[Federal Register Volume 72, Number 148 (Thursday, August 2, 2007)]
[Proposed Rules]
[Pages 42367-42369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14896]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

RIN 0750-AF73


Defense Federal Acquisition Regulation Supplement; Item 
Identification and Valuation Clause Update (DFARS Case 2007-D007)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to update and clarify requirements for 
unique identification and valuation of items delivered under DoD 
contracts. The proposed rule revises the applicable contract clause to 
reflect the current requirements.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 1, 2007, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2007-D007, 
using any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    E-mail: [email protected]. Include DFARS Case 2007-D007 in the subject 
line of the message.
    Fax: (703) 602-7887.
    Mail: Defense Acquisition Regulations System, Attn: Mr. Gary 
Delaney, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
    Hand Delivery/Courier: Defense Acquisition Regulations System, 
Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-
3402.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Mr. Gary Delaney, (703) 602-8384.

SUPPLEMENTARY INFORMATION:

A. Background

    The contract clause at DFARS 252.211-7003, Item Identification and 
Valuation, requires unique identification for all delivered items for 
which the Government's unit acquisition cost is $5,000 or more, and for 
other items designated by the Government. In addition, the clause 
requires identification of the Government's unit acquisition cost for 
all delivered items, and provides instructions to contractors regarding 
the identification and valuation processes.
    This proposed rule revises the clause at DFARS 252.211-7003 to 
update and clarify instructions for the identification and valuation 
processes. The changes include: Updating of references to standards and 
other documents; clarification of the definition of unique item 
identifier; specifically addressing the DoD recognized unique 
identification equivalent, where applicable; clarification of data 
submission requirements for end items and embedded items; and 
clarification of requirements for inclusion of the clause in 
subcontracts.
    This proposed 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 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., 
because the proposed rule does not significantly change existing 
requirements relating to the identification and valuation of items 
delivered under DoD contracts. 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 subpart in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2007-D007.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the proposed 
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.

List of Subjects in 48 CFR Part 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR Part 252 as follows:

[[Page 42368]]

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 252 continues to read as 
follows:

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

    2. Section 252.211-7003 is amended as follows:
    a. By revising the clause date;
    b. In paragraph (a), by revising the definitions of ``Issuing 
agency'' and ``Unique item identifier''; and
    c. By revising paragraphs (c) through (g) to read as follows:


252.211-7003  Item Identification and Valuation.

* * * * *
Item Identification and Valuation (XXX 2007)
    (a) * * *
    Issuing agency means an organization responsible for assigning a 
non-repeatable identifier to an enterprise (i.e., Dun & Bradstreet's 
Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, or 
Defense Logistics Information System (DLIS) Commercial and Government 
Entity (CAGE) Code).
* * * * *
    Unique item identifier means a set of data elements marked on items 
that is globally unique and unambiguous. The term includes a 
concatenated unique item identifier or a DoD recognized unique 
identification equivalent.
* * * * *
    (c) Unique item identifier.
    (1) The Contractor shall provide a unique item identifier for--(i) 
All delivered items for which the Government's unit acquisition cost is 
$5,000 or more;
    (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                 Item description
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------
 
 
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    (iii) Subassemblies, components, and parts embedded within 
delivered items as specified in Attachment Number --.
    (2) The unique item identifier and the component data elements of 
the DoD unique item identification shall not change over the life of 
the item.
    (3) Data syntax and semantics of unique item identifiers. The 
Contractor shall ensure that--
    (i) The encoded data elements (except issuing agency code) of the 
unique item identifier are marked on the item using one of the 
following three types of data qualifiers, as determined by the 
Contractor:
    (A) Application Identifiers (AIs) (Format Indicator 05 of ISO/IEC 
International Standard 15434), in accordance with ISO/IEC International 
Standard 15418, Information Technology--EAN/UCC Application Identifiers 
and Fact Data Identifiers and Maintenance and ANSI MH 10.8.2 Data 
Identifier and Application Identifier Standard.
    (B) Data Identifiers (DIs) (Format Indicator 06 of ISO/IEC 
International Standard 15434), in accordance with ISO/IEC International 
Standard 15418, Information Technology--EAN/UCC Application Identifiers 
and Fact Data Identifiers and Maintenance and ANSI MH 10.8.2 Data 
Identifier and Application Identifier Standard.
    (C) Text Element Identifiers (TEIs) (Format Indicator 12 of ISO/IEC 
International Standard 15434), in accordance with the Air Transport 
Association Common Support Data Dictionary; and
    (ii) The encoded data elements of the unique item identifier 
conform to the transfer structure, syntax, and coding of messages and 
data formats specified for Format Indicators 05, 06, and 12 in ISO/IEC 
International Standard 15434, Information Technology--Transfer Syntax 
for High Capacity Automatic Data Capture Media.
    (4) Unique item identifier.
    (i) The Contractor shall--(A) Determine whether to--(1) Serialize 
within the enterprise identifier;
    (2) Serialize within the part, lot, or batch number; or
    (3) Use a DoD recognized unique identification equivalent; and
    (B) Place the data elements of the unique item identifier 
(enterprise identifier; serial number; DoD recognized unique 
identification equivalent; and for serialization within the part, lot, 
or batch number only: original part, lot, or batch number) on items 
requiring marking by paragraph (c)(1) of this clause, based on the 
criteria provided in 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) For each item that requires unique item identification under 
paragraph (c)(1)(i) or (ii) of this clause, in addition to the 
information provided as part of the Material Inspection and Receiving 
Report specified elsewhere in this contract, the Contractor shall 
report at the time of delivery, either as part of, or associated with, 
the Material Inspection and Receiving Report, the following 
information:
    (1) Unique item identifier.
    (2) Unique item identifier type.
    (3) Issuing agency code (if concatenated unique item identifier is 
used).
    (4) Enterprise identifier (if concatenated unique item identifier 
is used).
    (5) Original part number (if there is serialization within the 
original part number).
    (6) Lot or batch number (if there is serialization within the lot 
or batch number).
    (7) Current part number (optional and only if not the same as the 
original part number).
    (8) Current part number effective date (optional and only if 
current part number is used).
    (9) Serial number (if concatenated unique item identifier is used).
    (10) Government's unit acquisition cost.
    (11) Unit of measure.
    (e) For embedded subassemblies, components, and parts that require 
DoD unique item identification under paragraph (c)(1)(iii) of this 
clause, the Contractor shall report as part of, or

[[Page 42369]]

associated with, the Material Inspection and Receiving Report specified 
elsewhere in this contract, the following information:
    (1) Unique item identifier of the parent item under paragraph 
(c)(1) of this clause that contains the embedded subassembly, 
component, or part.
    (2) Unique item identifier of the embedded subassembly, component, 
or part.
    (3) Unique item identifier type.**
    (4) Issuing agency code (if concatenated unique item identifier is 
used).**
    (5) Enterprise identifier (if concatenated unique item identifier 
is used).**
    (6) Original part number (if there is serialization within the 
original part number).**
    (7) Lot or batch number (if there is serialization within the lot 
or batch number).**
    (8) Current part number (optional and only if not the same as the 
original part number).**
    (9) Current part number effective date (optional and only if 
current part number is used).**
    (10) Serial number (if concatenated unique item identifier is 
used).**
    (11) Description.

    ** Once per item.

    (f) The Contractor shall submit the information required by 
paragraphs (d) and (e) of this clause in accordance with the data 
submission procedures at http://www.acq.osd.mil/dpap/UID/DataSubmission.htm.
    (g) Subcontracts. If the Contractor acquires by subcontract, any 
item(s) for which unique item identification is required in accordance 
with paragraph (c)(1) of this clause, the Contractor shall include this 
clause, including this paragraph (g), in the applicable subcontract(s).
* * * * *
[FR Doc. E7-14896 Filed 8-1-07; 8:45 am]
BILLING CODE 5001-08-P