[Federal Register: May 7, 2010 (Volume 75, Number 88)]
[Proposed Rules]               
[Page 25160-25161]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Defense Acquisition Regulations System

48 CFR Parts 211 and 252

Defense Federal Acquisition Regulation Supplement; Marking of 
Government-Furnished Property (DFARS Case 2008-D050)

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is issuing a proposed rule to require contractors to tag, 
label, or mark items of Government-furnished property identified in the 
contract when the Government-furnished material and Government-
furnished property are subject to serialized item management.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before July 6, 2010, to be considered in 
the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D050, 
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-D050 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.


A. Background

    It is DoD policy to uniquely mark, identify, and track Government 
property through the use of unique identifiers. Unique identifiers 
allow DoD to track and trace property items throughout their lifecycle 
(in acquisition and logistics business processes and systems) in an 
integrated approach across the Department of Defense, Federal and state 
agencies, non-governmental organizations, and domestic and foreign 
persons and organizations to provide national level traceability.

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 the rule is to improve the accountability and 
control of DoD assets. The proposed clause requires contractors who are 
provided Government-furnished property to tag, label, or mark the items 
of Government-furnished property identified in the contract when the 
requiring activity determines that such items are subject to serialized 
item management (serially-managed items). At this time, DoD is unable 
to estimate the number of small entities to which this rule will apply.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
    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-D050) in 

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) does not apply because 

[[Page 25161]]

rule does not impose additional information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 211 and 252

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR parts 211 and 252 as 
    1. The authority citation for 48 CFR parts 211 and 252 continues to 
read as follows:

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


211.274-5  [Redesignated as 211.274-6]

    2. Redesignate section 211.274-5 as 211.274-6.
    3. Add section 211.274-5 to read as follows:

211.274-5  Policy for tagging, labeling, or marking of Government-
furnished property.

    (a) It is DoD policy that the appropriate tagging, labeling, or 
permanent marking of Government-furnished property, based on DoD 
marking standards (MIL Standard 130) or other standards, be required 
for Government-furnished property items where the requiring activity 
determines that such items are subject to serialized item management 
(serially-managed items).
    (b) Exceptions. The contractor will not be required to tag, label, 
or mark Government-furnished property if such items were previously 
tagged, labeled, or marked.
    3. In newly redesignated 211.274-6, add paragraph (c) to read as 

211.274-6  Contract clauses.

* * * * *
    (c) Use the clause at 252.211-70YY, Tagging, Labeling, and Marking 
of Government-furnished Property, in solicitations and contracts that 
contain the clause at--
    (1) FAR 52.245-1, Government Property; or
    (2) FAR 52.245-2, Government Property Installation Operation 


    4. Add section 252.211-70YY to read as follows:

252.211-70YY  Tagging, Labeling, and Marking of Government-furnished 

    As prescribed in 211.274-6(c), use the following clause:


    (a) Definitions. As used in this clause--
    Government-furnished property means property in the possession 
of, or directly acquired by, the Government and subsequently 
furnished to the contractor for performance of a contract, including 
performance by subcontractors and at Prime Contractor Alternate 
locations. Government-furnished property includes reparables, e.g., 
spares and property furnished for repair, maintenance, overhaul, or 
modification; and Government-furnished material that is 
requisitioned from Government supply sources without reimbursement 
by the contractor.
    Serially-managed item means an item designated by DoD to be 
uniquely tracked, controlled, or managed in maintenance, repair, 
and/or supply systems by means of its serial number.
    (b) The Contractor shall tag, label, or mark Government-
furnished property items identified in the contract when the 
requiring activity determines that such items are subject to 
serialized item management (serially-managed items).
    (c) Exceptions. Paragraph (b) of this clause does not apply to--
    (1) Government-furnished property that was previously marked;
    (2) Contractor-acquired property;
    (3) Property under any statutory leasing authority;
    (4) Property to which the Government has acquired a lien or 
title solely because of partial, advance, progress, or performance-
based payments;
    (5) Intellectual property or software; or
    (6) Real property.
(End of clause)

[FR Doc. 2010-10763 Filed 5-6-10; 8:45 am]