[Federal Register Volume 62, Number 178 (Monday, September 15, 1997)]
[Proposed Rules]
[Pages 48200-48205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24387]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 204, 212, and 252

[DFARS Case 97-D005]


Defense Federal Acquisition Regulation Supplement; Central 
Contractor Registration

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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

SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to require 
contractor registration in the DoD Central Contractor Registration 
database prior to award of any contract, basic agreement, basic 
ordering agreement, or blanket purchase agreement, unless the award 
results from a solicitation issued on or before March 31, 1998.

DATES: Comment date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before November 14, 1997 to 
be considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Sandra G. Haberlin, 
PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected]
    Please cite DFARS Case 97-D005 in all correspondence related to 
this issue. E-mail correspondence should cite DFARS Case 97-D005 in the 
subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Haberlin, (703) 602-
0131.

SUPPLEMENTARY INFORMATION:

A. Background

    The President's Executive memorandum, Streamlining Procurement 
through Electronic Commerce, dated October 26, 1993, directed Federal 
Government agencies to streamline and simplify procurement through use 
of electronic commerce. To achieve this goal, the final report, 
Streamlining Procurement through Electronic Commerce, dated October 13, 
1994, was issued to define the Government's electronic commerce 
architecture and implementation plan. This plan includes centralizing 
electronic commerce registration; collecting business information, 
including procurement data, from each contractor into a database at the 
time of registration; and adopting the Data Universal Numbering System 
(DUNS) number as the industry-standard Governmentwide company 
identifier code.
    In addition, the Debt Collection Improvement Act of 1996 (Section 
31001 of Public Law 104-134) was enacted on April 26, 1996. Subsection 
31001(i) amends 31 U.S.C. 7701 by requiring each contractor doing 
business with the Government to furnish its taxpayer identification 
number (TIN). Subsection 31001(x) amends 31 U.S.C. 3332 by requiring, 
with few exceptions, that payments be made by electronic fund transfer 
(EFT).
    This proposed rule requires contractor registration in a DoD 
Central Contractor Registration (CCR) database prior to award of a 
contract, basic agreement, basic ordering agreement, or blanket 
purchase agreement, unless the award results from a solicitation issued 
on or before March 31, 1998. The rule requires that contractors 
register on a one-time basis, and confirm on an annual basis that their 
CCR registration is accurate and complete. The objectives of this rule 
are (1) to more efficiently comply with Public Law 104-134 by using a 
central DoD repository to collect statutorily required TINs and EFT 
information; (2) to simplify and streamline procurement by presenting 
``one DoD face to industry,'' and, thereby, eliminating duplicate 
requirements and processes; and (3) to increase visibility of vendor 
sources for specific supplies and services.
    The following CCR Application Form illustrates the data that 
contractors will be required to provide in order to register in the 
CCR:

BILLING CODE 5000-04-M

[[Page 48201]]

[GRAPHIC] [TIFF OMITTED] TP15SE97.048



[[Page 48202]]

[GRAPHIC] [TIFF OMITTED] TP15SE97.049



BILLING CODE 5000-04-C

[[Page 48203]]

Instructions for Completion of the Central Contractor Registration 
(CCR) Application

    DoD plans to include the following rules in the CCR registration 
instructions for contractors when filling out the CCR Application form:
    1. EFT Remittance Address. For each CCR registration, contractors 
shall provide only one EFT remittance address. Contractors requiring 
multiple EFT remittance addresses must establish a separate CCR 
registration record for each unique EFT remittance address. Contractors 
may use the same EFT remittance address in more than one CCR 
registration record.
    2. TINS. For each CCR registration, Contractors shall provide only 
one TIN. Contractors with multiple TINs shall establish a separate CCR 
registration record for each unique TIN. Contractors may use the same 
TIN in more than one CCR registration record.
    3. Commercial and Government Entity (CAGE) Code. Each CCR record 
must have a unique CAGE code; therefore, contractors requiring multiple 
CAGE codes for the same address will have to annotate the address with 
a unique attribute. For example, instead of the address: A Company, 1 A 
Road, Any town, contractors may provide the following addresses for 
multiple CAGE codes:

CAGE code 1: A Company, 1 A Road, Remit 1, Any town
CAGE code 2: A Company, 1 A Road, Remit 2, Any town
CAGE code 3: A Company, 1 A Road, Remit 3, Any town

    4. DUNS and DUNS+4.
    A. Definitions.
    (1) ``Parent business concern'' means a business entity with 
controlling (more than 50 percent) ownership in another business 
entity.
    (2) ``Subsidiary'' means a business entity with more than 50 
percent of its voting stock owned by another business entity.
    B. DUNS+4 implementation rules.
    (1) A parent business concern must use a DUNS, not a DUNS+4 number, 
to register in the CCR database.
    (2) A parent business concern may identify each subsidiary with 
either a unique DUNS number or a unique DUNS+4 number, if the 
subsidiary plans to register in the CCR database separately from the 
parent business concern and from other subsidiaries.
    (3) Only a parent business concern may identify a DUNS+4 for its 
subsidiaries.
    (4) When a parent business concern's registration becomes 
inactive--
    a. The subsidiary's registration, if the subsidiary used a DUNS+4 
number to register, becomes inactive; and
    b. The DoD registration activity will send a notification to each 
DUNS+4 identified subsidiary, in addition to the parent business 
concern, that provides the reasons for deactivation and provides a 
designated point of contact at the parent business concern.
    (5) If a subsidiary registers separately from its parent, the 
parent business concern will be asked if it wants a single corporate-
wide or subsidiary-unique trading partner identification number (unique 
pass code) generated by each subsidiary's registration.

(End of instructions)

    The Department of Defense is also examining alternative ways of 
obtaining and updating contractor data. In the near term, it may become 
possible for DoD to use comparable data developed by private sector 
sources to meet its data needs, and DoD will explore these alternatives 
throughly.

B. Regulatory Flexibility Act

    This proposed rule may 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. An Initial Regulatory 
Flexibility Analysis (IRFA) has been prepared and is summarized as 
follows:
    This rule proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require contractor registration in a 
Central Contractor Registration (CCR) database prior to the award of a 
contract, basic agreement, basic ordering agreement, or blanket 
purchase agreement, unless the award results from a solicitation issued 
on or before March 31, 1998. Subsequent to the initial registration, 
this rule will require contractors to confirm on an annual basis that 
their CCR registration is accurate and complete. The objectives of this 
rule are (1) to more efficiently comply with the Debt Collection 
Improvement Act of 1996 (Pub. L. 104-134) by using a central repository 
to collect statutorily required contractors' taxpayer identification 
numbers (TINs) and electronic funds transfer (EFT) information; (2) to 
simplify and streamline the procurement process by presenting ``one DoD 
face to industry,'' and, thereby, eliminating redundant requirements 
and processes; and (3) to increase visibility of vendor sources for 
specific supplies and services. Currently, contractors must submit 
certain business information, including their TIN and DUNS numbers, in 
response to solicitations. In addition, current regulations require 
contractors to provide EFT information in compliance with contract 
terms and conditions. Under current regulations, contractors are 
required to submit duplicate information to various contracting and 
payment offices. Under the proposed rule, contractors are required to 
provide certain business information, including their TINs and EFT 
information, only once into a common DoD data source. DoD will use this 
common CCR data source to more efficiently meet the requirements of the 
Debt Collection Improvement Act of 1996 (Section 31001 of Public Law 
104-134). The proposed rule applies to large and small businesses that 
are awarded DoD contracts, basic agreements, basic ordering agreements, 
or blanket purchase agreements, unless the award results from a 
solicitation issued on or before March 31, 1998. This policy applies to 
all types of awards with the following exceptions: (a) Purchases made 
with a Governmentwide commercial purchase card; (b) awards made to 
foreign vendors for work performed outside the United States; (c) 
classified contracts or purchases; (d) contracts that are awarded by 
deployed contracting officers in the course of military operations or 
contracts awarded by contracting officers in the conduct of emergency 
operations; and (e) purchases to support unusual or compelling needs. 
To date, no supporting data has been collected; therefore, there is no 
available estimate of the number of small businesses that will be 
subject to the rule. Based on DD 350 data, approximately, 23,413 small 
businesses were awarded contracts of $25,000 or more in fiscal year 
1996. It is estimated that a majority of them will be subject to the 
rule. Information is not available to identify the additional number of 
small businesses that were awarded contracts of less than $25,000, or 
were awarded basic agreements, basic ordering agreements, or blanket 
purchase agreements. All small entities will be subject to the rule 
unless their contract or agreement falls within one of the five 
exceptions. Administrative or financial personnel who have general 
knowledge of the contractor's business, including the contractor's bank 
account and financial agent, are able to register by providing the 
pertinent information into the CCR database. The one significant 
alternative that was considered was to exclude small entities from the 
requirements of this rule. It was concluded that this alternative would 
not minimize the economic impact on small entities. Existing

[[Page 48204]]

regulations require contractors to submit, with each offer or as a term 
of each contract, the same information. The proposed rule eliminates 
these redundant requirements, and their resulting administrative 
burdens. Therefore, this alternative was rejected.
    A copy of the IRFA may be obtained from the address specified 
herein. Comments are invited from small businesses and other interested 
parties. Comments from small entities concerning the affected DFARS 
subparts also will be considered in accordance with 5 U.S.C. 610. Such 
comments should be submitted separately and should cite DFARS Case 97-
D005.

C. Paperwork Reduction Act

    The Paperwork Reduction act (44 U.S.C. 3501, et seq.) applies, 
because the proposed rule contains information collection requirements. 
On June 25, 1997, the Department of Defense, Under Secretary of Defense 
(Acquisition & Technology) Deputy Under secretary of Defense 
(Logistics/Electronic Commerce Integration Organization) published a 
notice and request for comments on the proposed collection for CCR in 
the Federal Register (62 FR 34230).

List of Subjects in 48 CFR Parts 204, 212, and 252

    Government procurement.
Michele P. Peterson
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 204, 212, and 252 are proposed to be 
amended as follows:
    1. The authority citation for 48 CFR Parts 204, 212, and 252 
continues to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 204--ADMINISTRATIVE MATTERS

    2. Subpart 204.73 is added to read as follows:

Subpart 204.73--Central Contractor Registration

Sec.
204.7300  Scope.
204.7301  Definitions.
204.7302  Policy.
204.7303  Procedures.
204.7304  Contract clause.

Subpart 204.73--Central Contractor Registration


204.7300   Scope.

    This subpart prescribes policies and procedures for requiring 
contractor registration in the DoD Central Contractor Registration 
(CCR) database to comply with the Debt Collection Improvement Act of 
1996 (31 U.S.C. 3332; 31 U.S.C. 7701), and to increase visibility of 
vendor sources for specific supplies and services, and their 
geographical locations.


204.7301   Definitions.

    ``Central Contractor Registration (CCR) database,'' ``Data 
Universal Numbering System (DUNS) number,'' ``Data Universal Numbering 
System+4 (DUNS+4) number,'' and ``Registered in the CCR database'' are 
defined in the clause at 252.204-700X Required Central Contractor 
Registration.


204.7302   Policy.

    After March 31, 1998, prospective contractors must be registered in 
the CCR database, prior to award to a contract, basic agreement, basic 
ordering agreement, or blanket purchase agreement, unless the award 
results from a solicitation issued on or before March 31, 1998. This 
policy applies to all types of awards except the following:
    (a) Purchases made with a Governmentwide commercial purchase card;
    (b) Awards made to foreign vendors for work performed outside the 
United States;
    (c) Classified contracts or purchases (see FAR 4.401);
    (d) Contracts awarded by deployed contracting officers in the 
course of military operation, including, but not limited to, 
contingency operations as defined in 10 U.S.C. 101(a)(13), or contracts 
awarded by contracting officers in the conduct of emergency operations, 
such as responses to natural disasters or national or civil 
emergencies; and
    (e) Purchases to support unusual or compelling needs of the type 
described in FAR 6.302-2.


204.7303  Procedures.

    (a)(1) Except as provided in 204.7302, the contracting officer 
shall require each offeror to provide a DUNS or, if applicable, a 
DUNS+4 number, with its verbal or written offer, regardless of the 
dollar amount of the offer.
    (2) Prior to making an award of any contract, basic agreement, 
basic ordering agreement, or blanket purchase agreement after March 31, 
1998, unless the award results from a solicitation issued on or before 
March 31, 1998, the contracting officer shall verify that the 
prospective awardee is registered in the CCR database (but see 
204.7303(b)). The contracting officer may verify registration using the 
DUNS number or, if applicable, the DUNS+4 number, by calling 1-888-xxx-
xxxx, via the Internet at http://ccr.edi.disa.mil/ccr/cgi-bin/
status.pl, or as otherwise provided by agency procedures.
    (3) Verification of registration is not required for orders or 
calls.
    (4) After March 31, 1998, as part of the annual review of basic 
agreement, basic ordering agreement, and blanket purchase agreements, 
contracting officers shall modify these agreements to incorporate the 
clause at 252.204-700X, Required Central Contractor Registration.
    (b) If the contracting officer determines that a prospective 
awardee is not registered in the CCR database, the contracting officer 
shall--
    (1) If the needs of the requiring activity allow for a delay, 
proceed to award after the contractor is registered.
    (2) If the needs of the requiring activity do not allow for a 
delay, proceed to award to the next otherwise successful registered 
offeror, provided that written approval is obtained at one level above 
the contracting officer.
    (c) Agencies shall protect against improper disclosure of 
contractor CCR information.


204.7304  Contract clause.

    Except as provided in 204.7302, use the clause at 252.204-700X, 
Required Central Contractor Registration, in--
    (a) Solicitation issued after March 31, 1998;
    (b) Contracts resulting from solicitations issued after March 31, 
1998; and
    (c) Basic agreements, basic ordering agreements, and blanket 
purchase agreements issued after March 31, 1998, unless they resulted 
from solicitations issued on or before March 31, 1998.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

    3. Section 212.301 is amended by adding paragraph (f)(iv) to read 
as follows:


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

    (f) * * *
    (iv) Use the clause at 252.204-700X, Required Central Contractor 
Registration, as prescribed in 204.7304.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.204-700X is added to read as follows:


252.204-700X  Required Central Contractor Registration.

    As prescribed in 204.7304, use the following clause:


[[Page 48205]]



REQUIRED CENTRAL CONTRACTOR REGISTRATION (XXX 19XX)

    (a) Definitions.
    Central Contractor Registration (CCR) database means the primary 
DoD repository for contractor information required for the conduct 
of business with DoD.
    Data Universal Numbering System (DUNS) number means the 9-digit 
number assigned by Dun and Bradstreet Information Services to 
identify unique business entities.
    Data Universal Numbering System (DUNS)+4 number means the DUNS 
number assigned by Dun and Bradstreet plus a 4-digit suffix that may 
be assigned by a parent (controlling) business concern. This 4-digit 
suffix may be assigned at the discretion of the parent business 
concern for such purposes as identifying subunits or affiliates of 
the parent business concern.
    Registered in the CCR database means that all mandatory 
information, including the DUNS number or the DUNS+4 number, if 
applicable, and the corresponding Commercial and Government Entity 
(CAGE) code, is in the CCR database; the DUNS number and the CAGE 
code have been validated; and all edits have been successfully 
completed. To remain registered in the CCR database after the 
initial registration, the Contractor is required to confirm on an 
annual basis that its CCR registration is still accurate and 
complete.
    (b)(1) By submission of an offer, the offeror acknowledges the 
requirement that a prospective awardee must be registered in the CCR 
database prior to award, during performance, and through final 
payment of any contract resulting from this solicitation except for 
awards to foreign vendors for work to be performed outside the 
United States.
    (2) The offeror shall provide its DUNS or, if applicable, its 
DUNS+4 number with its offer, which will be used by the Contracting 
Officer to verify that the offeror is registered in the CCR 
database.
    (3) Lack of registration in the CCR database will make an 
offeror ineligible for award.
    (4) Since initial registration in the CCR database may take up 
to 30 days, offerors that are not registered should consider 
applying for registration immediately upon receipt of this 
solicitation.
    (c) The Contractor is responsible for the accuracy and 
completeness of the data within the CCR, and for any liability 
resulting from the Government's reliance on inaccurate or incomplete 
data. To remain registered in the CCR database after the initial 
registration, the Contractor is required to confirm on an annual 
basis that its information in the CCR database is accurate and 
complete.
    (d) Offerors and contractors may obtain information on 
registration and annual confirmation requirements by calling 1-888-
xxx-xxxx or via the Internet at http://ccr.edi.disa.mil.

(End of clause)

[FR Doc. 97-24387 Filed 9-12-97; 8:45 am]
BILLING CODE 5000-04-M