[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Rules and Regulations]
[Pages 3837-3839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-00614]


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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: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal

[[Page 3838]]

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: Effective January 15, 2021.

FOR FURTHER INFORMATION CONTACT: Ms. Kimberly R. Ziegler, telephone 
571-372-6095.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is amending 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.
    DoD published a proposed rule in the Federal Register at 85 FR 
53761 on August 31, 2020.
    No respondents submitted public comments in response to the 
proposed rule, and no changes were made in the final rule.

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

    This final 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.

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. 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.

V. 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:
    This rule amends the Defense Federal Acquisition Regulation 
Supplement to replace a legacy software application used for reporting 
loss of Government property with new capabilities developed within the 
fully integrated, 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. Use of the new system functionality 
will enable DoD to address numerous audit findings and security 
concerns.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.
    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 Defense Contract Management Agency 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 
percent or 1,958 cases are filed by the top 7 large entities, while 48 
percent or 1,807 make up all others, which may include unique small 
entities.
    Data generated from the Federal Procurement Data System (FPDS) for 
FY 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, Government Property, and DFARS 252.245-7002, 
Reporting Loss of Government Property. 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 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 percent of applicable contracts have had a property 
loss case reported (3,765/34,463). If the top 7 large entities are 
removed from the equation, the number is reduced to 5 percent (1,807/
34,463). We can therefore assume that of the 16,966 contracts awarded 
to small entities, approximately 5 percent, or 848 contracts awarded to 
212 small 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.
    There are no practical alternatives that will accomplish the 
objectives of the rule.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act does apply to this rule. However, these 
changes to the DFARS do not impose additional information collection 
requirements to the paperwork burden previously approved under OMB 
Control Number 9000-0075, Government Property. By replacing the 
software application used for reporting property loss, the status quo 
is maintained for the current information collection requirements. OMB 
Control Number 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, Reporting Loss of Government Property, is used in conjunction 
with FAR 52.245-1, and merely stipulates that DoD contractors 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 D. Johnson,
Regulatory Control Officer, Defense Acquisition Regulations System.

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

[[Page 3839]]


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 ``(JAN 2021)'' 
in its place; and
0
b. Revising paragraph (b)(1).
    The revision reads as follows:


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://piee.eb.mil/piee-landing.
* * * * *
[FR Doc. 2021-00614 Filed 1-14-21; 8:45 am]
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