[Federal Register Volume 73, Number 7 (Thursday, January 10, 2008)]
[Rules and Regulations]
[Pages 1830-1831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-178]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252 and Appendix F to Chapter 2

RIN 0750-AF53


Defense Federal Acquisition Regulation Supplement; Receiving 
Reports for Shipments (DFARS Case 2006-D024)

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

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to address requirements for 
the distribution of material inspection and receiving reports under DoD 
contracts. The rule clarifies that two copies of the receiving report 
must be distributed with each shipment.

DATES: Effective Date: January 10, 2008.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Benavides, Defense 
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139, 
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-
1302; facsimile 703-602-7887. Please cite DFARS Case 2006-D024.

SUPPLEMENTARY INFORMATION: 

A. Background

    The clause at DFARS 252.246-7000, Material Inspection and Receiving 
Report, contains requirements for preparing and furnishing material 
inspection and receiving reports to the Government. Contractors can 
satisfy material inspection and receiving report requirements by using 
DD Form 250, in a manner and to the extent required by DFARS Appendix 
F, or by using the Wide Area WorkFlow-Receipt and Acceptance (WAWF-RA) 
electronic form. This rule clarifies that two copies of the receiving 
report (paper copies of either the DD Form 250 or the WAWF-RA report) 
must be distributed with the shipment in accordance with DFARS Appendix 
F. Such clarification is needed to ensure proper identification of all 
shipments.
    DoD published a proposed rule at 71 FR 65769 on November 9, 2006. 
Three

[[Page 1831]]

sources submitted comments on the proposed rule. A discussion of the 
comments is provided below.
    1. Comment: One respondent stated that the rule would increase 
administrative costs by significantly increasing paperwork creation, 
administration, and coordination. The respondent recommended that, at a 
minimum, alternative language be added to allow the use of contractor 
format DD Form 250 material inspection and receiving reports instead of 
WAWF-RA report printing.
    DoD Response: Contractors presently are responsible for 
distributing DD Form 250 in accordance with DFARS Appendix F, Part 4, 
F-401, using the instructions in Tables 1 and 2, which require 
distribution of two copies with each shipment. Therefore, the 
requirement for contractors to print copies of the WAWF-RA report 
instead of the DD Form 250 will not significantly increase the cost or 
effort of preparing shipping documents. Only the forms already in WAWF-
RA must be printed; thus this should not be a significant 
administrative burden. However, to allow flexibility, DoD has amended 
the rule to incorporate the respondent's recommendation that 
contractors be allowed to use the DD Form 250 instead of a printed 
WAWF-RA form.
    2. Comment: One respondent stated that the requirement for two 
paper copies to be distributed with shipments would create unnecessary 
costs and additional administrative burdens for many vendors and would 
unnecessarily duplicate the electronic process, thwarting the goal of 
the WAWF-RA being a paperless system. The respondent further suggested 
that this and similar issues be addressed through the DFARS Procedures, 
Guidance, and Information (PGI) web page rather than as a change to the 
DFARS.
    DoD Response: Printed copies of the receiving report are needed for 
each shipment to eliminate costly stocking, payment, and frustrated 
cargo issues now affecting both DoD and contractors. As noted in the 
response to Comment 1, contractors already are responsible for 
distributing copies of DD Form 250 with the shipment. Therefore, this 
rule will not significantly increase the cost or effort of preparing 
shipping documents. The respondent's recommendation to address this 
issue through PGI is not a feasible solution, since this issue relates 
to contractor requirements, whereas PGI addresses internal DoD 
procedures and guidance.
    3. Comment: One respondent stated that the WAWF-RA receiving report 
does not include the unique identification (UID) tab, where the 
contractor lists UIDs and serial numbers for items requiring them.
    DoD Response: The respondent's comment has been noted; however, the 
content of the WAWF-RA receiving report is outside the scope of this 
DFARS rule.
    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 certifies that this final rule will not 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 makes no significant change to DoD policy for 
preparation and use of material inspection and receiving reports.

C. Paperwork Reduction Act

    The information collection requirements for DoD material inspection 
and receiving reports have been approved by the Office of Management 
and Budget, under Control Number 0704-0248, for use through March 31, 
2008.

List of Subjects in 48 CFR Part 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 252 and Appendix F to chapter 2 are amended as 
follows:
0
1. The authority citation for 48 CFR part 252 and Appendix F to 
subchapter I continues to read as follows:

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

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
2. Section 252.246-7000 is amended by revising the clause date and 
paragraph (b) to read as follows:


252.246-7000  Material Inspection and Receiving Report.

* * * * *
Material Inspection and Receiving Report (JAN 2008)
* * * * *
    (b) Contractor submission of the material inspection and receiving 
information required by Appendix F of the Defense FAR Supplement by 
using the Wide Area WorkFlow-Receipt and Acceptance (WAWF-RA) 
electronic form (see paragraph (b)(1) of the clause at 252.232-7003) 
fulfills the requirement for a material inspection and receiving report 
(DD Form 250). Two copies of the receiving report (paper copies of 
either the DD Form 250 or the WAWF-RA report) shall be distributed with 
the shipment, in accordance with Appendix F, Part 4, F-401, Table 1, of 
the Defense FAR Supplement.

0
3. Appendix F to chapter 2 is amended in Part 4, Section F-401, by 
revising paragraph (a) to read as follows:

Appendix F--Material Inspection and Receiving Report

* * * * *

F-401 Distribution

    (a) The contractor is responsible for distributing the DD Form 
250, including mailing and payment of postage. Use of the Wide Area 
WorkFlow-Receipt and Acceptance (WAWF-RA) electronic form satisfies 
the distribution requirements of this section, except for the copies 
required to accompany shipment.
* * * * *
 [FR Doc. E8-178 Filed 1-9-08; 8:45 am]
BILLING CODE 5001-08-P