81_FR_17100 81 FR 17042 - Defense Federal Acquisition Regulation Supplement: Warranty Tracking of Serialized Items (DFARS Case 2014-D026)

81 FR 17042 - Defense Federal Acquisition Regulation Supplement: Warranty Tracking of Serialized Items (DFARS Case 2014-D026)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 58 (March 25, 2016)

Page Range17042-17044
FR Document2016-06720

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.

Federal Register, Volume 81 Issue 58 (Friday, March 25, 2016)
[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Rules and Regulations]
[Pages 17042-17044]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06720]



[[Page 17041]]

Vol. 81

Friday,

No. 58

March 25, 2016

Part IV





Department of Defense





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Defense Acquisition Regulations System





48 CFR Parts 211, 212, 216 et al.





Defense Acquisition Regulations; Rules, Proposed Rules, and Notice.

Federal Register / Vol. 81 , No. 58 / Friday, March 25, 2016 / Rules 
and Regulations

[[Page 17042]]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 211, 212 and 252

[Docket 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: Final rule.

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

SUMMARY: 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.

DATES: Effective March 25, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Jo Ann Reilly, telephone 571-372-
6176.

SUPPLEMENTARY INFORMATION: 

I. Background

    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.

II. Discussion and Analysis

    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.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    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.

IV. 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.

V. Regulatory Flexibility Act

    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.
    There were no issues raised by the public in response to the 
initial regulatory flexibility analysis provided in the proposed rule.
    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

[[Page 17043]]

to 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.

VI. Paperwork Reduction Act

    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.

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 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 heading and adding introductory text;
0
c. Removing the last paragraph; and
0
d. 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:


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, 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.
    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  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

0
5. Amend section 252.211-7003 by--
0
a. Removing the clause date ``(DEC 2013)'' and adding ``(MAR 2016)'' in 
its place; and
0
b. In paragraph (a), revising the definition of ``Issuing agency''.
    The revision reads as follows:


252.211-7003  Item Unique Identification and Valuation.

* * * * *
    (a) * * *
    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.
* * * * *

0
6. Amend section 252.246-7005 by--
0
a. Removing from the introductory text ``246.710(3)(i)(A)'' and adding 
``246.710(3)(i)'' in its place;
0
b. Removing the clause date ``(JUN 2011)'' and adding ``(MAR 2016)'' 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--
    (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.

[[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.
(End of provision)

0
7. Amend section 252.246-7006 by--
0
a. Removing from the introductory text ``246.710(3)(i)(B)'' and adding 
``246.710(3)(ii)'' in its place;
0
b. Removing the clause date ``(JUN 2011)'' and adding ``(MAR 2016)'' in 
its place;
0
c. Revising in paragraph (a) the definitions of ``Issuing agency'' and 
``Starting event''; and
0
d. Revising paragraph (b).
    The revision reads as follows:


252.246-7006  Warranty Tracking of Serialized Items.

* * * * *
    (a) * * *
    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.
* * * * *
    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.
    (2) The Contractor shall provide the following information no later 
than when the warranted items are presented for receipt and/or 
acceptance--
    (i) The unique item identifier for each warranted item required by 
the attachment entitled ``Warranty Tracking Information;'' and
    (ii) 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 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]
 BILLING CODE 5001-06-P



                                               17042               Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations

                                               DEPARTMENT OF DEFENSE                                   III. Applicability to Contracts at or                 terms are effectively transmitted
                                                                                                       Below the Simplified Acquisition                      through various systems, such as
                                               Defense Acquisition Regulations                         Threshold and for Commercial Items,                   Electronic Document Access, Wide Area
                                               System                                                  Including Commercially Available Off-                 WorkFlow, the Invoice, Receipt,
                                                                                                       the-Shelf Items                                       Acceptance and Property Transfer
                                               48 CFR Parts 211, 212 and 252                                                                                 module, and the PDREP Warranty
                                                                                                          The provision at DFARS 252.246–
                                                                                                                                                             Tracking database.
                                                                                                       7005, Notice of Warranty Tracking and
                                               [Docket DARS–2015–0054]                                                                                          The final rule requires the use of the
                                                                                                       Serialized Items, and the clause at                   electronic formats for the ‘‘Warranty
                                                                                                       DFARS 252.246–7006, Warranty                          Tracking Information’’ and ‘‘Source of
                                               RIN 0750–AI39                                           Tracking of Serialized Items, are                     Repair Instructions’’ attachments, which
                                                                                                       prescribed for use when the solicitation              are used to track the warranties of
                                               Defense Federal Acquisition                             includes the clause at 252.211–7003,
                                               Regulation Supplement: Warranty                                                                               serialized items in accordance with the
                                                                                                       Item Unique Identification and                        provision at DFARS 252.246–7005,
                                               Tracking of Serialized Items (DFARS                     Valuation, and it is anticipated that the
                                               Case 2014–D026)                                                                                               Notice of Warranty Tracking of
                                                                                                       resulting contract will include a                     Serialized Items, and the clause at
                                                                                                       warranty for serialized items. The clause             DFARS 252.246–7006, Warranty
                                               AGENCY:  Defense Acquisition
                                                                                                       at 252.211–7003 is applicable to                      Tracking of Serialized Items. This rule
                                               Regulations System, Department of
                                                                                                       acquisitions valued at or below at or                 is also necessary to provide clear
                                               Defense (DoD).
                                                                                                       below the simplified acquisition                      guidance on the requirements for
                                               ACTION: Final rule.                                     threshold and for commercial items,                   completion and submission of the
                                                                                                       including commercially available off-                 warranty attachments.
                                               SUMMARY:   DoD is issuing a final rule                  the-shelf items, involving the furnishing                There were no issues raised by the
                                               amending the Defense Federal                            of supplies, unless the conditions in                 public in response to the initial
                                               Acquisition Regulation Supplement                       DFARS 211.274–2(b) apply. This rule                   regulatory flexibility analysis provided
                                               (DFARS) to require use of the electronic                does not change prescriptions for the                 in the proposed rule.
                                               contract attachments accessible via the                 provision at 252.246–7005 and the                        According to data available in the
                                               Product Data Reporting and Evaluation                   clause at 252.246–7006; rather, this rule             Federal Procurement Data System, in
                                               Program to record and track warranty                    merely require use of the electronic                  fiscal year (FY) 2014 DoD awarded
                                               data and source of repair information for               contract attachments to record and track              5,807 contracts that contain one or more
                                               serialized items.                                       warranty data and source of repair                    warranty clauses. Subject matter experts
                                               DATES: Effective March 25, 2016.                        information for serialized items.                     within DoD estimate that almost twice
                                               FOR FURTHER INFORMATION CONTACT: Ms.                    IV. Executive Orders 12866 and 13563                  as many solicitations (11,500) issued by
                                               Jo Ann Reilly, telephone 571–372–6176.                                                                        DoD in FY 2014 may have contained a
                                                                                                          Executive Orders (E.O.s) 12866 and                 warranty clause. It is also estimated that
                                               SUPPLEMENTARY INFORMATION:                              13563 direct agencies to assess all costs             an average of four offers may have been
                                               I. Background                                           and benefits of available regulatory                  received in response those solicitations,
                                                                                                       alternatives and, if regulation is                    or 46,000 total offers. Of those
                                                 DoD published a proposed rule in the                  necessary, to select regulatory                       responses, approximately 85 percent, or
                                               Federal Register at 80 FR 58671 on                      approaches that maximize net benefits                 39,100 responses, are estimated to be
                                               September 30, 2015, to require use of                   (including potential economic,                        received from small businesses.
                                               the electronic contract attachments                     environmental, public health and safety                  It is estimated that fifty percent of the
                                               accessible via the Product Data                         effects, distributive impacts, and                    time (for approximately 5,750
                                               Reporting and Evaluation Program to                     equity). E.O. 13563 emphasizes the                    solicitations) the Government will
                                               record and track warranty data and                      importance of quantifying both costs                  specify the desired warranty terms, in
                                               source of repair information for                        and benefits, of reducing costs, of                   which case the contractor provides the
                                               serialized items. No public comments                    harmonizing rules, and of promoting                   remaining data elements on the
                                               were submitted in response to the                       flexibility. This is not a significant                ‘‘Warranty Tracking Information’’
                                               proposed rule.                                          regulatory action and, therefore, was not             attachment and the ‘‘Source of Repair
                                               II. Discussion and Analysis                             subject to review under section 6(b) of               Instructions’’ attachment with its
                                                                                                       E.O. 12866, Regulatory Planning and                   proposal, at contract award, or at the
                                                 There are two editorial changes from                  Review, dated September 30, 1993. This                point of delivery. The other fifty percent
                                               the proposed rule made in the final rule.               rule is not a major rule under 5 U.S.C.               of the time, the contractor will be
                                               The title ‘‘International Standards                     804.                                                  required to specify all the warranty
                                               Organization/International                                                                                    terms on the ‘‘Warranty Tracking
                                               Electrotechnical Commission’’ is spelled                V. Regulatory Flexibility Act
                                                                                                                                                             Information’’ attachment and the
                                               out in lieu of the acronym ISO/IEC in                     DoD has prepared a final regulatory                 ‘‘Source of Repair Instructions’’
                                               the definition of ‘‘issuing agency’’ at                 Flexibility Analysis (FRFA) consistent                attachment.
                                               DFARS 246.701 and 252.246–7006(a). In                   with the Regulatory Flexibility Act                      This rule does not create any new
                                               addition, the list of examples of                       5.U.S.C. 601, et seq. The FRFA is                     reporting or recordkeeping
                                               organizations that are responsible for                  summarized as follows:                                requirements. Offerors and contractors
                                               assigning globally unique identifiers to                  The objective of the rule is to improve             are already required to complete the
srobinson on DSK5SPTVN1PROD with RULES3




                                               an enterprise is removed from the                       the process of collecting and sharing                 attachments in accordance with the
                                               definition of ‘‘issuing agency’’ at DFARS               data on warranties provided by                        provision at DFARS 252.246–7005,
                                               246.701, 252.211–7003(a), and 252.246–                  contractors on serialized items procured              Notice of Warranty Tracking of
                                               7006(a), because a full list is available               by DoD. Use of the electronic formats                 Serialized Items, and the clause at
                                               in the Register of Issuing Agency Codes                 available via the Product Data Reporting              DFARS 252.246–7006, Warranty
                                               for ISO/IEC 15459, the link for which is                and Evaluation Program (PDREP)                        Tracking of Serialized Items. This rule
                                               already provided in the definition.                     ensures the data elements for warranty                merely requires contractors and offerors


                                          VerDate Sep<11>2014   21:08 Mar 24, 2016   Jkt 238001   PO 00000   Frm 00002   Fmt 4701   Sfmt 4700   E:\FR\FM\25MRR3.SGM   25MRR3


                                                                   Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations                                           17043

                                               to complete the existing warranty                       indicated in the Register of Issuing                   ■ a. Removing the clause date ‘‘(DEC
                                               attachments using the specified                         Agency Codes for International                         2013)’’ and adding ‘‘(MAR 2016)’’ in its
                                               electronic formats.                                     Standards Organization/International                   place; and
                                                  No known alternatives to the rule                    Electrotechnical Commission 15459,                     ■ b. In paragraph (a), revising the
                                               have been identified that would achieve                 located at http://www.aimglobal.org/                   definition of ‘‘Issuing agency’’.
                                               the stated objectives.                                  ?Reg_Authority15459.                                     The revision reads as follows:
                                               VI. Paperwork Reduction Act                                Serialized item means each item
                                                                                                                                                              252.211–7003 Item Unique Identification
                                                                                                       produced is assigned a serial number                   and Valuation.
                                                 The rule contains information                         that is unique among all the collective
                                               collection requirements that require the                tangible items produced by the                         *      *    *      *      *
                                               approval of the Office of Management                                                                              (a) * * *
                                                                                                       enterprise, or each item of a particular
                                               and Budget (OMB) under the Paperwork                                                                              Issuing agency means an organization
                                                                                                       part, lot, or batch number is assigned a
                                               Reduction Act (44 U.S.C. chapter 35);                                                                          responsible for assigning a globally
                                                                                                       unique serial number within that part,
                                               however, these changes to the DFARS                                                                            unique identifier to an enterprise, as
                                                                                                       lot, or batch number assignment within
                                               do not impose additional information                                                                           indicated in the Register of Issuing
                                                                                                       the enterprise identifier. The enterprise
                                               collection requirement to the paperwork                                                                        Agency Codes for ISO/IEC 15459,
                                                                                                       is responsible for ensuring unique
                                               burden previously approved under                                                                               located at http://www.aimglobal.org/
                                                                                                       serialization within the enterprise
                                               OMB Control Number 0704–0481,                                                                                  ?Reg_Authority15459.
                                                                                                       identifier or within the part, lot, or
                                               entitled ‘‘Warranty Tracking of                         batch numbers, and that serial numbers,                *      *    *      *      *
                                               Serialized Items.’’ The rule clarifies                  once assigned, are never used again.                   ■ 6. Amend section 252.246–7005 by—
                                               existing requirements for completion                       Unique item identifier means a set of               ■ a. Removing from the introductory
                                               and submission of warranty attachments                  data elements marked on an item that is                text ‘‘246.710(3)(i)(A)’’ and adding
                                               and requires electronic submission of                   globally unique and unambiguous.                       ‘‘246.710(3)(i)’’ in its place;
                                               those attachments by using the formats                                                                         ■ b. Removing the clause date ‘‘(JUN
                                                                                                          Warranty tracking means the ability to
                                               available in the Product Data Reporting                 trace a warranted item from delivery                   2011)’’ and adding ‘‘(MAR 2016)’’ in its
                                               and Evaluation Program.                                 through completion of the effectivity of               place; and
                                                                                                                                                              ■ c. Revising paragraphs (a) and (b).
                                               List of Subjects in 48 CFR Parts 246 and                the warranty.
                                                                                                                                                                 The revisions read as follows:
                                               252                                                     ■ 3. Amend section 246.710 by revising
                                                   Government procurement.                             paragraph (3) to read as follows:                      252.246–7005 Notice of Warranty Tracking
                                                                                                                                                              of Serialized Items.
                                               Jennifer L. Hawes,                                      246.710    Contract clauses.                           *       *     *   *      *
                                               Editor, Defense Acquisition Regulations                 *       *     *    *     *                                (a) Definitions. Duration, enterprise,
                                               System.                                                    (3) When the solicitation includes the              enterprise identifier, fixed expiration,
                                                 Therefore, 48 CFR parts 246 and 252                   clause at 252.211–7003, Item Unique                    item type, serialized item, starting event,
                                               are amended as follows:                                 Identification and Valuation, which is                 unique item identifier, usage, warranty
                                                                                                       prescribed in 211.274–6(a), and it is                  administrator, warranty guarantor, and
                                               ■ 1. The authority citation for parts 246
                                                                                                       anticipated that the resulting contract                warranty tracking are defined in the
                                               and 252 continues to read as follows:
                                                                                                       will include a warranty for serialized                 clause at 252.246–7006, Warranty
                                                 Authority: 41 U.S.C. 1303 and 48 CFR                  items—                                                 Tracking of Serialized Items.
                                               chapter 1.                                                 (i) Use the provision at 252.246–7005,                 (b) Reporting of data for warranty
                                               PART 246—QUALITY ASSURANCE                              Notice of Warranty Tracking of                         tracking and administration. (1) The
                                                                                                       Serialized Items, in the solicitation if               Offeror shall provide the information
                                               ■  2. Amend section 246.701 by—                         the Government does not specify a                      required by the attachment entitled
                                               ■  a. Revising the heading and adding                   warranty and offerors will be required to              ‘‘Warranty Tracking Information’’ on
                                               introductory text;                                      enter data with the offer;                             each contract line item number, subline
                                               ■ c. Removing the last paragraph; and                      (ii) Use the clause at 252.246–7006,                item number, or exhibit line item
                                               ■ d. Adding, in alphabetical order,                     Warranty Tracking of Serialized Items,                 number for warranted items with its
                                               definitions of ‘‘Enterprise,’’ ‘‘Enterprise             in the solicitation and contract; and                  offer. Information required in the
                                               identifier,’’ ‘‘Issuing agency,’’                          (iii) Include the following warranty                warranty attachment for each warranted
                                               ‘‘Serialized item,’’ ‘‘Unique item                      attachments, available at https://                     item shall include such information as
                                               identifier,’’ and ‘‘Warranty tracking’’.                www.pdrep.csd.disa.mil/pdrep_files/                    duration, fixed expiration, item type,
                                               The revision and additions read as                      other/wsr.htm, in the solicitation and                 starting event, usage, warranty
                                               follows:                                                contract and see 246.710–70:                           administrator enterprise identifier, and
                                                                                                          (A) Warranty Tracking Information.                  warranty guarantor enterprise identifier.
                                               246.701    Definitions.                                                                                           (2) The successful offeror will be
                                                                                                          (B) Source of Repair Instructions.
                                                 As used in this subpart—                                                                                     required to provide the following
                                                                                                       ■ 4. Revise section 246.710–70 to read
                                               *     *     *    *     *                                as follows:                                            information no later than when the
                                                 Enterprise means the entity (e.g., a                                                                         warranted items are presented for
                                               manufacturer or vendor) responsible for                 246.710–70        Warranty attachments.                receipt and/or acceptance, in
                                               granting the warranty and/or assigning                     Follow the procedures at PGI                        accordance with the clause at 252.246–
                                               unique item identifiers to serialized                   246.710–70 regarding warranty                          7006—
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                                               warranty items.                                         attachments.                                              (i) The unique item identifier for each
                                                 Enterprise identifier means a code                                                                           warranted item required by the
                                               that is uniquely assigned to an                         PART 252—SOLICITATION                                  attachment entitled ‘‘Warranty Tracking
                                               enterprise by an issuing agency.                        PROVISIONS AND CONTRACT                                Information;’’ and
                                                 Issuing agency means an organization                  CLAUSES                                                   (ii) All information required by the
                                               responsible for assigning a globally                                                                           attachment entitled ‘‘Source of Repair
                                               unique identifier to an enterprise, as                  ■   5. Amend section 252.211–7003 by—                  Instructions’’ for each warranted item.


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                                               17044               Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations

                                                  (3) For additional information on                       (3) The Contractor shall submit the                proposed to amend DFARS 217.202(2)
                                               warranty attachments, see the                           data for warranty tracking to the                     and 234.005–1(1) to add ‘‘or initial
                                               ‘‘Warranty and Source of Repair’’                       Contracting Officer with a copy to the                production’’ to the text, to allow for
                                               training and ‘‘Warranty and Source of                   requiring activity and the Contracting                inclusion of a contract line item
                                               Repair Tracking User Guide’’ accessible                 Officer Representative.                               (possibly an option) for advanced
                                               on the Product Data Reporting and                          (4) For additional information on                  component development and prototype
                                               Evaluation Program (PDREP) Web site at                  warranty attachments, see the                         units to go to initial production without
                                               https://www.pdrep.csd.disa.mil/                         ‘‘Warranty and Source of Repair’’                     further competition. The rule also
                                               pdrep_files/other/wsr.htm.                              training and ‘‘Warranty and Source of                 proposed to amend DFARS 234.005–
                                               (End of provision)                                      Repair Tracking User Guide’’ accessible               1(2) to extend this authority to
                                               ■ 7. Amend section 252.246–7006 by—                     on the Product Data Reporting and                     September 30, 2019. There were no
                                               ■ a. Removing from the introductory                     Evaluation Program (PDREP) Web site at                public comments submitted in response
                                               text ‘‘246.710(3)(i)(B)’’ and adding                    https://www.pdrep.csd.disa.mil/                       to the proposed rule. There are no
                                               ‘‘246.710(3)(ii)’’ in its place;                        pdrep_files/other/wsr.htm.                            changes from the proposed rule made in
                                               ■ b. Removing the clause date ‘‘(JUN                    *      *    *     *     *                             the final rule.
                                               2011)’’ and adding ‘‘(MAR 2016)’’ in its                [FR Doc. 2016–06720 Filed 3–24–16; 8:45 am]
                                               place;                                                                                                        II. Applicability to Contracts at or
                                                                                                       BILLING CODE 5001–06–P
                                               ■ c. Revising in paragraph (a) the
                                                                                                                                                             Below the Simplified Acquisition
                                               definitions of ‘‘Issuing agency’’ and                                                                         Threshold and for Commercial Items,
                                               ‘‘Starting event’’; and                                                                                       Including Commercially Available Off-
                                                                                                       DEPARTMENT OF DEFENSE
                                               ■ d. Revising paragraph (b).                                                                                  the-Shelf Items
                                                  The revision reads as follows:                       Defense Acquisition Regulations                          This case does not add any new
                                                                                                       System                                                provisions or clauses or impact any
                                               252.246–7006 Warranty Tracking of
                                               Serialized Items.                                                                                             existing provisions or clauses.
                                                                                                       48 CFR Parts 217 and 234
                                               *       *    *    *     *                                                                                     III. Executive Orders 12866 and 13563
                                                  (a) * * *                                            [Docket DARS–2015–0042]                                  Executive Orders (E.O.s) 12866 and
                                                  Issuing agency means an organization                                                                       13563 direct agencies to assess all costs
                                                                                                       RIN 0750–AI62
                                               responsible for assigning a globally                                                                          and benefits of available regulatory
                                               unique identifier to an enterprise, as                  Defense Federal Acquisition                           alternatives and, if regulation is
                                               indicated in the Register of Issuing                    Regulation Supplement: Extension and                  necessary, to select regulatory
                                               Agency Codes for International                          Modification of Contract Authority for                approaches that maximize net benefits
                                               Standards Organization/International                    Advanced Component Development                        (including potential economic,
                                               Electrotechnical Commission 15459,                      and Prototype Units (DFARS Case                       environmental, public health and safety
                                               located at http://www.aimglobal.org/                    2015–D008)                                            effects, distributive impacts, and
                                               ?Reg_Authority15459.                                                                                          equity). E.O. 13563 emphasizes the
                                               *       *    *    *     *                               AGENCY:  Defense Acquisition
                                                                                                       Regulations System, Department of                     importance of quantifying both costs
                                                  Starting event means the event or                                                                          and benefits, of reducing costs, of
                                               action that initiates the warranty, such                Defense (DoD).
                                                                                                                                                             harmonizing rules, and of promoting
                                               as first use or upon installation.                      ACTION: Final rule.
                                                                                                                                                             flexibility. This is not a significant
                                               *       *    *    *     *                               SUMMARY:   DoD is issuing a final rule                regulatory action and, therefore, was not
                                                  (b) Reporting of data for warranty                   amending the Defense Federal                          subject to review under section 6(b) of
                                               tracking and administration. (1) The                    Acquisition Regulation Supplement                     E.O. 12866, Regulatory Planning and
                                               Contractor shall provide the information                (DFARS) to implement a section of the                 Review, dated September 30, 1993. This
                                               required by the attachment entitled                     National Defense Authorization Act for                rule is not a major rule under 5 U.S.C.
                                               ‘‘Warranty Tracking Information’’ on                    Fiscal Year 2015 that amended a section               804.
                                               each contract line item number, subline                 of the National Defense Authorization
                                               item number, or exhibit line item                                                                             IV. Regulatory Flexibility Act
                                                                                                       Act for Fiscal Year 2010, to extend and
                                               number for warranted items no later                     modify contract authority for advanced                   DoD has prepared a Final Regulatory
                                               than the time of award. Information                     component development and prototype                   Flexibility Analysis (FRFA) consistent
                                               required in the warranty attachment                     units.                                                with the Regulatory Flexibility Act, 5
                                               shall include such information as                                                                             U.S.C. 601, et seq. The FRFA is
                                                                                                       DATES: Effective March 25, 2016.
                                               duration, fixed expiration, item type,                                                                        summarized as follows:
                                                                                                       FOR FURTHER INFORMATION CONTACT: Ms.                     This rule is necessary to implement
                                               starting event, usage, warranty
                                               administrator enterprise identifier, and                Janetta Brewer, telephone 571–372–                    section 811 of the National Defense
                                               warranty guarantor enterprise identifier.               6104.                                                 Authorization Act (NDAA) for Fiscal
                                                  (2) The Contractor shall provide the                 SUPPLEMENTARY INFORMATION:                            Year (FY) 2015 (Pub. L. 113–291).
                                               following information no later than                                                                           Section 811 amends paragraphs (a) and
                                                                                                       I. Background                                         (b) of section 819 of the NDAA for FY
                                               when the warranted items are presented
                                               for receipt and/or acceptance—                             DoD published a proposed rule in the               2010 (10 U.S.C. 2302 note). The
                                                  (i) The unique item identifier for each              Federal Register at 80 FR 72671 on                    objective of this rule is to provide
                                               warranted item required by the                          November 20, 2015, to revise the                      authority for the inclusion of a contract
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                                               attachment entitled ‘‘Warranty Tracking                 DFARS to implement section 811 of the                 line item (possibly an option) for
                                               Information;’’ and                                      National Defense Authorization Act                    advanced component development and
                                                  (ii) The warranty repair source                      (NDAA) for Fiscal Year (FY) 2015 (Pub.                prototype units to go to initial
                                               information and instructions for each                   L. 113–291, enacted December 19,                      production without further competition.
                                               warranted item required by the                          2014), which amended paragraphs (a)                      There were no significant issues
                                               attachment entitled ‘‘Source of Repair                  and (b) of section 819 of the NDAA for                raised by the public in response to the
                                               Instructions.’’                                         FY 2010 (10 U.S.C. 2302 note). The rule               initial regulatory flexibility analysis.


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Document Created: 2018-02-02 15:17:28
Document Modified: 2018-02-02 15:17:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective March 25, 2016.
ContactMs. Jo Ann Reilly, telephone 571-372- 6176.
FR Citation81 FR 17042 
RIN Number0750-AI39
CFR Citation48 CFR 211
48 CFR 212
48 CFR 252

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