 (Pub. L. 117– 81), for the acquisition of fuel for overseas contingency operations. 225.70WW–2 Prohibition. Contracting officers shall not award, for an overseas contingency operation, a contract for fuel, in whole or in part, or derivatives of such fuel, that is sourced from nations or regions prohibited from selling petroleum to the United States. See FAR subpart 25.7 for prohibited sources. khammond on DSKJM1Z7X2PROD with PROPOSALS 225.70WW–3 Procedures. (a) For contracts for the acquisition of fuel for overseas contingency operations, including contracts using FAR part 12 procedures, expected to exceed the simplified acquisition threshold, the contracting officer— (1) May request records from the apparent successful offeror to verify compliance with the following statutes and regulations only when the head of the contracting activity determines in writing that it is necessary: (i) The Foreign Corrupt Practices Act (15 U.S.C. 78dd–1 et seq.). (ii) International Traffic in Arms Regulations at 22 CFR 120 through 130 (see PGI 225.7901–2). (iii) Export Administration Regulations at 15 CFR 730 through 774 (see PGI 225.7901–2). (iv) Relevant regulations promulgated by the Office of Foreign Assets Control of the Department of the Treasury. Sanction information for specific countries and programs is available at https://ofac.treasury.gov/sanctionsprograms-and-country-information. (2) To the maximum extent practicable, shall not disqualify an otherwise responsible offeror on the basis of an unsupported denial of access to a facility or equipment by a hostnation government. The provision at VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 Solicitation provision. Use the provision at 252.225–70XX, Restriction on Acquisition of Fuel for Overseas Contingency Operations, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, that are for the acquisition of fuel for overseas contingency operations and are expected to exceed the simplified acquisition threshold. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 6. Add section 252.225–70XX to read as follows: 11803 (i) The Foreign Corrupt Practices Act (15 U.S.C. 78dd–1 et seq.); (ii) International Traffic in Arms Regulations (ITAR) at 22 CFR 120 through 130 (also see Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.225–7048, Export-Controlled Items); (iii) Export Administration Regulations (EAR) at 15 CFR 730 through 774 (also see DFARS clause 252.225–7048); and (iv) Relevant regulations promulgated by the Office of Foreign Assets Control of the Department of the Treasury. Sanction information for specific countries and programs is available at https://ofac.treasury. gov/sanctions-programs-and-countryinformation. (2) The Offeror shall contact the Department of State regarding ITAR compliance and the Department of Commerce regarding EAR compliance. (d) Reporting requirement. The Offeror shall, prior to contract award, promptly report to the Contracting Officer any instance of unsupported denial of access to a facility or equipment by a host-nation government that may prevent it from complying with the terms and conditions of the solicitation. (End of provision) [FR Doc. 2024–02742 Filed 2–14–24; 8:45 am] BILLING CODE 6001–FR–P ■ DEPARTMENT OF DEFENSE 252.225–70XX Restriction on Acquisition of Fuel for Overseas Contingency Operations. Defense Acquisition Regulations System As prescribed in 225.70WW–4, use the following provision: 48 CFR Parts 212, 227, and 252 Restriction on Acquisition of Fuel for Overseas Contingency Operations (Date) (a) Prohibition. For an overseas contingency operation, DoD may not procure fuel in whole or in part, or derivatives of such fuel, that is sourced from nations or regions prohibited from selling petroleum to the United States. See Federal Acquisition Regulation subpart 25.7 for prohibited sources. (b) Certification. Offerors shall complete the certification in paragraph (b)(1) of this provision and submit the certification with their offer. (1) The Offeror does [ ] does not [ ] certify that the fuel, in whole or in part, or derivatives of such fuel, to be provided under any contract resulting from this solicitation is not sourced from a nation or region prohibited from selling petroleum to the United States. (2) Only Offerors who certify that the fuel to be provided is not sourced from a prohibited nation or region will be eligible for award. (c) Compliance. (1) When requested by the Contracting Officer, the apparent successful Offeror shall submit records necessary to demonstrate compliance with applicable laws and regulations regarding export-controlled items and anticorruption statutes and regulations including— PO 00000 Frm 00031 Fmt 4702 Sfmt 4702 [Docket DARS–2024–0005] RIN 0750–AL21 Defense Federal Acquisition Regulation Supplement: Use of DoD Program Nomenclature (DFARS Case 2021–D002) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. AGENCY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to introduce coverage of trademarks and similar designations, such as popular names and program names. In addition to the request for written comments on this proposed rule, DoD will hold a public meeting to hear the views of interested parties. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before April 15, 2024, to be considered in the formation of a final rule. Public Meeting: A virtual public meeting will be held on March 22, 2024, from 1:00 p.m. to 5:00 p.m., Eastern SUMMARY: E:\FR\FM\15FEP1.SGM 15FEP1 11804 Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules time. The public meeting will end at the stated time, or when the discussion ends, whichever comes first. Registration: Registration to attend the public meeting must be received no later than close of business on March 15, 2024. Information on how to register for the public meeting is provided under the SUPPLEMENTARY INFORMATION section of this proposed rule. ADDRESSES: Public Meeting: A virtual public meeting will be held using Zoom video conferencing software. Submission of Comments: Submit comments identified by DFARS Case 2021–D002, using either of the following methods: Æ Federal eRulemaking Portal: https://www.regulations.gov. Search for DFARS Case 2021–D002. Select ‘‘Comment’’ and follow the instructions to submit a comment. Please include ‘‘DFARS Case 2021–D002’’ on any attached documents. Æ Email: osd.dfars@mail.mil. Include DFARS Case 2021–D002 in the subject line of the message. Comments received generally will be posted without change to https:// www.regulations.gov, including any personal information provided. To confirm receipt of your comment(s), please check https:// www.regulations.gov, approximately two to three days after submission to verify posting. FOR FURTHER INFORMATION CONTACT: David E. Johnson, telephone 202–913– 5764. SUPPLEMENTARY INFORMATION: khammond on DSKJM1Z7X2PROD with PROPOSALS I. Background DoD is proposing to revise the DFARS to implement coverage of contractspecific designations, such as popular names and program names. DoD intends this coverage to avoid or minimize conflict between DoD and offerors and contractors over rights to such designations. In particular, this proposed rule creates a mechanism to foster transparency between DoD and offerors and contractors regarding claimed ownership of such designations. By providing for such information exchange, this proposed rule is intended to allow the parties to identify possibly conflicting claims to designations before contract award. This will encourage the early and efficient resolution of potential disputes over ownership and use of designations. This proposed rule is therefore intended to work both prospectively and proactively to prevent such claims or disputes from happening as DoD establishes designations. VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 II. Public Meeting DoD is interested in a dialogue with experts and interested parties both in the Government and the private sector regarding amending the DFARS to implement coverage of trademarks and similar designations, such as popular names and program names. Registration: Individuals wishing to participate in the virtual meeting must register by March 15, 2024, to facilitate entry to the meeting. Interested parties may register for the meeting by sending the following information via email to osd.dfars@mail.mil and include ‘‘Public Meeting, DFARS Case 2021–D002’’ in the subject line of the message: • Full name. • Valid email address, which will be used for admittance to the meeting. • Valid telephone number, which will serve as a secondary connection method. Registrants must provide the telephone number they plan on using to connect to the virtual meeting. • Company or organization name. • Whether the individual desires to make a presentation. Pre-registered individuals will receive instructions for connecting using the Zoom video conferencing software not more than one week before the meeting is scheduled to commence. Presentations: Presentations will be limited to 5 minutes per company or organization. This limit may be subject to adjustment, depending on the number of entities requesting to present, in order to ensure adequate time for discussion. If you wish to make a presentation, please submit an electronic copy of your presentation via email to osd.dfars@mail.mil no later than the registration date for the specific meeting. Each presentation should be in PowerPoint to facilitate projection during the public meeting and should include the presenter’s name, title, organization affiliation, telephone number, and email address on the cover page. Correspondence, Comments, and Presentations: Please cite ‘‘Public Meeting, DFARS Case 2021–D002’’ in all correspondence related to the public meeting. There will be no transcription of the meeting. The submitted presentations will be posted to the following website at the conclusion of the public meeting: https://www.acq. osd.mil/dpap/dars/technical_data_ rights.html. III. Discussion and Analysis This proposed rule places the coverage of contract-specific designations in a new subpart in DFARS part 227, Patents, Data, and Copyrights. PO 00000 Frm 00032 Fmt 4702 Sfmt 4702 The new subpart 227.7X, ContractSpecific Designations, defines the term ‘‘Government designation’’ to cover the larger set of trademarks and designations of potential concern to DoD. Further, this proposed rule defines the term ‘‘contract-specific designation’’ to cover designations and names of particular concern for specific contracts. ‘‘Contract-specific designations’’ are therefore a subset of ‘‘Government designations.’’ This proposed rule requires contracting officers to include in solicitations a list of contract-specific designations relevant to the acquisition. The contract clause proposed at DFARS 252.227–70YY, Contractor Use of Government Designations, applies only to ‘‘contract-specific designations.’’ However, the defined term ‘‘Government designation’’ is relevant for acquisition-planning purposes, including whether such marks or designations are or should be associated with a given contract to become ‘‘contract-specific designations’’ for that contract. This proposed rule also defines the term ‘‘asserted marks’’ to recognize trademarks and other designations in which offerors claim ownership or control. An offeror’s submission of an asserted-marks list facilitates recognition of offeror-owned marks or designations, and it supports a process for required assertions analogous to that in the solicitation provision at DFARS 252.227–7017, Identification and Assertion of Use, Release, or Disclosure Restrictions, for assertions of contractor restrictions on use of technical data and computer software. DFARS 227.7X01 and 252.227–70YY include definitions of the terms ‘‘asserted marks,’’ ‘‘contract-specific designation,’’ and ‘‘Government designation.’’ The solicitation provision proposed at 252.227–70XX, Identification of Asserted Marks, also includes a cross-reference to these definitions contained in 252.227–70YY. The proposed rule prescribes both new provision 252.227–70XX, Identification of Asserted Marks, and new clause 252.227–70YY, Contractor Use of Government Designations, for use when the acquisition is expected to exceed the simplified acquisition threshold and will involve use of one or more Government designations. The provision at 252.227–70XX requires offerors both to include an asserted-marks list in their offers and to update the asserted-marks list prior to contract award. The provision notes that, like assertions of data rights restrictions in DFARS 252.227–7017, submission of an asserted-marks list E:\FR\FM\15FEP1.SGM 15FEP1 Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules does not constitute the Government’s agreement to the rights asserted therein. With respect to contract-specific designations, DFARS clause 252.227– 70YY, paragraph (b) contains requirements on the part of the contractor and authorizations for the contractor to conduct certain activities. DFARS 252.227–70YY, paragraph (c) obligates the contractor to provide notice if it becomes aware of unauthorized use or infringement of contract-specific designations by third parties and, in addition, to cooperate with the Government and not to attempt to enforce rights in any contract-specific designation. khammond on DSKJM1Z7X2PROD with PROPOSALS IV. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT), for Commercial Products Including Commercially Available Off-the-Shelf (COTS) Items, and for Commercial Services This proposed rule includes a new provision and a new clause: (1) DFARS 252.227–70XX, Identification of Asserted Marks, and (2) DFARS 252.227–70YY, Contractor Use of Government Designations. The provision at DFARS 252.227–70XX is prescribed at DFARS 227.7X04 for use in solicitations that include the clause at DFARS 252.227–70YY. The clause at DFARS 252.227–70YY is prescribed at DFARS 227.7X04 for use in solicitations and contracts, including solicitations and contracts using Federal Acquisition Regulation part 12 procedures for the acquisition of commercial products, including COTS items, and commercial services, that are expected to exceed the SAT and will involve use of one or more Government designations. Not applying this provision and clause to contracts for commercial products would exclude contracts intended to be covered by this rule and undermine the overarching purpose of the rule. Consequently, DoD plans to apply the rule to contracts for the acquisition of commercial products, including COTS items, and commercial services. V. Expected Impact of the Rule The DFARS currently does not directly address ownership of trademarks and similar marks or designations, such as popular names or program names. While there is protection for common law trademarks and registered trademarks in the Lanham (Trademark) Act, this protection may not apply to all types of marks and designations used and owned by DoD and contractors. The proposed rule, when finalized, will require contracting officers to include in solicitations a list of contract-specific VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 designations relevant to the acquisition. This proposed rule requires offerors to submit in their offers an asserted-marks list to facilitate recognition of contractor-owned marks or designations. This proposed rule is intended to create a transparency mechanism for each party to identify designations, marks, or trademarks that may overlap prior to contract award to encourage early and efficient resolution of potential disputes over ownership of marks or designations. The proposed rule will proactively prevent disputes arising from overlapping claims before contract award. VI. 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, as amended. VII. Regulatory Flexibility Act DoD does not expect this proposed rule, when finalized, to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the economic impact of the proposed rule on offerors is expected to be slight or negligible. However, an initial regulatory flexibility analysis has been performed and is summarized as follows: DoD is proposing to amend the DFARS to add text ensuring that DoD and its authorized contractors are not restricted in the use of certain DoD program nomenclature, such as program names and assigned DoD systems designations (e.g., a type of missiondesign-series designator, approved item name, or approved popular name) that are assigned and approved by the Government pursuant to established procedures. The objectives of the proposed rule are to balance and protect the varied interests and equities that both DoD and its contractors might possess in DoD program nomenclature, including but not limited to trademarks. The legal PO 00000 Frm 00033 Fmt 4702 Sfmt 4702 11805 basis for the proposed rule is 41 U.S.C. 1303. This proposed rule may impact small entities that are awarded DoD contracts for major programs, to include Acquisition Category 1 programs. Based on data from the Federal Procurement Data System and Electronic Data Access for fiscal year 2018 through fiscal year 2020, DoD estimates that an average of 222 unique small entities are awarded an average of 364 total contract actions on an annual basis that likely implicate DoD program nomenclature. The changes in this proposed rule would add a requirement for offerors to submit an asserted-marks list, accurate at time of offer. ‘‘Asserted marks’’ means all trademarks, service marks, collective marks, certification marks, or other marks used as indicators of origin or source, whether registered or not, that the offeror or contractor asserts that it owns or controls, that are associated with a specific contract or program, and that are included in the asserted-marks list made part of the contract. Such asserted marks might include, but are not limited to, the following: corporate names, trade names, logos, acronyms, slogans, insignia, seals, emblems, domain names, website addresses, and hashtags. An offeror may submit an updated asserted-marks list any time before contract award. This proposed rule applies to all offerors, including both large and small entities, responding to solicitations containing the solicitation provision proposed at DFARS 252.227–70XX, Identification of Asserted Marks. This proposed rule therefore imposes new recordkeeping and compliance requirements for small entities. Seniorlevel staff will most likely possess the skills necessary to prepare the offeror’s asserted-marks list. This proposed rule does not duplicate, overlap, or conflict with any other Federal rules. There are no known alternatives that would accomplish the stated objectives. DoD invites comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities. DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this proposed 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 2021–D002), in correspondence. VIII. Paperwork Reduction Act This proposed rule contains information collection requirements that require the approval of the Office of E:\FR\FM\15FEP1.SGM 15FEP1 11806 Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). Accordingly, DoD has submitted a request for approval of a new information collection requirement concerning Use of DoD Program Nomenclature (DFARS Case 2021–D002) to the Office of Management and Budget. A. Estimate of Public Burden Public reporting burden for this collection of information is estimated to average 1.8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. The annual reporting burden is estimated as follows: Respondents: 2,656. Responses per respondent: Approximately 1.3. Total annual responses: 3,320. Preparation hours per response: 1.8 hours. Total response burden hours: 5,976. khammond on DSKJM1Z7X2PROD with PROPOSALS B. Request for Comments Regarding Paperwork Burden Written comments and recommendations on the proposed information collection, including suggestions for reducing this burden, should be submitted using the Federal eRulemaking Portal at https:// www.regulations.gov or by email to osd.dfars@mail.mil. Comments can be received up to 60 days after the date of this proposed rule. Public comments are particularly invited on: whether this collection of information is necessary for the proper performance of the functions of DoD, including whether the information will have practical utility; the accuracy of DoD’s estimate of the public burden of this information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology. To obtain a copy of the supporting statement and associated collection instruments, please email osd.dfars@ mail.mil. Include DFARS Case 2021– D002 in the subject line of the message. VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 List of Subjects in 48 CFR Parts 212, 227, and 252 Government procurement. Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System. Therefore, 48 CFR parts 212, 227, and 252 are proposed to be amended as follows: ■ 1. The authority citation for 48 CFR parts 212, 227, and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 212—ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES 2. Amend section 212.301 by adding new paragraphs (f)(xii)(D) and (E) to read as follows: ■ 212.301 Solicitation provisions and contract clauses for the acquisition of commercial products and commercial services. * * * * * (f) * * * (xii) * * * (D) Use the provision at 252.227– 70XX, Identification of Asserted Marks, as prescribed in 227.7X04(a). (E) Use the clause at 252.227–70YY, Contractor Use of Government Designations, as prescribed in 227.7X04(b). * * * * * PART 227—PATENTS, DATA, AND COPYRIGHTS 3. Add subpart 227.7X to read as follows: ■ SUBPART 227.7X—CONTRACT-SPECIFIC DESIGNATIONS Sec. 227.7X00 Scope of subpart. 227.7X01 Definitions. 227.7X02 General. 227.7X03 Procedures. 227.7X04 Solicitation provision and contract clause. SUBPART 227.7X—CONTRACTSPECIFIC DESIGNATIONS 227.7X00 Scope of subpart. This subpart prescribes procedures regarding the identification and use of Government designations, such as trademarks and program names, and the identification of offerors’ and contractors’ asserted marks. 227.7X01 Definitions. As used in this subpart— Asserted marks means all trademarks, service marks, collective marks, PO 00000 Frm 00034 Fmt 4702 Sfmt 4702 certification marks, or other marks used as indicators of origin or source, whether registered or not, that the offeror or contractor asserts that it owns or controls, that are associated with a specific contract or program, and that are included in the asserted marks-list made part of the contract. Such asserted marks may include but are not limited to the following: corporate names, trade names, logos, acronyms, slogans, insignia, seals, emblems, domain names, website addresses, and hashtags. Contract-specific designation means any Government designation included in the contract-specific designation list, where such Government designation identifies or is intended to identify or describe the following: (1) Goods, systems, materiel, or products developed, manufactured, or delivered in performance of the contract. (2) Services rendered in performance of the contract. (3) Program names, project names, or other organizational or requiring, sponsoring, or contracting activity names related to the contract. Government designations means— (1) Trademarks, service marks, collective marks, certification marks, or other marks used as indicators of origin or source, owned by, or controlled by the Government, whether registered or not; and (2) Other identifiers that the Government identified, selected, adopted, created, controlled, or managed, including but not limited to the following: mission design series designators, program names, weapon system names, popular names (e.g., as defined or discussed in DoD Instruction 4120.15, Designating and Naming Military Aerospace Vehicles), materiel names, names of the Armed Forces of the United States (as defined in 10 U.S.C. 101), logos, acronyms, insignia, seals, emblems, domain names, website addresses, and hashtags. 227.7X02 General. (a) Trademark law requires trademark owners to exercise control over the use of their marks with respect to the nature and quality of relevant goods and services to maintain enforceability of the marks. Failure to include quality control provisions in a trademark license, or ‘‘naked licensing’’, can result in loss of trademark rights. (b) The clause at 252.227–70YY, Contractor Use of Government Designations, paragraph (b)(5), concerns the nature and quality of goods or services associated with a contractspecific designation, or the designation itself, to avoid naked licensing and E:\FR\FM\15FEP1.SGM 15FEP1 Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules retain Government control over the use of contract-specific designations that are also trademarks. 227.7X03 Procedures. (a) Planning for contract-specific designations. Before issuing a solicitation exceeding the simplified acquisition threshold that will involve use of one or more Government designations, the contracting officer shall obtain the Government’s preliminary contract-specific designation list from the requiring activity. See PGI 227.7X03(a). (b) Contract-specific designation list. The contracting officer shall include, in a solicitation that will involve use of one or more Government designations, a list of contract-specific designations relevant to the acquisition. The contracting officer shall attach the contract-specific designation list to any resulting contract. See PGI 227.7X03(b). (c) Asserted-marks list. The contracting officer shall attach to the resulting contract the asserted-marks list that the contractor submitted in response to the solicitation, as required by 252.227–70XX, Identification of Asserted Marks. See PGI 227.7X03(c). (d) Postaward updates to the assertedmarks list and contract-specific designation list. After award of the contract, based only on new information or inadvertent omission, the Government may update the contractspecific designation list, and the contractor may update the assertedmarks list, only by mutual agreement of the parties. The contracting officer shall incorporate the agreed-upon updated list(s) into the contract. 227.7X04 Solicitation provision and contract clause. (a) Use the provision at 252.227– 70XX, Identification of Asserted Marks, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services, that contain the clause at 252.227–70YY. (b) Use the clause at 252.227–70YY, Contractor Use of Government Designations, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, that are expected to exceed the simplified acquisition threshold and will involve use of one or more Government designations. 11807 PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Add sections 252.227–70XX and 252.227–70YY to read as follows: ■ 252.227–70XX Marks. Identification of Asserted As prescribed in 227.7X04(a), use the following provision: Identification of Asserted Marks (Date) (a) Definitions. As used in this provision— Asserted marks, contract-specific designation, and Government designation have the meanings provided in the clause 252.227–70YY, Contractor Use of Government Designations. (b) Submission of asserted-marks list. The Offeror shall include in its offer an assertedmarks list, complete at time of initial offer. The Offeror shall submit an updated asserted-marks list reflecting any additions or deletions in any proposal revisions. Submission of the asserted-marks list does not constitute the Government’s agreement to the Offeror’s assertions of rights to the asserted marks. (c) Format for asserted-marks list. The Offeror shall submit its asserted-marks list as an attachment to its offer in the following format, dated and signed by an official authorized to contractually obligate the Offeror: ASSERTED-MARKS LIST [The Offeror asserts that it owns or controls the following marks associated with this solicitation] Asserted mark 1 Goods or services 2 Basis for assertion and jurisdiction(s) in which rights are claimed 3 Date of first use, if any List other related government contract or program, if any (LIST) ......................... (LIST) ........................ (LIST) ........................ (LIST) ........................ (LIST) ........................ Is the asserted mark still in use? (Yes/No). 1 For ‘‘Asserted Mark’’, list (or reference in an attachment) the designation in which the Offeror asserts rights. ‘‘Goods or Services’’, list the goods and/or services in connection with which the mark from the ‘‘Asserted Mark’’ column is used. Do not merely list classification numbers. 3 Indicate whether the Offeror owns a registration or has applied for registration of the mark listed in the ‘‘Asserted Mark’’ column. If so, include the registration or application number, including jurisdiction. This could include a Federal, State, or foreign registration, or a pending application. If the Offeror claims rights based on something other than registration or application (i.e., common law rights), indicate so and list the territory in which rights are claimed. 2 For Date llllllllllllllllll Printed Name: llllllllllllll Title: llllllllllllllllll Signature: llllllllllllllll [End of Asserted-Marks List] (End of provision) khammond on DSKJM1Z7X2PROD with PROPOSALS 252.227–70YY Contractor Use of Government Designations. As prescribed in 227.7X04(b), use the following clause: Contractor Use of Government Designations (Date) (a) Definitions. As used in this clause— Asserted marks means all trademarks, service marks, collective marks, certification marks, or other marks used as indicators of origin or source, whether registered or not, that the offeror or contractor asserts that it VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 owns or controls, that are associated with a specific contract or program, and that are included in the asserted-marks list made part of the contract. Such asserted marks may include but are not limited to the following: corporate names, trade names, logos, acronyms, slogans, insignia, seals, emblems, domain names, website addresses, and hashtags. Contract-specific designation means any Government designation included in the contract-specific designation list, where such Government designation identifies or is intended to identify or describe the following: (1) Goods, systems, materiel, or products developed, manufactured, or delivered in performance of this contract. (2) Services rendered in performance of this contract. PO 00000 Frm 00035 Fmt 4702 Sfmt 4702 (3) Program names, project names, or other organizational or requiring, sponsoring, or contracting activity names related to this contract. Government designation means— (1) Trademarks, service marks, collective marks, certification marks, or other marks used as indicators of origin or source, owned by, or controlled by the Government, whether registered or not; and (2) Other identifiers that the Government identified, selected, adopted, created, controlled, or managed, including but not limited to the following: mission design series designators, program names, weapon system names, popular names (e.g., as defined or discussed in DoD Instruction 4120.15, Designating and Naming Military Aerospace Vehicles), materiel names, names of the Armed Forces of the United States (as defined in 10 U.S.C. 101), logos, acronyms, E:\FR\FM\15FEP1.SGM 15FEP1 11808 Federal Register / Vol. 89, No. 32 / Thursday, February 15, 2024 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS insignia, seals, emblems, domain names, website addresses, and hashtags. (b) Contractor acknowledgement and agreement. The Contractor acknowledges and agrees that— (1) The Government has the right and authority to use, assert rights in, license, attempt to register, and preclude others, including the Contractor, from using any contract-specific designations, unless such designations are also on the asserted-marks list included in this contract; (2) This contract authorizes the Contractor to use any contract-specific designation solely to perform this contract except as stated in paragraph (b)(6) of this clause; (3) Authorization granted by this contract shall terminate at the earlier of— (i) The end of the period of performance of this contract; or (ii) Contract termination; (4) Contractor use of contract-specific designations, unless such designation is also on the asserted-marks list included in this contract, shall inure solely to the benefit of the Government, and the Government owns any goodwill related to the contract-specific designations; and (5) The Contractor shall comply with all— (i) Contract specifications, standards, and other contract requirements, regarding the nature and quality of the goods, services, or both, delivered or performed under the contract and associated with the contractspecific designation; and (ii) Requirements for use of the contractspecific designation, unless such designation is also on the asserted-marks list included in this contract. (6) Unless the designation is on the asserted-marks list included in this contract, the Contractor shall not take, or attempt to take, the following actions: (i) Develop or acquire any right, title, or interest independent of the Government in any contract-specific designation. (ii) Challenge any mark or assert any claim against the Government or its contractors and VerDate Sep<11>2014 16:54 Feb 14, 2024 Jkt 262001 subcontractors, in any jurisdiction, based either on trademark or any other cause of action based on rights the Contractor believes it has in any contract-specific designation. (iii) Assert any ownership rights or any interest in, contest, dispute, challenge, oppose, or seek to cancel the Government’s right, title, or interest in any contract-specific designation. (iv) Seek royalties from the Government, or its contractors or their subcontractors, for use of any contract-specific designation. (v) Undertake any acts that will or may invalidate or jeopardize the Government’s rights in any contract-specific designation. (vi) Apply for or obtain, or assist any person in applying for or obtaining, any registration of any contract-specific designation. (vii) Use, combine, or alter a contractspecific designation in a manner that would— (A) Disparage the Government; (B) Reflect adversely on the Government; or (C) Weaken or damage any goodwill associated with any contract-specific designation. (viii) Extend its authorization to use any contract-specific designation to any third party, other than a subcontractor performing under this contract. (ix) Register domain names or other forms of any contract-specific designation, whether alone or as part of a domain name or other form of intellectual property owned or controlled by the Government. (x) Use a domain name or other form of intellectual property that is confusingly similar to any contract-specific designation. (xi) Use or incorporate any contractspecific designation in any manner unconnected with the contract, including marketing, outreach, or advertising, or as domain names, without prior written permission of the Contracting Officer. (xii) Cause or authorize any third party to take any of the foregoing actions. PO 00000 Frm 00036 Fmt 4702 Sfmt 9990 (c) Notification of infringement or unauthorized use. The Contractor shall promptly notify the Contracting Officer in writing if it becomes aware of a potential infringement, or any other use not authorized by the Government, of any contract-specific designation by a third party. The Contractor shall reasonably cooperate, upon request, with the Government in connection with any action defending the Government’s right to any contract-specific designation. The Contractor shall not attempt to enforce rights in any contract-specific designation, either for itself or on behalf of the Government, unless such designation is also on the asserted-marks list included in this contract. (d) Marks other than contract-specific designations and asserted marks. Nothing contained in this clause affects the Contractor’s or the Government’s right, title, and interest in any marks other than contractspecific designations and asserted marks. (e) Updates to asserted-mark list or contract-specific designation list. Based only on new information or inadvertent omission, the Contractor may request an update to the asserted-marks list by submitting a request to the Contracting Officer. The Government may update the contract-specific designation list, and the Contractor may update the assertedmarks list, only by mutual agreement of the parties. The same mark or designation may not be added to the contract-specific designation list and the asserted-marks list except by mutual agreement of the parties. (f) Subcontracts. The Contractor shall include this clause, including this paragraph (f), in subcontracts or similar contractual instruments, including subcontracts for commercial products and commercial services. (End of clause) [FR Doc. 2024–02744 Filed 2–14–24; 8:45 am] BILLING CODE 6001–FR–P E:\FR\FM\15FEP1.SGM 15FEP1

Agencies

[Federal Register Volume 89, Number 32 (Thursday, February 15, 2024)]
[Proposed Rules]
[Pages 11803-11808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02744]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 227, and 252

[Docket DARS-2024-0005]
RIN 0750-AL21


Defense Federal Acquisition Regulation Supplement: Use of DoD 
Program Nomenclature (DFARS Case 2021-D002)

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

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to introduce coverage of trademarks and 
similar designations, such as popular names and program names. In 
addition to the request for written comments on this proposed rule, DoD 
will hold a public meeting to hear the views of interested parties.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before April 15, 2024, to be considered 
in the formation of a final rule.
    Public Meeting: A virtual public meeting will be held on March 22, 
2024, from 1:00 p.m. to 5:00 p.m., Eastern

[[Page 11804]]

time. The public meeting will end at the stated time, or when the 
discussion ends, whichever comes first.
    Registration: Registration to attend the public meeting must be 
received no later than close of business on March 15, 2024. Information 
on how to register for the public meeting is provided under the 
SUPPLEMENTARY INFORMATION section of this proposed rule.

ADDRESSES: 
    Public Meeting: A virtual public meeting will be held using Zoom 
video conferencing software.
    Submission of Comments: Submit comments identified by DFARS Case 
2021-D002, using either of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for DFARS Case 2021-D002. Select ``Comment'' and follow the 
instructions to submit a comment. Please include ``DFARS Case 2021-
D002'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2021-D002 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: David E. Johnson, telephone 202-913-
5764.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to implement coverage of 
contract-specific designations, such as popular names and program 
names. DoD intends this coverage to avoid or minimize conflict between 
DoD and offerors and contractors over rights to such designations. In 
particular, this proposed rule creates a mechanism to foster 
transparency between DoD and offerors and contractors regarding claimed 
ownership of such designations.
    By providing for such information exchange, this proposed rule is 
intended to allow the parties to identify possibly conflicting claims 
to designations before contract award. This will encourage the early 
and efficient resolution of potential disputes over ownership and use 
of designations. This proposed rule is therefore intended to work both 
prospectively and proactively to prevent such claims or disputes from 
happening as DoD establishes designations.

II. Public Meeting

    DoD is interested in a dialogue with experts and interested parties 
both in the Government and the private sector regarding amending the 
DFARS to implement coverage of trademarks and similar designations, 
such as popular names and program names.
    Registration: Individuals wishing to participate in the virtual 
meeting must register by March 15, 2024, to facilitate entry to the 
meeting. Interested parties may register for the meeting by sending the 
following information via email to [email protected] and include 
``Public Meeting, DFARS Case 2021-D002'' in the subject line of the 
message:
     Full name.
     Valid email address, which will be used for admittance to 
the meeting.
     Valid telephone number, which will serve as a secondary 
connection method. Registrants must provide the telephone number they 
plan on using to connect to the virtual meeting.
     Company or organization name.
     Whether the individual desires to make a presentation.
    Pre-registered individuals will receive instructions for connecting 
using the Zoom video conferencing software not more than one week 
before the meeting is scheduled to commence.
    Presentations: Presentations will be limited to 5 minutes per 
company or organization. This limit may be subject to adjustment, 
depending on the number of entities requesting to present, in order to 
ensure adequate time for discussion. If you wish to make a 
presentation, please submit an electronic copy of your presentation via 
email to [email protected] no later than the registration date for the 
specific meeting. Each presentation should be in PowerPoint to 
facilitate projection during the public meeting and should include the 
presenter's name, title, organization affiliation, telephone number, 
and email address on the cover page.
    Correspondence, Comments, and Presentations: Please cite ``Public 
Meeting, DFARS Case 2021-D002'' in all correspondence related to the 
public meeting. There will be no transcription of the meeting. The 
submitted presentations will be posted to the following website at the 
conclusion of the public meeting: https://www.acq.osd.mil/dpap/dars/technical_data_rights.html.

III. Discussion and Analysis

    This proposed rule places the coverage of contract-specific 
designations in a new subpart in DFARS part 227, Patents, Data, and 
Copyrights. The new subpart 227.7X, Contract-Specific Designations, 
defines the term ``Government designation'' to cover the larger set of 
trademarks and designations of potential concern to DoD. Further, this 
proposed rule defines the term ``contract-specific designation'' to 
cover designations and names of particular concern for specific 
contracts. ``Contract-specific designations'' are therefore a subset of 
``Government designations.'' This proposed rule requires contracting 
officers to include in solicitations a list of contract-specific 
designations relevant to the acquisition.
    The contract clause proposed at DFARS 252.227-70YY, Contractor Use 
of Government Designations, applies only to ``contract-specific 
designations.'' However, the defined term ``Government designation'' is 
relevant for acquisition-planning purposes, including whether such 
marks or designations are or should be associated with a given contract 
to become ``contract-specific designations'' for that contract.
    This proposed rule also defines the term ``asserted marks'' to 
recognize trademarks and other designations in which offerors claim 
ownership or control. An offeror's submission of an asserted-marks list 
facilitates recognition of offeror-owned marks or designations, and it 
supports a process for required assertions analogous to that in the 
solicitation provision at DFARS 252.227-7017, Identification and 
Assertion of Use, Release, or Disclosure Restrictions, for assertions 
of contractor restrictions on use of technical data and computer 
software.
    DFARS 227.7X01 and 252.227-70YY include definitions of the terms 
``asserted marks,'' ``contract-specific designation,'' and ``Government 
designation.'' The solicitation provision proposed at 252.227-70XX, 
Identification of Asserted Marks, also includes a cross-reference to 
these definitions contained in 252.227-70YY. The proposed rule 
prescribes both new provision 252.227-70XX, Identification of Asserted 
Marks, and new clause 252.227-70YY, Contractor Use of Government 
Designations, for use when the acquisition is expected to exceed the 
simplified acquisition threshold and will involve use of one or more 
Government designations.
    The provision at 252.227-70XX requires offerors both to include an 
asserted-marks list in their offers and to update the asserted-marks 
list prior to contract award. The provision notes that, like assertions 
of data rights restrictions in DFARS 252.227-7017, submission of an 
asserted-marks list

[[Page 11805]]

does not constitute the Government's agreement to the rights asserted 
therein.
    With respect to contract-specific designations, DFARS clause 
252.227-70YY, paragraph (b) contains requirements on the part of the 
contractor and authorizations for the contractor to conduct certain 
activities. DFARS 252.227-70YY, paragraph (c) obligates the contractor 
to provide notice if it becomes aware of unauthorized use or 
infringement of contract-specific designations by third parties and, in 
addition, to cooperate with the Government and not to attempt to 
enforce rights in any contract-specific designation.

IV. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products Including Commercially 
Available Off-the-Shelf (COTS) Items, and for Commercial Services

    This proposed rule includes a new provision and a new clause: (1) 
DFARS 252.227-70XX, Identification of Asserted Marks, and (2) DFARS 
252.227-70YY, Contractor Use of Government Designations. The provision 
at DFARS 252.227-70XX is prescribed at DFARS 227.7X04 for use in 
solicitations that include the clause at DFARS 252.227-70YY. The clause 
at DFARS 252.227-70YY is prescribed at DFARS 227.7X04 for use in 
solicitations and contracts, including solicitations and contracts 
using Federal Acquisition Regulation part 12 procedures for the 
acquisition of commercial products, including COTS items, and 
commercial services, that are expected to exceed the SAT and will 
involve use of one or more Government designations. Not applying this 
provision and clause to contracts for commercial products would exclude 
contracts intended to be covered by this rule and undermine the 
overarching purpose of the rule. Consequently, DoD plans to apply the 
rule to contracts for the acquisition of commercial products, including 
COTS items, and commercial services.

V. Expected Impact of the Rule

    The DFARS currently does not directly address ownership of 
trademarks and similar marks or designations, such as popular names or 
program names. While there is protection for common law trademarks and 
registered trademarks in the Lanham (Trademark) Act, this protection 
may not apply to all types of marks and designations used and owned by 
DoD and contractors. The proposed rule, when finalized, will require 
contracting officers to include in solicitations a list of contract-
specific designations relevant to the acquisition. This proposed rule 
requires offerors to submit in their offers an asserted-marks list to 
facilitate recognition of contractor-owned marks or designations. This 
proposed rule is intended to create a transparency mechanism for each 
party to identify designations, marks, or trademarks that may overlap 
prior to contract award to encourage early and efficient resolution of 
potential disputes over ownership of marks or designations. The 
proposed rule will proactively prevent disputes arising from 
overlapping claims before contract award.

VI. 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, as amended.

VII. Regulatory Flexibility Act

    DoD does not expect this proposed rule, when finalized, to have a 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., because the economic impact of the proposed rule on offerors is 
expected to be slight or negligible. However, an initial regulatory 
flexibility analysis has been performed and is summarized as follows:
    DoD is proposing to amend the DFARS to add text ensuring that DoD 
and its authorized contractors are not restricted in the use of certain 
DoD program nomenclature, such as program names and assigned DoD 
systems designations (e.g., a type of mission-design-series designator, 
approved item name, or approved popular name) that are assigned and 
approved by the Government pursuant to established procedures.
    The objectives of the proposed rule are to balance and protect the 
varied interests and equities that both DoD and its contractors might 
possess in DoD program nomenclature, including but not limited to 
trademarks. The legal basis for the proposed rule is 41 U.S.C. 1303.
    This proposed rule may impact small entities that are awarded DoD 
contracts for major programs, to include Acquisition Category 1 
programs. Based on data from the Federal Procurement Data System and 
Electronic Data Access for fiscal year 2018 through fiscal year 2020, 
DoD estimates that an average of 222 unique small entities are awarded 
an average of 364 total contract actions on an annual basis that likely 
implicate DoD program nomenclature.
    The changes in this proposed rule would add a requirement for 
offerors to submit an asserted-marks list, accurate at time of offer. 
``Asserted marks'' means all trademarks, service marks, collective 
marks, certification marks, or other marks used as indicators of origin 
or source, whether registered or not, that the offeror or contractor 
asserts that it owns or controls, that are associated with a specific 
contract or program, and that are included in the asserted-marks list 
made part of the contract. Such asserted marks might include, but are 
not limited to, the following: corporate names, trade names, logos, 
acronyms, slogans, insignia, seals, emblems, domain names, website 
addresses, and hashtags. An offeror may submit an updated asserted-
marks list any time before contract award.
    This proposed rule applies to all offerors, including both large 
and small entities, responding to solicitations containing the 
solicitation provision proposed at DFARS 252.227-70XX, Identification 
of Asserted Marks. This proposed rule therefore imposes new 
recordkeeping and compliance requirements for small entities. Senior-
level staff will most likely possess the skills necessary to prepare 
the offeror's asserted-marks list.
    This proposed rule does not duplicate, overlap, or conflict with 
any other Federal rules.
    There are no known alternatives that would accomplish the stated 
objectives.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this proposed 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 2021-
D002), in correspondence.

VIII. Paperwork Reduction Act

    This proposed rule contains information collection requirements 
that require the approval of the Office of

[[Page 11806]]

Management and Budget under the Paperwork Reduction Act (44 U.S.C. 
chapter 35). Accordingly, DoD has submitted a request for approval of a 
new information collection requirement concerning Use of DoD Program 
Nomenclature (DFARS Case 2021-D002) to the Office of Management and 
Budget.

A. Estimate of Public Burden

    Public reporting burden for this collection of information is 
estimated to average 1.8 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows:
    Respondents: 2,656.
    Responses per respondent: Approximately 1.3.
    Total annual responses: 3,320.
    Preparation hours per response: 1.8 hours.
    Total response burden hours: 5,976.

B. Request for Comments Regarding Paperwork Burden

    Written comments and recommendations on the proposed information 
collection, including suggestions for reducing this burden, should be 
submitted using the Federal eRulemaking Portal at https://www.regulations.gov or by email to [email protected]. Comments can be 
received up to 60 days after the date of this proposed rule.
    Public comments are particularly invited on: whether this 
collection of information is necessary for the proper performance of 
the functions of DoD, including whether the information will have 
practical utility; the accuracy of DoD's estimate of the public burden 
of this information collection; ways to enhance the quality, utility, 
and clarity of the information to be collected; and ways to minimize 
the burden of the information collection on respondents, including 
through the use of automated collection techniques or other forms of 
information technology.
    To obtain a copy of the supporting statement and associated 
collection instruments, please email [email protected]. Include DFARS 
Case 2021-D002 in the subject line of the message.

List of Subjects in 48 CFR Parts 212, 227, and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 227, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for 48 CFR parts 212, 227, and 252 continues 
to read as follows:

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

PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL 
SERVICES

0
2. Amend section 212.301 by adding new paragraphs (f)(xii)(D) and (E) 
to read as follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

* * * * *
    (f) * * *
    (xii) * * *
    (D) Use the provision at 252.227-70XX, Identification of Asserted 
Marks, as prescribed in 227.7X04(a).
    (E) Use the clause at 252.227-70YY, Contractor Use of Government 
Designations, as prescribed in 227.7X04(b).
* * * * *

PART 227--PATENTS, DATA, AND COPYRIGHTS

0
3. Add subpart 227.7X to read as follows:
SUBPART 227.7X--CONTRACT-SPECIFIC DESIGNATIONS
Sec.
227.7X00 Scope of subpart.
227.7X01 Definitions.
227.7X02 General.
227.7X03 Procedures.
227.7X04 Solicitation provision and contract clause.

SUBPART 227.7X--CONTRACT-SPECIFIC DESIGNATIONS


227.7X00  Scope of subpart.

    This subpart prescribes procedures regarding the identification and 
use of Government designations, such as trademarks and program names, 
and the identification of offerors' and contractors' asserted marks.


227.7X01  Definitions.

    As used in this subpart--
    Asserted marks means all trademarks, service marks, collective 
marks, certification marks, or other marks used as indicators of origin 
or source, whether registered or not, that the offeror or contractor 
asserts that it owns or controls, that are associated with a specific 
contract or program, and that are included in the asserted marks-list 
made part of the contract. Such asserted marks may include but are not 
limited to the following: corporate names, trade names, logos, 
acronyms, slogans, insignia, seals, emblems, domain names, website 
addresses, and hashtags.
    Contract-specific designation means any Government designation 
included in the contract-specific designation list, where such 
Government designation identifies or is intended to identify or 
describe the following:
    (1) Goods, systems, materiel, or products developed, manufactured, 
or delivered in performance of the contract.
    (2) Services rendered in performance of the contract.
    (3) Program names, project names, or other organizational or 
requiring, sponsoring, or contracting activity names related to the 
contract.
    Government designations means--
    (1) Trademarks, service marks, collective marks, certification 
marks, or other marks used as indicators of origin or source, owned by, 
or controlled by the Government, whether registered or not; and
    (2) Other identifiers that the Government identified, selected, 
adopted, created, controlled, or managed, including but not limited to 
the following: mission design series designators, program names, weapon 
system names, popular names (e.g., as defined or discussed in DoD 
Instruction 4120.15, Designating and Naming Military Aerospace 
Vehicles), materiel names, names of the Armed Forces of the United 
States (as defined in 10 U.S.C. 101), logos, acronyms, insignia, seals, 
emblems, domain names, website addresses, and hashtags.


227.7X02  General.

    (a) Trademark law requires trademark owners to exercise control 
over the use of their marks with respect to the nature and quality of 
relevant goods and services to maintain enforceability of the marks. 
Failure to include quality control provisions in a trademark license, 
or ``naked licensing'', can result in loss of trademark rights.
    (b) The clause at 252.227-70YY, Contractor Use of Government 
Designations, paragraph (b)(5), concerns the nature and quality of 
goods or services associated with a contract-specific designation, or 
the designation itself, to avoid naked licensing and

[[Page 11807]]

retain Government control over the use of contract-specific 
designations that are also trademarks.


227.7X03  Procedures.

    (a) Planning for contract-specific designations. Before issuing a 
solicitation exceeding the simplified acquisition threshold that will 
involve use of one or more Government designations, the contracting 
officer shall obtain the Government's preliminary contract-specific 
designation list from the requiring activity. See PGI 227.7X03(a).
    (b) Contract-specific designation list. The contracting officer 
shall include, in a solicitation that will involve use of one or more 
Government designations, a list of contract-specific designations 
relevant to the acquisition. The contracting officer shall attach the 
contract-specific designation list to any resulting contract. See PGI 
227.7X03(b).
    (c) Asserted-marks list. The contracting officer shall attach to 
the resulting contract the asserted-marks list that the contractor 
submitted in response to the solicitation, as required by 252.227-70XX, 
Identification of Asserted Marks. See PGI 227.7X03(c).
    (d) Postaward updates to the asserted-marks list and contract-
specific designation list. After award of the contract, based only on 
new information or inadvertent omission, the Government may update the 
contract-specific designation list, and the contractor may update the 
asserted-marks list, only by mutual agreement of the parties. The 
contracting officer shall incorporate the agreed-upon updated list(s) 
into the contract.


227.7X04  Solicitation provision and contract clause.

    (a) Use the provision at 252.227-70XX, Identification of Asserted 
Marks, in solicitations, including solicitations using FAR part 12 
procedures for the acquisition of commercial products and commercial 
services, that contain the clause at 252.227-70YY.
    (b) Use the clause at 252.227-70YY, Contractor Use of Government 
Designations, in solicitations and contracts, including solicitations 
and contracts using FAR part 12 procedures for the acquisition of 
commercial products and commercial services, that are expected to 
exceed the simplified acquisition threshold and will involve use of one 
or more Government designations.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Add sections 252.227-70XX and 252.227-70YY to read as follows:


252.227-70XX  Identification of Asserted Marks.

    As prescribed in 227.7X04(a), use the following provision:

Identification of Asserted Marks (Date)

    (a) Definitions. As used in this provision--
    Asserted marks, contract-specific designation, and Government 
designation have the meanings provided in the clause 252.227-70YY, 
Contractor Use of Government Designations.
    (b) Submission of asserted-marks list. The Offeror shall include 
in its offer an asserted-marks list, complete at time of initial 
offer. The Offeror shall submit an updated asserted-marks list 
reflecting any additions or deletions in any proposal revisions. 
Submission of the asserted-marks list does not constitute the 
Government's agreement to the Offeror's assertions of rights to the 
asserted marks.
    (c) Format for asserted-marks list. The Offeror shall submit its 
asserted-marks list as an attachment to its offer in the following 
format, dated and signed by an official authorized to contractually 
obligate the Offeror:

                                                                   Asserted-Marks List
                          [The Offeror asserts that it owns or controls the following marks associated with this solicitation]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Basis for assertion
                                                             and jurisdiction(s) in  Date of first use, if    List other related    Is the asserted mark
         Asserted mark \1\            Goods or services \2\     which rights are              any            government contract       still in use?
                                                                   claimed \3\                                or program, if any
--------------------------------------------------------------------------------------------------------------------------------------------------------
(LIST).............................  (LIST)................  (LIST)................  (LIST)...............  (LIST)...............  (Yes/No).
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ For ``Asserted Mark'', list (or reference in an attachment) the designation in which the Offeror asserts rights.
\2\ For ``Goods or Services'', list the goods and/or services in connection with which the mark from the ``Asserted Mark'' column is used. Do not merely
  list classification numbers.
\3\ Indicate whether the Offeror owns a registration or has applied for registration of the mark listed in the ``Asserted Mark'' column. If so, include
  the registration or application number, including jurisdiction. This could include a Federal, State, or foreign registration, or a pending
  application. If the Offeror claims rights based on something other than registration or application (i.e., common law rights), indicate so and list
  the territory in which rights are claimed.

Date-------------------------------------------------------------------
Printed Name:----------------------------------------------------------
Title:-----------------------------------------------------------------
Signature:-------------------------------------------------------------

[End of Asserted-Marks List]


(End of provision)


252.227-70YY  Contractor Use of Government Designations.

    As prescribed in 227.7X04(b), use the following clause:

Contractor Use of Government Designations (Date)

    (a) Definitions. As used in this clause--
    Asserted marks means all trademarks, service marks, collective 
marks, certification marks, or other marks used as indicators of 
origin or source, whether registered or not, that the offeror or 
contractor asserts that it owns or controls, that are associated 
with a specific contract or program, and that are included in the 
asserted-marks list made part of the contract. Such asserted marks 
may include but are not limited to the following: corporate names, 
trade names, logos, acronyms, slogans, insignia, seals, emblems, 
domain names, website addresses, and hashtags.
    Contract-specific designation means any Government designation 
included in the contract-specific designation list, where such 
Government designation identifies or is intended to identify or 
describe the following:
    (1) Goods, systems, materiel, or products developed, 
manufactured, or delivered in performance of this contract.
    (2) Services rendered in performance of this contract.
    (3) Program names, project names, or other organizational or 
requiring, sponsoring, or contracting activity names related to this 
contract.
    Government designation means--
    (1) Trademarks, service marks, collective marks, certification 
marks, or other marks used as indicators of origin or source, owned 
by, or controlled by the Government, whether registered or not; and
    (2) Other identifiers that the Government identified, selected, 
adopted, created, controlled, or managed, including but not limited 
to the following: mission design series designators, program names, 
weapon system names, popular names (e.g., as defined or discussed in 
DoD Instruction 4120.15, Designating and Naming Military Aerospace 
Vehicles), materiel names, names of the Armed Forces of the United 
States (as defined in 10 U.S.C. 101), logos, acronyms,

[[Page 11808]]

insignia, seals, emblems, domain names, website addresses, and 
hashtags.
    (b) Contractor acknowledgement and agreement. The Contractor 
acknowledges and agrees that--
    (1) The Government has the right and authority to use, assert 
rights in, license, attempt to register, and preclude others, 
including the Contractor, from using any contract-specific 
designations, unless such designations are also on the asserted-
marks list included in this contract;
    (2) This contract authorizes the Contractor to use any contract-
specific designation solely to perform this contract except as 
stated in paragraph (b)(6) of this clause;
    (3) Authorization granted by this contract shall terminate at 
the earlier of--
    (i) The end of the period of performance of this contract; or
    (ii) Contract termination;
    (4) Contractor use of contract-specific designations, unless 
such designation is also on the asserted-marks list included in this 
contract, shall inure solely to the benefit of the Government, and 
the Government owns any goodwill related to the contract-specific 
designations; and
    (5) The Contractor shall comply with all--
    (i) Contract specifications, standards, and other contract 
requirements, regarding the nature and quality of the goods, 
services, or both, delivered or performed under the contract and 
associated with the contract-specific designation; and
    (ii) Requirements for use of the contract-specific designation, 
unless such designation is also on the asserted-marks list included 
in this contract.
    (6) Unless the designation is on the asserted-marks list 
included in this contract, the Contractor shall not take, or attempt 
to take, the following actions:
    (i) Develop or acquire any right, title, or interest independent 
of the Government in any contract-specific designation.
    (ii) Challenge any mark or assert any claim against the 
Government or its contractors and subcontractors, in any 
jurisdiction, based either on trademark or any other cause of action 
based on rights the Contractor believes it has in any contract-
specific designation.
    (iii) Assert any ownership rights or any interest in, contest, 
dispute, challenge, oppose, or seek to cancel the Government's 
right, title, or interest in any contract-specific designation.
    (iv) Seek royalties from the Government, or its contractors or 
their subcontractors, for use of any contract-specific designation.
    (v) Undertake any acts that will or may invalidate or jeopardize 
the Government's rights in any contract-specific designation.
    (vi) Apply for or obtain, or assist any person in applying for 
or obtaining, any registration of any contract-specific designation.
    (vii) Use, combine, or alter a contract-specific designation in 
a manner that would--
    (A) Disparage the Government;
    (B) Reflect adversely on the Government; or
    (C) Weaken or damage any goodwill associated with any contract-
specific designation.
    (viii) Extend its authorization to use any contract-specific 
designation to any third party, other than a subcontractor 
performing under this contract.
    (ix) Register domain names or other forms of any contract-
specific designation, whether alone or as part of a domain name or 
other form of intellectual property owned or controlled by the 
Government.
    (x) Use a domain name or other form of intellectual property 
that is confusingly similar to any contract-specific designation.
    (xi) Use or incorporate any contract-specific designation in any 
manner unconnected with the contract, including marketing, outreach, 
or advertising, or as domain names, without prior written permission 
of the Contracting Officer.
    (xii) Cause or authorize any third party to take any of the 
foregoing actions.
    (c) Notification of infringement or unauthorized use. The 
Contractor shall promptly notify the Contracting Officer in writing 
if it becomes aware of a potential infringement, or any other use 
not authorized by the Government, of any contract-specific 
designation by a third party. The Contractor shall reasonably 
cooperate, upon request, with the Government in connection with any 
action defending the Government's right to any contract-specific 
designation. The Contractor shall not attempt to enforce rights in 
any contract-specific designation, either for itself or on behalf of 
the Government, unless such designation is also on the asserted-
marks list included in this contract.
    (d) Marks other than contract-specific designations and asserted 
marks. Nothing contained in this clause affects the Contractor's or 
the Government's right, title, and interest in any marks other than 
contract-specific designations and asserted marks.
    (e) Updates to asserted-mark list or contract-specific 
designation list. Based only on new information or inadvertent 
omission, the Contractor may request an update to the asserted-marks 
list by submitting a request to the Contracting Officer. The 
Government may update the contract-specific designation list, and 
the Contractor may update the asserted-marks list, only by mutual 
agreement of the parties. The same mark or designation may not be 
added to the contract-specific designation list and the asserted-
marks list except by mutual agreement of the parties.
    (f) Subcontracts. The Contractor shall include this clause, 
including this paragraph (f), in subcontracts or similar contractual 
instruments, including subcontracts for commercial products and 
commercial services.


(End of clause)

[FR Doc. 2024-02744 Filed 2-14-24; 8:45 am]
BILLING CODE 6001-FR-P


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