[Federal Register Volume 77, Number 168 (Wednesday, August 29, 2012)]
[Rules and Regulations]
[Pages 52254-52258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21059]



Defense Acquisition Regulations System

48 CFR Parts 211, 212, and 252

RIN 0750-AG83

Defense Federal Acquisition Regulation Supplement: Reporting of 
Government-Furnished Property (DFARS Case 2012-D001)

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 revise and standardize 
reporting requirements for Government-furnished property.

DATES: Effective Date: August 29, 2012.

FOR FURTHER INFORMATION CONTACT: Ms. Meredith Murphy, telephone 571-


I. Background

    DoD published a proposed rule under DFARS Case 2009-D043 in the 
Federal Register at 75 FR 80426 on December 22, 2010. Subsequently, DoD 
published a second proposed rule, under DFARS Case 2012-D001, in the 
Federal Register at 76 FR 64885 on October 19, 2011, to revise and 
standardize reporting requirements for Government-furnished property to 
include items uniquely and non-uniquely identified, and to clarify 
policy for contractor access to Government supply sources. DoD held a 
public meeting to discuss the second proposed rule on November 17, 
2011. One respondent submitted comments in response to the second 
proposed rule. Discussions from the public meeting held to discuss the 
second proposed rule, as well as the public comments, were considered 
in drafting this final rule.

II. Discussion and Analysis of the Public Comments

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments and the changes made to the rule as 
a result of those comments is provided, as follows:

A. Summary of Significant Changes

    The revisions modify and standardize contractor Government property 
reporting requirements, making revisions that are necessary given DoD's 
emphasis on property accountability. The final rule alters the 
requirements of the current clause, which requires Defense contractors 
to report (primarily) Government-furnished equipment items valued at 
$5,000 or more, to a new requirement to report all serialized 
Government-furnished property regardless of unit acquisition value. The 
revised reporting requirement includes electronic receipt requirements, 
which will be expanded to non-serialized items by 2014. This effort is 
consistent with Secretary of Defense memorandum dated October 13, 2011, 
which emphasizes both asset accountability and the need to accelerate 
key elements of DoD's audit readiness plans.

B. Analysis of Public Comments

1. General
    Comment: A respondent stated that the rule is ``premature.'' The 
respondent thought that the current DFARS and its associated contract 
clause at 252.211-7007, Reporting of Government-Furnished Property, 
should include a summary of end processes for various types of 
contracts, such as production, depot, or services, and should include 
references to business rules used in each type of arrangement. The 
respondent also proposed that the ``military departments must own the 
end to end process and use the IUID registry as a tool to manage 
process, programs and items. The IUID Registry must be integrated into 
other DoD business management systems. A stand-alone contractor centric 
system will not provide sufficient benefits to sustain existence.'' In 
support of its position, the respondent proposed to add to the DFARS 
text, at 211.274-4, a new paragraph (f) as follows:

[[Page 52255]]

    ``A phased approach by program and department, shall be taken to 
populate the IUID Registry as determined and directed by the 
Director, Defense Procurement & Acquisition Policy.''

    The respondent further stated that including the proposed DFARS 
text in part 211, rather than DFARS part 245, makes the requirements 
part of a Government-furnished property reporting system rather than 
part of the contractor's Government property system.
    Response: As suggested by the respondent in separate 
correspondence, this revision to current DFARS requirements may be long 
overdue. In a letter dated October 18, 2011, the respondent requested 
the Director, DPAP, to ``remind DoD agencies of their obligation to use 
the IUID registry as the system of record for GFP in the custody of 
contractors.'' DoD has been considering those changes and has 
considered public comments submitted in response to two proposed rules 
and a public meeting.
    A phased implementation, as suggested by the respondent, would not 
be consistent with Secretary of Defense memorandum dated October 13, 
2011, ``Improving Financial Information and Achieving Audit 
Readiness,'' which emphasizes both asset accountability and the need to 
accelerate key elements of DoD's audit readiness plans.
    DoD agrees that, as reflected in the proposed rules and final rule, 
DFARS part 211 is the appropriate place for including DoD policy for 
reporting Government-furnished property required to be recorded in the 
IUID registry because item identification and valuation, addressed at 
DFARS subpart 211.2, are considered to be elements of the 
specifications, or requirements, for a contract.
2. Reporting Threshold of $5,000
    Comment: The respondent strongly proposed to revise the overall 
policy for reporting of Government-furnished property, at DFARS 
211.274-4(a), in order to retain the $5,000 reporting threshold and 
``remain consistent with internal or DoD guidance DODI 5000.64.''
    Response: The final rule is consistent with the current DoD 
Instruction 5000.64, which requires accountability of all Government 
furnished property regardless of dollar value.
3. Items To Be Reported Above the $5,000 Threshold
    Comment: The second proposed rule, at DFARS 211.274-4(b), listed 
types of property that would not be reported, such as ``property under 
any statutory leasing authority.'' The respondent proposed, instead, to 
list at paragraph (b) items, ``if significant or material in nature,'' 
that ``shall be considered for'' reporting, e.g., DoD Capital 
Equipment; and Special Tooling, Special Test Equipment, and Equipment. 
The respondent stated that its approach would increase reporting 
visibility for DoD. In addition, the respondent claimed that 
``providing (special tooling) is in concert with the spirit of the 
`Duncan Hunter National Defense Acquisition Act of FY 2009 * * * 
Section 815.' '' The respondent suggested that the Act's purpose would 
be served by revising DFARS 252.211-7007(b) to add a table to identify 
the specific items to be reported to the IUID Registry.
    Response: The disclaimer ``if significant or material in nature'' 
would create unnecessary ambiguity, possibly resulting in calls for 
``more consistency.'' In addition, DoD has not identified a nexus to 
section 815 of the National Defense Authorization Act for Fiscal Year 
2009; the referenced provision refers to the preservation and storage 
of unique tooling, not whether to furnish special tooling to a 
contractor under a Government contract. The respondent's suggestion to 
add a table to paragraph (b) to identify the specific items to be 
reported to the IUID Registry would largely duplicate the Government-
furnished property listing required by FAR 45.201.
4. Remove Coverage of Contractor-Acquired Property From Procedures, 
Guidance and Information (PGI) and Add It to the DFARS Text
    Comment: The respondent objected to the portion of the clause 
prescription proposed at DFARS 211.274-6 that, at (a)(1)(ii), addressed 
``cost-reimbursement contracts that may result in the delivery of 
contractor-acquired property (see requirements at PGI 245.402-71).'' 
The respondent commented that PGI references should not be contained in 
regulations. ``They (PGI language) are not controlled, nor vetted with 
the public as required by FAR Part 1.103(b),'' in the respondent's 
estimation. The respondent stated that ``PGI is unreliable for 
regulatory purposes. It provides the PGI writers a form of a blank 
    Response: The language at DFARS 211.274-6 has become obsolete with 
publication of this final rule and, therefore, is removed. However, 
regarding references to the PGI in the DFARS regulation, the PGI is a 
companion resource to the DFARS containing both mandatory and non-
mandatory internal procedures, guidance, and supplemental information 
for Government contracting personnel. While the PGI is non-regulatory, 
PGI changes are internally coordinated in the same fashion as DFARS 
proposals, i.e., at the DAR Council level and coordinated with other 
DoD stakeholders. All PGI changes are vetted to ensure accuracy and 
reliability of content.
5. The Clause at DFARS 252.211-7007, Reporting of Government-Furnished 
Property, Should Not Include in Paragraph (a) Definitions of Terms That 
Are Defined Elsewhere
    Comment: The respondent quoted FAR 1.304(b)(1) to the effect that 
material should not be unnecessarily repeated, paraphrased, or restated 
if it is contained in the FAR or higher-level agency regulations.
    Response: FAR 52.202-1, Definitions, states that, ``(w)hen a 
solicitation provision or contract clause uses a word or term that is 
defined in the Federal Acquisition Regulation (FAR), the word or term 
has the same meaning as the definition in FAR 2.101 in effect at the 
time the solicitation was issued, unless * * * the solicitation, or 
amended solicitation, provides a different definition * * * (or) the 
part, subpart, or section of the FAR where the provision or clause is 
prescribed provides a different meaning * * *'' Although the respondent 
did not specify which definitions were at issue, DoD has reviewed each 
definition and removed definitions that are not significant to the 
interpretation of the clause or needed for increased clarity.
6. Requirement To Report Material at the Transaction Level
    Comment: The respondent interpreted the exception to IUID reporting 
for material released for work in process, at DFARS 252.211-7007(c), to 
require reporting of material at the transactional level. The 
respondent objected to the latter, stating that it ``is not practical 
and would be extremely expensive for contractors and the Government.'' 
The respondent stated that ``(t)here is no harm to the Government in 
that furnished material is only for a given contract for a given 
amount--and is not expected to be available for other uses.''
    Response: The DFARS rule requires transactional reporting only for 
the receipt of material. Changes of ``state'' for material released to 
the floor as work-in-process are not required to be reported.
7. Issues Regarding the IUID Registry
    Comment: The respondent raised several issues regarding the clause 

[[Page 52256]]

DFARS 252.211-7007, entitled ``Reporting of Government-Furnished 
Property.'' Citing paragraph (d) of the clause, entitled ``Data for 
reporting to the IUID Registry,'' the respondent stated that the 
proposed rule would include items that had been reported previously to 
the IUID registry. According to the respondent, the rule should address 
items that were reported as non-UII items that have changed to serially 
managed items. The respondent requested that the intent of paragraph 
(d) be made clear.
    The respondent also raised issues regarding paragraph (e) of the 
clause, entitled ``Procedures for establishing Unique Item 
Identifiers,'' stating that there is ``great efficiency in continuing 
the usage of virtual Unique Item Identifiers as Special Tooling and 
Special Test Equipment Unique Item Identifiers with concatenated CAGE 
plus Property Tag.''
    Also citing paragraph (e) of the clause, the respondent proposed 
the deletion of item (5), the ``mark record'' data element. The 
respondent stated that the enabling of the contractor's reporting 
system to ``pull data'' to populate the mark record requirements should 
be sufficient. The respondent proposed to delete all the sub-elements 
under ``(5) Mark record'' because this is already a reportable event 
and is defined in paragraph (f) of the clause. Further, the respondent 
proposed deletion because its position is that material reporting 
should not be required.
    Response: DoD did not make the requested changes because they would 
not contribute to the desired outcome, i.e., consistent accountability 
for Government property in the possession of contractors. To the extent 
items were previously reported, reporting would consist largely of only 
changes in status or disposition. The language referring to ``(5) mark 
record'' was not deleted because it is integral to reporting.
8. Retain Current Government Systems
    Comment: The respondent objected to the proposed DFARS 252.211-
7007(g) because it is predicated on the eventual demise of other, 
existing property management systems. The respondent specifically 
recommended that the Government retain, and leverage, all current 
Government systems.
    Response: This final rule, and previous rules for Government-
furnished property, leverage the use of DoD enterprise systems 
(standard systems used throughout the DoD enterprise and called out in 
regulation). These systems include Wide-Area WorkFlow, the DoD IUID 
Registry, Electronic Document Access, and the Defense Contract 
Management Agency managed electronic tools: Plant Clearance Automated 
Reutilization and Screening System, and property Lost, Theft, Damaged, 
and Destroyed reporting system. While this final rule does not propose 
to eliminate any specific DoD system at this time, it is a step toward 
the elimination of disparate means of GFP reporting. This final rule 
supports DoD's plans for audit readiness and asset accountability, 
which will result in some systems coming under greater scrutiny in the 
near future.

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 not a significant regulatory action and, therefore, was not 
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

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
and is summarized as follows:
    This final rule revises and standardizes reporting requirements for 
Government-furnished property to include items uniquely and non-
uniquely identified and clarify policy for contractor access to 
Government supply sources. The clause at 252.211-7007 is significantly 
revised to eliminate the reported material weakness for DoD with regard 
to accounting for its property in the hands of contractors.
    A number of issues were raised by the single respondent submitting 
comments in response to the second proposed rule. These resulted in 
some minor changes to clarify the rule. No comments were submitted by 
the Chief Counsel for Advocacy of the Small Business Administration.
    The Defense Contract Management Agency, which has the overall 
responsibility for managing Government-furnished property, estimates 
that approximately 4,400 contractors possess Government-furnished 
property and, of this total, approximately one-fourth, or 1,100 
contractors, are small businesses. All contractors in possession of 
Government property will be equally affected by the revision in 
reporting rules.
    This rule will remove the mandatory $5,000 unit acquisition cost 
dollar threshold for reporting. This will not significantly impact 
items valued at less than $5,000 in unit acquisition cost, as they were 
also previously required to be reported if they were serially managed, 
mission essential, sensitive, or controlled inventory. There is 
potential for eventual elimination of some other electronic reporting 
tools, such as DoD's Commercial Asset Visibility (CAV) system. There 
are presently over 900 separate applications of CAV, all of which can 
be eliminated given the new reporting constructs contained within this 
rule. This will result in greater efficiency and considerable cost 
savings to both Government and industry.
    All DoD contractors with Government-furnished property will be 
equally affected. However, DoD's Item Unique Identification (IUID) 
Registry is already in use by contractors with Government-furnished 
property. Under this final rule, DoD contractors will continue to use 
the IUID Registry for property reporting, but they will report somewhat 
different classes of property than they had been, and DoD will phase 
out the use of other property management systems.
    DoD is responsible for entering new items in the IUID Registry, and 
contractors will be responsible only for reporting a change in state of 
the item. In the associated information collection justification, DoD 
estimated that the data are entered by the equivalent of a GS-11, step 
5, that there will be approximately 5 responses annually per 
contractor, and that each response will take approximately one hour.
    These changes were necessitated by the requirement for DoD to 
establish and maintain proper accountability for its property. The 
approach selected is designed to provide a single, electronic property 
management system and eliminate the many overlapping and parallel 
accountability systems currently in use. The result should be less 
costly for the DoD and its contractors, including small entities, while 
providing enhanced accountability.

V. Paperwork Reduction Act

    This rule affects the information collection requirements in 
Government property reporting provisions prescribed at DFARS part 211, 
currently approved under OMB Control Number 0704-0246 (which covers 
DFARS part 245, Government Property, DFARS section

[[Page 52257]]

211.274, Reporting of Government-Furnished Equipment in the DoD Item 
Unique Identification (IUID) Registry, the related clauses at DFARS 
252.245-7000 through -7004 and 252.211-7007, and the related forms) in 
the amount of 53,560 hours, in accordance with the Paperwork Reduction 
Act (44 U.S.C. chapter 35). The impact of this rule, however, is 
negligible, because the requirements of the final rule are not expected 
to significantly increase the overall burden hours approved under 
clearance number 0704-0246.

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

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 211, 212, and 252 are amended as follows:


1. The authority citation for 48 CFR part 211 is revised to read as 

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

2. Section 211.274-2 is amended to read as follows--
a. By removing, in paragraph (b)(2), the phrase ``FAR Part 12 or Part 
8'' and adding in its place ``FAR part 12 or part 8'';
b. By revising paragraph (b)(2)(ii) to read as follows:

211.274-2  Policy for unique item identification.

* * * * *
    (b) * * *
    (2) * * *
    (ii) The DoD Unique Identification Policy Office must receive a 
copy of the determination and findings required by paragraph (b)(2)(i) 
of this subsection. Follow the procedures at PGI 211.274-2.

3. Section 211.274-4 is revised to read as follows:

211.274-4  Policy for reporting of Government-furnished property.

    (a) It is DoD policy that all Government-furnished property be 
recorded in the DoD Item Unique Identification (IUID) Registry, as 
defined in the clause at 252.211-7007, Reporting of Government-
Furnished Property.
    (b) The following items are not required to be reported:
    (1) Contractor-acquired property, as defined in FAR part 45.
    (2) Property under any statutory leasing authority.
    (3) Property to which the Government has acquired a lien or title 
solely because of partial, advance, progress, or performance-based 
    (4) Intellectual property or software.
    (5) Real property.
    (6) Property released as work in process.
    (7) Non-serial managed items (reporting is limited to receipt 
transactions only).
4. Section 211.274-6 is amended by--
a. Revising paragraph (a)(1);
c. Revising paragraph (b).
    The revisions read as follows:

211.274-6  Contract clauses.

    (a)(1) Use the clause at 252.211-7003, Item Identification and 
Valuation, in solicitations and contracts that require item 
identification or valuation, or both, in accordance with 211.274-2 and 
* * * * *
    (b) Use the clause at 252.211-7007, Reporting of Government-
Furnished Property, in solicitations and contracts that contain the 
clause at FAR 52.245-1, Government Property.
* * * * *

5. The authority citation for 48 CFR part 212 and 252 continues to read 
as follows:

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


6. Amend section 212.301 by--
a. Redesignating paragraphs (f)(iv)(F) through (Q) as paragraphs (G) 
through (R); and
b. Adding new paragraph (f)(iv)(F) to read as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

* * * * *
    (F) Use the clause at 252.211-7007, Reporting of Government-
Furnished Property, as prescribed in 211.274-6.
* * * * *


7. Section 252.211-7007 is revised to read as follows:

252.211-7007  Reporting of Government-Furnished Property.

    As prescribed in 211.274-6(b), use the following clause:


    (a) Definitions. As used in this clause--
    ``Commercial and Government entity (CAGE) code'' means--
    (i) A code assigned by the Defense Logistics Agency Logistics 
Information Service to identify a commercial or Government entity; 
    (ii) A code assigned by a member of the North Atlantic Treaty 
Organization that the Defense Logistics Agency Logistics Information 
Service records and maintains in the CAGE master file. The type of 
code is known as an ``NCAGE code.''
    ``Contractor-acquired property'' has the meaning given in FAR 
clause 52.245-1. Upon acceptance by the Government, contractor-
acquired property becomes Government-furnished property.
    ``Government-furnished property'' has the meaning given in FAR 
clause 52.245-1.
    ``Item unique identification (IUID)'' means a system of 
assigning, reporting, and marking DoD property with unique item 
identifiers that have machine-readable data elements to distinguish 
an item from all other like and unlike items.
    ``IUID Registry'' means the DoD data repository that receives 
input from both industry and Government sources and provides storage 
of, and access to, data that identifies and describes tangible 
Government personal property. The IUID Registry is--
    (i) The authoritative source of Government unit acquisition cost 
for items with unique item identification (see DFARS 252.211-7003) 
that were acquired after January 1, 2004;
    (ii) The master data source for Government-furnished property; 
    (iii) An authoritative source for establishing the acquisition 
cost of end-item equipment.
    ``National stock number (NSN)'' means a 13-digit stock number 
used to identify items of supply. It consists of a four-digit 
Federal Supply Code and a nine-digit National Item Identification 
    ``Nomenclature'' means--
    (i) The combination of a Government-assigned type designation 
and an approved item name;
    (ii) Names assigned to kinds and groups of products; or
    (iii) Formal designations assigned to products by customer or 
supplier (such as model number or model type, design 
differentiation, or specific design series or configuration).
    ``Part or identifying number (PIN)'' means the identifier 
assigned by the original design activity, or by the controlling 
nationally recognized standard, that uniquely identifies (relative 
to that design activity) a specific item.
    ``Reparable'' means an item, typically in unserviceable 
condition, furnished to the Contractor for maintenance, repair, 
modification, or overhaul.
    ``Serially managed item'' means an item designated by DoD to be 
uniquely tracked, controlled, or managed in maintenance, repair, 
and/or supply systems by means of its serial number.
    ``Supply condition code'' means a classification of materiel in 
terms of readiness for issue and use or to identify action underway 
to change the status of

[[Page 52258]]

materiel (see http://www.dtic.mil/whs/directives/corres/pdf/400025m.pdf).
    ``Unique item identifier (UII)'' means a set of data elements 
permanently marked on an item that is globally unique and 
unambiguous and never changes, in order to provide traceability of 
the item throughout its total life cycle. The term includes a 
concatenated UII or a DoD recognized unique identification 
    ``Unit acquisition cost'' has the meaning given in FAR clause 
    (b) Reporting Government-furnished property to the IUID 
Registry. Except as provided in paragraph (c) of this clause, the 
Contractor shall report, in accordance with paragraph (f), 
Government-furnished property to the IUID Registry as follows:--
    (1) Up to and including December 31, 2013, report serially 
managed Government-furnished property with a unit-acquisition cost 
of $5,000 or greater.
    (2) Beginning January 1, 2014, report--
    (i) All serially managed Government-furnished property, 
regardless of unit-acquisition cost; and
    (ii) Contractor receipt of non-serially managed items. Unless 
tracked as an individual item, the Contractor shall report non-
serially managed items to the Registry in the same unit of 
packaging, e.g., original manufacturer's package, box, or container, 
as it was received.
    (c) Exceptions. Paragraph (b) of this clause does not apply to--
    (1) Contractor-acquired property;
    (2) Property under any statutory leasing authority;
    (3) Property to which the Government has acquired a lien or 
title solely because of partial, advance, progress, or performance-
based payments;
    (4) Intellectual property or software;
    (5) Real property; or
    (6) Property released for work in process.
    (d) Data for reporting to the IUID Registry. To permit reporting 
of Government-furnished property to the IUID Registry, the 
Contractor's property management system shall enable the following 
data elements in addition to those required by paragraph 
(f)(1)(iii)(A)(1) through (3), (5), (7), (8), and (10) of the 
Government Property clause of this contract (FAR 52.245-1):
    (1) Received/Sent (shipped) date.
    (2) Status code.
    (3) Accountable Government contract number.
    (4) Commercial and Government Entity (CAGE) code on the 
accountable Government contract.
    (5) Mark record.
    (i) Bagged or tagged code (for items too small to individually 
tag or mark).
    (ii) Contents (the type of information recorded on the item, 
e.g., item internal control number).
    (iii) Effective date (date the mark is applied).
    (iv) Added or removed code/flag.
    (v) Marker code (designates which code is used in the marker 
identifier, e.g., D=CAGE, UN=DUNS, LD=DODAAC).
    (vi) Marker identifier, e.g., Contractor's CAGE code or DUNS 
    (vii) Medium code; how the data is recorded, e.g., barcode, 
contact memory button.
    (viii) Value, e.g., actual text or data string that is recorded 
in its human-readable form.
    (ix) Set (used to group marks when multiple sets exist.
    (6) Appropriate supply condition code, required only for 
reporting of reparables, per Appendix 2 of DoD 4000.25-2-M, Military 
Standard Transaction Reporting and Accounting Procedures manual 
    (e) When Government-furnished property is in the possession of 
subcontractors, Contractors shall ensure that reporting is 
accomplished using the data elements required in paragraph (d) of 
this clause.
    (f) Procedures for reporting of Government-furnished property. 
Except as provided in paragraph (c) of this clause, the Contractor 
shall establish and report to the IUID Registry the information 
required by FAR clause 52.245-1, paragraphs (e) and (f)(1)(iii), in 
accordance with the data submission procedures at http://www.acq.osd.mil/dpap/pdi/uid/data_submission_information.html.
    (g) Procedures for updating the IUID Registry.
    (1) Except as provided in paragraph (g)(2), the Contractor shall 
update the IUID Registry at https:///bpn.gov/iuid for changes in 
status, mark, custody, condition code (for reparables only), or 
disposition of items that are--
    (i) Received by the Contractor;
    (ii) Delivered or shipped from the Contractor's plant, under 
Government instructions, except when shipment is to a subcontractor 
or other location of the Contractor;
    (iii) Consumed or expended, reasonably and properly, or 
otherwise accounted for, in the performance of the contract as 
determined by the Government property administrator, including 
reasonable inventory adjustments;
    (iv) Disposed of; or
    (v) Transferred to a follow-on or other contract.
    (2) The Contractor need not report to the IUID Registry those 
transactions reported or to be reported to the following DCMA 
    (i) Plant Clearance Automated Reutilization and Screening System 
(PCARSS); or
    (ii) Lost, Theft, Damaged or Destroyed (LTDD) system.
    (3) The contractor shall update the IUID Registry as 
transactions occur or as otherwise stated in the Contractor's 
property management procedure.

(End of clause)

8. Section 252.251-7000 is amended by--
a. Amending the clause date by removing ``(NOV 2004)'' and adding in 
its place ``(AUG 2012)'';
b. Revising paragraph (c) introductory text;
c. Redesignating paragraphs (d) and (e) as paragraphs (e) and (f); and
d. Adding a new paragraph (d).
    The revisions and additions read as follows:

252.251-7000  Ordering From Government Supply Sources.

* * * * *
    (c) When placing orders for Government stock on a reimbursable 
basis, the Contractor shall--
* * * * *
    (d) When placing orders for Government stock on a non-reimbursable 
basis, the Contractor shall--
    (1) Comply with the requirements of the Contracting Officer's 
authorization; and
    (2) When using electronic transactions to submit requisitions on a 
non-reimbursable basis only, place orders by authorizing contract 
number using the Defense Logistics Management System (DLMS) Supplement 
to Federal Implementation Convention 511R, Requisition; and acknowledge 
receipts by authorizing contract number using the DLMS Supplement 527R, 
Receipt, Inquiry, Response and Material Receipt Acknowledgement.
* * * * *
[FR Doc. 2012-21059 Filed 8-28-12; 8:45 am]