DFARS CHANGE NOTICE 19990809

[Federal Register: August 9, 1999 (Volume 64, Number 152)]

[Rules and Regulations]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DEPARTMENT OF DEFENSE

48 CFR Parts 202 and 217

[DFARS Case 97-D308]

Defense Federal Acquisition Regulation Supplement; Multiyear Contracting

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update guidance pertaining to multiyear contracting. The rule contains statutory requirements related to the award of multiyear

contracts for supplies, services, and weapon systems.

EFFECTIVE DATE: August 9, 1999.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, Defense Acquisition

Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-4245; telefax (703) 602-0350. Please cite DFARS Case 97-D308.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends DFARS Subpart 217.1 to update guidance pertaining to the award of multiyear contracts. The rule adds requirements to reflect the provisions of 10 U.S.C. 2306(g)(2)(B), 10 U.S.C. 2306b(i)(3), and Section 8008(b) of Public Law 105-56; updates

other statutory references throughout the subpart; and makes editorial revisions for clarity. In addition, the rule adds a definition of ``Congressional defense committees'' at DFARS 202.101

This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

This final rule does not constitute a significant revision within the meaning of FAR 1.501 and Public Law 98-577 and publication for public comment is not required. However, comments from small entities concerning the affected DFARS subparts will be considered in accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 97-D308.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the rule does not contain any 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 202 and 217

Government procurement. Michele P. Peterson, Executive Director, Defense Acquisition Regulations Council.

Therefore, 48 CFR Parts 202 and 217 are amended as follows:

Multiyear Contracting

DFARS Case 97-D308

Final Rule

PART 202-DEFINITIONS OF WORDS AND TERMS

SUBPART 202.1-DEFINITIONS

202.101 Definitions.

["Congressional defense committees" means-

(1) The Committee on Armed Services of the Senate;

(2) The Subcommittee on Defense of the Committee on Appropriations of the Senate;

(3) The Committee on Armed Services of the House of Representatives; and

(4) The Subcommittee on Defense of the Committee on Appropriations of the House of Representatives.]

* * * * *

PART 217-SPECIAL CONTRACTING METHODS

SUBPART 217.1-MULTIYEAR CONTRACTING

* * * * *

217.170 All multiyear contracts [General].

(a) Before a multiyear contract is awarded, the cost of that contract shall be compared [Before awarding a multiyear contract, the head of the agency must compare the cost of that contract] against [to] the cost of an annual procurement approach, using a present value analysis. The multiyear contract shall not be awarded [Do not award the multiyear contract] unless the analysis shows that it [the multiyear contract will] results in the lowest [lower] cost (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense Appropriations Acts [10 U.S.C. 2306b(l)(5)]).

(b) The head of the agency shall [must] provide written notice to the Committees on Appropriations and National Security in the House of Representatives and in the Senate [congressional defense committees] at least 10 days before termination of any multiyear contract (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts [10 U.S.C. 2306b(l)(4)]).

(c) The Secretary of Defense may instruct the head of the agency proposing a multiyear contract to include in that contract negotiated priced options for varying the quantities of end items to be procured over the life of the contract (10 U.S.C. 2306b(j)).

(d) Every multiyear contract must comply with FAR 17.104(c), unless an exception is approved through the budget process in coordination with the cognizant comptroller.

[(e)(1) DoD must receive authorization from, or provide notification to, Congress before entering into a multiyear contract for certain procurements, including those expected to-

217.171 Multiyear contracts for services.

(a) 10 U.S.C. 2306(g).

(1) DoD [The head of the agency] may enter into multiyear acquisitions [contracts] for the following [types of] services (and items of supply relating to such services), even though funds are limited by statute to obligation only during the fiscal year for which they were appropriated:

(2) [The head of the agency may use t]This authority may be used as long as the contract does not extend beyond 5 years [only if the term of the contract does not exceed 5 years. However, the head of the agency may extend the term of the contract by exercising an option that does not-

(i) Exceed 3 years; or

(ii) Include charges for plant, equipment, or other nonrecurring costs already amortized].

(b) 10 U.S.C. 2829.

(1) The head of the agency may enter into multiyear contracts for supplies and services required for management, maintenance, and operation of military family housing and may pay the costs of such contracts for each year from annual appropriations for that year.

(2) [The head of the agency may use t]This authority may be used as long as [only if the term of] the contract does not extend beyond [exceed] 4 years.

217.172 Multiyear contracts for supplies.

(b) [The head of the agency may enter into a] A multiyear contract for supplies may be used if, in addition to the conditions listed in FAR 17.105-1(b), the use of such a contract will promote the national security of the United States.

(c) The head of the agency shall [must] provide written notice to the Committees on Appropriations and National Security in the House of Representatives and in the Senate [congressional defense committees] at least 30 days before the contracting officer awards a multiyear contract including an unfunded contingent liability in excess of $20 million (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts [10 U.S.C. 2306b(l)(1)(A)]).

(d) Agencies shall [must] establish reporting procedures to meet the requirements of paragraph (c) of this section. [The head of the agency must] S[s]ubmit copies of the notifications to the Director of Defense Procurement, Office of the Under Secretary of Defense (Acquisition and Technology) (OUSD(A&T)DP), and to the Deputy Under Secretary of Defense (Comptroller) (Program/Budget) (OUSD(C)(P/B)).

217.173 Multiyear contracts for weapon systems.

(b) The following conditions must be satisfied before a multiyear contract may be awarded [The head of the agency must ensure that the following conditions are satisfied before awarding a multiyear contract] under the authority described in paragraph (a) of this section:

(1) The multiyear exhibits required by DoD 7000.14-R, Financial Management Regulation, are included in the agency's budget estimate submission and the President's budget request.

(2) The Secretary of Defense certifies to Congress that the current 5-year defense program fully funds the support costs associated with the multiyear program (10 U.S.C. 2306b(i)(1)(A)). [The head of the agency must submit] I[i]nformation supporting this certification shall be submitted to USD(C)(P/B) for transmission to Congress through the Secretary of Defense.

(4) If the value of the [a] multiyear contract [for a particular system or component] exceeds $500,000,000 [million], the applicable Defense appropriations act specifically provides that a multiyear contract may be used to procure the particular system or system component (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts) [use of a multiyear contract is specifically authorized by-

(i) An appropriations act (10 U.S.C. 2306b(l)(3)); and

(ii) A law other than an appropriations act

(10 U.S.C. 2306b(i)(3)).]

217.174 Multiyear contracts that employ economic order quantity procurement.

(a) The head of the agency shall [must] provide written notice to the Committees on Appropriations and National Security in the House of Representatives and in the Senate [congressional defense committees] at least 30 days before awarding-

(1) A multiyear contract providing for economic order quantity purchases [procurement] in excess of $20 million in any [one] year; or

(2) A contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20 million in any [one] year (Section 9021 of Pub. L. 101-165 and similar sections in subsequent Defense appropriations acts [10 U.S.C. 2306b(l)(1)(A)]).

[Federal Register: August 9, 1999 (Volume 64, Number 152)]

[Rules and Regulations]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DEPARTMENT OF DEFENSE

48 CFR Parts 204, 212, 213, 252, and 253

[DFARS Case 98-D027]

Defense Federal Acquisition Regulation Supplement; TaxpayerIdentification Numbers and Commercial and Government Entity Codes

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: The Director of Defense Procurement has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to add procedures for reporting payment information to the Internal Revenue Service (IRS); to revise the procedures for obtaining Taxpayer

Identification Numbers (TINs) and Commercial and Government Entity (CAGE) codes when contractors are required to register in the Central Contractor Registration (CCR) database; and to make editorial changes.

EFFECTIVE DATE: August 9, 1999.

FOR FURTHER INFORMATION CONTACT:

Ms. Sandra G. Haberlin, Defense Acquisition Regulations Council, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; telefax (703) 602-0350. Please cite DFARS Case 98-D027.

SUPPLEMENTARY INFORMATION:

A. Background

1. Reporting payment information to the IRS. This rule supplements the final FAR rule published as Item I of Federal Acquisition Circular 97-12 on June 17, 1999 (64 FR 32741).

a. The FAR rule renumbered and retitled FAR 4.903, Payment information, as FAR 4.904, Reporting payment information to the IRS; and deleted the list, previously located at FAR 4.903(b), of the types of payments that are exempt from reporting payment information to the IRS on Form 1099. The list was considered unnecessary for including in the FAR, because the payment office is responsible for submitting Form 1099 reports to the IRS.

b. This rule adds a new section at DFARS 204.904, Reporting payment information to the IRS. The new section contains a list that is similar to the one previously found in the FAR, but the list has been updated to comply with the Taxpayer Relief Act of 1997 (Pub. L. 105-32). Section 1022 of the Act amended 26 U.S.C. 6041A to add payments under certain classified contracts to the list of exceptions, and to remove payments for services provided by corporations from the list. DFARS

204.904 also adds a requirement for the contracting officer to provide a statement to the payment office if the contractor is providing services subject to Form 1099 reporting to the IRS. The statement is not required if the contracting officer concludes that one of the exceptions listed at DFARS 204.904(1) applies. This procedure is added to the DFARS to facilitate issuance of Form 1099 reports by the payment office.

2. Procedures for obtaining TINs and CAGE code numbers when CCR applies. The FAR rule also modified the process for obtaining TINs, by permitting agencies to prescribe their own procedures for obtaining TINs from contractors and for providing the TINs to the payment office.

DoD uses the CCR database for these purposes. This DFARS rule clarifies that the contracting officer must not use the solicitation provisions at FAR 52.204-3, Taxpayer Identification, and DFARS 252.204-7001, Commercial and Government Entity (CAGE) Code Reporting; or paragraph

(b) of the provision at FAR 52.212-3, Offeror Representations and Certifications--Commercial Items, when the contractor is required to register in the CCR database, since the information that these provisions request is duplicative of the information that the contractor must provide during the CCR process.

3. Editorial changes. This DFARS rule makes a number of editorial changes, including updating CAGE code information in Subpart 204.72, Contractor Identification, and clarifying certain requirements in Subpart 204.73, Central Contractor Registration.

4. Proposed rule. A proposed DFARS rule was published in the Federal Register on January 15, 1999 (64 FR 2617). Three sources submitted comments on the proposed rule. All comments were considered in the development of the final rule.

5. 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 certifies that this final rule will not 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 FAR and DFARS already contain requirements for offerors and contractors to provide TINs and CAGE codes and to register in the CCR database. This rule simply clarifies that, if a prospective contractor is required to register in the CCR database, it does not have to

provide a TIN or a CAGE code to the contracting officer.

C. Paperwork Reduction Act

The Paperwork Reduction Act (44 U.S.C. 3501, et seq.) applies because the rule contains information collection requirements. The final rule decreases the collection requirements currently approved under Office of Management and Budget Control Number 0704-0225, since the rule limits use of the solicitation provision at 252.204-7001, Commercial and Government Entity (CAGE) Code Reporting, to contractors that are not required to register in the CCR database. Therefore, the final rule reduces the number of respondents by 89,545, and the number of burden hours by 22,386.

List of Subjects in 48 CFR Parts 204, 212, 213, 252, and 253

Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council.

Therefore, 48 CFR parts 204, 212, 213, 252, and 253 are amended as follows:

Taxpayer Identification Numbers and Commercial

and Government Entity Codes

DFARS Case 98-D027

Final Rule

Additions to the DFARS are indicated in [bold and brackets]. Deletions are indicated by strikethroughs.

TABLE OF CONTENTS

* * * * *

SUBPART 204.2-CONTRACT DISTRIBUTION

204.201 Procedures.

204.202 Agency distribution requirements.

[204.203 Taxpayer identification information.]

* * * * *

SUBPART 204.6-CONTRACT REPORTING

* * * * *

204.602 Federal Procurement Data System.

204.602-70 Solicitation provision.

[204.603 Solicitation provisions.]

* * * * *

SUBPART 204.9-INFORMATION REPORTING TO THE INTERNAL REVENUE SERVICE [TAXPAYER IDENTIFICATION NUMBER INFORMATION]

204.902 General.

[204.904 Reporting payment information to the IRS.

204.905 Solicitation provision.]

* * * * *

SUBPART 204.72-CONTRACTOR IDENTIFICATION

* * * * *

204.7202-3 Contractor identification numbers [TINs].

* * * * *

[SUBPART 213.1-PROCEDURES]

213.106-3 Award and documentation.]

PART 204-ADMINISTRATIVE MATTERS

* * * * *

SUBPART 204.2-CONTRACT DISTRIBUTION

* * * * *

[204.203 Taxpayer identification information.

(1) The procedures at FAR 4.203(a) and (b) do not apply to contracts that include the clause at 252.204-7004, Required Central Contractor Registration.

(2) For a DoD basic ordering agreement or indefinite-delivery contract that requires the contractor to register in the Central Contractor Registration (CCR) database (see Subpart 204.73)--

(i) The contracting officer issuing the agreement or contract need not provide a copy of the completed solicitation provision at FAR 52.204-3 or 52.212-3(b) to DoD contracting officers placing orders under the agreement or contract; and

(i) If the contractor is registered, the contracting officer need not provide the TIN or type of organization information to the payment office.

(ii) If the contractor is not registered, the contracting officer must follow the procedures at 204.7303(b).]

* * * * *

SUBPART 204.6-CONTRACT REPORTING

* * * * *

204.602-70 Solicitation provision.

When the Commercial and Government Entity codes for the prospective offerors are not available to the contracting office, use the provision at 252.204-7001, Commercial and Government Entity (CAGE) Code Reporting.

[204.603 Solicitation provisions.

(i) The solicitation does not include the clause at 252.204-7004, Required Central Contractor Registration; and

(ii) The CAGE codes for the potential offerors are not available to the contracting office.

(2) Use the provision at FAR 52.204-6, Data Universal Numbering System (DUNS) Number, in solicitations that-

(i) Have an estimated value exceeding $25,000; or

(ii) Have an estimated value of $25,000 or less and include the clause at 252.204-7004, Required Central Contractor Registration.]

* * * * *

SUBPART 204.9-INFORMATION REPORTING TO THE INTERNAL REVENUE SERVICE [TAXPAYER IDENTIFICATION NUMBER INFORMATION]

204.902 General.

(b) DoD uses the DD Form 350, Individual Contract[ing] Action Report, (see 204.670) to meet these reporting requirements.

[204.904 Reporting payment information to the IRS.

(1) 26 U.S.C. 6041 and 6041A and 26 CFR 1.6041 require Government payors to report to the IRS, on IRS Form 1099, payments of an annual cumulative value of $600 or more provided to a contractor, except payments for-

(i) Supplies, unless the supplies are incidental to the furnishing of services;

(ii) Telegram, telephone, freight, storage, or similar charges;

(iii) Income that the payor must report on IRS Form W-2 (e.g., payments to employees or payments under contracts for personal services);

(iv) Any contract with a Federal agency;

(v) Any contract with a State, the District of Columbia, or a possession of the United States; or a political subdivision, agency, or instrumentality of any of the foregoing;

(vi) Any contract with an organization exempted from taxation by 26 U.S.C. 501(a). Such organizations may include charitable, social welfare, labor, agricultural, veterans', and political organizations; business leagues; social clubs; fraternal societies; and employees' associations. Contracting officers may obtain additional information to assist in determining an organization's tax-exempt status via the Internet at http://www.irs.ustreas.gov/prod/bus_info/eo/eo-types.html;

(vii) Any contract with a foreign government or a political subdivision of a foreign government;

(viii) Any contract with an international organization listed in 22 U.S.C. 288;

(ix) Any classified contract excepted by 26 U.S.C. 6050M. As used in this section only, a contract is classified if-

(A) DoD designates the existence of the contract or the contract subject matter as classified (i.e., the contract requires a specific degree of protection against unauthorized disclosure for reasons of national security); or

(B) The head of the agency determines that filing IRS Form 1099 would interfere with the effective conduct of a confidential law enforcement or foreign intelligence activity; or

(x) Such other services as the IRS may specify in regulations.

(2) Unless an exception in paragraph (1) of this section applies, the contracting officer must provide, as the last page of the copy of the contract sent to the payment office-

(i) A statement that the contractor is providing services subject to Form 1099 payment information reporting to the IRS, as required by 26 U.S.C. 6041 and 6041A; and

(ii) The contractor's Taxpayer Identification Number and type of organization, if the contract does not include the clause at 252.204-7004, Required Central Contractor Registration.

204.905 Solicitation provision.

Do not use the provision at FAR 52.204-3, Taxpayer Identification, in solicitations that include the clause at 252.204-7004, Required Central Contractor Registration.]

* * * * *

SUBPART 204.72-CONTRACTOR IDENTIFICATION

204.7200 Scope of subpart.

This subpart prescribes uniform policies and procedures for identification of commercial and Government entities when it is necessary to:[--]

(a) Exchange data with another contracting activity, including contract administration activities and contract payment activities, or to comply with the reporting requirements of Subpart 204.6; or

204.7201 Definitions.

(1) A code assigned by the Defense Logistics [Information] Services Center (DL[I]SC) to identify a commercial or Government entity; or

204.7202 General.

Various coding systems are in use to identify commercial and government entities. Codes are requested by contracting and contract administration offices for various reasons. This guidance is designed to improve the accuracy of the initial code assignment and to help ensure that the data are maintained accurately and are up-to-date.

204.7202-1 CAGE codes.

(b) CAGE codes have also been known in the past as federal supply codes for manufacturers (FSCM) and federal supply codes for nonmanufacturers (FSCNM).

[(1) If a prospective contractor must register in the Central Contractor Registration (CCR) database (see Subpart 204.73) 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.

[(i) To identify the prospective contractor's CAGE code, use--

(2) [(B)] Use [T]the on-line access to the CAGE file through the Defense Logistics Information System;

(3) [(C)] Use [T]the on-line access to the Defense Logistics Agency [(DLA)] CAGE file through the DLA Network or dial-up capability; or

[(D) The Internet to access the CAGE Lookup Server at http://www.dlis.dla.mil/cageserve.htm.]

204.7202-2 DUNS numbers.

Requirements for use of DUNS numbers are contained in FAR 4.602(d) and 4.603.

204.7202-3 Taxpayer identification numbers [TINs].

The taxpayer identification number is prescribed [Requirements for use of TINs are] in FAR Subpart 4.9.

204.7203 Responsibilities of contracting officers.

(a) The contracting officer shall [A]assist the offeror[s] in obtaining the required contractor [CAGE] code(s).

(b) [Do not deny a potential]Prospective offerors may not be denied a solicitation [package] or bid set because the offeror does not have a contractor [identification] code.

(c) The contracting officer or designee shall not request a new code assignment until the appropriate microfiche, hardcopy or computer files have been screened in an effort to identify a current code for the entity. If the contracting officer does not have access to the files or listings, then initiate action to obtain the files or listings and any equipment necessary to use those files and/or listings (see 204.7202-1 and -2).

(d) If a CAGE code is being requested, it is the responsibility of the contracting activity to request the assignment of the CAGE code by completing section A of the DD Form 2051, Request for Assignment of a Commercial and Government Entity (CAGE) Code (see 253.303-2051). The prospective contractor will complete section B of the form. The completed form or electronic equivalent will be submitted by the contracting activity to DLSC-SBB for processing and code assignment after the contracting activity has verified the data submitted by the contractor.

[(c)] CAGE codes may be requested [Consider requesting a CAGE code] at the time the [a potential] offeror is sent a solicitation package or added to the mailing list to ensure that a code is assigned in sufficient time to process the DD Form 350, Individual Contracting Action Report, without delay.

204.7204 Maintenance of the CAGE file.

to:[--]

(c)[(d)] Additional guidance for maintaining CAGE codes is [in] set forth at Volume 7 of DoD 4100.39-M, Defense Integrated Data System (DIDS) [Federal Logistics Information System (FLIS) Procedures] Manual.

* * * * *

SUBPART 204.73--CENTRAL CONTRACTOR REGISTRATION

* * * * *

204.7302 Policy.

After May 31, 1998, p[P]rospective contractors must be registered in the CCR database, prior to award of a contract, basic agreement, basic ordering agreement, or blanket purchase agreement, unless the award results from a solicitation issued on or before May 31, 1998. This policy applies to all types of awards except the following: [except for-]

(a) Purchases made [paid for] with a Governmentwide

commercial purchase card.[;]

(b) Awards made to foreign vendors for work performed

outside the United States.[;]

(c) Classified contracts or purchases (see FAR 4.401) [when

registration in the CCR database, or use of CCR data, could

compromise the safeguarding of classified information or national

security].[;]

(d) Contracts awarded by deployed contracting officers in

the course of military operations, including, but not limited to,

contingency operations as defined in 10 U.S.C. 101(a)(13) [or

humanitarian or peacekeeping operations as defined in 10 U.S.C.

2302(7)], or contracts awarded by contracting officers in the

conduct of emergency operations, such as responses to natural

disasters or national or civil emergencies. [; and]

(e) Purchases to support unusual or compelling needs of the type described in FAR 6.302-2.

204.7303 Procedures.

(a)(1) Except as provided in 204.7302, the contracting officer shall [must] require each offeror to provide a DUNS [number (see 204.603(2))] or, if applicable, a DUNS+4 number, with its verbal or written offer, regardless of the dollar amount of the offer.

(2) Prior to making an award of any [Before awarding a] contract, basic agreement, basic ordering agreement, or blanket purchase agreement after May 31, 1998, unless the award results from a solicitation issued on or before May 31, 1998, the contracting officer shall [must] verify that the prospective awardee [contractor] is registered in the CCR database (but see paragraph (b) of this section). The contracting officer may verify registration using the DUNS number or, if applicable, the DUNS+4 number, by calling toll[-]free: 1-800-841-4431, commercial: 1-[(]616[)]-961-5757, or Defense Switched Network (DSN): 932-5757; via the Internet at http://ccr.edi.disa.mil/ccr/cgi-bin/status.pl; or as otherwise provided by agency procedures.

(3) Verification of registration is not required [The contracting officer need not verify registration before placing an] for orders or calls placed under contracts, basic agreements, basic ordering agreements, or blanket purchase agreements [a DoD contract or agreement].

[(4) The contracting officer must verify registration before placing an order or call under a non-DoD contract or agreement. If the contractor is not registered, the contracting officer must follow the procedures in paragraph (b) of this section.]

(4)[(5)] After May 31, 1998, a[A]s part of the annual review of basic agreements, basic ordering agreements, and blanket purchase agreements, contracting officers shall [must] modify these agreements to incorporate the clause at 252.204-7004, Required Central Contractor Registration.

(b) If the contracting officer determines that a prospective awardee [contractor] is not registered in the CCR database [and an exception to the registration requirements for the award does not apply (see 204.7302)], the contracting officer shall [must]--

(1) If the needs of the requiring activity allow for a delay, proceed to award after the contractor is registered; or

(2) If the needs of the requiring activity do not allow for a delay, proceed to award to the next otherwise successful registered offeror, provided that written approval is obtained at one level above the contracting officer.

(c) Agencies shall [must] protect against improper disclosure of contractor CCR information.

(d) The contracting officer shall [must], on contractual documents transmitted to the payment office, provide either the Commercial and Government Entity code or the DUNS number in accordance with agency procedures.

204.7304 Contract clause.

Except as provided in 204.7302, use the clause at 252.204-7004, Required Central Contractor Registration, in [solicitations and contracts.]-

(a) Solicitations issued after May 31, 1998;

(b) Contracts resulting from solicitations issued after May 31, 1998; and

(c) Basic agreements, basic ordering agreements, and blanket purchase agreements issued after May 31, 1998, unless they resulted from solicitations issued on or before May 31, 19998.

* * * * *

PART 212-ACQUISITION OF COMMERCIAL ITEMS

* * * * *

SUBPART 212.3--SOLICITATION PROVISIONS AND CONTRACT CLAUSES FOR THE ACQUISITION OF COMMERCIAL ITEMS

* * * * *

212.301 Solicitation provisions and contract clauses for the acquisition of commercial items.

[(b)(2) Paragraph (b) of the provision at FAR 52.212-3 does not apply when the solicitation includes the clause at 252.204-7004, Required Central Contractor Registration.]

* * * * *

PART 213-SIMPLIFIED ACQUISITION PROCEDURES

* * * * *

[SUBPART 213.1-PROCEDURES

213.106-3 Award and documentation.

(e) The procedures at FAR 13.106-3(e) do not apply when the contract includes the clause at 252.204-7004, Required Central Contractor Registration.]

* * * * *

PART 252-SOLICITATION PROVISIONS AND CONTRACT CLAUSES

* * * * *

252.204-7001 Commercial and Government Entity (CAGE) Code Reporting.

As prescribed in 204.602-70[3(1)], use the following provision:

COMMERCIAL AND GOVERNMENT ENTITY (CAGE) CODE REPORTING

(DEC 1991) [(AUG 1999)]

(a) The O[o]fferor is requested to enter its CAGE code on its offer in the block with its name and address. The CAGE code entered must be for that name and address. Enter ["]CAGE["] before the number.

(b) If the O[o]fferor does not have a CAGE code, it may ask the Contracting Officer to request one from the Defense Logistics [Information] Services Center (DL[I]SC). The Contracting Officer will-

(1) Ask the Contractor to complete section B of a DD Form 2051, Request for Assignment of a Commercial and Government Entity (CAGE) Code;

(2) Complete section A and forward the form to DL[I]SC; and

(c) Do not delay submission of the offer pending receipt of a CAGE code.

(End of provision)

* * * * *

PART 253--FORMS

* * * * *

SUBPART 253.2-PRESCRIPTION OF FORMS

253.204 Administrative matters.

253.204-70 DD Form 350, Individual Contracting Action Report.

* * * * *

(b) Part B of the DD Form 350. Part B identifies the transaction.

* * * * *

* * * * *