[Federal Register: April 30, 2010 (Volume 75, Number 83)]
[Proposed Rules]               
[Page 22729-22731]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap10-24]                         

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 245 and 252

RIN 0750-AG64

 
Defense Federal Acquisition Regulation Supplement; Reporting of 
Government Property Lost, Stolen, Damaged, or Destroyed (DFARS Case 
2008-D049)

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

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD proposes to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to require contractors to report loss, 
theft, damage, and destruction (LTDD) of Government property to the 
DCMA ``eTools'' application.

[[Page 22730]]


DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 29, 2010 to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D049, 
using any of the following methods:
    Federal eRulemaking Portal: http://www.regulations.gov.
    Follow the instructions for submitting comments.
    E-mail: dfars@osd.mil. Include DFARS Case 2008-D049 in the subject 
line of the message.
    Fax: 703-602-0350.
    Mail: Defense Acquisition Regulations System, Attn: Ms. Mary 
Overstreet, OUSD(AT&L)DPAP(DARS), 3060 Defense Pentagon, Room 3B855, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Mary Overstreet, 703-602-0311.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD is pursuing the migration from paper-based processes to greater 
use of automation. This proposed rule revises requirements for all DoD 
contractors to report the loss, theft, damage, and destruction (LTDD) 
of Government property to the DCMA ``eTools'' application.

B. Regulatory Flexibility Act

    DoD has prepared an initial regulatory flexibility analysis 
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained 
from the point of contact specified herein. The analysis is summarized 
as follows:
    The objective of this rule is to provide DoD with a single 
repository of all LTDD data to improve accountability and control of 
DoD assets and contractor oversight.
    The rule generally will apply to DoD contractors provided with 
Government-furnished property. The proposed clause at 252.245-70XX 
Reporting Loss, Theft, Damage, or Destruction of Government Property, 
requires the contractor to use the Defense Contract Management Agency 
``e-Tools'' software application for reporting of loss, damage, or 
destruction of Government property, which can be accessed from the DCMA 
homepage External Web Access Management application at http://
www.dcma.mil. This rule is not expected 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 any 
start-up costs that contractors will incur to comply with the rule are 
expected to be minimal, and any such costs should be offset by the 
reduced administrative costs that are expected to result from 
implementation of this rule.
    At this time, DoD is unable to estimate the number of small 
entities to which this rule will apply. Therefore, DoD invites comments 
from small business concerns and other interested parties on the 
expected impact of this rule on small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2008-D049) in 
correspondence.

C. Paperwork Reduction Act

    The information collection requirements under this proposed rule 
were formerly set forth under FAR 52.245-1(f)(vi), and have been 
approved by the Office of Management and Budget under Clearance Number 
9000-0075. The requirements of this proposed rule are not expected to 
change significantly the burden hours approved under Clearance Number 
9000-0075.

List of Subjects in 48 CFR Parts 245 and 252

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

    Therefore, DoD proposes to amend 48 CFR parts 245 and 252 as 
follows:
    1. The authority citation for 48 CFR parts 245 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

PART 245--GOVERNMENT PROPERTY

    2. Amend section 245.102 by adding paragraph (4) to read as 
follows:


245.102  Policy.

* * * * *
    (4) Reporting of Government Property Lost, Damaged, Destroyed, or 
Stolen.
    (i) The Defense Contract Management Agency (DCMA) ``e-Tools'' 
software application shall be the DoD data repository for reporting of 
loss, theft, damage, or destruction of Government property in the 
possession of contractors. Reporting value shall be at acquisition 
cost. The ``e-Tools'' system can be accessed from the DCMA home page 
External Web Access Management application at http://www.dcma.mil.
    (ii) Unless otherwise provided for in the contract, the 
requirements of paragraph (4)(i) of this section do not apply to normal 
and reasonable inventory adjustments of ``low risk'' consumable 
material such as common hardware, as agreed to by the contractor and 
Government Property Administrator. Such losses are typically a product 
of normal process variation.
    (iii) Reporting requirements apply to losses outside such 
variation. For example, due to theft of; or when losses occur due to a 
failure to provide adequate storage or security, e.g., failure to 
repair a leaky roof; or due to ``acts of God,'' e.g., tornado damages 
warehouse or stockroom.
    (iv) The aforementioned reporting requirements in no way change the 
liability provisions or reporting requirements under the clauses at FAR 
52.245-1, Government Property, or FAR 52.245-2, Government Property 
Installation Operation Services.
    4. Amend section 245.107-70 by revising the section heading, 
redesignating the introductory text as paragraph (1), and adding 
paragraph (2) to read as follows:


245.107-70  Contract Clauses.

    (1) Use the clause at 252.245-7000, Government-Furnished Mapping, 
Charting, and Geodesy Property, in solicitations and contracts when 
mapping, charting, and geodesy property is to be furnished.
    (2) Use the clause at 252.245-70XX in solicitations and contracts 
that contain the clause at--
    (i) FAR 52.245-1, Government Property; or
    (ii) FAR 52.245-2, Government Property Installation Operation 
Services.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 252.245-70XX is added to read as follows:


252.245-70XX  Reporting Loss, Theft, Damage, or Destruction of 
Government Property.

    As prescribed in 245.107-70, use the following clause:

REPORTING LOSS, THEFT, DAMAGE, OR DESTRUCTION OF GOVERNMENT PROPERTY 
(DATE)

    (a) Definitions. As used in this clause--
    Acquisition cost, for Government-furnished property, means the 
amount identified in the contract, or in the absence of such 
identification, the item's fair-market value.
    Government property means all property owned or leased by the 
Government.

[[Page 22731]]

Government property includes both Government-furnished property and 
Contractor-acquired property. Government property consists of 
material, equipment, special tooling, special test equipment, and 
real property.
    (b) Policy for Contractor Reporting of Government Property Lost, 
Stolen, Damaged, or Destroyed.
    (1) The Contractor shall use the Defense Contract Management 
Agency (DCMA) ``e-Tools'' software application for reporting of 
loss, theft, damage, or destruction of Government property. 
Reporting value shall be at acquisition cost. The ``e-Tools'' system 
can be accessed from the DCMA home page External Web Access 
Management application at http://www.dcma.mil.
    (2) Unless otherwise provided for in this contract, the 
requirements of paragraph (b) (1) of this clause do not apply to 
normal and reasonable inventory adjustments, i.e., losses of ``low 
risk'' consumable material such as common hardware, as agreed to by 
the Contractor and the Government Property Administrator. Such 
losses are typically a product of normal process variation. The 
Contractor shall ensure that its property management system provides 
adequate management control measures, e.g., statistical process 
controls, as a means of managing such variation.
    (3) Reporting requirements apply to losses outside such 
variation. For example, due to theft of; or when losses occur due to 
a failure to provide adequate storage or security, e.g., failure to 
repair a leaky roof; or due to ``acts of God,'' e.g., tornado 
damages warehouse or stockroom.
    (4) The aforementioned reporting requirements in no way change 
the liability provisions or reporting requirements under the clauses 
at FAR 52.245-1, Government Property, or FAR 52.245-2, Government 
Property Installation Operation Services.
    (End of clause)

[FR Doc. 2010-9890 Filed 4-29-10; 8:45 am]
BILLING CODE 5001-08-P