Federal Acquisition Regulation; Unique Identification of Entities Receiving Federal Awards

AGENCY:

Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).

ACTION:

Proposed rule.

SUMMARY:

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to re-designate the terminology for unique identification of entities receiving Federal awards. The change to the FAR will remove the proprietary standard or number.

DATES:

Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before January 19, 2016 to be considered in the formulation of a final rule.

ADDRESSES:

Submit comments in response to FAR Case 2015-022 by any of the following methods:

• Regulations.gov: http://www.regulations.gov. Submit comments via the Federal eRulemaking portal by searching for “FAR Case 2015-022”. Select the link “Comment Now” that corresponds with FAR Case 2015-022. Follow the instructions provided at the “Comment Now” screen. Please include your name, company name (if any), and “FAR Case 2015-022” on your attached document.
• Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405.

Instructions: Please submit comments only and cite FAR Case 2015-022, in all correspondence related to this case. Comments received generally will be posted without change to http://www.regulations.gov,, including any personal and/or business confidential information provided. To confirm receipt of your comment(s), please check www.regulations.gov,, approximately two to three days after submission to verify posting (except allow 30 days for posting of comments submitted by mail).

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 FAR Case 2015-022.

SUPPLEMENTARY INFORMATION:

I. Background

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to re-designate the terminology for unique identification of entities receiving Federal awards. The change to the FAR will remove the proprietary standard or number. Unique identification of such entities is critical to ensure Federal dollars are awarded to responsible parties, awardees are paid in a timely manner, and awards are appropriately recorded and reported. This is currently accomplished through regulation (i.e., the FAR) using the proprietary Data Universal Numbering System (DUNS®) number from Dun and Bradstreet. This rule proposes to eliminate references to the proprietary standard or number and to provide appropriate references to the Web site where information on the unique entity identifier used for Federal contractors will be located. In addition, the proposed rule establishes definitions of “unique entity identifier”, and “electronic funds transfer (EFT) indicator”.

In recent years, legislation has been enacted (e.g., the Federal Funding Accountability and Transparency Act and the Digital Accountability and Transparency Act) that requires expanded identification of entities working with the Government and the development of standards, processes, and policies to better trace Federal dollars from appropriation to final outcomes or results. Creation and maintenance of data standards will facilitate collection and display of essential information. A data standard for identification of entities receiving Federal awards has been developed as part of the implementation for the Digital Accountability and Transparency Act and is available at http://fedspendingtransparency.github.io/whitepapers/unique-id-business-name/ .

Going forward, the Federal Government will establish a transparent process for exploring potential alternatives to existing entity identifiers. Office of Management and Budget (OMB) and Treasury, in collaboration with the General Services Administration and the Award Committee for E-Government will establish a process for considering options, including soliciting information about viable alternatives from and reaching out about nonproprietary alternatives to all sectors, including private companies, nonprofits, and Federal government providers. This process will result in an analysis of alternatives for the unique identification of entities working with the Federal government while maintaining the statutory and regulatory integrity protections for the needs of the various awarding communities (loans, financial assistance, procurement, etc.) as well as transparency communities. The analysis of alternatives will include consideration of costs, implementation considerations, and protections for Federal taxpayers. The analysis of alternatives is anticipated to be completed in Fiscal Year (FY) 2017.

Although the Government is not currently in a position to move away from use of the DUNS number in the short term, elimination of regulatory references to a proprietary entity identifier will provide opportunities for future competition that can reduce costs to taxpayers. The current requirement limits competition by using a proprietary number and organization to meet the identification need as well as the need for other business information associated with that number.

II. 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.

III. Regulatory Flexibility Act

DoD, GSA, and NASA do 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. However, an Initial Regulatory Flexibility Analysis (IRFA) has been prepared consistent with 5 U.S.C. 605. The IRFA is summarized as follows:

The rule is being proposed to remove a proprietary standard or number for the unique identification of entities receiving Federal awards. The current requirement limits competition by using a proprietary number and organization to meet the identification needs.

Unique identification of such entities is critical to ensure Federal dollars are awarded to responsible parties, awardees are paid in a timely manner, and awards are appropriately recorded and reported. This is currently accomplished through regulation in the FAR using the proprietary Data Universal Numbering System (DUNS®) number from Dun and Bradstreet. This rule proposes to eliminate references to the proprietary standard or number, and to provide appropriate references to the Web site where information on the unique entity identifier used for Federal contractors will be designated.

Although the Government does not intend to move away from use of the DUNS number in the short term, elimination of regulatory references to a proprietary entity identifier will provide opportunities for future competition that can reduce costs to taxpayers.

The proposed rule is internal to the Government and does not directly impose any requirements on the vendor community. However, the rule may affect certain entities if those entities have arranged certain of their business systems to utilize, accept, or otherwise recognize the existing unique identifier (DUNS Number) and should that unique identifier be changed at some point to another identifier. As of June 2015, there were 380,092 unique and active DUNS numbers designated in the System for Award Management and attributed to Government contracting.

There is no change to recordkeeping as a result of this rule.

The rule does not duplicate, overlap, or conflict with any other Federal rules.

There are no known significant alternative approaches to the rule that would meet the requirements.

The Regulatory Secretariat has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.

DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-022), in correspondence.

IV. 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, 4, 9, 12, 19 and 52

• Government procurement

Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 2, 4, 9, 12, 19 and 52 as set forth below:

1. The authority citation for 48 CFR parts 2, 4, 9, 12, 19 and 52 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

2. Amend section 2.101, in paragraph (b)(2) by—

a. Removing the definitions “Data Universal Numbering System (DUNS) number” and “Data Universal Numbering System +4 (DUNS+4) number”;

b. Adding, in alphabetical order the definition “Electronic Funds Transfer (EFT) indicator”;

c. Revising paragraph (1) of the definition “Registered in the System for Award Management (SAM) database”; and

d. Adding, in alphabetical order, the definition, “Unique entity identifier”.

The added and revised text reads as follows:

PART 4—ADMINISTRATIVE MATTERS

3. Amend section 4.601 by removing the definition “Generic DUNS number” and adding in alphabetical order a definition “Generic entity identifier” to read as follows:

4. Amend section 4.605 by revising paragraph (b), the heading of paragraph (c), and paragraphs (c)(1), and (c)(2) introductory text; and removing from paragraph (c)(2)(i)(C) “DUNS number” and adding “unique entity identifier” in its place.

The revised text reads as follows.

5. Amend section 4.607 by—

a. Removing from paragraph (b) “Data Universal Numbering System Number” and adding “Unique Entity Identifier” in its place; and

b. Revising paragraph (c) to read as follows.

6. Amend section 4.1103 by—

a. Removing from paragraph (a)(1) “must register;” and adding “shall register;” in its place;

b. Removing from paragraph (a)(2) introductory text “DUNS number or, if applicable, the DUNS+4 number” and adding “unique entity identifier” in its place; and

c. Revising paragraphs (a)(3) and (d) to read as follows:

7. Amend section 4.1402 by removing from paragraph (b), last sentence, “DUNS number” and adding “entity identifier” in its place.

8. Amend section 4.1705 by removing from paragraphs (a) and (b) “DUNS number” and adding “entity identifier” in their places.

9. Amend section 4.1800 by revising paragraph (b) to read as follows.

10. Amend section 4.1802 by:

a. Revising paragraph (a)(1); and

b. Removing from paragraph (b) “DUNS Number” and adding “unique entity identifier” in its place.

The revised text reads as follows:

11. Amend section 4.1804 by removing from paragraph (a)(1) “Data Universal Numbering System Number” and adding “Unique Entity Identifier” in its place.

PART 9—CONTRACTOR QUALIFICATIONS

12. Amend section 9.404 by revising paragraph (b)(6) to read as follows:

PART 12—ACQUISITION OF COMMERCIAL ITEMS

13. Amend section 12.301 by removing from paragraphs (d)(1) and (2) “DUNS Number” and adding “unique entity identifier” in their places.

PART 19—SMALL BUSINESS PROGRAMS

14. Amend section 19.704 by removing from the introductory text of paragraph (a) “must include” and adding “shall include” in its place; and removing from paragraphs (a)(10)(v) and (vi) “DUNS number” and adding “unique entity identifier” in their places.

PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

15. Revise section 52.204-6 to read as follows.

16. Amend section 52.204-7 by—

a. Revising the date of the provision;

b. Amending paragraph (a) by—

i. Removing the definitions “Data Universal Numbering System (DUNS) number” and “Data Universal Numbering System +4 (DUNS+4)”;

ii. Adding, in alphabetical order, the definition “Electronic Funds Transfer (EFT) indicator”;

iii. Revising paragraph (1) of the definition “Registered in the System for Award Management (SAM) database”; and

iv. Adding, in alphabetical order, the definition “Unique entity identifier”;

c. Removing from paragraph (b)(1) “the offeror” and adding “the Offeror” in its place; and

d. Revising paragraphs (b)(2) and (c).

The revised and added text reads as follows:

17. Amend section 52.204-10 by—

a. Revising the date of the clause; and

b. Removing from paragraph (d)(2)(i) “identifier (DUNS Number)” and adding “entity identifier” in its place.

The revised text reads as follows:

18. Revise section 52.204-12 to read as follows.

19. Amend section 52.204-13 by—

a. Revising the date of the clause;

b. Amending paragraph (a) by—

i. Removing the definitions “Data Universal Numbering System (DUNS) number” and “Data Universal Numbering System +4 (DUNS+4)”;

ii. Adding, in alphabetical order, the definition “Electronic Funds Transfer (EFT) indicator”;

iii. Revising paragraph (1) of the definition “Registered in the System for Award Management (SAM) database”; and

iv. Adding, in alphabetical order, the definition “Unique entity identifier”; and

c. Revising paragraph (c)(3).

The revised and added text reads as follows:

20. Amend section 52.204-14 by—

a. Revising the date of the clause; and

b. Removing from paragraph (f)(1)(i), “DUNS number” and adding “unique entity identifier” in its place.

The revised text reads as follows:

21. Amend section 52.204-15 by—

a. Revising the date of the clause; and

b. Removing from paragraph (f)(1)(i) “DUNS number” and adding “unique entity identifier” in its place.

The revised text reads as follows:

22. Amend section 52.212-1 by revising the date of the provision and paragraph (j) to read as follows:

23. Amend section 52.212-3 by—

a. Revising the date of the provision; and

b. Removing from paragraph (p) introductory text “DUNS Number” and adding “unique entity identifier” in its place.

The revised text reads as follows:

24. Amend section 52.212-5 by revising the date of the clause and paragraphs (b)(4), (b)(6), (b)(7), and (b)(17)(i) to read as follows:

25. Amend section 52.213-4 by revising the date of the clause and paragraph (b)(1)(i) to read as follows:

26. Amend section 52.219-9 by—

a. Revising the date of the clause;

b. Removing from the introductory text of paragraph (d) “offeror's” and adding “Offeror's” in its place;

c. Removing from paragraph (d)(10) introductory text “offeror” and adding “Offeror” in its place;

d. Removing from paragraph (d)(10)(v) “DUNS number,” and “the offeror's” and adding “unique entity identifier,” and “the Offeror's” in their places, respectively; and

e. Removing from paragraph (d)(10)(vi) “DUNS number,” and adding “unique entity identifier,” in its place.

The revised text reads as follows: