48200 Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules

State City/town/county Source of flooding Location

#Depth in feet above

ground.

*Elevation in feet (NGVD)

Existing Modified

McKenzie Lake ................. Entire shoreline within community ............ None *990

Long Lake ......................... Entire shoreline within community ............ None *1227

Mud Lake .......................... Entire shoreline within community ............ None *1227

Send comments to Mr. Hubert Smith, Chairman of the Washburn County Board of Supervisors, 10 West 4th Avenue, Shell Lake, Wisconsin

54871.

Maps available for inspection at the Washburn County Zoning Administration, 10 West 4th Avenue, Shell Lake, Wisconsin.

(Catalog of Federal Domestic Assistance No.

83.100, ‘‘Flood Insurance’’)

Dated: September 4, 1997.

Michael J. Armstrong,

Associate Director for Mitigation.

[FR Doc. 97–24207 Filed 9–12–97; 8:45 am]

BILLING CODE 6718–04–P

DEPARTMENT OF DEFENSE

48 CFR Parts 204, 212, and 252

[DFARS Case 97–D005]

Defense Federal Acquisition

Regulation Supplement; Central

Contractor Registration

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for

comments.

SUMMARY: The Director of Defense

Procurement is proposing to amend the

Defense Federal Acquisition Regulation

Supplement (DFARS) to require

contractor registration in the DoD

Central Contractor Registration database

prior to award of any contract, basic

agreement, basic ordering agreement, or

blanket purchase agreement, unless the

award results from a solicitation issued

on or before March 31, 1998.

DATES: Comment date: Comments on the

proposed rule should be submitted in

writing to the address shown below on

or before November 14, 1997 to be

considered in the formulation of the

final rule.

ADDRESSES: Interested parties should

submit written comments to: Defense

Acquisition Regulations Council, Attn:

Ms. Sandra G. Haberlin, PDUSD (A&T)

DP (DAR), IMD 3D139, 3062 Defense

Pentagon, Washington, DC 20301–3062.

Telefax number (703) 602–0350.

E-mail comments submitted over the

Internet should be addressed to:

dfars@acq.osd.mil

Please cite DFARS Case 97–D005 in

all correspondence related to this issue.

E-mail correspondence should cite

DFARS Case 97–D005 in the subject

line.

FOR FURTHER INFORMATION CONTACT: Ms.

Sandra G. Haberlin, (703) 602–0131.

SUPPLEMENTARY INFORMATION:

A. Background

The President’s Executive

memorandum, Streamlining

Procurement through Electronic

Commerce, dated October 26, 1993,

directed Federal Government agencies

to streamline and simplify procurement

through use of electronic commerce. To

achieve this goal, the final report,

Streamlining Procurement through

Electronic Commerce, dated October 13,

1994, was issued to define the

Government’s electronic commerce

architecture and implementation plan.

This plan includes centralizing

electronic commerce registration;

collecting business information,

including procurement data, from each

contractor into a database at the time of

registration; and adopting the Data

Universal Numbering System (DUNS)

number as the industry-standard

Governmentwide company identifier

code.

In addition, the Debt Collection

Improvement Act of 1996 (Section

31001 of Public Law 104–134) was

enacted on April 26, 1996. Subsection

31001(i) amends 31 U.S.C. 7701 by

requiring each contractor doing business

with the Government to furnish its

taxpayer identification number (TIN).

Subsection 31001(x) amends 31 U.S.C.

3332 by requiring, with few exceptions,

that payments be made by electronic

fund transfer (EFT).

This proposed rule requires contractor

registration in a DoD Central Contractor

Registration (CCR) database prior to

award of a contract, basic agreement,

basic ordering agreement, or blanket

purchase agreement, unless the award

results from a solicitation issued on or

before March 31, 1998. The rule requires

that contractors register on a one-time

basis, and confirm on an annual basis

that their CCR registration is accurate

and complete. The objectives of this rule

are (1) to more efficiently comply with

Public Law 104–134 by using a central

DoD repository to collect statutorily

required TINs and EFT information; (2)

to simplify and streamline procurement

by presenting ‘‘one DoD face to

industry,’’ and, thereby, eliminating

duplicate requirements and processes;

and (3) to increase visibility of vendor

sources for specific supplies and

services.

The following CCR Application Form

illustrates the data that contractors will

be required to provide in order to

register in the CCR:

BILLING CODE 5000–04–M
Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules 48201
48202 Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules

BILLING CODE 5000–04–C
Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules 48203

Instructions for Completion of the

Central Contractor Registration (CCR)

Application

DoD plans to include the following

rules in the CCR registration

instructions for contractors when filling

out the CCR Application form:

1. EFT Remittance Address. For each

CCR registration, contractors shall

provide only one EFT remittance

address. Contractors requiring multiple

EFT remittance addresses must establish

a separate CCR registration record for

each unique EFT remittance address.

Contractors may use the same EFT

remittance address in more than one

CCR registration record.

2. TINS. For each CCR registration,

Contractors shall provide only one TIN.

Contractors with multiple TINs shall

establish a separate CCR registration

record for each unique TIN. Contractors

may use the same TIN in more than one

CCR registration record.

3. Commercial and Government Entity

(CAGE) Code. Each CCR record must

have a unique CAGE code; therefore,

contractors requiring multiple CAGE

codes for the same address will have to

annotate the address with a unique

attribute. For example, instead of the

address: A Company, 1 A Road, Any

town, contractors may provide the

following addresses for multiple CAGE

codes:

CAGE code 1: A Company, 1 A Road,

Remit 1, Any town

CAGE code 2: A Company, 1 A Road,

Remit 2, Any town

CAGE code 3: A Company, 1 A Road,

Remit 3, Any town

4. DUNS and DUNS+4.

A. Definitions.

(1) ‘‘Parent business concern’’ means

a business entity with controlling (more

than 50 percent) ownership in another

business entity.

(2) ‘‘Subsidiary’’ means a business

entity with more than 50 percent of its

voting stock owned by another business

entity.

B. DUNS+4 implementation rules.

(1) A parent business concern must

use a DUNS, not a DUNS+4 number, to

register in the CCR database.

(2) A parent business concern may

identify each subsidiary with either a

unique DUNS number or a unique

DUNS+4 number, if the subsidiary plans

to register in the CCR database

separately from the parent business

concern and from other subsidiaries.

(3) Only a parent business concern

may identify a DUNS+4 for its

subsidiaries.

(4) When a parent business concern’s

registration becomes inactive—

a. The subsidiary’s registration, if the

subsidiary used a DUNS+4 number to

register, becomes inactive; and

b. The DoD registration activity will

send a notification to each DUNS+4

identified subsidiary, in addition to the

parent business concern, that provides

the reasons for deactivation and

provides a designated point of contact at

the parent business concern.

(5) If a subsidiary registers separately

from its parent, the parent business

concern will be asked if it wants a single

corporate-wide or subsidiary-unique

trading partner identification number

(unique pass code) generated by each

subsidiary’s registration.

(End of instructions)

The Department of Defense is also

examining alternative ways of obtaining

and updating contractor data. In the

near term, it may become possible for

DoD to use comparable data developed

by private sector sources to meet its data

needs, and DoD will explore these

alternatives throughly.

B. Regulatory Flexibility Act

This proposed rule may 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. An

Initial Regulatory Flexibility Analysis

(IRFA) has been prepared and is

summarized as follows:

This rule proposes to amend the

Defense Federal Acquisition Regulation

Supplement (DFARS) to require

contractor registration in a Central

Contractor Registration (CCR) database

prior to the award of a contract, basic

agreement, basic ordering agreement, or

blanket purchase agreement, unless the

award results from a solicitation issued

on or before March 31, 1998.

Subsequent to the initial registration,

this rule will require contractors to

confirm on an annual basis that their

CCR registration is accurate and

complete. The objectives of this rule are

(1) to more efficiently comply with the

Debt Collection Improvement Act of

1996 (Pub. L. 104–134) by using a

central repository to collect statutorily

required contractors’ taxpayer

identification numbers (TINs) and

electronic funds transfer (EFT)

information; (2) to simplify and

streamline the procurement process by

presenting ‘‘one DoD face to industry,’’

and, thereby, eliminating redundant

requirements and processes; and (3) to

increase visibility of vendor sources for

specific supplies and services.

Currently, contractors must submit

certain business information, including

their TIN and DUNS numbers, in

response to solicitations. In addition,

current regulations require contractors

to provide EFT information in

compliance with contract terms and

conditions. Under current regulations,

contractors are required to submit

duplicate information to various

contracting and payment offices. Under

the proposed rule, contractors are

required to provide certain business

information, including their TINs and

EFT information, only once into a

common DoD data source. DoD will use

this common CCR data source to more

efficiently meet the requirements of the

Debt Collection Improvement Act of

1996 (Section 31001 of Public Law 104–

134). The proposed rule applies to large

and small businesses that are awarded

DoD contracts, basic agreements, basic

ordering agreements, or blanket

purchase agreements, unless the award

results from a solicitation issued on or

before March 31, 1998. This policy

applies to all types of awards with the

following exceptions: (a) Purchases

made with a Governmentwide

commercial purchase card; (b) awards

made to foreign vendors for work

performed outside the United States; (c)

classified contracts or purchases; (d)

contracts that are awarded by deployed

contracting officers in the course of

military operations or contracts awarded

by contracting officers in the conduct of

emergency operations; and (e) purchases

to support unusual or compelling needs.

To date, no supporting data has been

collected; therefore, there is no available

estimate of the number of small

businesses that will be subject to the

rule. Based on DD 350 data,

approximately, 23,413 small businesses

were awarded contracts of $25,000 or

more in fiscal year 1996. It is estimated

that a majority of them will be subject

to the rule. Information is not available

to identify the additional number of

small businesses that were awarded

contracts of less than $25,000, or were

awarded basic agreements, basic

ordering agreements, or blanket

purchase agreements. All small entities

will be subject to the rule unless their

contract or agreement falls within one of

the five exceptions. Administrative or

financial personnel who have general

knowledge of the contractor’s business,

including the contractor’s bank account

and financial agent, are able to register

by providing the pertinent information

into the CCR database. The one

significant alternative that was

considered was to exclude small entities

from the requirements of this rule. It

was concluded that this alternative

would not minimize the economic

impact on small entities. Existing
48204 Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules

regulations require contractors to

submit, with each offer or as a term of

each contract, the same information.

The proposed rule eliminates these

redundant requirements, and their

resulting administrative burdens.

Therefore, this alternative was rejected.

A copy of the IRFA may be obtained

from the address specified herein.

Comments are invited from small

businesses and other interested parties.

Comments from small entities

concerning the affected DFARS subparts

also will be considered in accordance

with 5 U.S.C. 610. Such comments

should be submitted separately and

should cite DFARS Case 97–D005.

C. Paperwork Reduction Act

The Paperwork Reduction act (44

U.S.C. 3501, et seq.) applies, because the

proposed rule contains information

collection requirements. On June 25,

1997, the Department of Defense, Under

Secretary of Defense (Acquisition &

Technology) Deputy Under secretary of

Defense (Logistics/Electronic Commerce

Integration Organization) published a

notice and request for comments on the

proposed collection for CCR in the

Federal Register (62 FR 34230).

List of Subjects in 48 CFR Parts 204,

212, and 252

Government procurement.

Michele P. Peterson

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Parts 204, 212, and

252 are proposed to be amended as

follows:

1. The authority citation for 48 CFR

Parts 204, 212, and 252 continues to

read as follows:

Authority: 41 U.S.C. 421 and 48 CFR

Chapter 1.

PART 204—ADMINISTRATIVE

MATTERS

2. Subpart 204.73 is added to read as

follows:

Subpart 204.73—Central Contractor

Registration

Sec.

204.7300 Scope.

204.7301 Definitions.

204.7302 Policy.

204.7303 Procedures.

204.7304 Contract clause.

Subpart 204.73—Central Contractor

Registration

204.7300 Scope.

This subpart prescribes policies and

procedures for requiring contractor

registration in the DoD Central

Contractor Registration (CCR) database

to comply with the Debt Collection

Improvement Act of 1996 (31 U.S.C.

3332; 31 U.S.C. 7701), and to increase

visibility of vendor sources for specific

supplies and services, and their

geographical locations.

204.7301 Definitions.

‘‘Central Contractor Registration

(CCR) database,’’ ‘‘Data Universal

Numbering System (DUNS) number,’’

‘‘Data Universal Numbering System+4

(DUNS+4) number,’’ and ‘‘Registered in

the CCR database’’ are defined in the

clause at 252.204–700X Required

Central Contractor Registration.

204.7302 Policy.

After March 31, 1998, prospective

contractors must be registered in the

CCR database, prior to award to a

contract, basic agreement, basic ordering

agreement, or blanket purchase

agreement, unless the award results

from a solicitation issued on or before

March 31, 1998. This policy applies to

all types of awards except the following:

(a) Purchases made with a

Governmentwide commercial purchase

card;

(b) Awards made to foreign vendors

for work performed outside the United

States;

(c) Classified contracts or purchases

(see FAR 4.401);

(d) Contracts awarded by deployed

contracting officers in the course of

military operation, including, but not

limited to, contingency operations as

defined in 10 U.S.C. 101(a)(13), or

contracts awarded by contracting

officers in the conduct of emergency

operations, such as responses to natural

disasters or national or civil

emergencies; and

(e) Purchases to support unusual or

compelling needs of the type described

in FAR 6.302–2.

204.7303 Procedures.

(a)(1) Except as provided in 204.7302,

the contracting officer shall require each

offeror to provide a DUNS or, if

applicable, a DUNS+4 number, with its

verbal or written offer, regardless of the

dollar amount of the offer.

(2) Prior to making an award of any

contract, basic agreement, basic ordering

agreement, or blanket purchase

agreement after March 31, 1998, unless

the award results from a solicitation

issued on or before March 31, 1998, the

contracting officer shall verify that the

prospective awardee is registered in the

CCR database (but see 204.7303(b)). The

contracting officer may verify

registration using the DUNS number or,

if applicable, the DUNS+4 number, by

calling 1–888–xxx–xxxx, via the

Internet at http://ccr.edi.disa.mil/ccr/

cgi–bin/status.pl, or as otherwise

provided by agency procedures.

(3) Verification of registration is not

required for orders or calls.

(4) After March 31, 1998, as part of

the annual review of basic agreement,

basic ordering agreement, and blanket

purchase agreements, contracting

officers shall modify these agreements

to incorporate the clause at 252.204–

700X, Required Central Contractor

Registration.

(b) If the contracting officer

determines that a prospective awardee

is not registered in the CCR database,

the contracting officer shall—

(1) If the needs of the requiring

activity allow for a delay, proceed to

award after the contractor is registered.

(2) If the needs of the requiring

activity do not allow for a delay,

proceed to award to the next otherwise

successful registered offeror, provided

that written approval is obtained at one

level above the contracting officer.

(c) Agencies shall protect against

improper disclosure of contractor CCR

information.

204.7304 Contract clause.

Except as provided in 204.7302, use

the clause at 252.204–700X, Required

Central Contractor Registration, in—

(a) Solicitation issued after March 31,

1998;

(b) Contracts resulting from

solicitations issued after March 31,

1998; and

(c) Basic agreements, basic ordering

agreements, and blanket purchase

agreements issued after March 31, 1998,

unless they resulted from solicitations

issued on or before March 31, 1998.

PART 212—ACQUISITION OF

COMMERCIAL ITEMS

3. Section 212.301 is amended by

adding paragraph (f)(iv) to read as

follows:

212.301 Solicitation provisions and

contract clauses for the acquisition of

commercial items.

(f) * * *

(iv) Use the clause at 252.204–700X,

Required Central Contractor

Registration, as prescribed in 204.7304.

PART 252—SOLICITATION

PROVISIONS AND CONTRACT

CLAUSES

4. Section 252.204–700X is added to

read as follows:

252.204–700X Required Central Contractor

Registration.

As prescribed in 204.7304, use the

following clause:
Federal Register / Vol. 62, No. 178 / Monday, September 15, 1997 / Proposed Rules 48205

REQUIRED CENTRAL CONTRACTOR

REGISTRATION (XXX 19XX)

(a) Definitions.

Central Contractor Registration (CCR)

database means the primary DoD repository

for contractor information required for the

conduct of business with DoD.

Data Universal Numbering System (DUNS)

number means the 9-digit number assigned

by Dun and Bradstreet Information Services

to identify unique business entities.

Data Universal Numbering System

(DUNS)+4 number means the DUNS number

assigned by Dun and Bradstreet plus a 4-digit

suffix that may be assigned by a parent

(controlling) business concern. This 4-digit

suffix may be assigned at the discretion of the

parent business concern for such purposes as

identifying subunits or affiliates of the parent

business concern.

Registered in the CCR database means that

all mandatory information, including the

DUNS number or the DUNS+4 number, if

applicable, and the corresponding

Commercial and Government Entity (CAGE)

code, is in the CCR database; the DUNS

number and the CAGE code have been

validated; and all edits have been

successfully completed. To remain registered

in the CCR database after the initial

registration, the Contractor is required to

confirm on an annual basis that its CCR

registration is still accurate and complete.

(b)(1) By submission of an offer, the offeror

acknowledges the requirement that a

prospective awardee must be registered in

the CCR database prior to award, during

performance, and through final payment of

any contract resulting from this solicitation

except for awards to foreign vendors for work

to be performed outside the United States.

(2) The offeror shall provide its DUNS or,

if applicable, its DUNS+4 number with its

offer, which will be used by the Contracting

Officer to verify that the offeror is registered

in the CCR database.

(3) Lack of registration in the CCR database

will make an offeror ineligible for award.

(4) Since initial registration in the CCR

database may take up to 30 days, offerors that

are not registered should consider applying

for registration immediately upon receipt of

this solicitation.

(c) The Contractor is responsible for the

accuracy and completeness of the data within

the CCR, and for any liability resulting from

the Government’s reliance on inaccurate or

incomplete data. To remain registered in the

CCR database after the initial registration, the

Contractor is required to confirm on an

annual basis that its information in the CCR

database is accurate and complete.

(d) Offerors and contractors may obtain

information on registration and annual

confirmation requirements by calling 1–888–

xxx–xxxx or via the Internet at http://

ccr.edi.disa.mil.

(End of clause)

[FR Doc. 97–24387 Filed 9–12–97; 8:45 am]

BILLING CODE 5000–04–M

DEPARTMENT OF DEFENSE

48 CFR Part 215

[DFARS Case 97–D025]

Defense Federal Acquisition

Regulation Supplement; Weighted

Guidelines—Federally Funded

Research and Development Centers

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for

comments.

SUMMARY: The Director of Defense

Procurement is proposing to amend the

Defense Federal Acquisition Regulation

Supplement (DFARS) to exempt

Federally Funded Research and

Development Centers from the weighted

guidelines method for establishing

profit and fee objectives.

DATES: Comment date: Comments on the

proposed rule should be submitted in

writing to the address shown below on

or before November 14, 1997 to be

considered in the formulation of the

final rule.

ADDRESSES: Interested parties should

submit written comments to: Defense

Acquisition Regulations Council, Attn:

Ms. Amy Williams, PDUSD (A&T) DP

(DAR), IMD 3D139, 3062 Defense

Pentagon, Washington, DC 20301–3062.

Telefax number (703) 602–0350.

E-mail comments submitted over the

Internet should be addressed to:

dfars@acq.osd.mil

Please cite DFARS Case 97–D025 in

all correspondence related to this issue.

E-mail correspondence should cite

DFARS Case 97–D025 in the subject

line.

FOR FURTHER INFORMATION CONTACT:

Ms. Amy Williams, (703) 602–0131.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends DFARS

Subpart 215.9 to exempt Federally

Funded Research and Development

Centers (FFRDCs) from the weighted

guidelines method for establishing

profit and fee objectives. The fee for an

FFRDC is based on assessment of need

and, therefore, should not be subject to

the structured, risk-based approach

embodied in the weighted guidelines

method of profit/fee computation. The

proposed rule instead requires

contracting officers to establish fee

objectives for FFRDCs in accordance

with FFRDC fee policies in the DoD

FFRDC Management Plan.

B. Regulatory Flexibility Act

The proposed rule is not expected 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 applies only to contract

actions with Federally Funded Research

and Development Centers. The rule is

not applicable to small businesses. An

initial regulatory flexibility analysis has

therefore not been prepared. Comments

are invited from small businesses and

other interested parties. Comments from

small entities concerning the affected

DFARS subpart also will be considered

in accordance with 5 U.S.C. 610. Such

comments should be submitted

separately and should cite DFARS Case

97–D025 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed rule

does not impose any information

collection requirements that require the

approval of the Office of Management

and Budget under 44 U.S.C. 3501, et

seq.

List of Subjects in 48 CFR Part 215

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition

Regulations Council.

Therefore, 48 CFR Part 215 is

proposed to be amended as follows:

1. The authority citation for 48 CFR

Part 215 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR

Chapter 1.

PART 215—CONTRACTING BY

NEGOTIATION

2. Section 215.902 is amended by

revising the introductory text to read as

follows:

215.902 Policy.

Departments and agencies shall use a

structured approach for developing a

prenegotiation profit or fee objective

(profit objective) on any negotiated

contract action that requires cost

analysis, except on cost-plus-award-fee

contracts (see 215.974) or contracts with

Federally Funded Research and

Development Centers (FFRDCs) (see

215.975). There are three structured

approaches—

* * * * *

3. Section 215.903 is amended by

revising paragraphs (b)(1) and (b)(2) to

read as follows:

215.903 Contracting officer

responsibilities.

* * * * *

(b) The contracting officer—

(1) Shall use the weighted guidelines

method (see 215.971), unless—