[Federal Register Volume 76, Number 182 (Tuesday, September 20, 2011)]
[Unknown Section]
[Pages 58142-58144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23945]



Defense Acquisition Regulations System

48 CFR Parts 211 and 252

RIN 0750-AH05

Defense Federal Acquisition Regulation Supplement; Passive Radio 
Frequency Identification (DFARS Case 2010-D014)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update requirements 
relating to the use of passive radio frequency identification (RFID).

DATES: Effective Date: September 20, 2011.

FOR FURTHER INFORMATION CONTACT: Dustin Pitsch, telephone 703-602-0289.


I. Background

    DoD published a proposed rule in the Federal Register at 76 FR 9714 
on February 26, 2011, in response to a request of the Office of 
Logistics and Materiel Readiness of the Office of the Secretary of 
Defense (Acquisition, Technology, and Logistics) to update requirements 
relating to the use of passive radio frequency identification (RFID).

II. Discussion and Analysis

    DoD received comments from two respondents in response to the 
proposed rule. One respondent expressed general support for the rule.
    Comment: A respondent stated that RFID tags will play an expanded 
role in inventory management and asset protection for the DoD and 
expanded use should occur soon.
    Response: DoD agrees that RFID use in inventory management is 
expanding and will continue to expand.
    Comment: A respondent stated that RFID tracking is not the current 
industry standard for inventory management of pharmaceuticals and that 
adding this requirement would cost the suppliers and DoD a significant 
amount of time and money to implement. This respondent believes that 
the current use of 2D barcodes is sufficient for tracking 
pharmaceuticals and that the DoD should not require the use of passive 
    Response: DoD agrees and the final rule does not include a 
requirement for passive RFID use for pharmaceuticals.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD has prepared a Final Regulatory Flexibility Analysis (FRFA) 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows.
    The DFARS previously listed approximately 20 specific DoD activity 
addresses and provides the authority for using other ship-to locations 
``outside the contiguous United States'' under certain circumstances. 
However, the Defense Logistics Agency and the Navy proposed adding more 
than 200 additional sites, making it impracticable to list all DoD 
passive RFID addresses in the DFARS text or its associated clause. 
Instead, this rule adds a Web site for contractors to find the RFID 
Identifier for each specific DoD ship-to address that uses RFID 
technology. Including the Web site in the DFARS has the added benefit 
of enabling the addition of new ship-to addresses in the future as 
necessary without the need to revise the DFARS in each case. This final 
rule amends the revised, shortened list of ship-to addresses at DFARS 
211.275-2(a)(2) to allow contracting officers to add tagging 
requirements to contract deliverables shipping to DoDAACs not 
specifically included in the list as they deem necessary.
    The current OMB information collection justification for the clause 
associated with the current DFARS, 252.211-7006, entitled ``Radio 
Frequency Identification,'' lists the number of contractors impacted by 
the RFID requirement as 25,500. While each contractor has multiple 
submissions (one for each shipment), it takes only 1.12 seconds per 
response. The rule changes impact, if any, should decrease the response 
time and not increase it.

V. Paperwork Reduction Act

    There are information collection requirements associated with the 
use of RFIDs. However, there will be no substantive change to the 
existing information collection requirements currently approved under 
OMB Information Control Number 0704-0434, DFARS; Radio Frequency 
Identification Advance Shipment Notices. Therefore, DoD has determined 
that the final rule has no material impact on the approved collection.

List of Subjects in 48 CFR Parts 211 and 252

    Government procurement.

Mary Overstreet,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 211 and 252 are amended as follows:

1. The authority citation for 48 CFR parts 211 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

[[Page 58143]]


2. The section heading for section 211.275 is revised to read as 

211.275  Passive radio frequency identification.

211.275-1  [Amended]

3. Section 211.275-1 is amended to add the word ``Passive'' before the 
phrase ``Radio Frequency Identification''.

4. Section 211.275-2 is amended to--
a. Revise paragraph (a) introductory text; and
b. Revise paragraph (a)(2).
    The revisions read as follows:

211.275-2  Policy.

    (a) Except as provided in paragraph (b) of this section, radio 
frequency identification (RFID), in the form of a passive RFID tag, is 
required for cases and palletized unit loads packaging levels and any 
additional consolidation level(s) deemed necessary by the requiring 
activity for shipments of items that--
* * * * *
    (2) Will be shipped to one of the locations listed at http://www.acq.osd.mil/log/rfid/ or to--
    (i) A location outside the contiguous United States when the 
shipment has been assigned Transportation Priority 1; or
    (ii) Any additional location(s) deemed necessary by the requiring 
* * * * *

5. Section 211.275-3 is revised to read as follows:

211.275-3  Contract clause.

    Use the clause at 252.211-7006, Passive Radio Frequency 
Identification, in solicitations and contracts that will require 
shipment of items meeting the criteria at 211.275-2, and complete 
paragraph (b)(1)(ii) of the clause at 252.211-7006 as appropriate.


6. Section 252.211-7006 is revised to read as follows:

252.211-7006  Passive Radio Frequency Identification.

    As prescribed in 211.275-3, use the following clause:

Passive Radio Frequency Identification (SEP 2011)

    (a) Definitions. As used in this clause--
    Advance shipment notice means an electronic notification used to 
list the contents of a shipment of goods as well as additional 
information relating to the shipment, such as passive radio 
frequency identification (RFID) or item unique identification (IUID) 
information, order information, product description, physical 
characteristics, type of packaging, marking, carrier information, 
and configuration of goods within the transportation equipment.
    Bulk commodities means the following commodities, when shipped 
in rail tank cars, tanker trucks, trailers, other bulk wheeled 
conveyances, or pipelines:
    (1) Sand.
    (2) Gravel.
    (3) Bulk liquids (water, chemicals, or petroleum products).
    (4) Ready-mix concrete or similar construction materials.
    (5) Coal or combustibles such as firewood.
    (6) Agricultural products such as seeds, grains, or animal feed.
    Case means either a MIL-STD-129 defined exterior container 
within a palletized unit load or a MIL-STD-129 defined individual 
shipping container.
    Electronic Product Code\TM\ (EPC[supreg]) means an 
identification scheme for universally identifying physical objects 
via RFID tags and other means. The standardized EPC\TM\ data 
consists of an EPC\TM\ (or EPC\TM\ identifier) that uniquely 
identifies an individual object, as well as an optional filter value 
when judged to be necessary to enable effective and efficient 
reading of the EPC\TM\ tags. In addition to this standardized data, 
certain classes of EPC\TM\ tags will allow user-defined data. The 
EPC\TM\ Tag Data Standards will define the length and position of 
this data, without defining its content.
    EPCglobal[supreg] means a subscriber-driven organization 
comprised of industry leaders and organizations focused on creating 
global standards for the adoption of passive RFID technology.
    Exterior container means a MIL-STD-129 defined container, 
bundle, or assembly that is sufficient by reason of material, 
design, and construction to protect unit packs and intermediate 
containers and their contents during shipment and storage. It can be 
a unit pack or a container with a combination of unit packs or 
intermediate containers. An exterior container may or may not be 
used as a shipping container.
    Palletized unit load means a MIL-STD-129 defined quantity of 
items, packed or unpacked, arranged on a pallet in a specified 
manner and secured, strapped, or fastened on the pallet so that the 
whole palletized load is handled as a single unit. A palletized or 
skidded load is not considered to be a shipping container. A loaded 
463L System pallet is not considered to be a palletized unit load. 
Refer to the Defense Transportation Regulation, DoD 4500.9-R, Part 
II, Chapter 203, for marking of 463L System pallets.
    Passive RFID tag means a tag that reflects energy from the 
reader/interrogator or that receives and temporarily stores a small 
amount of energy from the reader/interrogator signal in order to 
generate the tag response. The only acceptable tags are EPC Class 1 
passive RFID tags that meet the EPCglobal\TM\ Class 1 Generation 2 
    Radio frequency identification (RFID) means an automatic 
identification and data capture technology comprising one or more 
reader/interrogators and one or more radio frequency transponders in 
which data transfer is achieved by means of suitably modulated 
inductive or radiating electromagnetic carriers.
    Shipping container means a MIL-STD-129 defined exterior 
container that meets carrier regulations and is of sufficient 
strength, by reason of material, design, and construction, to be 
shipped safely without further packing (e.g., wooden boxes or 
crates, fiber and metal drums, and corrugated and solid fiberboard 
    (b)(1) Except as provided in paragraph (b)(2) of this clause, 
the Contractor shall affix passive RFID tags, at the case- and 
palletized- unit-load packaging levels, for shipments of items 
    (i) Are in any of the following classes of supply, as defined in 
DoD 4140.1-R, DoD Supply Chain Materiel Management Regulation, 
    (A) Subclass of Class I--Packaged operational rations.
    (B) Class II--Clothing, individual equipment, tentage, 
organizational tool kits, hand tools, and administrative and 
housekeeping supplies and equipment.
    (C) Class IIIP--Packaged petroleum, lubricants, oils, 
preservatives, chemicals, and additives.
    (D) Class IV--Construction and barrier materials.
    (E) Class VI--Personal demand items (non-military sales items).
    (F) Subclass of Class VIII--Medical materials (excluding 
pharmaceuticals, biologicals, and reagents--suppliers should limit 
the mixing of excluded and non-excluded materials).
    (G) Class IX--Repair parts and components including kits, 
assemblies and subassemblies, reparable and consumable items 
required for maintenance support of all equipment, excluding 
medical-peculiar repair parts; and
    (ii) Are being shipped to one of the locations listed at http://www.acq.osd.mil/log/rfid/ or to--
    (A) A location outside the contiguous United States when the 
shipment has been assigned Transportation Priority 1, or to--
    (B) The following location(s) deemed necessary by the requiring 

[[Page 58144]]

    Contract line,
 subline, or exhibit       Location name               City                  State                 DoDAAC
   line item number

     (2) The following are excluded from the requirements of 
paragraph (b)(1) of this clause:
    (i) Shipments of bulk commodities.
    (ii) Shipments to locations other than Defense Distribution 
Depots when the contract includes the clause at FAR 52.213-1, Fast 
Payment Procedures.
    (c) The Contractor shall--
    (1) Ensure that the data encoded on each passive RFID tag are 
globally unique (i.e., the tag ID is never repeated across two or 
more RFID tags) and conforms to the requirements in paragraph (d) of 
this clause;
    (2) Use passive tags that are readable; and
    (3) Ensure that the passive tag is affixed at the appropriate 
location on the specific level of packaging, in accordance with MIL-
STD-129 (Section 4.9.2) tag placement specifications.
    (d) Data syntax and standards. The Contractor shall encode an 
approved RFID tag using the instructions provided in the EPC\TM\ Tag 
Data Standards in effect at the time of contract award. The EPC\TM\ 
Tag Data Standards are available at http://www.epcglobalinc.org/standards/.
    (1) If the Contractor is an EPCglobal\TM\ subscriber and 
possesses a unique EPC\TM\ company prefix, the Contractor may use 
any of the identifiers and encoding instructions described in the 
most recent EPC\TM\ Tag Data Standards document to encode tags.
    (2) If the Contractor chooses to employ the DoD identifier, the 
Contractor shall use its previously assigned Commercial and 
Government Entity (CAGE) code and shall encode the tags in 
accordance with the tag identifier details located at http://www.acq.osd.mil/log/rfid/tag_data.htm. If the Contractor uses a 
third-party packaging house to encode its tags, the CAGE code of the 
third-party packaging house is acceptable.
    (3) Regardless of the selected encoding scheme, the Contractor 
with which the Department holds the contract is responsible for 
ensuring that the tag ID encoded on each passive RFID tag is 
globally unique, per the requirements in paragraph (c)(1) of this 
    (e) Advance shipment notice. The Contractor shall use Wide Area 
WorkFlow (WAWF), as required by DFARS 252.232-7003, Electronic 
Submission of Payment Requests, to electronically submit advance 
shipment notice(s) with the RFID tag ID(s) (specified in paragraph 
(d) of this clause) in advance of the shipment in accordance with 
the procedures at https://wawf.eb.mil/.

(End of clause)

[FR Doc. 2011-23945 Filed 9-19-11; 8:45 am]