Source: https://www.federalregister.gov/documents/2016/03/25/2016-06720/defense-federal-acquisition-regulation-supplement-warranty-tracking-of-serialized-items-dfars-case
Timestamp: 2017-07-26 06:58:47
Document Index: 107750511

Matched Legal Cases: ['arts 246', 'art1', 'arts 246', 'art2', 'art3', 'art4', 'art5', 'art6', 'art7']

:: Defense Federal Acquisition Regulation Supplement: Warranty Tracking of Serialized Items (DFARS Case 2014-D026)
81 FR 17041
17041-17044
Docket DARS-2015-0054
0750-AI39
2016-06720
DARS-2015-0054
Warranty Tracking of Serialized Items (DFARS Case 2014-D026)
https://www.federalregister.gov/d/2016-06720
Start Printed Page 17042
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to require use of the electronic contract attachments accessible via the Product Data Reporting and Evaluation Program to record and track warranty data and source of repair information for serialized items.
DoD published a proposed rule in the Federal Register at 80 FR 58671 on September 30, 2015, to require use of the electronic contract attachments accessible via the Product Data Reporting and Evaluation Program to record and track warranty data and source of repair information for serialized items. No public comments were submitted in response to the proposed rule.
There are two editorial changes from the proposed rule made in the final rule. The title “International Standards Organization/International Electrotechnical Commission” is spelled out in lieu of the acronym ISO/IEC in the definition of “issuing agency” at DFARS 246.701 and 252.246-7006(a). In addition, the list of examples of organizations that are responsible for assigning globally unique identifiers to an enterprise is removed from the definition of “issuing agency” at DFARS 246.701, 252.211-7003(a), and 252.246-7006(a), because a full list is available in the Register of Issuing Agency Codes for ISO/IEC 15459, the link for which is already provided in the definition.
The provision at DFARS 252.246-7005, Notice of Warranty Tracking and Serialized Items, and the clause at DFARS 252.246-7006, Warranty Tracking of Serialized Items, are prescribed for use when the solicitation includes the clause at 252.211-7003, Item Unique Identification and Valuation, and it is anticipated that the resulting contract will include a warranty for serialized items. The clause at 252.211-7003 is applicable to acquisitions valued at or below at or below the simplified acquisition threshold and for commercial items, including commercially available off-the-shelf items, involving the furnishing of supplies, unless the conditions in DFARS 211.274-2(b) apply. This rule does not change prescriptions for the provision at 252.246-7005 and the clause at 252.246-7006; rather, this rule merely require use of the electronic contract attachments to record and track warranty data and source of repair information for serialized items.
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:
The objective of the rule is to improve the process of collecting and sharing data on warranties provided by contractors on serialized items procured by DoD. Use of the electronic formats available via the Product Data Reporting and Evaluation Program (PDREP) ensures the data elements for warranty terms are effectively transmitted through various systems, such as Electronic Document Access, Wide Area WorkFlow, the Invoice, Receipt, Acceptance and Property Transfer module, and the PDREP Warranty Tracking database.
The final rule requires the use of the electronic formats for the “Warranty Tracking Information” and “Source of Repair Instructions” attachments, which are used to track the warranties of serialized items in accordance with the provision at DFARS 252.246-7005, Notice of Warranty Tracking of Serialized Items, and the clause at DFARS 252.246-7006, Warranty Tracking of Serialized Items. This rule is also necessary to provide clear guidance on the requirements for completion and submission of the warranty attachments.
According to data available in the Federal Procurement Data System, in fiscal year (FY) 2014 DoD awarded 5,807 contracts that contain one or more warranty clauses. Subject matter experts within DoD estimate that almost twice as many solicitations (11,500) issued by DoD in FY 2014 may have contained a warranty clause. It is also estimated that an average of four offers may have been received in response those solicitations, or 46,000 total offers. Of those responses, approximately 85 percent, or 39,100 responses, are estimated to be received from small businesses.
It is estimated that fifty percent of the time (for approximately 5,750 solicitations) the Government will specify the desired warranty terms, in which case the contractor provides the remaining data elements on the “Warranty Tracking Information” attachment and the “Source of Repair Instructions” attachment with its proposal, at contract award, or at the point of delivery. The other fifty percent of the time, the contractor will be required to specify all the warranty terms on the “Warranty Tracking Information” attachment and the “Source of Repair Instructions” attachment.
This rule does not create any new reporting or recordkeeping requirements. Offerors and contractors are already required to complete the attachments in accordance with the provision at DFARS 252.246-7005, Notice of Warranty Tracking of Serialized Items, and the clause at DFARS 252.246-7006, Warranty Tracking of Serialized Items. This rule merely requires contractors and offerors Start Printed Page 17043to complete the existing warranty attachments using the specified electronic formats.
No known alternatives to the rule have been identified that would achieve the stated objectives.
The rule contains information collection requirements that require the approval of the Office of Management and Budget (OMB) under the Paperwork Reduction Act (44 U.S.C. chapter 35); however, these changes to the DFARS do not impose additional information collection requirement to the paperwork burden previously approved under OMB Control Number 0704-0481, entitled “Warranty Tracking of Serialized Items.” The rule clarifies existing requirements for completion and submission of warranty attachments and requires electronic submission of those attachments by using the formats available in the Product Data Reporting and Evaluation Program.
Therefore, 48 CFR parts 246 and 252 are amended as follows:
Start Amendment Part1. The authority citation for parts 246 and 252 continues to read as follows: End Amendment Part
Start Amendment Part2. Amend section 246.701 by— End Amendment Part
Start Amendment Parta. Revising the heading and adding introductory text; End Amendment Part
Start Amendment Partc. Removing the last paragraph; and End Amendment Part
Start Amendment Partd. Adding, in alphabetical order, definitions of “Enterprise,” “Enterprise identifier,” “Issuing agency,” “Serialized item,” “Unique item identifier,” and “Warranty tracking”. The revision and additions read as follows: End Amendment Part
Issuing agency means an organization responsible for assigning a globally unique identifier to an enterprise, as indicated in the Register of Issuing Agency Codes for International Standards Organization/International Electrotechnical Commission 15459, located at http://www.aimglobal.org/​?Reg_​Authority15459.
Start Amendment Part3. Amend section 246.710 by revising paragraph (3) to read as follows: End Amendment Part
(iii) Include the following warranty attachments, available at https://www.pdrep.csd.disa.mil/​pdrep_​files/​other/​wsr.htm, in the solicitation and contract and see 246.710-70:
Start Amendment Part4. Revise section 246.710-70 to read as follows: End Amendment Part
Start Amendment Part5. Amend section 252.211-7003 by— End Amendment Part
Start Amendment Parta. Removing the clause date “(DEC 2013)” and adding “(MAR 2016)” in its place; and End Amendment Part
Start Amendment Partb. In paragraph (a), revising the definition of “Issuing agency”. End Amendment Part
Issuing agency means an organization responsible for assigning a globally unique identifier to an enterprise, as indicated in the Register of Issuing Agency Codes for ISO/IEC 15459, located at http://www.aimglobal.org/​?Reg_​Authority15459.
Start Amendment Part6. Amend section 252.246-7005 by— End Amendment Part
Start Amendment Parta. Removing from the introductory text “246.710(3)(i)(A)” and adding “246.710(3)(i)” in its place; End Amendment Part
Start Amendment Partb. Removing the clause date “(JUN 2011)” and adding “(MAR 2016)” in its place; and End Amendment Part
Start Amendment Partc. Revising paragraphs (a) and (b). End Amendment Part
(a) Definitions. Duration,
enterprise, enterprise identifier,
fixed expiration, item type,
serialized item, starting event,
unique item identifier, usage,
warranty administrator, warranty guarantor, and warranty tracking are defined in the clause at 252.246-7006, Warranty Tracking of Serialized Items.
(b) Reporting of data for warranty tracking and administration. (1) The Offeror shall provide the information required by the attachment entitled “Warranty Tracking Information” on each contract line item number, subline item number, or exhibit line item number for warranted items with its offer. Information required in the warranty attachment for each warranted item shall include such information as duration, fixed expiration, item type, starting event, usage, warranty administrator enterprise identifier, and warranty guarantor enterprise identifier.
(i) The unique item identifier for each warranted item required by the attachment entitled “Warranty Tracking Information;” and
(ii) All information required by the attachment entitled “Source of Repair Instructions” for each warranted item.Start Printed Page 17044
(3) For additional information on warranty attachments, see the “Warranty and Source of Repair” training and “Warranty and Source of Repair Tracking User Guide” accessible on the Product Data Reporting and Evaluation Program (PDREP) Web site at https://www.pdrep.csd.disa.mil/​pdrep_​files/​other/​wsr.htm.
Start Amendment Part7. Amend section 252.246-7006 by— End Amendment Part
Start Amendment Parta. Removing from the introductory text “246.710(3)(i)(B)” and adding “246.710(3)(ii)” in its place; End Amendment Part
Start Amendment Partb. Removing the clause date “(JUN 2011)” and adding “(MAR 2016)” in its place; End Amendment Part
Start Amendment Partc. Revising in paragraph (a) the definitions of “Issuing agency” and “Starting event”; and End Amendment Part
Start Amendment Partd. Revising paragraph (b). End Amendment Part
Starting event means the event or action that initiates the warranty, such as first use or upon installation.
(b) Reporting of data for warranty tracking and administration. (1) The Contractor shall provide the information required by the attachment entitled “Warranty Tracking Information” on each contract line item number, subline item number, or exhibit line item number for warranted items no later than the time of award. Information required in the warranty attachment shall include such information as duration, fixed expiration, item type, starting event, usage, warranty administrator enterprise identifier, and warranty guarantor enterprise identifier.
(ii) The warranty repair source information and instructions for each warranted item required by the attachment entitled “Source of Repair Instructions.”
(4) For additional information on warranty attachments, see the “Warranty and Source of Repair” training and “Warranty and Source of Repair Tracking User Guide” accessible on the Product Data Reporting and Evaluation Program (PDREP) Web site at https://www.pdrep.csd.disa.mil/​pdrep_​files/​other/​wsr.htm.
[FR Doc. 2016-06720 Filed 3-24-16; 8:45 am]