DATE: October 10, 2003

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Unique Item Identification and Valuation

SOURCE: Federal Register, October 10, 2003, Vol. 68, No. 197, page 58631

AGENCIES: Department of Defense (DOD)

ACTION: Interim Rule

SYNOPSIS: DOD is amending the DFARS to require contractors to uniquely identify, through the use of item identification marking, all items to be delivered to the government, and to identify the government's acquisition cost of items that are built or acquired by a contractor during contract performance and subsequently delivered to the government.

DATES: The interim rule is effective January 1, 2004. Comments on the interim rule must be submitted on or before November 10, 2003.

ADDRESSES: Respondents may submit comments directly on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Also, respondents who cannot submit comments through the web site or by e-mail may submit comments to Defense Acquisition Regulations Council, Attn: Steven Cohen, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062, or by fax to 703-602-0350. Cite "DFARS Case 2003-D081" when making comments on this interim rule.

FOR FURTHER INFORMATION CONTACT: Steven Cohen, 703-602-0293.

SUPPLEMENTAL INFORMATION: The Secretary of Defense has determined that the implementation of unique identification (UID) is a strategic imperative, necessary to efficiently move supplies to warfighters. This interim rule adds requirements for contractors to uniquely mark items and to provide for identification of the government's acquisition cost of items that are to be delivered to DoD. The implementation of UID will enhance logistics, contracting, and financial business transactions supporting U.S. and coalition troops. Through the new policy, DOD will be able to consistently capture the value of items it buys, control these items during their use, and combat counterfeiting of parts. In addition, it will enable DOD to make appropriate entries into its property accountability, inventory, and financial management information systems toward achieving compliance with the Chief Financial Officers Act of 1990 (Public Law 101-576) and the financial reporting requirements imposed by the Federal Accounting Standards Advisory Board.

The following are the significant changes being made to the DFARS by this interim rule: