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217.7404 Limitations. 

See PGI 217.7404 for additional 

guidance on obtaining approval to 

authorize use of an undefinitized 

contract action, documentation 

requirements, and other limitations on 

their use. 

* * * * * 

PART 230—COST ACCOUNTING 

STANDARDS ADMINISTRATION 

■ 7. The authority citation for 48 CFR 

230 is revised to read as follows: 

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

chapter 1. 

230.201–5 [Amended] 

■ 8. Section 230.201–5(e) is amended by 

removing ‘‘ATTN: DPAP/CPF’’ and 

adding in its place ‘‘ATTN: DPAP/ 

CPIC’’. 

PART 237—SERVICE CONTRACTING 

■ 9. The authority citation for 48 CFR 

237 is revised to read as follows: 

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

chapter 1. 

■ 10. Section 237.102–77 is added to 

read as follows: 

237.102–77 Automated requirements 

roadmap tool. 

See PGI 237.102–77 for guidance on 

using the Automated Requirements 

Roadmap Tool to develop and organize 

performance requirements into draft 

versions of the performance work 

statement, the quality assurance 

surveillance plan, and the performance 

requirements summary. 

■ 11. Section 237.102–78 is added to 

read as follows: 

237.102–78 Market research report guide 

for improving the tradecraft in services 

acquisition. 

See PGI 210.070 for guidance on use 

of the market research report guide to 

conduct and document market research 

for service acquisitions. 

PART 245—GOVERNMENT PROPERTY 

245.7001–6 [Amended] 

■ 12. In 245.7001–6, amend the section 

heading by removing ‘‘DD Form 1822,’’ 

and adding in its place ‘‘DLA Form 

1822,’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.219–7003 [Amended] 

■ 13. Section 252.219–7003 is amended 

by— 

■ a. Amending the clause date by 

removing ‘‘(JUN 2012)’’ and adding in 

its place ‘‘(AUG 2012)’’; and 

■ b. Amending paragraph (f) by 

removing the word ‘‘approval’’ and 

adding in its place ‘‘approved’’. 

252.225–7017 [Amended] 

■ 14. Section 252.225–7017 is amended 

by— 

■ a. Amending the clause date by 

removing ‘‘(JUN 2012)’’ and adding in 

its place ‘‘(AUG 2012)’’; and 

■ b. Amending the paragraph (a) 

definition of ‘‘Designated country’’ at 

paragraph (i) by adding the country of 

Armenia within the parentheses at the 

beginning of the (WTO GPA) country 

list. 

[FR Doc. 2012–21053 Filed 8–28–12; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

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 (DoD). 

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 Governmentfurnished property. 

DATES: Effective Date: August 29, 2012. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, telephone 571–372– 

6098. 

SUPPLEMENTARY INFORMATION: 

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 GovernmentFurnished 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: 

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Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Rules and Regulations 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 ContractorAcquired 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 ‘‘costreimbursement 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 check.’’ 

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 nonmandatory internal procedures, 

guidance, and supplemental 

information for Government contracting 

personnel. While the PGI is nonregulatory, 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 at 

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52256 Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Rules and Regulations 

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 Governmentfurnished 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 nonuniquely 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 Governmentfurnished 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 

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Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Rules and Regulations 52257 

211.274, Reporting of GovernmentFurnished 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: 

PART 211—DESCRIBING AGENCY 

NEEDS 

■ 1. The authority citation for 48 CFR 

part 211 is revised to read as follows: 

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 payments. 

(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 

211.274–3. 

* * * * * 

(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. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 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. 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 7. Section 252.211–7007 is revised to 

read as follows: 

252.211–7007 Reporting of GovernmentFurnished Property. 

As prescribed in 211.274–6(b), use the 

following clause: 

REPORTING OF GOVERNMENTFURNISHED PROPERTY (AUG 2012) 

(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; or 

(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, contractoracquired property becomes Governmentfurnished 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; and 

(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 Number. 

‘‘Nomenclature’’ means— 

(i) The combination of a Governmentassigned 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 

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52258 Federal Register / Vol. 77, No. 168 / Wednesday, August 29, 2012 / Rules and Regulations 

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 equivalent. 

‘‘Unit acquisition cost’’ has the meaning 

given in FAR clause 52.245–1. 

(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 Governmentfurnished property with a unit-acquisition 

cost of $5,000 or greater. 

(2) Beginning January 1, 2014, report— 

(i) All serially managed Governmentfurnished property, regardless of unitacquisition 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 performancebased 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 number. 

(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 (http:// 

www.dtic.mil/whs/directives/corres/pdf/ 

400025m.pdf). 

(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 Governmentfurnished 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 etools: 

(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 nonreimbursable 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 nonreimbursable 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] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 242 

RIN 0750–AH52 

Defense Federal Acquisition 

Regulation Supplement; DoD Voucher 

Processing (DFARS Case 2011–D054) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is amending the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to update DoD’s 

voucher processing procedures and 

better accommodate the Wide Area 

WorkFlow (WAWF) used to process 

vouchers. 

DATES: August 29, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark Gomersall, 571–372–6099. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 77 FR 2682 on 

January 19, 2012. The comment period 

closed on March 19, 2012. This rule 

revises requirements for approving 

interim vouchers and replaces the direct 

submission process currently referenced 

mstockstill on DSK4VPTVN1PROD with RULES