[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Rules and Regulations]
[Pages 61739-61742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24240]
[[Page 61739]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2 and 4
[FAC 2005-77; FAR Case 2012-023; Item III; Docket 2012-0023, Sequence
1]
RIN 9000-AM60
Federal Acquisition Regulation; Uniform Procurement
Identification
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement a uniform Procurement
Instrument Identification (PIID) numbering system, which will require
the use of Activity Address Codes (AACs) as the unique identifier for
contracting offices and other offices, in order to standardize
procurement transactions across the Federal Government.
DATES: Effective: November 13, 2014.
FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst,
at 202-501-0650, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-77, FAR Case 2012-
023.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 78 FR 34020 on June 6, 2013, to implement recommendation
number 3 of the Government Accountability and Transparency Board (GAT
Board). Recommendation number 3 was to implement a uniform award
identification system among various financial transactions conducted
across the Federal Government by a number of communities, e.g.,
procurement, grants, and finance. This final FAR rule is consistent
with the goals of GAT Board recommendation 3 for the procurement
community. Application of the GAT Board recommendation for the other
communities is not the subject of this rule. Four respondents submitted
comments on the proposed rule. Three of these respondents were
representatives of Federal agencies.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule. A discussion of the comments and the
changes made to the rule as a result of those comments are provided as
follows:
A. Summary of Significant Changes From the Proposed Rule
1. At FAR 4.1601 the implementation deadline for new unique
procurement instrument identifiers has been rescheduled and will now be
no later than October 1, 2017. In the proposed rule there was a FAR
multistep transition process being proposed, but the Councils have
delayed the implementation date and deleted what was identified at FAR
4.1601 as the ``transition'' requirement, so that all agencies will be
responsible for completing the transition to the PIID procedures of
this rule by October 1, 2017.
2. At FAR 4.1601 the ``End state'' requirement is modified to read
``No later than October 1, 2017, agencies shall comply with paragraph
(a) of this section and use the requirements in 4.1602 and 4.1603 for
all new solicitations and awards.'' This clarifies that the rule does
not intend to modify the identifiers for existing solicitations or
contracts.
B. Analysis of Public Comments
1. System Compatibility
Comment: One respondent expressed concern that this rule will
require expensive modifications to agency contracting writing software
and financial systems. The respondent also indicated that the changes
required by the rule could cause problems interacting with other
Government systems. The respondent also expressed concern about the
requirement to convert all contract actions already in effect to the
new structure by October 1, 2016, and the effects this will have across
other enterprise systems as well as effects on maintaining historical
and legacy information.
Response: The final rule has been changed so it only applies to new
solicitations and contracts, and with a modified implementation
deadline of October 1, 2017 (see FAR 4.1601(b)(2)). This does not
preclude agencies from implementing the changes in advance (see FAR
4.1601(b)(2)). Agencies are being provided additional time to comply
with the new requirements to be sure that all systems compatibility
issues can be resolved.
2. Applicability
Comment: One respondent recommended not applying the new
requirements to historical documents due to the major system changes
and cross referencing issues that would result. Another respondent
considered the prospect of modifying existing awards to be infeasible
due to the changes that would be necessary across other systems such as
SAM, FPDS-NG, FAADS Plus/USASpending.gov, FedBizOpps, and Grants.gov.
Response: The final rule only applies the new requirements to new
solicitations and contracts, with an implementation deadline of October
1, 2017 (see FAR 4.1601(b)(2)).
3. Contract Modifications
Comment: One respondent raised concerns regarding how systems would
be able to handle modifying current actions to the new paradigm and how
this would affect historical data on these actions. The respondent was
also concerned with the number of contract modifications being limited
to 1,000. Another respondent noted that moving from a two character
modification number to a four character modification number would not
be possible due to system constraints.
Response: The prescribed numbering format for supplementary PIIDs,
at FAR 4.1603(b), allows for up to 9,999 solicitation amendments and
99,999 contract modifications. In addition, the final rule has been
modified to allow agencies until October 1, 2017, to comply with the
new requirements, giving agencies additional time to modify existing
systems.
4. Implementation
Comment: One respondent detailed a number of specific, significant,
and costly changes to current systems to comply with the proposed
changes. The respondent also noted that there would be costs associated
with necessary training of staff to use the new system. The respondent
projected the cost of this rule to their agency as $4,155,000 for labor
and systems and an additional $80,000 for training. Another respondent
asked what mitigation strategies are in place in the event that one or
several of the integration partner's systems are not ready to support
the proposed changes.
Response: It is understood that this rule may have a significant
cost for implementation; however, the GAT Board, Office of Management
and Budget (OMB) and the FAR Council
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have determined that in order to achieve the noted accountability and
transparency goals of the rule, the changes must be made. Office of
Federal Procurement Policy (OFPP) will monitor agency progress in
implementing this rule to ascertain if any changes are required.
5. FAR 4.1602(c), Clarification Concerning ``Additional Agency
Information''
Comment: One respondent requested clarification of what is meant by
the language at FAR 4.1602(c) regarding ``Additional agency specific
identification information.''
Response: This language is included in the rule to make it clear
that agencies will likely establish additional requirements at their
FAR supplement level.
6. FAR 4.1603, Clarification Concerning ``Until It Has Been
Determined''
Comment: One respondent requested clarification of what is meant by
the language at FAR 4.1603(b)(2)(iii) regarding ``until it has been
determined.''
Response: This language is included in the rule to make it clear
that modification numbers should not be created in advance of the need
for the modification.
7. Impact on Contractor Systems
Comment: One respondent noted that many contractors have structured
their award numbering system to mirror the Government's, and will need
to make associated revisions to their systems, which could have
associated cost implications.
Response: If a contractor chose to structure their contract
management system to mirror an agency's contract writing system, then
they may find it necessary to modify their system capabilities to match
the new contract identification requirements.
8. Impacts on Assistance Awards
Comment: One respondent stated that assistance actions are not
covered by the FAR, but should this proposed rule become final, for
consistency purposes, it will be critical that parallel efforts be
taken to ensure that assistance actions follow a similar numbering
format.
Response: Assistance actions are outside of the scope of this rule.
However, this comment has been provided to OMB for consideration.
9. Address Activity Codes
Comment: One respondent noted that for Address Activity Codes
(AAC), DoD agencies begin with an alpha character and non-DoD agencies
begin with a two-digit number. The respondent asked if there is a
consistent hierarchy for the remaining positions.
Response: The FAR does not prescribe a hierarchy for the remaining
positions in an AAC, as this is left to agency procedures in accordance
with the Federal supply program. Information on locating an existing
AAC or obtaining a new AAC is located at FAR 4.1603(a)(1).
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, GSA, and NASA have 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:
This rule is needed to further the President's commitment to
make the Federal Government transparent and accountable to the
American people. The rule requires use of a standardized procurement
instrument identification (PIID) number configuration across the
federal procurement community. The numbering configuration will
contain an Activity Address Code unique to each contracting office.
This change will lead to increases in data traceability and
transparency, thereby broadening the Government's ability to report
procurement data accurately and to provide more effective oversight
of reporting responsibilities.
The final rule is internal to the Government procedures and does
not directly impose any requirements on the vendor community.
However, the rule may affect certain entities if those entities have
arranged any of their business systems to utilize, accept, or
otherwise recognize the PIID of agencies they interact with, if
those agencies do not currently use the PIID configuration of this
rule.
In FY11 awards were made to 67,280 unique vendors, of which
48,281 were small businesses. These small businesses likely interact
with agencies that do not currently use the proposed uniform
procurement identification configuration.
One respondent stated that small businesses that do the majority
of their business with the Government will be adversely affected by
changes to the Government systems as they have structured their
systems to mirror the Government. The final rule extends the
implementation deadline for agencies to allow for a more efficient
transition; however, contractors with system limitations may incur
some cost to adapt to the changes.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy
of the FRFA to the Chief Counsel for Advocacy of the Small Business
Administration.
V. Paperwork Reduction Act
The rule does not contain any 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).
List of Subjects in 48 CFR Parts 2 and 4
Government procurement.
Dated: September 30, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office
of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2 and 4 as set
forth below:
0
1. The authority citation for 48 CFR parts 2 and 4 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 2--DEFINITIONS OF WORDS AND TERMS
0
2. Amend section 2.101 in paragraph (b)(2) by adding, in alphabetical
order, the definition ``Activity Address Code (AAC)'' to read as
follows:
2.101 Definitions.
* * * * *
(b) * * *
(2) * * *
Activity Address Code (AAC) means a distinct six-position code
consisting of a combination of alpha and/or numeric characters assigned
to identify specific agency offices, units, activities, or
organizations by the General Services Administration for civilian
agencies and by the Department of Defense for defense agencies.
* * * * *
PART 4--ADMINISTRATIVE MATTERS
0
3. Amend section 4.605 by--
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a. Removing from paragraph (a) ``4.1601,'' and adding ``4.601 to
4.1603,'' in its place; and
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b. Adding paragraph (e).
The addition reads as follows:
4.605 Procedures.
* * * * *
(e) Office codes. Agencies shall by October 1, 2015--
(1) Use the Activity Address Code (AAC), as defined in 2.101,
assigned to the issuing contracting office as the contracting office
code, and
(2) Use the AAC assigned to the program/funding office providing
the predominance of funding for the contract action as the program/
funding office code.
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4. Revise section 4.1601 to read as follows:
4.1601 Policy.
(a) Establishment of a Procurement Instrument Identifier (PIID).
Agencies shall have in place a process that ensures that each PIID used
to identify a solicitation or contract action is unique Governmentwide,
and will remain so for at least 20 years from the date of contract
award. The PIID shall be used to identify all solicitation and contract
actions. The PIID shall also be used to identify solicitation and
contract actions in designated support and reporting systems (e.g.,
Federal Procurement Data System, System for Award Management), in
accordance with regulations, applicable authorities, and agency
policies and procedures.)
(b) Transition of PIID numbering. No later than October 1, 2017,
agencies shall comply with paragraph (a) of this section and use the
requirements in 4.1602 and 4.1603 for all new solicitations and
contract awards. Until an agency's transition is complete, it shall
maintain its 2013 PIID format that is on record with the General
Services Administration's Integrated Award Environment Program Office
(which maintains a registry of the agency unique identifier scheme).
The 2013 PIID format consisted of alpha characters in the first
positions to indicate the agency, followed by alpha-numeric characters;
the 2017 format instead has the AAC in the beginning 6 positions.
(c) Change in the Procurement Instrument Identifier after its
assignment. (1) Agencies shall not change the PIID unless one of the
following two circumstances apply:
(i) The PIID serial numbering system is exhausted. In this
instance, the contracting officer may assign a new PIID by issuing a
contract modification.
(ii) Continued use of a PIID is administratively burdensome (e.g.,
for implementations of new agency contract writing systems). In this
instance, the contracting officer may assign a new PIID by issuing a
contract modification.
(2) The modification shall clearly identify both the original and
the newly assigned PIID. Issuance of a new PIID is an administrative
change (see 43.101).
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5. Amend section 4.1602 by revising paragraph (c) to read as follows:
4.1602 Identifying the PIID and supplementary PIID.
* * * * *
(c) Additional agency specific identification information. If
agency procedures require additional identification information in
solicitations, contracts, or other related procurement instruments for
administrative purposes, separate and clearly identify the additional
information from the PIID.
0
6. Add section 4.1603 to read as follows:
4.1603 Procedures.
(a) Elements of a PIID. The PIID consists of a combination of
thirteen to seventeen alpha and/or numeric characters sequenced to
convey certain information. Do not use special characters (such as
hyphens, dashes, or spaces).
(1) Positions 1 through 6. The first six positions identify the
department/agency and office issuing the instrument. Use the AAC
assigned to the issuing office for positions 1 through 6. Civilian
agency points of contact for obtaining an AAC are on the AAC Contact
list maintained by the General Services Administration and can be found
at http://www.gsa.gov/graphics/fas/Civilian_contacts.pdf. For
Department of Defense (DoD) inquiries, contact the service/agency
Central Service Point or DoDAAC Monitor, or if unknown, email
[email protected] for assistance.
(2) Positions 7 through 8. The seventh and eighth positions are the
last two digits of the fiscal year in which the procurement instrument
is issued or awarded. This is the date the action is signed, not the
effective date if the effective date is different.
(3) Position 9. Indicate the type of instrument by entering one of
the following upper case letters in position nine. Departments and
independent agencies may assign those letters identified for department
use below in accordance with their agency policy; however, any use must
be applied to the entire department or agency.
------------------------------------------------------------------------
Letter
Instrument designation
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(i) Blanket purchase agreements........................ A
(ii) Invitations for bids.............................. B
(iii) Contracts of all types except indefinite-delivery C
contracts (see subpart 16.5)..........................
(iv) Indefinite-delivery contracts (including Federal D
Supply Schedules, Governmentwide acquisition contracts
(GWACs), and multi-agency contracts)..................
(v) Reserved for future Federal Governmentwide use..... E
(vi) Task orders, delivery orders or calls under--..... F
Indefinite-delivery contracts (including
Federal Supply Schedules, Governmentwide
acquisition contracts (GWACs), and multi-agency
contracts);
Blanket purchase agreements; or
Basic ordering agreements.
(vii) Basic ordering agreements........................ G
(viii) Agreements, including basic agreements and loan H
agreements, but excluding blanket purchase agreements,
basic ordering agreements, and leases. Do not use this
code for contracts or agreements with provisions for
orders or calls.......................................
(ix) Do not use this letter............................ I
(x) Reserved for future Federal Governmentwide use..... J
(xi) Reserved for departmental or agency use........... K
(xii) Lease agreements................................. L
(xiii) Reserved for departmental or agency use......... M
(xiv) Reserved for departmental or agency use.......... N
(xv) Do not use this letter............................ O
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(xvi) Purchase orders (assign V if numbering capacity P
of P is exhausted during a fiscal year)...............
(xvii) Requests for quotations (assign U if numbering Q
capacity of Q is exhausted during a fiscal year)......
(xviii) Requests for proposals......................... R
(xix) Reserved for departmental or agency use.......... S
(xx) Reserved for departmental or agency use........... T
(xxi) See Q, requests for quotations................... U
(xxii) See P, purchase orders.......................... V
(xxiii) Reserved for future Federal Governmentwide use. W
(xxiv) Reserved for future Federal Governmentwide use.. X
(xxv) Imprest fund..................................... Y
(xxvi) Reserved for future Federal Governmentwide use.. Z
------------------------------------------------------------------------
(4) Positions 10 through 17. Enter the number assigned by the
issuing agency in these positions. Agencies may choose a minimum of
four characters up to a maximum of eight characters to be used, but the
same number of characters must be used agency-wide. If a number less
than the maximum is used, do not use leading or trailing zeroes to make
it equal the maximum in any system or data transmission. A separate
series of numbers may be used for any type of instrument listed in
paragraph (a)(3) of this section. An agency may reserve blocks of
numbers or alpha-numeric numbers for use by its various components.
(5) Illustration of PIID. The following illustrates a properly
configured PIID using four characters in the final positions:
[GRAPHIC] [TIFF OMITTED] TR14OC14.003
(b) Elements of a supplementary PIID. Use the supplementary PIID to
identify amendments to solicitations and modifications to contracts,
orders, and agreements.
(1) Amendments to solicitations. Number amendments to solicitations
sequentially using a four position numeric serial number added to the
13-17 character PIID beginning with 0001.
(2) Modifications to contracts, orders, and agreements. Number
modifications to contracts, orders, and agreements using a six position
alpha or numeric, or a combination thereof, added to the 13-17
character PIID. For example, a modification could be numbered P00001.
This would be added to the end of the 13-17 character PIID illustrated
in (a)(5) of this section.
(i) Position 1. Identify the office issuing the modification. The
letter P shall be designated for modifications issued by the procuring
contracting office. The letter A shall be used for modifications issued
by the contract administration office (if other than the procuring
contracting office).
(ii) Positions 2 through 6. These positions may be alpha, numeric,
or a combination thereof, in accordance with agency procedures.
(iii) Each office authorized to issue modifications shall assign
the supplementary identification numbers in sequence (unless provided
otherwise in agency procedures). Do not assign the numbers until it has
been determined that a modification is to be issued.
[FR Doc. 2014-24240 Filed 10-10-14; 8:45 am]
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