FAR: Newly Issued Final Rule Restricts Use of Generic DUNS Numbers | Practical Law

FAR: Newly Issued Final Rule Restricts Use of Generic DUNS Numbers | Practical Law

A new final rule amending the Federal Acquisition Rule (FAR) limits the use of generic Data Universal Numbering System (DUNS) numbers to foreign contract actions valued at or below $25,000.

FAR: Newly Issued Final Rule Restricts Use of Generic DUNS Numbers

Practical Law Legal Update 2-522-8577 (Approx. 3 pages)

FAR: Newly Issued Final Rule Restricts Use of Generic DUNS Numbers

by PLC Commercial
Published on 04 Dec 2012 • USA (National/Federal)
A new final rule amending the Federal Acquisition Rule (FAR) limits the use of generic Data Universal Numbering System (DUNS) numbers to foreign contract actions valued at or below $25,000.
A final rule amending the Federal Acquisition Rule (FAR) has been issued by the General Services Administration, Department of Defense and National Aeronautics and Space Administration and will become effective on December 20, 2012. The amendment:
  • Limits the use of generic substitutes instead of Data Universal Numbering System (DUNS) numbers.
  • Updates the policies and procedures associated with reporting in the Federal Procurement Data System for greater transparency and clarification.
  • Changes the requirements for contractor registration in the Central Contractor Registration database and DUNS number reporting.
DUNS numbers are used to uniquely identify federal government contractors and determine the ultimate parent entity. In the past, challenges with overseas contracting led contractors to use a generic DUNS number, like "Miscellaneous Foreign Vendor," to enable accounting of the obligation without explicit identification of the vendor. However, when a generic DUNS number is used, the contractor's identification is obscured in all downstream reporting processes. This adversely affects the government's data transparency and prevents the contractor from accessing and performing its reporting requirements. Therefore, the new rule limits the use of generic DUNS numbers to foreign contract actions valued at or below $25,000.
Businesses that are involved in government contracting should thoroughly review the new FAR amendments to ensure their continued compliance.