Ownership of Offeror (DFARS Case 2011-D044)

Summary:

DCN 20120724 includes a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to provide a provision for offerors, if owned or controlled by another business entity, to identify the Commercial and Government Entity (CAGE) code and legal name of that business entity.

Supplementary Information:

I.  Background

DoD proposes to collect the CAGE code and name from offerors, if owned or controlled by another business entity, in a new provision with an offeror's representations and certifications. The CAGE code is a five-character identification number used extensively within the Federal Government, and is administered by the Defense Logistics Information Service. A search feature for CAGE codes is available at http://www.logisticsinformationservice.dla.mil/cage_welcome.asp. CAGE codes for vendors located in the United States may be obtained via registration in the Central Contractor Registration (CCR) application, available at http://www.acquisition.gov. Additional information about CAGE code assignments is available at https://www.fsd.gov/app/answers/detail/a_id/186..

The ability to consistently, uniquely, and easily identify owners of offerors for DoD contractors is becoming increasingly required to support the implementation of business tools that provide insight into spending patterns for entire corporations. This new provision will--

•  Enable the tracking of performance issues that affect the entire corporation;

•  Provide insight for the deployed commander on contractor personnel in-theater;

•  Support the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics' preferred supplier program; and

•  Facilitate Defense Procurement and Acquisition and Policy priorities for a common price negotiation and audit history tool.

This case requires that a provision be included in the annual representations and certifications completed in the Online Representations and Certifications Application (ORCA). The Defense Logistics Agency (DLA) will be able to access the ORCA data and use it to supplement the CAGE file maintained by its DLA Logistics Information Service.

DoD published a notice of public meeting in the Federal Register at 76 FR 64902 on October 19, 2011, with public comments due December 9, 2011. No public comments were received.

This rule requires offerors to represent that, if it is owned by another business entity, it has entered the CAGE code and name of that owner. As such, this rule proposes the following DFARS changes:

•  Revise 204.1202, Solicitation provision and contract clause, to add the provision at 252.204-70XX, Ownership of Offeror;

•  Revise 204.7207, Solicitation provision, to prescribe the use of the provision at 252.204-70XX, Ownership of Offeror;

•  Revise 212.301(f)(iv), Solicitation provisions and contract clauses for the acquisition of commercial items, to add the provision at 252.204-70XX, Ownership of Offeror;

•  Revise 252.204-7001, Commercial and Government Entity (CAGE) Code Reporting, preface to reflect changes required at 204.1202;

•  Revise 252.204-7007, Alternate A, Annual Representations and Certifications, to add the provision at 252.204-70XX, Ownership of Offeror; and

•  Add a new provision at 252.204-70XX, Ownership of Offeror.

Dates:

Effective Date:  The Effective Date for this proposed rule is 24 July 2012.

Comment Date: Comments are due by 24 September 2012 to be considered in the formation of the final rule.

Click here to read the entire Federal Register notice for this rule.