[Federal Register Volume 68, Number 220 (Friday, November 14, 2003)]
[Rules and Regulations]
[Pages 64557-64559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28441]


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DEPARTMENT OF DEFENSE

48 CFR Parts 204, 212, 213, and 252

[DFARS Case 2003-D040]


Defense Federal Acquisition Regulation Supplement; Central 
Contractor Registration

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to remove policy on Central 
Contractor Registration (CCR) that duplicates policy added to the 
Federal Acquisition Regulation (FAR) on October 1, 2003. This rule also 
addresses requirements for use of Commercial and Government Entity 
(CAGE) codes to accommodate DoD payment systems.

DATES: Effective date: November 14, 2003.
    Comment date: Comments on the interim rule should be submitted to 
the address shown below on or before January 13, 2004, to be considered 
in the formation of the final rule.

ADDRESSES: Respondents may submit comments directly on the World Wide 
Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an 
alternative, respondents may e-mail comments to: [email protected]. Please 
cite DFARS Case 2003-D040 in the subject line of e-mailed comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Ms. Angelena Moy, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 2003-D040.
    At the end of the comment period, interested parties may view 
public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy, (703) 602-1302.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule supplements the final FAR rule published at 68 FR 
56669 on October 1, 2003 (FAC 2001-16; Item I). The FAR rule contained 
requirements for contractors to register in the CCR database prior to 
award of any contract or agreement. Similar policy had been in the 
DFARS since March 31, 1998 (63 FR 15316). Since the DFARS policy has 
been superseded by the FAR policy, this interim rule removes most DFARS 
policy pertaining to CCR. However, there is still a need to address 
requirements for CAGE code information to accommodate DoD payment 
systems. Therefore, this interim rule retains DoD requirements for 
inclusion of CAGE codes on contracts and in the CCR database.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule 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 rule 
adds no new requirements for DoD contractors. The rule removes DFARS 
text that has become obsolete as a result of policy that has been added 
to the FAR, and retains existing DoD requirements for use of CAGE 
codes. Therefore, DoD has not performed an initial regulatory 
flexibility analysis. DoD invites comments from small businesses and 
other interested parties. DoD also will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2003-D040.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense

[[Page 64558]]

that urgent and compelling reasons exist to publish an interim rule 
prior to affording the public an opportunity to comment. This interim 
rule removes DFARS text that has become obsolete as a result of policy 
on Central Contractor Registration that was added to the FAR on October 
1, 2003. In addition, this rule addresses DoD requirements for 
inclusion of CAGE codes on contracts and in the CCR database. The FAR 
does not address CAGE code requirements, and DoD payment offices cannot 
match to CCR without CAGE code information. Comments received in 
response to this interim rule will be considered in the formation of 
the final rule.

List of Subjects in 48 CFR Part 204, 212, 213, and 252

    Government procurement.

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

0
Therefore, 48 CFR parts 204, 212, 213, and 252 are amended as follows:
0
1. The authority citation for 48 CFR Parts 204, 212, 213, and 252 
continues to read as follows:

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

PART 204--ADMINISTRATIVE MATTERS

0
2. Section 204.203 is revised to read as follows:


Sec.  204.203  Taxpayer identification information.

    (b) The procedure at FAR 4.203(b) does not apply to contracts that 
include the clause at FAR 52.204-7, Central Contractor Registration. 
The payment office obtains the taxpayer identification number and the 
type of organization from the Central Contractor Registration database.


Sec.  204.603  [Removed]

0
3. Section 204.603 is removed.

0
4. Section 204.904 is amended by revising paragraph (2) introductory 
text and paragraph (2)(ii) to read as follows:


Sec.  204.904  Reporting payment information to the IRS.

* * * * *
    (2) Unless an exception in paragraph (1) of this section applies, 
provide as the last page of the copy of the contract sent to the 
payment office--
* * * * *
    (ii) The contractor's Taxpayer Identification Number and type of 
organization, if the contract does not include the clause at FAR 
52.204-7, Central Contractor Registration.


Sec.  204.905  [Removed]

0
5. Section 204.905 is removed.

0
6. Subpart 204.11 is added to read as follows:

Subpart 204.11--Central Contractor Registration

Sec.
204.1103 Procedures.
204.1104 Solicitation provision and contract clauses.


Sec.  204.1103  Procedures.

    (e) On contractual documents transmitted to the payment office, 
also provide the Commercial and Government Entity code in accordance 
with agency procedures.


Sec.  204.1104  Solicitation provision and contract clauses.

    When using the clause at FAR 52.204-7, Central Contractor 
Registration, use the clause with 252.204-7004, Alternate A.

0
7. Section 204.7202-1 is amended by revising paragraph (b)(1) to read 
as follows:


Sec.  204.7202-1  Cage codes.

* * * * *
    (b)(1) If a prospective contractor located in the United States 
must register in the Central Contractor Registration (CCR) database 
(see FAR Subpart 4.11) and does not have a CAGE code, DLIS will assign 
a CAGE code when the prospective contractor submits its request for 
registration in the CCR database. Foreign registrants must obtain a 
North Atlantic Treaty Organization CAGE (NCAGE) code in order to 
register in the CCR database. NCAGE codes may be obtained from the 
Codification Bureau in the foreign registrant's country. Additional 
information on obtaining NCAGE codes is available at http://www.dlis.dla.mil/Forms/Form_AC135.asp.
* * * * *

0
8. Section 204.7207 is amended by revising paragraph (a) to read as 
follows:


Sec.  204.7207  Solicitation provision.

* * * * *
    (a) The solicitation does not include the clause at FAR 52.204-7, 
Central Contractor Registration; and
* * * * *

Subpart 204.73--[Removed]

0
9. Subpart 204.73 is removed.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


Sec.  212.301  [Amended]

0
10. Section 212.301 is amended as follows:
0
a. By removing paragraphs (b)(2) and (f)(iv); and
0
b. By redesignating paragraphs (f)(v) and (vi) as paragraphs (f)(iv) 
and (v) respectively.

PART 213--SIMPLIFIED ACQUISITION PROCEDURES 213.106-3 [Removed]

0
11. Section 213.106-3 is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. Section 252.204-7004 is revised to read as follows:


Sec.  252.204-7004  Alternate A.

Alternate A (Nov 2003)

    As prescribed in 204.1104, substitute the following paragraph 
(a) for paragraph (a) of the clause at FAR 52.204-7:
    (a) Definitions. As used in this clause--
    ``Central Contractor Registration (CCR) database'' means the 
primary Government repository for contractor information required 
for the conduct of business with the Government.
    ``Commercial and Government Entity (CAGE) code'' means--
    (1) A code assigned by the Defense Logistics Information Service 
(DLIS) to identify a commercial or Government entity; or
    (2) A code assigned by a member of the North Atlantic Treaty 
Organization that DLIS records and maintains in the CAGE master 
file. This type of code is known as an ``NCAGE code.''
    ``Data Universal Numbering System (DUNS) number'' means the 9-
digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify 
unique business entities.
    ``Data Universal Numbering System +4 (DUNS+4) number'' means the 
DUNS number assigned by D&B plus a 4-character suffix that may be 
assigned by a business concern. (D&B has no affiliation with this 4-
character suffix.) This 4-character suffix may be assigned at the 
discretion of the business concern to establish additional CCR 
records for identifying alternative Electronic Funds Transfer (EFT) 
accounts (see Subpart 32.11 of the Federal Acquisition Regulation) 
for the same parent concern.
    ``Registered in the CCR database'' means that--
    (1) The Contractor has entered all mandatory information, 
including the DUNS number or the DUNS+4 number, into the CCR 
database;
    (2) The Contractor's CAGE code is in the CCR database; and

[[Page 64559]]

    (3) The Government has validated all mandatory data fields and 
has marked the records ``Active.''
[FR Doc. 03-28441 Filed 11-13-03; 8:45 am]
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