[Federal Register Volume 63, Number 61 (Tuesday, March 31, 1998)]
[Rules and Regulations]
[Pages 15316-15318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8417]
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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: Final rule.
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SUMMARY: The Director of Defense Procurement has issued a final rule
amending 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 May 31, 1998.
This rule more efficiently implements the Debt Collection Improvement
Act of 1996.
EFFECTIVE DATE: March 31, 1998.
FOR FURTHER INFORMATION CONTACT:
Ms Sandra G. Haberlin, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; telefax
(703) 602-0350. Please cite DFARS Case 97-D005.
SUPPLEMENTARY INFORMATION:
A. Background
The President's Management Council's Electronic Processes
Initiatives Committee recently issued a strategic plan for electronic
Federal purchasing and payment. The plan identifies three options
currently available to agencies for collecting and managing contractor
information: (1) Through a central registry, in which contractors could
centrally provide information for multiple contracts; (2) through
financial intermediaries (networks), that could collect and maintain
information on network members; and (3) on a contract-by-contract
basis. At this time, DoD has elected to use a Central Contractor
Registration (CCR) database to collect and manage contractor
information--including taxpayer identification numbers (TINs) and
electronic funds transfer (EFT) information required by the Debt
Collection Improvement Act of 1996 (Pub. L. 104-134). Recognizing that
technology and the marketplace are dynamic, DoD will continue to assess
its registration policy in light of changes in market conditions and
advances in technology.
This final rule requires contractor registration in a DoD 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 May 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,
eliminate duplicate requirements and processes; and (3) to increase
visibility of vendor sources for specific supplies and services.
A proposed rule was published in the Federal Register on September
15, 1997 (62 FR 48200). All comments received in response to the
proposed rule were considered in the development of the final rule. The
final rule differs from the proposed rule in that it (1) revises the
date after which prospective contractors must be registered in the CCR
database, from March 31, 1998, to May 31, 1998; (2) adds paragraph
204.7303(d) to require the contracting officer to transmit either the
Commercial and Government Entity code or the Data Universal Numbering
System number to the payment office; and (3) makes editorial changes
for clarification.
B. Regulatory Flexibility Act
A Final Regulatory Flexibility Analysis (FRFA) has been performed.
The analysis is summarized as follows:
This final rule requires contractors to register in the CCR
database by providing certain business information, including TINs and
EFT information required by the Debt Collection Improvement Act of 1996
(Pub. L. 104-134). Subsequent to the initial registration, contractors
will only be required to confirm on an annual basis that their CCR
registration is accurate and complete. All small entities will be
subject to the rule unless their contract or agreement falls within one
of the five exceptions cited in DFARS 204.7302.
An issue raised by one respondent was that the rule will delay the
award of contracts to small business vendors that are unaware of the
CCR requirements. It is unlikely that a prospective awardee will be
unaware of the registration requirement at the time of contract award
since the clause requiring CCR registration will be included in
solicitations issued after May 31, 1998. In addition, since the goal of
DoD is to process each vendor's registration application within 48
hours after receipt, it is unlikely that the registration requirement
of the rule will delay a significant number of contract awards.
The one significant alternative that was considered was to exclude
small entities from the requirements of this rule. The requirements of
Public Law 104-134 would still be accomplished by existing regulations.
The conclusion was that this alternative, while fulfilling the
objective of Public Law 104-134, does not minimize the economic impact
on small entities since existing regulations require a contractor to
submit, for every contract, the same information to various contracting
or payment offices.
Since this final rule eliminates certain redundant requirements,
and their resulting administrative burdens, this alternative of
excluding small entities from the requirements of this rule was
rejected.
A copy of the FRFA may be obtained from the Defense Acquisition
Regulations Council, PDUSD (A&T) DP (DAR), 3062 Defense Pentagon,
Washington, DC 20301-3062. Please cite DFARS Case 97-D005 in all
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) applies,
because the
[[Page 15317]]
final rule contains information collection requirements. On November
20, 1997, the Office of Management and Budget (OMB) approved the
collection requirements under OMB Control No. 0704-0400, which expires
on November 30, 2000.
List of Subjects in 48 CFR Part 204, 212, and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 204, 212, and 252 are 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 252.204-7004, Required Central Contractor Registration.
204.7302 Policy.
After May 31, 1998, prospective contractors must be registered in
the 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 May 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 operations, 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.
(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 May 31,
1998, unless the award results from a solicitation issued on or before
May 31, 1998, the contracting officer shall verify that the prospective
awardee is registered in the CCR database (but see paragraph (b) of
this section). The contracting officer may verify registration using
the DUNS number or, if applicable, the DUNS+4 number, by calling toll
free: 1-800-841-4431, commercial: 1-616-961-5757, or Defense Switched
Network (DSN): 932-5757; via the Internet at http://ccr.edi,disa.mil/
ccr/cgi-bin status.pi; or as otherwise provided by agency procedures.
(3) Verification of registration is not required for orders or
calls placed under contracts, basic agreements, basic ordering
agreements, or blanket purchase agreements.
(4) After May 31, 1998, as part of the annual review of basic
agreements, basic ordering agreements, and blanket purchase agreements,
contracting officers shall modify these agreements to incorporate the
clause at 225.2204-7004, 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; or
(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.
(d) The contracting officer, shall, on contractual documents
transmitted to the payment office, provide either the Commercial and
Government Entity code or the DUNS number in accordance with agency
procedures.
204.7304 Contract clause.
Except as provided in 204.7302, use the clause at 252.204-7004,
Required Central Contractor Registration, in--
(a) Solicitations issued after May 31, 1998;
(b) Contracts resulting from solicitations issued after May 31,
1998; and
(c) Basic agreements, basic ordering agreements, and blanket
purchase agreements issued after May 31, 1998, unless they resulted
from solicitations issued on or before May 31, 1998.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
3. Section 212.301 is amended by adding paragraph (f)(iv) to read
as follows:
Sec. 212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(iv) Use the clause at 252.204-7004, Required Central Contractor
Registration, as prescribed in 204.7304.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 252.204-7004 is added to read as follows:
252.204-7004 Required Central Contractor Registration.
As prescribed in 204.7304, use the following clause:
Required Central Contractor Registration (Mar. 1998)
(a) Definitions.
As used in this clause--
(1) Central Contractor Registration (CCR database means the
primary DoD repository for contractor information required for the
conduct of business with DoD.
(2) Data Universal Numbering System (DUNS) number means the 9-
digit number assigned by Dun and Bradstreet Information Services to
identify unique business entities.
[[Page 15318]]
(3) Data Universal Numbering System +4 (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.
(4) 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.
(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) DoD has established a goal of registering an applicant in
the CCR database within 48 hours after receipt of a complete and
accurate application via the Internet. However, registration of an
applicant submitting an application through a method other than the
Internet may take up to 30 days. Therefore, 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-
227-2423, or via the Internet at http://ccr.edi.disa.mil.
(End of clause)
[FR Doc. 98-8417 Filed 3-30-98; 8:45 am]
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