[Federal Register Volume 68, Number 249 (Tuesday, December 30, 2003)]
[Proposed Rules]
[Pages 75196-75202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31951]


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DEPARTMENT OF DEFENSE

48 CFR Parts 202, 204, 211, 212, 243, and 252

[DFARS Case 2003-D081]


Defense Federal Acquisition Regulation Supplement; Unique Item 
Identification and Valuation

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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[[Page 75197]]

SUMMARY: DoD has issued an interim rule amending Defense Federal 
Acquisition Regulation Supplement (DFARS) policy pertaining to unique 
item identification and valuation. This rule contains changes resulting 
from comments received in response to an interim rule published in the 
Federal Register on October 10, 2003.

DATES: Effective date: January 1, 2004.
    Applicability date: The requirements in this rule apply to all 
solicitations issued on or after January 1, 2004.
    Comment date: Comments on the interim rule should be submitted to 
the address shown below on or before March 1, 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-D081 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: Mr. Steven Cohen, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. 
Please cite DFARS Case 2003-D081.
    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: Mr. Steven Cohen, (703) 602-0293.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD published an interim rule in the Federal Register on October 
10, 2003, applicable to all solicitations issued on or after January 1, 
2004. The interim rule established requirements for contractors to 
furnish unique item identifiers, or other item identification, and to 
provide the Government's acquisition cost of items that are to be 
delivered under a DoD contract.
    Twenty-six sources submitted comments on the interim rule. As a 
result of the significance of the comments, DoD has issued a second 
interim rule. The following is a discussion of the comments and the 
differences between the two rules. Where appropriate, similar comments 
have been grouped together.
    1. Comment: Several comments were made with regard to the 
aggressiveness of the implementation schedule commencing January 1, 
2004.
    DoD Response: DoD agrees that the implementation schedule is 
aggressive. DoD considers the implementation of unique identification 
to be a strategic imperative, necessary to efficiently move supplies to 
warfighters. It will enhance logistics, contracting, and financial 
business transactions supporting U.S. and coalition troops; will enable 
DoD to consistently capture the value of items it buys, control these 
items during their use, and combat counterfeiting of parts; and will 
enable DoD to make appropriate entries into its property 
accountability, inventory, and financial management information systems 
toward achieving compliance with the Chief Financial Officers Act. 
Therefore, the implementation schedule can not be slipped. The 
clarification and streamlining of the ``valuation'' process in this new 
interim rule should assist in making implementation commencing January 
1, 2004, achievable.
    2. Comment: Several comments were made with regard to the timing of 
this new requirement, and the need to implement on an accelerated 
schedule when the aviation industry is suffering from the worst 
business conditions in the history of the industry.
    DoD Response: DoD agrees that the implementation schedule is 
aggressive. A DoD Policy memo dated November 26, 2003, provides some 
relief for the aviation industry by including marking consistent with 
14 CFR Part 45, Identification and Registration Marking, for aircraft, 
aircraft engines, propellers, propeller blades, and hubs as consistent 
with DoD unique identification policy.
    3. Comment: Several comments were made with regard to the 
possibility of waivers from or exceptions to the new requirement.
    DoD Response: The rule is considered to be a strategic imperative, 
necessary to efficiently move supplies to warfighters. No waivers or 
exceptions can be granted.
    4. Comment: Several comments were made with regard to citing MIL-
STD-130K, recommending that the more current version be cited.
    DoD Response: The rule is consistent with the current MIL-STD-130L. 
However, the clause at 252.211-7003 has been amended to eliminate 
reference to a specific MIL-STD-130 version, and to instead require 
compliance with the version of MIL-STD-130 cited in the contract 
Schedule.
    5. Comment: Numerous comments were received addressing difficulties 
and confusion with the policy inserted in DFARS 204.7103 and 204.7104 
concerning contract line and subline item number structure.
    DoD Response: The policy added to DFARS 204.7103 and 204.7104 by 
the previous interim rule has been removed. The existing policy in 
DFARS Subpart 204.71 for contract line, subline, and exhibit line item 
structure is sufficient for the requirements of this rule. Valuation 
information will be included in the Material Inspection and Receiving 
Report provided at the time of delivery.
    6. Comment: Numerous comments were received addressing the 
methodology for assessing the Government's acquisition cost of items 
for cost-type contracts.
    DoD Response: As a result of the concerns raised in the comments, 
DoD has redefined the Government's unit acquisition cost for cost-type 
line, subline, or exhibit line items, as the Contractor's estimated 
fully burdened unit cost to the Government for each item at the time of 
delivery.
    7. Comment: Comments were received highlighting confusion among the 
definitions for ``unique item identifier,'' ``unique item 
identification,'' and the DoD data elements of unique identification.
    DoD Response: As a result of the concerns raised in the comments, 
DoD has amended the clause at DFARS 252.211-7003 to add a definition of 
``DoD unique item identification'' and to clarify the definition of 
``DoD recognized unique identification equivalent, including a 
reference to the Web site at http://www.acq.osd.mil/uid, where all DoD 
recognized unique identification equivalents are listed.
    8. Comment: Numerous comments were received highlighting the cost 
of implementing these requirements, and five comments were received 
citing the cost burden of implementing these requirements for small 
businesses.
    DoD Response: DoD has determined that it is a strategic imperative 
that items valued at or above $5,000, or meeting other specified 
conditions, be marked with unique identification. There are no 
exceptions. Small businesses will find there are a number of vendors, 
many of them small businesses, that can provide unique identification 
marking assistance. DoD considers the cost of implementing unique 
identification requirements to be an allowable cost under FAR Part 31.
    9. Comment: Several comments cited confusion as to what items 
specifically require unique identification and which do not.
    DoD Response: As a result of the concerns raised in the comments, 
DoD has restructured the policy in DFARS 211.274 and the clause at 
252.211-7003 to clarify that all items over $5,000 in value require 
unique identification,

[[Page 75198]]

items under $5,000 requiring unique identification must be identified 
in paragraph (c)(1)(ii) of the clause, and embedded items that require 
unique identification will be identified in a Contract Data 
Requirements List or other exhibit that is cited in paragraph 
(c)(1)(iii) of the clause.
    10. Comment: A respondent suggested that a Contract Data 
Requirements List be used for unique identification when required below 
the contract line or subline item level.
    DoD Response: DoD has revised the rule so that subassemblies, 
components, and parts that are embedded in items that require unique 
identification will be identified in a Contract Data Requirements List 
or other exhibit that is cited in paragraph (c)(1)(iii) of the clause 
at DFARS 252.211-7003.
    11. Comment: Several respondents suggested that unique 
identification is inconsistent with FAR Part 12, Acquisition of 
Commercial Items, and that an exception be made for items acquired 
under FAR Part 12 contracts.
    DoD Response: Do not concur. The rule is considered to be a 
strategic imperative, necessary to efficiently move supplies to 
warfighters. DoD acquires a large number of items under FAR Part 12 
contracts. These items can not be excluded from unique identification 
requirements.
    12. Comment: A respondent asked whether unique identification 
requirements will apply to classified contracts; another respondent 
asked whether the requirements will apply to foreign military sales 
contracts.
    DoD Response: Yes. There are no exceptions to the policy.
    13. Comment: Several respondents cited problems and confusion 
resulting from the requirement that acquisition cost be identified a 
contract line, subline, or informational subline item when structuring 
the contract, while acquisition cost for cost-type contracts could not 
be identified until delivery.
    DoD Response: The rule has been revised to clarify that the 
contractor is required to provide the unique identification and the 
acquisition cost at the time of delivery.
    14. Comment: Several comments were received concerning 
applicability of the rule to existing contracts, orders under existing 
basic ordering agreements (BOAs), and options under existing contracts.
    DoD Response: The rule applies to new solicitations issued on or 
after January 1, 2004. DoD Policy memorandum dated November 26, 2003, 
Update to Policy for Unique Identification (UID) of Tangible Items--New 
Equipment, Major Modifications, and Reprocurements of Equipment and 
Spares, addresses this issue as follows: ``The UID policy strongly 
encourages Component Acquisition Executives to incorporate UID 
requirements into ongoing contracts where it makes business sense to do 
so. Since BOAs awarded before January 1, 2004, would be an ongoing 
agreement, UID requirements can be included in orders issued under the 
BOA whenever the program/item manager determines it is feasible to do 
so.'' Component Acquisition Executives should also incorporate UID 
requirements when exercising options where it makes business sense to 
do so.
    15. Comment: A respondent suggested unique identification is 
inconsistent with the simplified acquisition threshold, and that the 
prescription for the clause at DFARS 252.211-7003 should exclude 
contracts below the simplified acquisition threshold.
    DoD Response: Do not concur. The rule is considered to be a 
strategic imperative, necessary to efficiently move supplies to 
warfighters. Items acquired under the simplified acquisition threshold 
can not be excluded from unique identification requirements.
    16. Comment: The semantics/syntax (ISO 15434/15418) use unprintable 
characters for record separators and group separators. It is impossible 
for the quality organization to verify the validity of the 2D Matrix 
content if the visual representation of ``required'' characters is, in-
effect, ``invisible (unprintable)''. As a part is marked, the ISO 9000 
quality requirements specify that the content of the information 
encoded into the 2D Matrix be verified. ``Invisible'' characters are 
``impossible'' to verify. As so, this solution may not be ISO 9000 
compliant. This should be verified.
    DoD Response: The only standard that uses unprintable characters 
for record separators and group separators is ISO/IEC 15434. It will be 
sufficient to verify only that the software of the automatic 
information technology readers and printers used to construct and print 
the data matrix symbol is compliant with ISO/IEC 15434.
    17. Comment: Procedures should be developed to address how unique 
identification will be constructed when the Government buys items that 
are surplus, remanufactured, or overhauled after initial manufacture.
    DoD Response: If the item does not already have unique 
identification and meets the criteria for unique identification, the 
enterprise furnishing the item must provide unique identification 
marking as part of the purchase price.
    18. Comment: In research and development contracting, software is 
often a deliverable item. In some cases, the software to be delivered 
is commercial software, and the acquisition cost would be the price 
paid for the license. However, most of the software being delivered 
under a research and development contract is software that was 
developed during performance. The ``item'' definition neither includes 
nor excludes software. Is commercial software considered an ``item'' by 
definition. Is developed software considered an ``item''? Both are 
required to be delivered, are produced, and are tangible. However, one 
could also argue that developed software is data, because the source 
and object code and manuals are delivered via the use of Contract Data 
Requirements Lists. Therefore, the acquisition cost of the medium (CD, 
disk) in which the software is delivered would be minimal and would not 
meet the threshold requirements of the clause.
    DoD Response: For purposes of unique identification and valuation, 
software, manuals, and other forms of information are not considered to 
be ``items''. The definition of ``item'' has been changed to refer to 
``a single hardware article or unit formed by a grouping of 
subassemblies, components, or constituent parts'' to clarify this 
point.
    19. Comment: Two respondents suggested there is no value to the 
rule.
    DoD Response: Do not concur. These are subjective judgments. DoD 
finds considerable value in the rule.
    20. Comment: One respondent suggested that the rule was unclear and 
should be redrafted.
    DoD Response: DoD has redrafted significant portions of the rule to 
improve clarity.
    21. Comment: One respondent asked how the Government would identify 
which type of identification system the contractor is using, if 
multiple choices were allowed, and whether Government personnel would 
have to be educated on the different identification systems?
    DoD Response: Marking must be in accordance with the version of 
MIL-STD-130 in effect at the time of contract award, regardless of the 
system used to mark items. Government personnel are familiar with the 
MIL-STD-130.
    22. Comment: A respondent asked whether references to ``cost'' 
should be changed to ``value,'' and whether all references to contract 
line item structure should be incorporated in the prescriptive language 
of DFARS Part

[[Page 75199]]

204 rather than DFARS Part 11 requirements policy.
    DoD Response: For clarity, all references to ``value'' have been 
removed, and ``unit acquisition cost'' has been more clearly defined. 
This interim rule removes the prescriptive policy in DFARS Part 204 
that was added by the previous interim rule.
    23. Comment: A respondent asked whether valuation needs to be 
captured down to zero. The respondent suggested that the cost of 
capturing the value of low-dollar items under cost-type contracts may 
exceed the benefits.
    DoD Response: The definition of ``unit acquisition cost'' under 
cost-type line items has been changed to capture the contractor's 
estimate of the Government's unit cost. This should avoid the 
unnecessary administrative burden envisioned by the respondent.
    24. Comment: A respondent asked how development items are to be 
handled. For example, how will a subline item for development work on 
one or more pieces of hardware be identified and part numbered?
    DoD Response: The estimated unit acquisition cost for a development 
item will be handled the same as the estimated unit acquisition cost 
for any other delivered item. The contractor will use its business 
judgment to provide the Government with its best estimate of the fully 
burdened cost to the Government.
    25. Comment: A respondent asked how modification kits that are not 
separately stock listed items, but comprise several hundred individual 
parts/items, would be handled.
    DoD Response: Modification kits will be handled the same as any 
other delivered item. Subassemblies, components, or parts that are 
embedded within the kit will need to be separately identified if unique 
identification is required, but acquisition cost will not be required.
    26. Comment: A respondent suggested that the clause at DFARS 
252.211-7003 should be limited to the marking requirements (formerly 
paragraphs (a) thru (c)) and the flow down requirement (formerly 
paragraph (f)). The respondent suggested that former paragraph (d), 
Item records, duplicates data that already exists either in the 
contract or on the associated DD 250/Memo of Shipment. The only 
exception is the unique identification itself.
    DoD Response: Concur in part. The rule has been amended to specify 
that the data required by the clause will be submitted in the Material 
Inspection and Receiving Report. As a result, DoD was able to eliminate 
the DFARS part 204 line item structure requirements for this data.
    27. Comment: A respondent suggested that the contractor should be 
told how long the assigned unique identification data should be 
maintained. For example, most contract data presently must be 
maintained until final contract payment plus 3 years. If the Government 
wished the unique identification data to be maintained longer, it 
should be stated here. Alternatively, if the only requirement is that 
the contractor ensure that a unique identifier is not duplicated, this 
is not a records retention requirement, but rather a requirement to 
ensure a system is set up to avoid duplication. Therefore, record 
retention would be up to the contractor.
    DoD Response: The clause at DFARS 252.211-7003 defines ``Unique 
item identifier'' as a set of data marked on items that is globally 
unique, unambiguous, and robust enough to ensure data information 
quality throughout life and to support multi-faceted business 
applications and users.
    28. Comment: A respondent suggested that the Valuation paragraph 
(formerly paragraph (e)) of the clause at 252.211-7003, is unnecessary. 
The assignment of value for items to be delivered to the Government 
should be a contracting officer responsibility under DFARS 204.7103. 
The language in the rule creates an additional ``reporting'' 
requirement that is inconsistent with existing processes and the 
Paperwork Reduction Act determination.
    DoD Response: Do not concur. The valuation portion of the rule is 
the data currently provided on the DD Form 250, Material Inspection and 
Receiving Report.
    29. Comment: DFARS Appendix F should be revised to specify the data 
the Government needs on the DD Form 250 or Memo of Shipment. These 
existing documents should be the vehicle through which the Government 
collects the desired data. Most of the data listed in the Item records 
paragraph (formerly paragraph (d)) of the clause at DFARS 252.211-7003 
is already available in the contract and on the DD250/Memo of Shipment. 
The DFARS rule should require contractors to continue to provide that 
data on those documents with the addition of the unique identification 
specific data; once Wide Area WorkFlow revisions are fully operational, 
the Government will have the data and the mechanism to populate its 
data base without further contractor intervention.
    DoD Response: Revisions to DFARS Appendix F are being considered 
separately under DFARS Case 2003-D085, as part of DoD's DFARS 
Transformation Initiative.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This 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. DoD has prepared an initial 
regulatory flexibility analysis, which is summarized as follows:
    This interim rule contains requirements for DoD contractors to 
provide unique identification for items delivered to DoD, through the 
use of item identification marking. In addition, the rule contains 
requirements for DoD contractors to identify the Government's unit 
acquisition cost of all hardware items delivered under a contract. The 
objective of the rule is to improve management of DoD assets. DoD 
considers this rule to be a strategic imperative, necessary to 
efficiently move supplies to warfighters. This rule will facilitate DoD 
compliance with the Chief Financial Officers Act of 1990 (Pub. L. 101-
576). The rule does not duplicate, overlap, or conflict with any other 
Federal rules. There are no known significant alternatives that will 
accomplish the objectives of the rule.
    A copy of the analysis may be obtained from the point of contact 
specified herein.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any new 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 that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule contains requirements for contractors to uniquely 
mark and to identify the Government's unit acquisition cost of items 
delivered to DoD. DoD considers the implementation of unique 
identification to be a strategic imperative, necessary to efficiently 
move supplies to warfighters. It will enhance logistics, contracting, 
and financial business transactions supporting U.S. and coalition 
troops; will enable DoD to consistently capture the value of items it 
buys, control these

[[Page 75200]]

items during their use, and combat counterfeiting of parts; and will 
enable DoD to make appropriate entries into its property 
accountability, inventory, and financial management information systems 
toward achieving compliance with the Chief Financial Officers Act.
    On October 10, 2003, DoD issued an interim rule to implement unique 
identification policy, effective January 1, 2004. As a result of public 
comments received on the interim rule, DoD has determined that 
significant changes are needed to streamline and clarify the rule and 
to ensure effective implementation of DoD's unique identification 
policy. Comments received in response to this interim rule will be 
considered in the formation of the final rule.

List of Subjects in 48 CFR Parts 202, 204, 211, 212, 243, and 252

    Government procurement.

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

    Therefore, 48 CFR Parts 202, 204, 211, 212, 243, and 252 are 
amended as follows:
    1. The authority citation for 48 CFR Parts 202, 204, 211, 212, 243, 
and 252 continues to read as follows:

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

PART 202--DEFINITIONS OF WORDS AND TERMS


202.101  [Amended]

    2. Section 202.101 is amended by removing the definition of 
``Unique item identifier'', which was added at 68 FR 58632 on October 
10, 2003, to become effective on January 1, 2004.

PART 204--ADMINISTRATIVE MATTERS

    3. Section 204.7104-1 is amended by revising paragraph (a)(3) to 
read as follows:


204.7104-1  Criteria for establishing.

* * * * *
    (a) * * *
    (3) Informational subline items shall be used to identify each 
accounting classification citation assigned to a single contract line 
item number when use of multiple citations is authorized (see 204.7103-
1(a)(4)(ii)).
* * * * *


204.7104-2  [Amended]

    4. Section 204.7104-2 is amended by removing paragraphs (e)(10) and 
(11), which were added at 68 FR 58632 on October 10, 2003, to become 
effective on January 1, 2004.

PART 211--DESCRIBING AGENCY NEEDS

    5. Sections 211.274 through 211.274-3, which were added at 68 FR 
58633 on October 10, 2003, to become effective on January 1, 2004, are 
revised to read as follows:


211.274  Item identification and valuation.


211.274-1  Item identification.

    (a) DoD unique item identification, or a DoD recognized unique 
identification equivalent, is required for--
    (1) All items for which the Government's unit acquisition cost is 
$5,000 or more;
    (2) Items for which the Government's unit acquisition cost is less 
than $5,000, when determined necessary by the requiring activity for 
serially managed, mission essential, or controlled inventory equipment, 
repairable items, or consumable items or material; and
    (3) Subassemblies, components, and parts embedded within an item 
identified on a Contract Data Requirements List or other exhibit (see 
http://www.acq.osd.mil/uid).
    (b) If unique item identification is not required, the contractor 
shall provide commonly accepted commercial marks.


211.274-2  Government's unit acquisition cost.

    (a) Contractors shall identify the Government's unit acquisition 
cost for all items delivered.
    (b) The Government's unit acquisition cost is--
    (1) For fixed-price type line, subline, or exhibit line items, the 
unit price identified in the contract at the time of delivery.
    (2) For cost-type line, subline, or exhibit line items, the 
contractor's estimated fully burdened unit cost to the Government for 
each item at the time of delivery.
    (c) The Government's unit acquisition cost of subassemblies, 
components, and parts embedded in delivered items need not be 
identified.


211.274-3  Contract clause.

    Use the clause at 252.211-7003, Item Identification and Valuation, 
in solicitations and contracts that require delivery of one or more 
``items'' as defined at 252.211-7003(a).
    (a) Complete paragraph (c)(1)(ii) of the clause with the contract 
line, subline, or exhibit line item number and description of any 
item(s) below $5,000 in unit acquisition cost for which the requiring 
activity determines that DoD unique item identification or a DoD 
recognized unique identification equivalent is required.
    (b) Complete paragraph (c)(1)(iii) of the clause with the 
applicable exhibit number or Contract Data Requirements List item 
number, when DoD unique item identification or a DoD recognized unique 
identification equivalent is required for subassemblies, components, or 
parts embedded within deliverable items.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.301  [Amended]

    6. Section 212.301 is amended by redesignating paragraph (f)(vii), 
which was added at 68 FR 58633 on October 10, 2003, to become effective 
on January 1, 2004, as paragraph (f)(vi).

PART 243--CONTRACT MODIFICATIONS


243.171  [Amended]

    7. Amendment 7 to section 243.171, which was published at 68 FR 
58633 on October 10, 2003, is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    8. Section 252.211-7003, which was added at 68 FR 58633 on October 
10, 2003, to become effective on January 1, 2004, is revised to read as 
follows:


252.211-7003  Item Identification and Valuation.

    As prescribed in 211.274-3, use the following clause:

Item Identification and Valuation (Jan 2004)

    (a) Definitions. As used in this clause--
    Automatic identification device means a device, such as a reader 
or interrogator, used to retrieve data encoded on machine-readable 
media.
    Commonly accepted commercial marks means any system of marking 
products for identification that is in use generally throughout 
commercial industry or within commercial industry sectors. Some 
examples of commonly accepted commercial marks are: EAN.UCC Global 
Trade Item Number; Automotive Industry Action Group B-4 Parts 
Identification and Tracking Application Standard, and B-2 Vehicle 
Identification Number Bar Code Label Standard; American Trucking 
Association Vehicle Maintenance Reporting Standards; Electronic 
Industries Alliance EIA 802 Product Marking Standard; and 
Telecommunications Manufacturers Common Language Equipment 
Identification Code.
    Concatenated unique item identifier means--
    (1) For items that are serialized within the enterprise 
identifier, the linking together of the unique identifier data 
elements in order of the issuing agency code, enterprise identifier, 
and unique serial number within the enterprise identifier; or

[[Page 75201]]

    (2) For items that are serialized within the original part 
number, the linking together of the unique identifier data elements 
in order of the issuing agency code, enterprise identifier, original 
part number, and serial number within the part number.
    Data qualifier means a specified character (or string of 
characters) that immediately precedes a data field that defines the 
general category or intended use of the data that follows.
    DoD recognized unique identification equivalent means a unique 
identification method that is in commercial use and has been 
recognized by DoD. All DoD recognized unique identification 
equivalents are listed at http://www.acq.osd.mil/uid.
    DoD unique item identification means marking an item with a 
unique item identifier that has machine-readable data elements to 
distinguish it from all other like and unlike items. In addition--
    (1) For items that are serialized within the enterprise 
identifier, the unique identifier shall include the data elements of 
issuing agency code, enterprise identifier, and a unique serial 
number.
    (2) For items that are serialized within the part number within 
the enterprise identifier, the unique identifier shall include the 
data elements of issuing agency code, enterprise identifier, the 
original part number, and the serial number.
    Enterprise means the entity (i.e., a manufacturer or vendor) 
responsible for assigning unique item identifiers to items.
    Enterprise identifier means a code that is uniquely assigned to 
an enterprise by a registration (or controlling) authority.
    Government's unit acquisition cost means--
    (1) For fixed-price type line, subline, or exhibit line items, 
the unit price identified in the contract at the time of delivery; 
and
    (2) For cost-type line, subline, or exhibit line items, the 
Contractor's estimated fully burdened unit cost to the Government 
for each item at the time of delivery.
    Issuing agency code means a code that designates the 
registration (or controlling) authority.
    Item means a single hardware article or unit formed by a 
grouping of subassemblies, components, or constituent parts required 
to be delivered in accordance with the terms and conditions of this 
contract.
    Machine-readable means an automatic information technology 
media, such as bar codes, contact memory buttons, radio frequency 
identification, or optical memory cards.
    Original part number means a combination of numbers or letters 
assigned by the enterprise at asset creation to a class of items 
with the same form, fit, function, and interface.
    Registration (or controlling) authority means an organization 
responsible for assigning a non-repeatable identifier to an 
enterprise (i.e., Dun & Bradstreet's Data Universal Numbering System 
(DUNS) Number, Uniform Code Council (UCC)/EAN International (EAN) 
Company Prefix, or Defense Logistics Information System (DLIS) 
Commercial and Government Entity (CAGE) Code).
    Serial number within the enterprise identifier or unique serial 
number means a combination of numbers, letters, or symbols assigned 
by the enterprise to an item that provides for the differentiation 
of that item from any other like and unlike item and is never used 
again within the enterprise.
    Serial number within the part number or serial number means a 
combination of numbers or letters assigned by the enterprise to an 
item that provides for the differentiation of that item from any 
other like item within a part number assignment.
    Serialization within the enterprise identifier means each item 
produced is assigned a serial number that is unique among all the 
tangible items produced by the enterprise and is never used again. 
The enterprise is responsible for ensuring unique serialization 
within the enterprise identifier.
    Serialization within the part number means each item of a 
particular part number is assigned a unique serial number within 
that part number assignment. The enterprise is responsible for 
ensuring unique serialization within the part number within the 
enterprise identifier.
    Unique item identification means marking an item with machine-
readable data elements to distinguish it from all other like and 
unlike items.
    Unique item identifier means a set of data marked on items that 
is globally unique, unambiguous, and robust enough to ensure data 
information quality throughout life and to support multi-faceted 
business applications and users.
    Unique item identifier type means a designator to indicate which 
method of uniquely identifying a part has been used. The current 
list of accepted unique item identifier types is maintained at 
http://www.acq.osd.mil/uid.
    (b) The Contractor shall deliver all items under a contract 
line, subline, or exhibit line item.
    (c) Unique item identification.
    (1) The Contractor shall provide DoD unique item identification, 
or a DoD recognized unique identification equivalent, for--
    (i) All items for which the Government's unit acquisition cost 
is $5,000 or more; and
    (ii) The following items for which the Government's unit 
acquisition cost is less than $5,000:

Contract Line, Subline, or
Exhibit Line Item Number

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Item Description
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    (iii) Subassemblies, components, and parts embedded within items 
as specified in Exhibit Number ------ or Contract Data Requirements 
List Item Number ------.
    (2) The unique item identifier and the component data elements 
of the unique item identifier shall not change over the life of the 
item.
    (3) Data syntax and semantics. The Contractor shall--
    (i) Mark the encoded data elements (except issuing agency code) 
on the item using any of the following three types of data 
qualifiers, as specified elsewhere in the contract:
    (A) Data Identifiers (DIs) (Format 06).
    (B) Application Identifiers (AIs) (Format 05), in accordance 
with ISO/IEC International Standard 15418, Information Technology--
EAN/UCC Application Identifiers and ASC MH 10 Data Identifiers and 
ASC MH 10 Data Identifiers and Maintenance.
    (C) Text Element Identifiers (TEIs), in accordance with the DoD 
collaborative solution ``DD'' format for use until the final 
solution is approved by ISO JTC1/SC 31. The DoD collaborative 
solution is described in Appendix D of the DoD Guide to Uniquely 
Identifying Items, available at http://www.acq.osd.mil/uid; and
    (ii) Use high capacity automatic identification devices in 
unique identification that conform to ISO/IEC International Standard 
15434, Information Technology--Syntax for High Capacity Automatic 
Data Capture Media.
    (4) Marking items.
    (i) Unless otherwise specified in the contract, data elements 
for unique identification (enterprise identifier, serial number, 
and, for serialization within the part number only, original part 
number) shall be placed on items requiring marking by paragraph 
(c)(1) of this clause in accordance with the version of MIL-STD-130, 
Identification Marking of U.S. Military Property, cited in the 
contract Schedule.
    (ii) The issuing agency code--
    (A) Shall not be placed on the item; and
    (B) Shall be derived from the data qualifier for the enterprise 
identifier.
    (d) Commonly accepted commercial marks. The Contractor shall 
provide commonly accepted commercial marks for items that are not 
required to have unique identification under paragraph (c) of this 
clause.
    (e) Material Inspection and Receiving Report. The Contractor 
shall report at the time of delivery, as part of the Material 
Inspection and Receiving Report specified elsewhere in this 
contract, the following information:
    (1) Description.*
    (2) Unique identifier**, consisting of--
    (i) Concatenated DoD unique item identifier; or
    (ii) DoD recognized unique identification equivalent.
    (3) Unique item identifier type.**
    (4) Issuing agency code (if DoD unique item identifier is 
used).**
    (5) Enterprise identifier (if DoD unique item identifier is 
used).**
    (6) Original part number.**
    (7) Serial number.**
    (8) Quantity shipped.*
    (9) Unit of measure.*
    (10) Government's unit acquisition cost.*
    (11) Ship-to code.
    (12) Shipment date.
    (13) Contractor's CAGE code or DUNS number.
    (14) Contract number.
    (15) Contract line, subline, or exhibit line item number.*
    (16) Acceptance code.

    * Once per contract line, subline, or exhibit line item.

[[Page 75202]]

    ** Once per item.

    (f) Material Inspection and Receiving Report for embedded 
subassemblies, components, and parts requiring unique item 
identification. The Contractor shall report at the time of delivery, 
as part of the Material Inspection and Receiving Report specified 
elsewhere in this contract, the following information:
    (1) Unique item identifier of the item delivered under a 
contract line, subline, or exhibit line item that contains the 
embedded subassembly, component, or part.
    (2) Unique item identifier of the embedded subassembly, 
component, or part, consisting of--
    (i) Concatenated DoD unique item identifier; or
    (ii) DoD recognized unique identification equivalent.
    (3) Unique item identifier type.**
    (4) Issuing agency code (if DoD unique item identifier is 
used).**
    (5) Enterprise identifier (if DoD unique item identifier is 
used).**
    (6) Original part number.**
    (7) Serial number.**
    (8) Unit of measure.
    (9) Description.
    ** Once per item.

    (g) The Contractor shall submit the information required by 
paragraphs (e) and (f) of this clause in accordance with the 
procedures at http://www.acq.osd.mil.uid.
    (h) Subcontracts. If paragraph (c)(1)(iii) of this clause 
applies, the Contractor shall include this clause, including this 
paragraph (h), in all subcontracts issued under this contract.

(End of clause)

[FR Doc. 03-31951 Filed 12-29-03; 8:45 am]
BILLING CODE 5001-08-P