[Federal Register Volume 85, Number 169 (Monday, August 31, 2020)]
[Proposed Rules]
[Pages 53761-53763]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18639]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 245 and 252

[Docket DARS-2020-0026]
RIN 0750-AK92


Defense Federal Acquisition Regulation Supplement: Property Loss 
Reporting in the Procurement Integrated Enterprise Environment (DFARS 
Case 2020-D005)

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 replace a legacy software application 
used for reporting loss of Government property with new capabilities 
developed within the DoD enterprise-wide, eBusiness platform, 
Procurement Integrated Enterprise Environment.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before October 30, 2020, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2020-D005, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Search for 
``DFARS Case 2020-D005'' under the heading ``Enter keyword or ID'' and 
select ``Search.'' Select ``Comment Now'' and follow the instructions 
provided to submit a comment. Please include ``DFARS Case 2020-D005'' 
on any attached document.
    [cir] Email: [email protected]. Include DFARS Case 2020-D005 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Kimberly R. Ziegler, OUSD(A&S)DPC/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: Ms. Kimberly R. Ziegler, telephone 
571-372-6095.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to amend the DFARS to replace the Defense Contract 
Management Agency (DCMA) eTool application used to report the loss of 
Government property with the new Government-Furnished Property (GFP) 
module in the Procurement Integrated Enterprise Environment (PIEE). The 
DCMA eTool application is a self-contained, legacy application that has 
numerous limitations, to include its inability to share data with other 
internal or external DoD business systems or to respond to changes in 
regulation, policies, and procedures. DoD developed the GFP module 
within the PIEE to house the GFP lifecycle to address these limitations 
and to provide the Department with the end-to-end accountability for 
all GFP transactions within a secure, single, integrated system.

II. Discussion and Analysis

    The clause at DFARS 252.245-7002, Reporting Loss of Government 
Property, directs DoD contractors to use the Defense Contract 
Management Agency (DCMA) eTool software application for reporting loss 
of Government-furnished property (GFP). This rule proposes to revise 
the clause at DFARS 252.245-7002 to direct contractors to use the 
property loss function within the GFP module in the PIEE, instead of 
the DCMA eTool, when reporting loss of Government-furnished property. 
There are no changes to the data to be reported, only the application 
in which it is submitted. The new application is based upon newer 
technology that will provide contractors with a much more efficient 
process to submit data for their reports. For instance, contractors 
will not be required to enter the same data into multiple fields, the 
system will automatically populate data fields throughout the process. 
This one improvement will save contractors time and reduce the 
potential for errors during manual entry.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This proposed rule does not create any new provisions or clauses, 
nor does it change the applicability of any existing provisions or 
clauses included in solicitations and contracts valued at or below the 
simplified acquisition threshold, or for commercial items, including 
commercially available off-the-shelf items.

[[Page 53762]]

IV. Executive Orders 12866 and 13563

    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.

V. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a 
significant regulatory action under E.O. 12866.

VI. 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 is not creating any new requirements for contractors, 
it is merely changing the software application contractors use to 
electronically report property losses under existing policies and 
practices. However, an initial regulatory flexibility analysis has been 
performed and is summarized as follows:
    The Department of Defense is proposing to amend the Defense Federal 
Acquisition Regulation Supplement (DFARS) to replace a legacy software 
application used for reporting loss of Government property with new 
capabilities developed within the DoD enterprise-wide, eBusiness 
platform, Procurement Integrated Enterprise Environment (PIEE).
    The objective of the case is to transition property loss reporting 
from a stand-alone, legacy software application to the PIEE, a fully 
integrated, DoD enterprise-wide eBusiness platform. Use of the new 
system functionality will enable DoD to address numerous audit findings 
and security concerns.
    This rule will likely affect some small business concerns that are 
provided Government-furnished property in the performance of their 
contracts and those who experience a loss which must be reported in the 
PIEE. Data generated from the DCMA eTool for fiscal years (FY) 2017 
through 2019 indicates that an average of 3,765 loss cases are 
submitted each year. Of those 3,765 loss cases, 52% or 1,958 cases are 
filed by the top 7 large business entities, while 48% or 1,807 make up 
all others which may include unique small business entities.
    Data generated from the Federal Procurement Data System (FPDS) for 
fiscal years 2017 through 2019, indicates that DoD has awarded an 
average of 34,463 contracts that contain the two applicable Government 
property clauses FAR 52.245-1 and DFARS 252.245-7002. Of those 
applicable contracts, DoD has awarded approximately 16,966 contracts to 
an average of 4,009 unique small entities during the three-year period. 
This would equate to 4 applicable contracts awarded to each unique 
small business entity.
    While there is no way to identify how many property loss cases are 
attributable specifically to unique small business concerns, it can be 
assumed that 11% of applicable contracts have had a property loss case 
reported (3,765/34,463). If the top 7 large business entities are 
removed from the equation, the number is reduced to 5% (1,807/34,463). 
We can therefore presume that approximately 5% of the 16,966 or 848 
contracts awarded to 212 small business entities may require a property 
loss case.
    The rule does not impose any new reporting, recordkeeping, or 
compliance requirements. The replacement of the application used for 
the approved information collection requirements is intended to 
maintain the status quo and potentially reduce compliance requirements 
over time due to the technological advances in the PIEE. This rule does 
not duplicate, overlap, or conflict with any other Federal rules. There 
are no practical alternatives available to meet the objectives of the 
rule.
    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 2020-D005) 
in correspondence.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act does apply. The proposed change to the 
DFARS does not impose new information collection requirements that 
require the approval of the Office of Management and Budget (OMB) under 
44 U.S.C. 3501, et seq. By replacing the software application used for 
reporting property loss, the status quo for the current information 
collection requirements are maintained under OMB clearance number 9000-
0075, Government Property. OMB 9000-0075 provides approval for 
collections of information under FAR clause 52.245-1, Government 
Property, which requires reporting of Government-property losses. DFARS 
clause 252.245-7002 is used in conjunction with FAR 52.245-1, and 
merely stipulates that DoD will electronically report any property 
losses as required by FAR 52.245-1 using the PIEE portal.

List of Subjects in 48 CFR Parts 245 and 252

    Government procurement.

Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 245 and 252 are proposed to be amended as 
follows:

0
1. The authority citation for 48 CFR parts 245 and 252 continues to 
read as follows:

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

PART 245--GOVERNMENT PROPERTY

0
2. Amend section 245.102 by--
0
a. In paragraph (4)(i) removing ``GFP'' and adding ``Government-
furnished property'' in its place; and
0
b. Revising paragraph (5).
    The revision reads as follows:


245.102  Policy.

* * * * *
    (5) Reporting loss of Government property. The Government-Furnished 
Property module of the Procurement Integrated Enterprise Environment is 
the DoD data repository for reporting loss of Government property in 
the possession of contractors. The requirements and procedures for 
reporting loss of Government property to the Government-Furnished 
Property module are set forth in the clause at 252.245-7002, Reporting 
Loss of Government Property, prescribed at 245.107.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 252.245-7002 by--
0
a. Removing the clause date of ``(DEC 2017)'' and adding ``(DATE)'' in 
its place; and
0
b. Revising paragraph (b)(1).
    The revision reads as follows:

[[Page 53763]]

252.245-7002   Reporting Loss of Government Property.

* * * * *
    (b) * * *
    (1) The Contractor shall use the property loss function in the 
Government-Furnished Property (GFP) module of the Procurement 
Integrated Enterprise Environment (PIEE) for reporting loss of 
Government property. Reporting value shall be at unit acquisition cost. 
Current PIEE users can access the GFP module by logging into their 
account. New users may register for access and obtain training on the 
PIEE home page at https://wawf.eb.mil/piee-landing.
* * * * *
[FR Doc. 2020-18639 Filed 8-28-20; 8:45 am]
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