80 FR 58671 - Defense Federal Acquisition Regulation Supplement: Warranty Tracking of Serialized Items (DFARS Case 2014-D026)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 189 (September 30, 2015)

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to require use of the electronic contract attachments accessible via the Product Deficiency Reporting and Evaluation Program to record and track warranty data and source of repair information for serialized items.

[Federal Register Volume 80, Number 189 (Wednesday, September 30, 2015)]
[Proposed Rules]
[Pages 58671-58674]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24784]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 246 and 252

[Docket No. DARS-2015-0054]
RIN 0750-AI39


Defense Federal Acquisition Regulation Supplement: Warranty 
Tracking of Serialized Items (DFARS Case 2014-D026)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require use of the electronic contract 
attachments accessible via the Product Deficiency Reporting and 
Evaluation Program to record and track warranty data and source of 
repair information for serialized items.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before November 30, 2015, to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2014-D026, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2014-D026'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2014-D026.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2014-D026'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2014-D026 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. 
Kyoung Lee, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Kyoung Lee, telephone 571-372-
6093.

SUPPLEMENTARY INFORMATION: 

I. Background

    On June 8, 2011, DoD published a final rule in the Federal Register 
(76 FR 33166) to establish the requirements and formats for tracking 
warranties for items subject to Item Unique Identification (IUID) in 
the IUID registry in the DFARS. The rule added 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, 
with standard contract attachments and instructions for reporting data 
necessary to track warranty information for each serialized item.
    On April 12, 2012, the Director, Defense Procurement Acquisition 
Policy (DPAP), issued a memorandum entitled

[[Page 58672]]

``Implementation of Defense Federal Acquisition Regulation Supplement 
Provision and Clause for Warranty Tracking of Serialized Items'' to 
encourage the use of a machine readable, fillable Adobe portable 
document format (PDF) for the electronic submission of warranty 
information required by the provision and clause. This memorandum also 
announced planned updates to the Product Deficiency Reporting and 
Evaluation Program (PDREP) to facilitate the electronic collection, 
storage and distribution of warranty data and provide for a common, 
searchable data source for enterprise warranty data.

II. Discussion and Analysis

    The electronic warranty attachments entitled ``Warranty Tracking 
Information'' and ``Source of Repair Instructions'' are now available 
in PDREP. The purpose of this proposed rule is to amend DFARS 246.710, 
DFARS clause 252.246-7005, Notice of Warranty Tracking of Serialized 
Items, and DFARS clause 252.246-7006, Warranty Tracking of Serialized 
Items, to make use of the electronic warranty attachments in PDREP 
mandatory for solicitations and contracts when warranty of serialized 
items is anticipated or required. This rule also clarifies the 
requirements for completion and submission of the warranty attachments.

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

    DoD expects that this proposed rule will not 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. 
However, an initial regulatory flexibility analysis has been prepared 
and is summarized as follows:
    The purpose of this proposed rule is to amend the DFARS to require 
the use of the electronic formats for the ``Warranty Tracking 
Information'' and ``Source of Repair Instructions'' attachments, 
required for use in tracking the warranties of serialized items by 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.
    Use of the electronic formats will improve the process of 
collecting and sharing data on warranties provided by contractors on 
serialized items procured by DoD. Additionally, use of the electronic 
formats available via the Product Deficiency Reporting and Evaluation 
Program (PDREP) ensure 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.
    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%, or 39,100 responses, are estimated to be received 
from small businesses.
    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. Rather, this 
rule requires contractors and offerors to complete the warranty 
attachments using the specified electronic formats.
    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.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. There are no known significant alternatives to the rule. 
The impact of this rule on small business is not expected to be 
significant.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2014-D026), in 
correspondence.

V. Paperwork Reduction Act

    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-
0481, entitled Warranty Tracking of Serialized Items.

List of Subjects in 48 CFR Parts 246 and 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
    Therefore, 48 CFR parts 246 and 252 are proposed to be amended as 
follows:

0
1. The authority citation for parts 246 and 252 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 246--QUALITY ASSURANCE

0
2. Amend section 246.701 by--
0
a. Revising the section heading.
0
b. Adding introductory text.
0
c. Removing ``Duration, enterprise, enterprise identifier, fixed 
expiration, issuing agency, item type, starting event, serialized item, 
unique item identifier, usage, warranty administrator, warranty 
guarantor, warranty repair source, and warranty tracking are defined in 
the clause at 252.246-7006, Warranty Tracking of Serialized Items''; 
and
0
d. Adding, in alphabetical order, the definitions of Enterprise, 
Enterprise identifier, Issuing agency, Serialized item, Unique item 
identifier, and Warranty tracking.

[[Page 58673]]

    The additions read as follows:


246.701   Definitions.

    As used in this subpart--
* * * * *
    Enterprise means the entity (e.g., a manufacturer or vendor) 
responsible for granting the warranty and/or assigning unique item 
identifiers to serialized warranty items.
    Enterprise identifier means a code that is uniquely assigned to an 
enterprise by an issuing agency.
    Issuing agency means an organization responsible for assigning a 
globally unique identifier to an enterprise (e.g., Dun & Bradstreet's 
Data Universal Numbering System (DUNS) Number, GS1 Company Prefix, 
Allied Committee 135 NATO Commercial and Government Entity (NCAGE)/
Commercial and Government Entity (CAGE) Code, or the Coded 
Representation of the North American Telecommunications Industry 
Manufacturers, Suppliers, and Related Service Companies (ATIS-0322000) 
Number), European Health Industry Business Communication Council 
(EHIBCC) and Health Industry Business Communication Council (HIBCC)), 
as indicated in the Register of Issuing Agency Codes for ISO/IEC 15459, 
located at http://www.aimglobal.org/?Reg_Authority15459.
    Serialized item means each item produced is assigned a serial 
number that is unique among all the collective tangible items produced 
by the enterprise, or each item of a particular part, lot, or batch 
number is assigned a unique serial number within that part, lot, or 
batch number assignment within the enterprise identifier. The 
enterprise is responsible for ensuring unique serialization within the 
enterprise identifier or within the part, lot, or batch numbers, and 
that serial numbers, once assigned, are never used again.
    Unique item identifier means a set of data elements marked on an 
item that is globally unique and unambiguous.
    Warranty tracking means the ability to trace a warranted item from 
delivery through completion of the effectivity of the warranty.
0
3. Amend section 246.710 by revising paragraph (3) to read as follows:


246.710   Solicitation provision and contract clauses.

* * * * *
    (3) When the solicitation includes the clause at 252.211-7003, Item 
Unique Identification and Valuation, which is prescribed in 211.274-
6(a), and it is anticipated that the resulting contract will include a 
warranty for serialized items--
    (i) Use the provision at 252.246-7005, Notice of Warranty Tracking 
of Serialized Items, in the solicitation if the Government does not 
specify a warranty and offerors will be required to enter data with the 
offer;
    (ii) Use the clause at 252.246-7006, Warranty Tracking of 
Serialized Items, in the solicitation and contract; and
    (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:
    (A) Warranty Tracking Information.
    (B) Source of Repair Instructions.
0
4. Revise section 246.710-70 to read as follows:


246.710-70   Warranty attachments.

    Follow the procedures at PGI 246.710-70 regarding warranty 
attachments.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 252.211-7003 
[AMENDED]

0
5. Amend section 252.211-7003 by--
0
a. Removing the clause date ``(DEC 2013)'' and adding ``(DATE)'' in its 
place; and
0
b. In paragraph (a), in the definition of ``Issuing agency,'' removing 
``http://www.nen.nl/Normontwikkeling/Certificatieschemas-en-keurmerken/Schemabeheer/ISOIEC-15459.htm under `Register.' '' and adding ``http://www.aimglobal.org/?Reg_Authority15459.'' in its place.
0
6. Amend section 252.246-7005 by--
0
a. In the introductory text, removing ``246.710(3)(i)(A)'' and adding 
``246.710(3)(i)'' in its place;
0
b. Removing the clause date ``(JUN 2011)'' and adding ``(DATE)'' in its 
place; and
0
c. Revising paragraphs (a) and (b).
    The revisions read as follows:


252.246-7005   Notice of Warranty Tracking of Serialized Items.

* * * * *
    (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.
    (2) The successful offeror will be required to provide the 
following information no later than when the warranted items are 
presented for receipt and/or acceptance, in accordance with the clause 
at 252.246-7006--
    (A) The unique item identifier for each warranted item required by 
the attachment entitled ``Warranty Tracking Information;'' and
    (B) All information required by the attachment entitled ``Source of 
Repair Instructions'' for each warranted item.
    (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.

(End of provision)
0
7. Amend section 252.246-7006 by--
0
a. In the introductory text, removing ``246.710(3)(i)(B)'' and adding 
``246.710(3)(ii)'' in its place;
0
b. Removing the clause date ``(JUN 2011)'' and adding ``(DATE)'' in its 
place;
0
c. In paragraph (a)--
0
i. In the definition of ``Issuing agency,'' removing ``http://www.nen.nl/Normontwikkeling/Certificatieschemas-en-keurmerken/Schemabeheer/ISOIEC-15459.htm'' and adding ``http://www.aimglobal.org/?Reg_Authority15459'' in its place.
0
ii. In the definition of ``Starting event,'' adding ``, such as first 
use or upon installation'' after ``warranty''; and
0
d. Revising paragraph (b).
    The revision reads as follows:


252.246-7006   Warranty Tracking of Serialized Items.

* * * * *
    (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.

[[Page 58674]]

    (2) The Contractor shall provide the following information no later 
than when the warranted items are presented for receipt and/or 
acceptance--
    (A) The unique item identifier for each warranted item required by 
the attachment entitled ``Warranty Tracking Information;'' and
    (B) The warranty repair source information and instructions for 
each warranted item required by the attachment entitled ``Source of 
Repair Instructions.''
    (3) The Contractor shall submit the data for warranty tracking to 
the Contracting Officer with a copy to the requiring activity and the 
Contracting Officer Representative.
    (4) For additional information on warranty attachments, see the 
``Warranty and Source of Repair'' training and ``Warranty and Source of 
Repair Tacking 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. 2015-24784 Filed 9-29-15; 8:45 am]
 BILLING CODE 5001-06-P