[Federal Register Volume 70, Number 201 (Wednesday, October 19, 2005)]
[Proposed Rules]
[Pages 60782-60783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20869]





48 CFR Parts 2, 4, and 52

[FAR Case 2005-007]
RIN 9000-AK33

Federal Acquisition Regulation; Central Contractor Registration - 
Taxpayer Identification Number (TIN) Validation

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to include the process of 
validating a Central Contractor Registration (CCR) registrant's 
taxpayer identification number (TIN) with the Internal Revenue Service 
(IRS) to improve data accuracy in the Federal procurement system. 
Additionally, the proposed amendment removes outdated language 
requiring modifications of contracts prior to December 31, 2003, 
regarding CCR.

DATES: Interested parties should submit written comments to the FAR 
Secretariat on or before December 19, 2005 to be considered in the 
formulation of a final rule.

ADDRESSES: Submit comments identified by FAR case 2005-007 by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the FAR case number to submit comments.
     E-mail: [email protected]. Include FAR case 2005-
007 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR case 2005-
007 in all correspondence related to this case. All comments received 
will be posted without change to http://www.acqnet.gov/far/ProposedRules/proposed.htm, including any personal and/or business 
confidential information provided.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755 
for information pertaining to status or publication schedules. For 
clarification of content, contact Mr. Michael O. Jackson, Procurement 
Analyst, at (202) 208-4949. Please cite FAR case 2005-007.


A. Background

    Vendor registration in the CCR as a pre-requisite for being awarded 
a contract has been required in the Department of Defense since 1998, 
for Civilian Agencies since 2003. Since CCR's inception, validation of 
registrants' TINs with the IRS has been contemplated in order to 
improve data accuracy throughout the Federal procurement system. This 
capability, although actively pursued, was never implemented as the 
Internal Revenue Code (I.R.C.) restricts disclosure of TINs without the 
taxpayer's consent, which due to technology at the time, would have 
been costly and inefficient to pursue. However, in its Fall 2004 
``Report to Senate Committee on Governmental Affairs Permanent 
Subcommittee on Investigations,'' the Federal Contractor Tax Compliance 
Task Force (which included the Office of Management and Budget, the 
Department of Treasury, the Department of Defense, the General Services 
Administration, the Department of Justice, and the IRS) recommended 
that `` . . . a consent-based TIN validation under I.R.C. Sec.  6103 
should be instituted.'' The capability for a near real-time/real-time, 
web-based solution integrating the CCR with an IRS validation is now 
able to be pursued due to advancements in technology. The FAR was 
recommended to be updated to specifically identify the validation of 
the TINs as a part of CCR registration.
    Additionally, Subpart 4.11, Central Contractor Registration, 
contains language that was included when this subpart was implemented 
in the FAR in 2003. This outdated language required modifications of 
contracts by December 31, 2003, to include CCR registration 
requirements. As this date is past, the case removes the associated 
    The rule is proposing to amend the FAR by--
    1. Modifying FAR 2.101 to indicate that the validation requirement 
for ``registered in CCR'' includes TIN matching.
    2. Removing FAR 4.1103(a)(3)(i) thru 4.1103(a)(3)(ii) and a part of 
4.1104 to

[[Page 60783]]

remove the language requiring action by December 31, 2003.
    3. Adding detail to the FAR clause at 52.204-7, Central Contractor 
Registration, to specifically identify validation of the TIN as a part 
of the definition ``Registered in the CCR Database,'' and to indicate 
that consent is part of that process.
    4. Removing Alternate I to FAR clause 52.204-7, Central Contractor 
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Councils do not expect this proposed 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., as no 
new requirements are being placed on the vendor community. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. We 
invite comments from small businesses and other interested parties. The 
Councils will consider comments from small entities concerning the 
affected FAR Parts 2, 4, and 52 in accordance with 5 U.S.C. 610. 
Interested parties must submit such comments separately and should cite 
5 U.S.C. 601, et seq. (FAR case 2005-007), in correspondence.

C. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 2, 4, and 52

    Government procurement.

    Dated: October 12, 2005.
Gerald Zaffos,
Director, Contract Policy Division.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2, 4, 
and 52 as set forth below:
    1. The authority citation for 48 CFR parts 2, 4, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).


    2. Amend section 2.101 by revising paragraph (2) of the definition 
``Registered in the CCR database'' to read as follows:

2.101  Definitions.

* * * * *
    Registered in the CCR database * * *
* * * * *
    (2) The Government has validated all mandatory data fields, to 
include validation of the Taxpayer Identification Number (TIN) with the 
Internal Revenue Service (IRS), and has marked the record ``Active''. 
The contractor will be required to provide consent for TIN validation 
to the Government as a part of the CCR registration process.
* * * * *


4.1103  [Amended]

    3. Amend section 4.1103 by removing paragraph (a)(3) and 
redesignating paragraphs (b), (c), (d), and (e) as (a)(3), (b), (c) and 
(d), respectively.

4.1104  [Amended]

    4. Amend section 4.1104 by removing the last sentence.


    5. Amend section 52.204-7 by revising the date of the clause; in 
paragraph (a) by revising paragraph (2) of the definition ``Registered 
in the CCR database''; and by removing Alternate I. The revised text 
reads as follows:

52.204-7  Central Contractor Registration.

* * * * *

Central Contractor Registration (DATE)

    (a) * * *
* * * * *
    Registered in the CCR database * * *
* * * * *
    (2) The Government has validated all mandatory data fields, to 
include validation of the Taxpayer Identification Number (TIN) with the 
Internal Revenue Service (IRS), and has marked the record ``Active''. 
The Contractor will be required to provide consent for TIN validation 
to the Government as a part of the CCR registration process.
[FR Doc. 05-20869 Filed 10-18-05; 8:45 am]