[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)]
[Proposed Rules]
[Pages 30030-30032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12344]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 204, 232, 239, and Appendix F to Chapter 2

RIN 0750-AI54


Defense Federal Acquisition Regulation Supplement: Uniform 
Procurement Identification (DFARS Case 2015-D011)

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

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to comply with the uniform procurement 
identification procedures implemented in the Federal Acquisition 
Regulation (FAR).

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before July 27, 2015, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2015-D011, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2015-D011'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2015-D011.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2015-D011'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2015-D011 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Jennifer Johnson, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense 
Pentagon, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Jennifer Johnson, telephone 571-372-
6176.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to comply with the uniform 
procurement identification procedures implemented in the FAR through 
final rule 2012-023 (79 FR 61739, effective November 13, 2014). The 
final FAR rule implemented a uniform award identification system among 
various procurement transactions across the Federal Government, as 
recommended by the Government Accountability and Transparency Board. 
DFARS coverage of uniform procurement identification must be 
synchronized with the FAR coverage so that the identification numbers 
of DoD-issued contracts, orders, and other procurement instruments will 
comply with FAR subpart 4.16 as amended by final FAR rule 2012-023.

II. Discussion

    This rule proposes to make the following amendments to the DFARS 
and its Appendix F:
     Subpart 204.70, Uniform Procurement Instrument 
Identification Numbers, is amended to relocate all text to subpart 
204.16 and to revise the relocated text to comply with FAR subpart 
4.16. Subpart 204.70 is reserved.
     Subpart 232.9, Prompt Payment, is amended to clarify the 
task and delivery order numbers for use on invoices and receiving 
reports.
     Subpart 239.74, Telecommunications Services, is amended to 
remove text on the type of procurement instrument.
     Appendix F, Material Inspection and Receiving Report, is 
amended to clarify the task and delivery order numbers for use on 
receiving reports.

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

    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 rule implements procurement instrument identification 
procedures that are similar to procedures DoD has used for many years. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:
    DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to comply with the uniform procurement 
identification procedures implemented in the Federal Acquisition 
Regulation (FAR) through final FAR rule 2012-023.
    Final FAR rule 2012-023 implemented a uniform award identification 
system among various procurement transactions across the Federal 
Government, as recommended by the Government Accountability and 
Transparency Board. DFARS coverage of uniform procurement 
identification must be synchronized with the FAR coverage so that the 
identification numbers of DoD-issued contracts, orders, and other 
procurement instruments will comply with FAR subpart 4.16 as amended by 
final rule 2012-023.
    DoD does not expect this 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. The proposed rule 
affects all DoD contractors who will receive new task or delivery 
orders against DoD-issued contracts, purchase orders, calls against 
DoD-issued blanket purchase agreements, orders against DoD-issued basic 
ordering agreements, and certain types of contracts beginning in fiscal 
year 2016. At this time, the exact number of small entities is unknown.
    The projected recordkeeping is limited to that required to properly 
record contract and other procurement instrument identification numbers 
and input them in documents (e.g., invoices) as required under 
Government contracts. Preparation of these records requires clerical 
and analytical skills to create the documents and input them into the 
appropriate electronic systems.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.

[[Page 30031]]

    There are no known significant alternative approaches to the rule 
that would meet the requirements.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2015-D011), in 
correspondence.

V. Paperwork Reduction Act

    This rule contains 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); however, these changes to the 
DFARS do not impose additional information collection requirements to 
the paperwork burden previously approved under OMB Control Number 0704-
0248, entitled Material Inspection and Receiving Report.

List of Subjects in 48 CFR Parts 204, 232, 239, and Appendix F to 
Chapter 2

    Government procurement.

Amy G. Williams,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 204, 232, 239, and Appendix F to Chapter 2 
are proposed to be amended as follows:

0
1. The authority citation for 48 CFR parts 204, 232, 239, and Appendix 
F to chapter 2 continues to read as follows:

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

PART 204--ADMINISTRATIVE MATTERS

0
2. Add subpart 204.16 to read as follows:
Subpart 204.16--Uniform Procurement Instrument Identifiers
Sec.
204.1601 Policy.
204.1603 Procedures.
204.1670 Cross-reference to Federal Procurement Data System.
204.1671 Order of application for modifications.

Subpart 204.16--Uniform Procurement Instrument Identifiers


204.1601   Policy.

    (a) Establishment of a Procurement Instrument Identifier (PIID). Do 
not reuse a PIID once it has been assigned. Do not assign the same PIID 
to more than one task or delivery order, even if they are issued under 
different base contracts or agreements.
    (b) Transition of PIID numbering. Effective October 1, 2016, all 
components shall comply with the PIID numbering requirements of FAR 
subpart 4.16 and this subpart for all new solicitations, contracts, 
orders, and agreements issued, and any amendments and modifications to 
those new actions. Components are encouraged to transition to this 
numbering schema as soon as possible, but not earlier than October 1, 
2015.
    (c) Change in the PIID after its assignment. When this occurs, the 
new PIID is known as a continued contract.
    (i) A continued contract--
    (A) Does not constitute a new procurement;
    (B) Incorporates all prices, terms, and conditions of the 
predecessor contract effective at the time of issuance of the continued 
contract;
    (C) Operates as a separate contract independent of the predecessor 
contract once issued; and
    (D) Shall not evade competition, expand the scope of work, or 
extend the period of performance beyond that of the predecessor 
contract.
    (ii) When issuing a continued contract, the contracting officer 
shall--
    (A) Issue an administrative modification to the predecessor 
contract to clearly state that--
    (1) Any future awards provided for under the terms of the 
predecessor contract (e.g., issuance of orders or exercise of options) 
will be accomplished under the continued contract; and
    (2) Supplies and services already acquired under the predecessor 
contract shall remain solely under that contract for purposes of 
Government inspection, acceptance, payment, and closeout; and
    (B) Follow the procedures at PGI 204.1601(b).


204.1603  Procedures.

    (a) Elements of a PIID. DoD-issued PIIDs are thirteen characters in 
length. Use only alpha-numeric characters, as prescribed in FAR 4.1603 
and this subpart. Do not use the letter ``I'' or ``O'' in any part of 
the PIID. Follow PIID numbering procedures in FAR 4.1603(a).
    (3) Position 9. Do not use letters identified in FAR 4.1603(a)(3) 
as ``Reserved for future Federal Governmentwide use'' or ``Reserved for 
departmental use'' in position 9 of the PIID.
    (4) Positions 10 through 17. In accordance with FAR 4.1603(a)(4), 
DoD-issued PIIDs shall only use positions 10 through 13 to complete the 
PIID. Enter the serial number of the instrument in these positions. A 
separate series of serial numbers may be used for any type of 
instrument listed in FAR 4.1603(a)(3). Components assign such series of 
PIID numbers sequentially. A component may reserve blocks of numbers or 
alpha-numeric numbers for use by its various components.
    (b) Elements of a supplementary PIID. Follow supplementary PIID 
numbering procedures in FAR 4.1603(b) in addition to the requirements 
contained in paragraphs (2)(ii)(1) through(3) of this section.
    (2)(ii) Positions 2 through 6. In accordance with FAR 
4.1603(b)(2)(ii), DoD-issued supplementary PIIDs shall, for positions 2 
through 6 of modifications to contracts and agreements, comply with the 
following:
    (1) Positions 2 through 3. These are the first two digits in a 
serial number. They may be either alpha or numeric. Use the letters K, 
L, M, N, P, Q, S, T, U, V, W, X, Y, or Z only in position 2 and only in 
the following circumstances--
    (i) Use K, L, M, N, P, and Q in position 2 only if the modification 
is issued by the Air Force and is a provisioned item order.
    (ii) Use S, and only S, in position 2 to identify modifications 
issued to provide initial or amended shipping instructions when--
    (a) The contract has either FOB origin or destination delivery 
terms; and
    (b) The price changes.
    (iii) Use T, U, V, W, X, or Y, and only those characters, in 
position 2 to identify modifications issued to provide initial or 
amended shipping instructions when--
    (a) The contract has FOB origin delivery terms; and
    (b) The price does not change.
    (iv) Only use Z in position 2 to identify a modification which 
definitizes a letter contract or a previously issued undefinitized 
modification.
    (2) Positions 4 through 6. These positions are always numeric. Use 
a separate series of serial numbers for each type of modification 
listed in paragraph (b)(2)(ii) of this section. Examples of proper 
numbering for positions 2-6 (the first position will be either ``A'' or 
``P'') are as follows:

[[Page 30032]]



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                                    Provisioned items order (reserved for
       Normal modification          exclusive use by the Air Force only)           Shipping instructions
----------------------------------------------------------------------------------------------------------------
00001-99999......................  K0001-K9999...........................  S0001-S9999.
    then.........................  KA001-KZ999...........................  SA001-SZ999.
A0001-A9999......................  L0001-L9999...........................  T0001-T9999.
B0001-B9999......................  LA001-LZ999...........................  TA001-TZ999.
  and so on to...................  M0001-M9999...........................  U0001-U9999.
H0001-H9999......................  MA001-MZ999...........................  UA001-UZ999.
    then.........................  N0001-N9999...........................  V0001-V9999.
J0001-J9999......................  NA001-NZ999...........................  VA001-VZ999.
    then.........................  P0001-P9999...........................  W0001-W9999.
R0001-R9999......................  PA001-PZ999...........................  WA001-WZ999.
    then.........................  Q0001-Q9999...........................  X0001-X9999.
AA001-HZ999......................  QA001-QZ999...........................  XA001-XZ999.
 then
JA001-JZ999......................  ......................................  Y0001-Y9999.
RA001-RZ999......................  ......................................  YA001-YZ999.
----------------------------------------------------------------------------------------------------------------

    (3) If the contract administration office is changing the contract 
administration or disbursement office for the first time and is using 
computer generated modifications to notify many offices, it uses the 
six position supplementary number ARZ999. If either office has to be 
changed again during the life of the contract, the supplementary number 
will be ARZ998, and on down as needed.


204.1670  Cross-reference to Federal Procurement Data System.

    Detailed guidance on mapping PIID and supplementary PIID numbers 
stored in the Electronic Document Access system to data elements 
reported in the Federal Procurement Data System can be found in PGI 
204.1604-70.


204.1671  Order of application for modifications.

    (a) Circumstances may exist in which the numeric order of the 
modifications to a contract is not the order in which the changes to 
the contract actually take effect.
    (b) In order to determine the sequence of modifications to a 
contract or order, the modifications will be applied in the following 
order:
    (1) Modifications will be applied in order of the effective date on 
the modification.
    (2) In the event of two or more modifications with the same 
effective date, modifications will be applied in signature date order.
    (3) In the event of two or more modifications with the same 
effective date and the same signature date, procuring contracting 
office modifications will be applied in numeric order, followed by 
contract administration office modifications in numeric order.

Subpart 204.70--[Removed and Reserved]

0
3. Remove subpart 204.70, consisting of sections 204.7000 through 
204.7007.

PART 232--CONTRACT FINANCING

0
4. Add section 232.905 to subpart 232.9 to read as follows:


232.905  Payment documentation and process.

    (b)(1)(iii) For task and delivery orders numbered in accordance 
with FAR 4.1603 and DFARS 204.1603, the 13-character order number will 
serve as the contract number on invoices and receiving reports. Task 
and delivery orders numbered with a four-position alpha-numeric call/
order serial number shall include both the 13-position basic contract 
Procurement Instrument Identifier and the four-position order number.

PART 239--ACQUISITION OF INFORMATION TECHNOLOGY


239.7407  [Removed and Reserved]

0
5. Remove and reserve section 239.7407.
0
6. Amend Appendix F to Chapter 2, in section F-301, by revising 
paragraph (b)(1) to read as follows:

Appendix F to Chapter 2-Material Inspection and Receiving Report

* * * * *

F-301 Preparation instructions.

* * * * *
    (b) * * *
    (1) Contract no/delivery order no.
    (i) Enter the 13-position alpha-numeric basic Procurement 
Instrument Identifier (PIID) of the contract. For task and delivery 
orders numbered in accordance with FAR 4.1603 and DFARS 204.1603, 
enter the 13-character order number only. If the order has only a 
four-position alpha numeric call/order serial number; enter both the 
13-position basic contract PIID and the four-position order number.
    (ii) Except as indicated in paragraph (b)(1)(iii) of this 
appendix, do not enter supplementary numbers used in conjunction 
with basic PIIDs to identify--
    (A) Modifications of contracts and agreements;
    (B) Modifications to calls or orders; or
    (C) Document numbers representing contracts written between 
contractors.
    (iii) When shipping instructions are furnished and shipment is 
made before receipt of the confirming contract modification (SF 30, 
Amendment of Solicitation/Modification of Contract), enter a comment 
in the Misc. Info Tab to this effect. This will appear in the 
Comments section of the printed WAWF RR.
* * * * *
[FR Doc. 2015-12344 Filed 5-22-15; 8:45 am]
 BILLING CODE 5001-06-P