Source: http://farsite.hill.af.mil/reghtml/changes/dac/DPN20160226.htm
Timestamp: 2019-02-17 12:23:42
Document Index: 366928802

Matched Legal Cases: ['arts 204', 'art 4', 'art 204', 'art 4', 'art 204', 'art 4', 'arts 204', 'arts 204', 'arts 204', 'art 204']

DPN20160226
[FR Doc No: 2016-04189]
48 CFR Parts 204, 232, 243, and Appendix F to Chapter 2
[Docket DARS-2015-0025]
SUMMARY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to conform with the uniform procurement identification procedures implemented in the Federal Acquisition Regulation (FAR).
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Johnson, telephone 571-372-6100.
DoD published a proposed rule in the Federal Register at 80 FR 30030 on May 26, 2015, to amend the DFARS to conform with the uniform procurement identification procedures implemented in the FAR through final rule 2012-023 (79 FR 61739, published October 14, 2014, became effective November 13, 2014). The final FAR rule implemented a uniform procurement instrument identification system for various procurement transactions across the Federal Government. DFARS coverage of uniform procurement instrument identification must be synchronized with the FAR coverage so that the identification numbers of DoD-issued contracts, orders, and other procurement instruments will comply with FAR subpart 4.16 as amended by final FAR rule 2012-023. Three respondents submitted public comments in response to the proposed rule.
DoD reviewed the public comments in the development of the final rule. A discussion of the comments and the significant changes made to the rule as a result of those comments is provided as follows:
DFARS 204.1601(b)--The date of October 1, 2015, which was the date DoD Components were encouraged to start implementation, has been removed since that date has passed.
DFARS 204.1603(a)(3)--Clarifies use of the letters C, H, M, and T in the ninth position of a procurement instrument identifier (PIID).
DFARS 232.905(b)(1)(iii)--Clarifies that basic contract or ordering agreement numbers may be included on invoices and receiving reports in addition to the task order or delivery order numbers.
a. Consistency With the FAR
Comment: One respondent requested assurance that the rule is consistent with the FAR due to uncertainty regarding how uniform procurement identification is being implemented.
Response: The implementation of uniform procurement identification in the DFARS is consistent with the FAR. The amendments to the DFARS accomplish the following: (1) Removal of the language that is duplicative of FAR language; (2) relocation of the remaining, nonduplicative DFARS language to subpart 204.16 to align with FAR subpart 4.16; (3) establishment of a timeline for implementation within DoD of the changes now required by the FAR; (4)confirmation that DoD will continue to use PIIDs that are 13 characters in length; and (5) revision of procedures for payment documentation and Wide Area WorkFlow (WAWF) to implement the FAR changes to task order and delivery order PIIDs.
b. Request for Meeting With Industry
Comment: One respondent requested that DoD hold a meeting with industry to ensure the concerns of industry have been considered and addressed before the rule takes effect.
Response: FAR final rule 2012-023, containing the uniform PIID requirements, was published in October 2014, and the few public comments received were addressed at that time. The DFARS final rule does not change any of the FAR requirements. Therefore, a public meeting is deemed to be unnecessary.
a. Timing of Implementation
Comment: One respondent asked that the uniform PIID changes not take effect before contract writing, invoicing, and other systems are modified to accommodate the changes.
Response: Each DoD Component is scheduling its implementation in order to complete the transition by the beginning of fiscal year 2017. The enterprise Procurement Desktop Defense (PD2) contract writing system (also known as the Standard Procurement System, or SPS) and WAWF have been tested before fielding the changes. The WAWF Invoices Receipt Acceptance and Property Transfer (iRAPT) Electronic Data Interchange and File Transfer Protocol Implementation Guides have been updated.
b. Impact on Industry Systems
Comment: One respondent commented that there is uncertainty regarding how the uniform PIID changes will impact industry systems and the resources required to insert the new data constructs. Another respondent commented that industry will need to modify existing systems integrating with WAWF.
Response: Implementation of the FAR uniform PIID requirements in the DFARS is designed to limit the number of changes necessary to systems. At this time, the changes are essentially limited to the structure of task order and delivery order numbers issued under DoD ordering instruments, as well as modifications to these orders. However, these changes are consistent with the way task order and delivery order numbers issued under non-DoD ordering instruments have been constructed for many years. The anticipated impact to industry systems is as limited as possible with this implementation strategy.
c. Sufficient Time for Industry Implementation
Comment: Two respondents commented that industry must be allowed sufficient time to adequately implement the changes, including time to modify and test applicable systems. One respondent also commented that the short transition schedule will require double entry of data in industry systems and WAWF until the changes can be implemented.
Response: The FAR final rule containing the uniform PIID requirements became effective November 13, 2014. Each DoD Component is scheduling its implementation in order to transition by the beginning of fiscal year 2017. For DoD, the rule primarily affects the structure of task and delivery order numbers issued under DoD ordering instruments, as well as modifications to those orders. Implementation of the uniform PIID requirements will not require double entry of data in WAWF. If a task order or delivery order is issued prior to the transition to the new PIID numbering requirements, invoices will be submitted as they are today for orders placed under DoD ordering instruments. If a task order or delivery order is issued after the transition, invoices will be submitted in accordance with the changes specified in this DFARS final rule, which is the same process currently followed for invoices for task orders and delivery orders issued under non-DoD ordering instruments (e.g., Federal Supply Schedules).
a. Contracts Issued in 2015 or Earlier
Comment: One respondent stated that it is unclear how the requirements of the rule will work with contracts issued in 2015 or earlier that were not numbered in accordance with the uniform PIID requirements.
Response: The DFARS changes are intended to apply prospectively. Therefore, existing contract numbers are not required to be updated, although this is not prohibited if the DoD Component chooses to do so. The DFARS changes address this possibility at 204.1601(c). Order numbers for task orders and delivery orders already issued under DoD indefinite-delivery contracts and ordering agreements are not required to be changed, and modifications to these orders may continue to use two-character modification numbers. However, new orders issued after the transition to the new numbering structure must be numbered in accordance with the uniform PIID requirements; likewise, modifications to new orders also must use the new numbering structure.
b. Identification of Basic Contract or Agreement on Invoice and Receiving Reports
Comment: Two respondents expressed concern about the omission of basic contract and ordering agreement numbers from invoices for task orders and delivery orders, which would eliminate the linkage between the contract or agreement and its orders. This would make those orders more difficult to close out. Both respondents proposed language to allow contractors to include the basic contract and ordering agreement numbers on the invoices.
Response: Invoices for task orders and delivery orders numbered in accordance with the uniform PIID requirements will be directly traceable to the orders and to the basic contract or ordering agreement. The order itself contains the order's PIID as well as the PIID for the contract or agreement under which it was placed. Additionally, WAWF iRAPT will implement a change proposal in the spring of 2016 that will enable improved search capabilities.
Regarding the proposed language to allow contractors to include the basic contract and ordering agreement numbers on invoices, DoD concurs and has incorporated this language into the final rule.
c. Traceability of Purchase Orders in Systems
Comment: One respondent identified an issue with the uniform PIID requirements that results in loss of the capability to search by purchase order identifier, which will inhibit traceability. The respondent also referenced a future release of WAWF iRAPT that would correct the issue.
Response: Concur that WAWF iRAPT release 5.9, scheduled to be implemented in the spring of 2016, will correct the search capability issue. This will mitigate the traceability concern.
d. Identification of Hybrid Contracts
Comment: One respondent commented that, although current DFARS text prohibits the use of the letter C in the ninth position of a PIID for contracts that include both definite and indefinite delivery requirements, the proposed DFARS changes do not continue this prohibition. The proposed DFARS changes would allow orders to be placed under a ``C'' type contract. The respondent asked if this shift from existing DoD policy was intentional.
Response: There is no shift in policy. The DFARS final rule includes clarifying language at DFARS 204.1603(a)(3)(C) to prohibit use of the letter C or H designators for contracts or agreements that include provisions for orders or calls.
e. Inclusion of Clauses in Task or Delivery Orders
Comment: One respondent recommended that all contract clauses from the basic contract or ordering agreement be included in each task or delivery order.
Response: This comment is outside the scope of the rule.
C. Other Changes The final rule includes some minor editorial changes for clarity
and consistency in the rule text.
The examples of proper supplementary PIID numbering, previously located under DFARS 204.1603 are moved to DFARS PGI.
The proposed rule deleted the text at DFARS 239.7407. This text is not deleted in the final rule.
A cross reference to relocated text is updated at DFARS 243.172.
This final rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to conform with the uniform procurement instrument identification procedures implemented in the Federal Acquisition Regulation (FAR). The amendments to the DFARS accomplish the following: (1) Removal of the language that is duplicative of FAR language; (2) relocation of the remaining, nonduplicative DFARS language to subpart 204.16 to align with FAR subpart 4.16; (3) establishment of a timeline for implementation within DoD of the changes now required by the FAR; (4)confirmation that DoD will continue to use procurement instrument identifiers (PIIDs) that are 13 characters in length; and (5) revision of procedures for payment documentation and Wide Area WorkFlow (WAWF) to implement the FAR changes to task order and delivery order PIIDs.
This rule is not expected to have a significant impact on a substantial number of small entities. The primary changes that will impact DoD contractors from this final DFARS rule are essentially limited to the structure of task and delivery order numbers issued under DoD ordering instruments, as well as modifications to these orders.
This rule does not add any new information collection, reporting, or recording keeping requirements. The existing recordkeeping requirements are limited to properly recording contract and other procurement instrument identification numbers and inserting them into documents (e.g., invoices) as required under Government contracts. Preparation of these records requires clerical and analytical skills to create the documents and input them into the appropriate electronic systems.
No alternatives were determined to be available that will accomplish the objectives of the rule.
The rule contains information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35); however, these changes to the DFARS do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 0704-0248 entitled ``Material Inspection and Receiving Report.''
List of Subjects in 48 CFR Parts 204, 232, 243, and Appendix F to Chapter 2
Therefore, 48 CFR parts 204, 232, 243, and appendix F to chapter 2 are amended as follows:
1. The authority citation for 48 CFR parts 204, 232, 243, and appendix F to chapter 2 continues to read as follows:
(c) Change in the PIID after its assignment. When a PIID is changed after contract award, the new PIID is known as a continued contract
. (i) A continued contract--
(ii) When issuing a continued contract, the contracting officer shall--
(A) Issue an administrative modification to the predecessor contract to clearly state that--
(B) Do not use other letters identified in FAR 4.1603(a)(3) as ``Reserved for future Federal Governmentwide use'' or ``Reserved for departmental or agency use'' in position 9 of the PIID.
(1) Positions 2 and 3. These two digits may be either alpha or numeric characters, except--
(ii) Use S only in position 2, and only to identify modifications issued to provide initial or amended shipping instructions when--
(iii) Use T, U, V, W, X, or Y only in position 2, and only to identify modifications issued to provide initial or amended shipping instructions when--
Detailed guidance on mapping PIID and supplementary PIID numbers stored in the Electronic Document Access system to data elements reported in the Federal Procurement Data System can be found in PGI 204.1670.
(b) In order to determine the sequence of modifications to a contract or order, the modifications will be applied in the following order--
3. Remove and reserve subpart 204.70, consisting of sections 204.7000 through 204.7007.
4. Add section 232.905 to read as follows:
243.172 [Amended]
5. Amend section 243.172 by removing ``204.7007'' and adding ``204.1671'' in its place.
6. Amend appendix F to chapter 2, in section F-301, by revising paragraph (b)(1) to read as follows:
(ii) Except as indicated in paragraph (b)(1)(iii) of this appendix, do not enter supplementary numbers used in conjunction with basic PIIDs to identify--
[FR Doc. 2016-04189 Filed 2-25-16; 8:45 am]