[Federal Register Volume 78, Number 109 (Thursday, June 6, 2013)]
[Proposed Rules]
[Pages 34020-34024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-13413]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2 and 4

[FAR Case 2012-023; Docket 2012-0023; Sequence 1]
RIN 9000-AM60


Federal Acquisition Regulation; Uniform Procurement 
Identification

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

ACTION: Proposed rule.

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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement a uniform Procurement 
Instrument Identification (PIID) numbering system, which will require 
the use of Activity Address Codes (AACs) as the unique identifier for 
contracting offices and other offices, in order to standardize 
procurement transactions across the Federal Government. This proposed 
rule continues and strengthens efforts at standardization accomplished 
under a previous FAR case.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addressees shown below on or 
before August 5, 2013 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAR Case 2012-023 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2012-023''. Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2012-023''. Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2012-023'' on your attached document.

[[Page 34021]]

     Fax: 202-501-4067.
     Mail: U.S. General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405-0001.
    Instructions: Please submit comments only and cite FAR Case 2012-
023, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst, 
at 202-501-0650, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAR Case 2012-023.

SUPPLEMENTARY INFORMATION:

I. Background

    In July of 2011, DoD, GSA, and NASA published a final FAR rule, 
Unique Procurement Instrument Identifier, FAR Case 2009-023, which 
began the process of standardizing the use of unique Procurement 
Instrument Identifiers (PIIDs) beyond the Federal Procurement Data 
System (FPDS) to encompass the overall Federal procurement community. 
FAR case 2009-023 provided policy and instructions at FAR subpart 4.16 
for agencies to assign and utilize unique PIIDs and supplementary PIIDs 
in procurement transactions. A number of public comments received 
during the rulemaking process expressed positive feedback and reaction 
to the concept of standardizing PIIDs across Government. Several 
respondents offered encouragement and suggestions for furthering the 
effort, in particular by establishing a standard, Governmentwide scheme 
that identifies actions to the office level, not just to the agency 
level.
    In June of 2011, the President created the Government 
Accountability and Transparency Board (GAT Board) and tasked the board 
to, among other things, recommend ways to improve tracking of Federal 
spending data. The GAT Board submitted its report with three specific 
recommendations to the President in December of 2011. Recommendation 
number 3 of this report is to implement a uniform award identification 
system among various financial transactions conducted across the 
Federal Government by a number of communities, e.g., procurement, 
grants, and finance. The goal of this recommendation is to ensure 
uniformity and consistency of data, thereby enhancing the transparency 
to the public of Federal spending data. This proposed FAR rule is 
consistent with GAT Board recommendation three.
    Currently, agencies and contracting offices within agencies have 
PIIDs of varying lengths, which may or may not contain spaces or 
hyphens. The disparate numbering systems in use today impede successful 
achievement of transparency and accountability in the following ways:
    [cir] The ability to trace transactions across electronic 
interfaces is difficult and at times impossible. In some cases paper 
processing or tracking is the only available means.
    [cir] The collection, review, and validation of data are labor 
intensive and inefficient.
    [cir] The inconsistencies in reporting and collection of data 
increase the uncertainty of data validity.
    [cir] The ability to reconcile data as reported by the vendor 
community with the data reported and certified by agencies is impacted.
    [cir] The effectiveness of the oversight community's efforts is 
questioned due to data quality concerns.
    With this proposed rule the Federal procurement community continues 
to improve standardization of a unique instrument identifier moving the 
procurement community in the direction of the GAT Board recommendation 
of uniformity and consistency of data. This, in turn, will promote 
achievement of rigorous accountability of procurement dollars and 
processes and compliance to regulatory and statutory acquisition 
requirements such as those of the Federal Funding Accountability and 
Transparency Act of 2006. The GAT Board recommendation, as it applies 
to other financial transactions, (e.g., grants, loans, financial 
payments) is not addressed by this proposed rule.

II. Proposed Changes to FAR Parts 2 and 4

    At FAR 2.101 Definitions, AAC is defined to mean a distinct six-
position code consisting of a combination of alpha and/or numeric 
characters assigned to identify agency specific offices, units, 
activities, or organizations.
    At FAR 4.605, Contract Reporting Procedures, a paragraph is added 
to direct the use of AACs as the contracting office code and as the 
program/funding office code for purposes of FPDS reporting.
    Changes are proposed to FAR subpart 4.16, Unique Procurement 
Instrument Identifiers, to prescribe policies and procedures for the 
assignment of unique PIIDs containing AACs. Agencies will initially use 
the new unique PIID structure for all new solicitations and awards, and 
their associated amendments and modifications, beginning not later than 
October 1, 2014. Not later than October 1, 2016, agencies shall use the 
required structure for all contract actions (including for all contract 
actions already in effect). At FAR 4.1602 Policy, paragraphs (a) 
through (c), instructions are provided delineating that which is 
applicable before, during and after the transition period.
    A new procedural section, FAR 4.1604 is added to provide 
instruction on the construct and configuration of the basic PIID and 
the supplementary PIID. The basic PIID is made up of 13 to 17 alpha 
and/or numeric characters configured to convey certain information. 
Positions one through six of the PIID are the AAC Activity Address 
Code. Positions seven and eight are the last two digits of the fiscal 
year of the date the procurement instrument is signed, i.e., issued or 
awarded. Position nine is an alpha character that will indicate the 
type of instrument or action. Positions 10 through 17 are the serial 
numbering of the PIID and are issued sequentially. Positions 10 through 
17 are the agency-assigned numbers. Positions 10 through 17 may be 
alpha-numeric, but shall not contain special characters (such as 
hyphens and dashes) or spaces.
    Supplementary PIIDs are used to identify amendments and 
modifications. Amendment supplementary PIIDs for solicitations are 
numeric, four positions, and are issued sequentially beginning with 
0001. Supplementary PIIDs for modifications to contracts or agreements 
may be alpha and/or numeric. Modifications issued by an administering 
contracting office shall begin with the letter A. Modifications issued 
by a procuring contracting office shall begin with the letter P. 
Supplementary identification numbers shall be assigned in sequence and 
not until it has been determined that a modification is to be issued.

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

[[Page 34022]]

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

    DoD, GSA, and NASA 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. However, an Initial Regulatory Flexibility Analysis (IRFA) has 
been prepared and is summarized as follows:

    Although this proposed rule is directed at internal Government 
processes and procedures and does not impose any requirements on the 
vendor community, it may affect some entities if those entities have 
arranged certain of their business systems to recognize PIIDs of 
agencies they interact with, and those agencies do not currently 
mirror the PIID configuration of this proposed rule. The proposed 
rule would provide a predictable standardized format vendors may use 
in interactions with the Federal government. In FY 2012 awards were 
made to 67,785 unique vendors that likely interact with agencies 
that do not currently use the proposed PIID configuration, of these, 
45,353 were small business vendors.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, 
and NASA invite comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by this rule 
in consistent with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR case 2012-023) in 
correspondence.

V. Paperwork Reduction Act

    The proposed rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 2 and 4

    Government procurement.

    Dated: May 30, 2013.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2 and 4 
as set forth below:

0
1. The authority citation for 48 CFR parts 2 and 4 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 in paragraph (b)(2) by adding, in alphabetical 
order, the definition ``Activity Address Code (AAC)'' to read as 
follows:


2.101  Definitions.

* * * * *
    (b) * * *
    (2) * * *
    Activity Address Code (AAC) means a distinct six-position code 
consisting of a combination of alpha and/or numeric characters assigned 
to identify specific agency offices, units, activities, or 
organizations by the General Services Administration for civilian 
agencies and Department of Defense for defense agencies.
* * * * *

PART 4--ADMINISTRATIVE MATTERS

0
3. Amend section 4.605 by--
0
a. Removing from paragraph (a) ``4.1601,'' and adding ``4.601 to 
4.1603,'' in its place; and
0
b. Adding paragraph (e) to read as follows:


4.605  Procedures.

* * * * *
    (e) Office Codes. Agencies shall--
    (1) Use the Activity Address Code (AAC), as defined in 2.101, 
assigned to the issuing contracting office as the contracting office 
code, and
    (2) Use the AAC assigned to the program/funding office providing 
the predominance of funding for the contract action as the program/
funding office code.
0
4. Revise section 4.1601 to read as follows:


4.1601  Policy.

    (a) Establishment of a Procurement Instrument Identifier (PIID). 
Agencies shall have in place a process that ensures that each PIID used 
to identify a solicitation or contract action is unique Governmentwide, 
and will remain so for at least 20 years from the date of contract 
award. The PIID shall be used to identify all solicitation and contract 
actions. The PIID shall also be used to identify solicitation and 
contract actions in designated support and reporting systems (e.g., 
Federal Procurement Data System, System for Award Management), in 
accordance with regulations, applicable authorities, and agency 
policies and procedures.) The PIID requirements will transition from 
existing procedures beginning not later than October 1, 2014 as 
outlined in paragraph (b) of this section.
    (b) Transition of PIID numbering. (1) Existing requirements. 
Applicable prior to October 1, 2014--
    (i) Agencies must submit their proposed PIID format to the General 
Services Administration's Integrated Acquisition Environment Program 
Office, which maintains a registry of the agency-unique identifier 
scheme; and
    (ii) The PIID shall consist of alpha characters in the first 
positions to indicate the agency, followed by alpha-numeric characters 
according to agency procedures.
    (2) Transition. Not later than October 1, 2014, agencies shall 
comply with paragraph (a) of this section and use the requirements in 
4.1602 and 4.1603 for identifying all new solicitations and new awards 
and their associated amendments and modifications.
    (3) End state. Not later than October 1, 2016, agencies shall 
comply with paragraph (a) of this section and use the requirements in 
4.1602 and 4.1603 for all amendments to solicitations and modifications 
to awards issued using previous PIID numbering procedures.
    (c) Change in the Procurement Instrument Identifier. (1) Agencies 
shall not change the PIID unless one of the following two circumstances 
apply:
    (i) The PIID serial numbering system is exhausted. In this 
instance, the contracting officer may assign a new PIID by issuing a 
contract modification.
    (ii) Continued use of a PIID is not possible or not in the 
Government's best interest solely for administrative reasons (e.g., for 
implementations of new agency contract writing systems). In this 
instance, the contracting officer may assign a new PIID by issuing a 
contract modification.
    (2) The modification shall clearly identify both the original and 
the newly assigned PIID. Issuance of a new PIID is an administrative 
change (see 43.101).
0
5. Amend section 4.1602 by revising paragraph (c) to read as follows:


4.1602  Identifying the PIID and supplementary PIID.

* * * * *

[[Page 34023]]

    (c) Additional agency specific identification information. If 
agency procedures require additional identification information in 
solicitations, contracts, or other related procurement instruments for 
administrative purposes, separate and clearly identify the additional 
information from the PIID.
0
6. Add section 4.1603 to read as follows:


4.1603  Procedures.

    (a) Elements of a PIID. The PIID consists of a combination of 
thirteen to seventeen alpha and/or numeric characters sequenced to 
convey certain information. Do not use special characters (such as 
hyphens, dashes or spaces).
    (1) Positions 1 through 6. The first six positions identify the 
department/agency and office issuing the instrument. Use the AAC 
assigned to the issuing office for positions 1 through 6. Civilian 
agency points of contact for obtaining an AAC are on the AAC Contact 
list maintained by the General Services Administration and can be found 
at http://www.gsa.gov/graphics/fas/Civilian_contacts.pdf. For 
Department of Defense (DoD) inquiries contact the service/agency 
Central Service Point or DoDAAC Monitor, or if unknown, email 
[email protected] for assistance.
    (2) Positions 7 through 8. The seventh and eighth positions are the 
last two digits of the fiscal year in which the procurement instrument 
is issued or awarded. This is the date the action is signed, not the 
effective date if the effective date is different.
    (3) Position 9. Indicate the type of instrument by entering one of 
the following upper case letters in position nine. Departments and 
independent agencies may assign those letters identified for department 
use below in accordance with their agency policy, however, any use must 
be applied to the entire department or agency.

------------------------------------------------------------------------
                                                              Letter
                       Instrument                          designation
------------------------------------------------------------------------
(i) Blanket purchase agreements........................               A
(ii) Invitations for bids..............................               B
(iii) Contracts of all types except indefinite-delivery                C
 contracts (see subpart 16.5)..........................
(iv) Indefinite-delivery contracts (including Federal                 D
 Supply Schedules, Governmentwide acquisition contracts
 (GWACs), and multi-agency contracts)..................
(v) Reserved for future Federal Governmentwide use.....               E
(vi) Task orders, delivery orders or calls under                      F
 indefinite-delivery contracts (including Federal
 Supply Schedules, Governmentwide acquisition contracts
 (GWACs), and multi-agency contracts), blanket purchase
 agreements, or basic ordering agreements..............
(vii) Basic ordering agreements........................               G
(viii) Agreements, including basic agreements and loan                H
 agreements, but excluding blanket purchase agreements,
 basic ordering agreements, and leases. Do not use this
 code for contracts or agreements with provisions for
 orders or calls.......................................
(ix) Do not use this letter............................               I
(x) Reserved for future Federal Governmentwide use.....               J
(xi) Reserved for departmental use.....................               K
(xii) Lease agreements.................................               L
(xiii) Reserved for departmental use...................               M
(xiv) Reserved for departmental use....................               N
(xv) Do not use this letter............................               O
(xvi) Purchase orders (assign V if numbering capacity                 P
 of P is exhausted during a fiscal year)...............
(xvii) Requests for quotation (assign U if numbering                  Q
 capacity of Q is exhausted during a fiscal year)......
(xviii) Requests for proposals.........................               R
(xix) Reserved for departmental use....................               S
(xx) Reserved for departmental use.....................               T
(xxi) See Q, requests for quotation....................               U
(xxii) See P, purchase orders..........................               V
(xxiii) Reserved for future Federal Governmentwide use.               W
(xxiv) Reserved for future Federal Governmentwide use..               X
(xxv) Imprest fund.....................................               Y
(xxvi) Reserved for future Federal Governmentwide use..               Z
------------------------------------------------------------------------

    (4) Position 10 through 17. Enter the number assigned by the 
issuing agency in these positions. Agencies may choose a minimum of 
four characters up to a maximum of eight characters to be used, but the 
same number of characters must be used agency-wide. If a number less 
than the maximum is used, do not use leading or trailing zeroes to make 
it equal the maximum in any system or data transmission. A separate 
series of numbers may be used for any type of instrument listed in 
paragraph (a)(3) of this section. An agency may reserve blocks of 
numbers or alpha-numeric numbers for use by its various components.
    (5) Illustration of PIID. The following illustrates a properly 
configured PIID using four characters in the final positions:

[[Page 34024]]

[GRAPHIC] [TIFF OMITTED] TP06JN13.003

    (b) Elements of a supplementary PIID. Use the supplementary PIID to 
identify amendments to solicitations and modifications to contracts and 
agreements.
    (1) Amendments to solicitations. Number amendments to solicitations 
sequentially using a four position numeric serial number added to the 
13-17 character PIID beginning with 0001.
    (2) Modifications to contracts and agreements. Number modifications 
to contracts and agreements using a six position alpha or numeric, or a 
combination thereof, added to the 13-17 character PIID.
    (i) Position 1. Identify the office issuing the modification. The 
letter P shall be designated for modifications issued by the procuring 
contracting office. The letter A shall be used for modifications issued 
by the contract administration office (if other than the procuring 
contracting officer).
    (ii) Positions 2 through 6. These positions may be alpha, numeric, 
or a combination thereof, in accordance with agency procedures.
    (iii) Each office authorized to issue modifications shall assign 
the supplementary identification numbers in sequence. Do not assign the 
numbers until it has been determined that a modification is to be 
issued.

[FR Doc. 2013-13413 Filed 6-5-13; 8:45 am]
BILLING CODE 6820-EP-P