Proposed Rules. Interim rule with request for comments

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BILLING CODE 5001-08-P DEPARTMENT OF DEFENSE 48 CFR Parts 204, 212, 213, and 252 [DFARS Case 2003-D040] Defense Federal Acquisition Regulation Supplement; Central Contractor Registration AGENCY: Department of Defense (DoD). ACTION: Interim rule with request for comments. SUMMARY: DoD has issued an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to remove policy on Central Contractor Registration

(CCR)that duplicates policy added to the Federal Acquisition Regulation

(FAR)on October 1, 2003. This rule also addresses requirements for use of Commercial and Government Entity

(CAGE)codes to accommodate DoD payment systems. DATES: *Effective date:* November 14, 2003. *Comment date:* Comments on the interim rule should be submitted to the address shown below on or before January 13, 2004, to be considered in the formation of the final rule. ADDRESSES: Respondents may submit comments directly on the World Wide Web at *http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm.* As an alternative, respondents may e-mail comments to: *dfars@osd.mil.* Please cite DFARS Case 2003-D040 in the subject line of e-mailed comments. Respondents that cannot submit comments using either of the above methods may submit comments to: Defense Acquisition Regulations Council, Attn: Ms. Angelena Moy, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; facsimile

(703)602-0350. Please cite DFARS Case 2003-D040. At the end of the comment period, interested parties may view public comments on the World Wide Web at *http://emissary.acq.osd.mil/dar/dfars.nsf.* FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy,

(703)602-1302. SUPPLEMENTARY INFORMATION: A. Background This interim rule supplements the final FAR rule published at 68 FR 56669 on October 1, 2003 (FAC 2001-16; Item I). The FAR rule contained requirements for contractors to register in the CCR database prior to award of any contract or agreement. Similar policy had been in the DFARS since March 31, 1998 (63 FR 15316). Since the DFARS policy has been superseded by the FAR policy, this interim rule removes most DFARS policy pertaining to CCR. However, there is still a need to address requirements for CAGE code information to accommodate DoD payment systems. Therefore, this interim rule retains DoD requirements for inclusion of CAGE codes on contracts and in the CCR database. This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993. B. Regulatory Flexibility Act DoD does not expect this rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, *et seq.* , because the rule adds no new requirements for DoD contractors. The rule removes DFARS text that has become obsolete as a result of policy that has been added to the FAR, and retains existing DoD requirements for use of CAGE codes. Therefore, DoD has not performed an initial regulatory flexibility analysis. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2003-D040. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, *et seq.* D. Determination To Issue an Interim Rule A determination has been made under the authority of the Secretary of Defense that urgent and compelling reasons exist to publish an interim rule prior to affording the public an opportunity to comment. This interim rule removes DFARS text that has become obsolete as a result of policy on Central Contractor Registration that was added to the FAR on October 1, 2003. In addition, this rule addresses DoD requirements for inclusion of CAGE codes on contracts and in the CCR database. The FAR does not address CAGE code requirements, and DoD payment offices cannot match to CCR without CAGE code information. Comments received in response to this interim rule will be considered in the formation of the final rule. List of Subjects in 48 CFR Part 204, 212, 213, and 252 Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council. Therefore, 48 CFR parts 204, 212, 213, and 252 are amended as follows: 1. The authority citation for 48 CFR Parts 204, 212, 213, and 252 continues to read as follows: Authority: 41 U.S.C. 421 and 48 CFR Chapter 1. PART 204—ADMINISTRATIVE MATTERS 2. Section 204.203 is revised to read as follows: § 204.203 Taxpayer identification information.

(b)The procedure at FAR 4.203(b) does not apply to contracts that include the clause at FAR 52.204-7, Central Contractor Registration. The payment office obtains the taxpayer identification number and the type of organization from the Central Contractor Registration database. § 204.603 [Removed] 3. Section 204.603 is removed. 4. Section 204.904 is amended by revising paragraph

(2)introductory text and paragraph (2)(ii) to read as follows: § 204.904 Reporting payment information to the IRS.

(2)Unless an exception in paragraph

(1)of this section applies, provide as the last page of the copy of the contract sent to the payment office—

(ii)The contractor's Taxpayer Identification Number and type of organization, if the contract does not include the clause at FAR 52.204-7, Central Contractor Registration. § 204.905 [Removed] 5. Section 204.905 is removed. 6. Subpart 204.11 is added to read as follows: Subpart 204.11—Central Contractor Registration Sec. 204.1103 Procedures. 204.1104 Solicitation provision and contract clauses. § 204.1103 Procedures.

(e)On contractual documents transmitted to the payment office, also provide the Commercial and Government Entity code in accordance with agency procedures. § 204.1104 Solicitation provision and contract clauses. When using the clause at FAR 52.204-7, Central Contractor Registration, use the clause with 252.204-7004, Alternate A. 7. Section 204.7202-1 is amended by revising paragraph (b)(1) to read as follows: § 204.7202-1 Cage codes. (b)(1) If a prospective contractor located in the United States must register in the Central Contractor Registration

(CCR)database ( *see* FAR Subpart 4.11) and does not have a CAGE code, DLIS will assign a CAGE code when the prospective contractor submits its request for registration in the CCR database. Foreign registrants must obtain a North Atlantic Treaty Organization CAGE (NCAGE) code in order to register in the CCR database. NCAGE codes may be obtained from the Codification Bureau in the foreign registrant's country. Additional information on obtaining NCAGE codes is available at *http://www.dlis.dla.mil/Forms/Form_AC135.asp.* 8. Section 204.7207 is amended by revising paragraph

(a)to read as follows: § 204.7207 Solicitation provision.

(a)The solicitation does not include the clause at FAR 52.204-7, Central Contractor Registration; and Subpart 204.73—[Removed] 9. Subpart 204.73 is removed. PART 212—ACQUISITION OF COMMERCIAL ITEMS § 212.301 [Amended] 10. Section 212.301 is amended as follows: a. By removing paragraphs (b)(2) and (f)(iv); and b. By redesignating paragraphs (f)(v) and

(vi)as paragraphs (f)(iv) and

(v)respectively. PART 213—SIMPLIFIED ACQUISITION PROCEDURES 213.106-3 [Removed] 11. Section 213.106-3 is removed. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 12. Section 252.204-7004 is revised to read as follows: § 252.204-7004 Alternate A. Alternate A (Nov 2003) As prescribed in 204.1104, substitute the following paragraph

(a)for paragraph

(a)of the clause at FAR 52.204-7:

(a)*Definitions.* As used in this clause— “Central Contractor Registration

(CCR)database” means the primary Government repository for contractor information required for the conduct of business with the Government. “Commercial and Government Entity

(CAGE)code” means—

(1)A code assigned by the Defense Logistics Information Service

(DLIS)to identify a commercial or Government entity; or

(2)A code assigned by a member of the North Atlantic Treaty Organization that DLIS records and maintains in the CAGE master file. This type of code is known as an “NCAGE code.” “Data Universal Numbering System

(DUNS)number” means the 9-digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities. “Data Universal Numbering System +4 (DUNS+4) number” means the DUNS number assigned by D&B plus a 4-character suffix that may be assigned by a business concern. (D&B has no affiliation with this 4-character suffix.) This 4-character suffix may be assigned at the discretion of the business concern to establish additional CCR records for identifying alternative Electronic Funds Transfer

(EFT)accounts (see Subpart 32.11 of the Federal Acquisition Regulation) for the same parent concern. “Registered in the CCR database” means that—

(1)The Contractor has entered all mandatory information, including the DUNS number or the DUNS+4 number, into the CCR database;

(2)The Contractor's CAGE code is in the CCR database; and

(3)The Government has validated all mandatory data fields and has marked the records “Active.” [FR Doc. 03-28441 Filed 11-13-03; 8:45 am]

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