Rule2023-05671

Defense Federal Acquisition Regulation Supplement: Use of Supplier Performance Risk System (SPRS) Assessments (DFARS Case 2019-D009)

Primary source

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Published
March 22, 2023
Effective
March 22, 2023

Issuing agencies

Defense DepartmentDefense Acquisition Regulations System

Abstract

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update the policy and procedures for use of the Supplier Performance Risk System and to require contracting officers to consider SPRS risk assessments, if available, in the evaluation of a supplier's quotation or offer and to consider SPRS supplier risk assessments when determining contractor responsibility.

Full Text

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<title>Federal Register, Volume 88 Issue 55 (Wednesday, March 22, 2023)</title>
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[Federal Register Volume 88, Number 55 (Wednesday, March 22, 2023)]
[Rules and Regulations]
[Pages 17336-17340]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-05671]



[[Page 17335]]

Vol. 88

Wednesday,

No. 55

March 22, 2023

Part III





Department of Defense





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Defense Acquisition Regulations System





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48 CFR Parts 204, 208, et al.





Defense Federal Acquisition Regulation Supplements: Use of Supplier 
Performance Risk System (SPRS) Assessments (DFARS Case 2019-D009); 
Noncommercial Computer Software (DFARS Case 2018-D018); Ground and 
Flight Risk (DFARS Case 2020-D027); Contract Administration Office 
Functions Relating to Direct Costs (DFARS Case 2022-D021); Technical 
Amendments; Export-Controlled Items (DFARS Case 2018-D053); 
Restrictions on Overhaul and Repair of Naval Vessels in Foreign 
Shipyards (DFARS Case 2021-D021); Final Rules and Proposed Rules

Federal Register / Vol. 88, No. 55 / Wednesday, March 22, 2023 / 
Rules and Regulations

[[Page 17336]]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 204, 208, 209, 212, 213, 215, 216, and 252

[Docket DARS-2020-0027]
RIN 0750-AK44


Defense Federal Acquisition Regulation Supplement: Use of 
Supplier Performance Risk System (SPRS) Assessments (DFARS Case 2019-
D009)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update the policy and 
procedures for use of the Supplier Performance Risk System and to 
require contracting officers to consider SPRS risk assessments, if 
available, in the evaluation of a supplier's quotation or offer and to 
consider SPRS supplier risk assessments when determining contractor 
responsibility.

DATES: Effective March 22, 2023.

FOR FURTHER INFORMATION CONTACT: Heather Kitchens, telephone 571-296-
7152.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD published a proposed rule in the Federal Register at 85 FR 
53748 on August 31, 2020, to amend the DFARS to require contracting 
officers to consider Supplier Performance Risk System (SPRS) risk 
assessments during evaluation of quotations or offers and to consider 
the SPRS supplier risk assessment in the evaluation of contractor 
responsibility. Two respondents submitted public comments in response 
to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments and the changes made to the rule as 
a result of those comments is provided, as follows.

A. Summary of Significant Changes From the Proposed Rule

    As a result of public comments, there are changes from the proposed 
rule in the final rule to clarify applicability of the rule. 
Additionally, editorial and clarifying changes were made in the final 
rule as discussed in paragraph C of this preamble.

B. Analysis of Public Comments

a. Solicitation Provision Applicability
    Comment: One respondent commented that the prescription for 
solicitation provision 252.204-70XX, Notice to Prospective Suppliers on 
the Use of the Supplier Performance Risk System in Performance 
Evaluations, should be updated at DFARS 204.7X04 to state that the 
provision is for use in solicitations using FAR part 13 simplified 
acquisition procedures, including solicitations for supplies and 
services using FAR part 12 procedures for the acquisition of commercial 
items, to align with DFARS 204.7X02, Applicability.
    Response: The final rule revises DFARS 204.7602, Applicability, to 
align with the solicitation provision prescription at DFARS 204.7604 
and the stated intent of the rule to move the coverage from part 213 to 
a new subpart 204.76, as described in the preamble of the proposed 
rule. Section 204.7602 states that use of SPRS risk assessments is 
required for the evaluation of quotations or offers in response to 
solicitations for supplies and services, including solicitations using 
FAR part 12 procedures for the acquisition of commercial products and 
commercial services. DFARS 204.7602, as revised, does not limit 
applicability of use of SPRS risk assessments to acquisitions using FAR 
part 13 simplified acquisition procedures; therefore, the recommended 
change to the solicitation provision prescription at DFARS 204.7604 
will not be made.
    The solicitation provision is prescribed for use in solicitations 
for supplies and services, including solicitations using FAR part 12 
procedures for the acquisition of commercial products and commercial 
services. To clarify that the provision also applies to solicitations 
using FAR part 13 simplified acquisition procedures, the rule revises 
the language in part 213 at 213.106-2, paragraph (b)(i), to provide a 
cross-reference to 204.7603 and to require contracting officers to 
consider SPRS risk assessments as a basis of award for solicitations 
using FAR part 13 simplified acquisition procedures, and obsolete 
language is removed. Further, to more clearly reflect that the intended 
purpose of the provision extends beyond FAR part 13 actions, the 
provision title is revised to read as follows: 252.204-7024, Notice on 
the Use of the Supplier Performance Risk System.
    The proposed rule, at sections I. and II. of the preamble, stated 
that SPRS is required to be used to evaluate quotes and offers received 
under all solicitations for supplies and services. To further clarify 
applicability of the procedures at DFARS 204.7603 to Federal Supply 
Schedules, commercial acquisitions, acquisitions using FAR part 13 
simplified acquisition procedures, evaluation of offers under part 215, 
and indefinite-delivery contracts, cross-references to DFARS 204.7603 
are added to--
    <bullet> Subpart 208.4, Federal Supply Schedules;
    <bullet> Subpart 212.2, Special Requirements for the Acquisition of 
Commercial Products and Commercial Services;
    <bullet> Subpart 213.1, Procedures;
    <bullet> 215.3, Source Selection; and
    <bullet> Subpart 216.5, Indefinite-Delivery Contracts.
b. SPRS Website
    Comment: One respondent commented that Government-Industry Data 
Exchange Program (GIDEP) alerts are not appropriate measures of quality 
performance and such data cannot be accurately translated into 
meaningful risk scores without dissecting each GIDEP report, including 
supplier letters and enclosures.
    Response: GIDEP alerts are only used if they are Government-
generated (Agency Action Notice) with a Commercial and Government 
Entity (CAGE) code reported explicitly for Suspected Counterfeit or 
Failure Experience. SPRS does not search GIDEP narratives or text. It 
only searches for data indicating that the item has been identified as 
suspected counterfeit or has been determined to be a material failure.
    Comment: One respondent commented that Mechanization of Contact 
Administration Services (MOCAS) is not specifically intended to measure 
on-time delivery performance and will require substantial investment by 
industry and DoD buying commands to maintain its accuracy and 
reliability.
    Response: SPRS only uses MOCAS records that provide a specific 
contractor's Commercial and Government Entity (CAGE) code, product 
service code (PSC), and a required delivery date on a contract line 
item that can be matched to an actual delivery date. This constrained 
usage mitigates the concerns the respondent identified.
    Comment: One respondent commented that the SPRS system itself may 
not be able to handle the

[[Page 17337]]

administrative and logistical challenges that will arise under its 
expanded use.
    Response: DoD does not expect any issues with increased user 
traffic as a result of this rule. SPRS has recently experienced a rapid 
increase in user activity without any system impacts. Publication of 
this rule will not adversely impact operation of the system or the 
program office.

C. Other Changes

    The following are amplifying changes to the rule that are not based 
on public comments, but were made to add clarity:
    <bullet> The term ``overall risk assessments'' at DFARS 204.7602 
and 204.7603 was changed to ``risk assessments'' throughout the final 
rule to use language consistent with the SPRS website.
    <bullet> Some instances of the terms ``evaluated'' and 
``evaluation'' were replaced with the term ``considered'' and ``shall 
consider'' to clarify that risk assessments are not a mandatory, stand-
alone, evaluation factor for source selections and that the contracting 
officer shall ``consider'' the risk assessments, if available, as part 
of broader evaluation factors during evaluation of quotations or offers 
and when determining contractor responsibility.
    <bullet> DFARS 204.7603, Procedures, was updated to clarify the 
scope of SPRS risk assessments required to be considered when procuring 
supplies and services and the scope of SPRS risk assessments required 
to be considered when procuring an end product (see FAR 2.101) 
identified by an available material identifier (see Procedures, 
Guidance, and Information (PGI) 204.7603). The contracting officer 
shall consider price risk and supplier risk, if available, as part of 
the award decision. For the procurement of an end product identified by 
an available material identifier, the contracting officer shall also 
consider item risk.
    <bullet> DFARS 204.7603, Procedures, was updated to clarify that 
contracting officers shall use their discretion in considering the 
information available in SPRS.
    <bullet> DFARS 204.7603, Procedures, was updated under paragraph 
(a), Item Risk, to clarify that a SPRS item risk search is required for 
any end product that did not have an item risk search performed prior 
to solicitation to ensure that item risk searches in SPRS only occur if 
an end product did not have an item risk search performed prior to 
solicitation; and paragraph (b), Price Risk, applies when procuring a 
service or an end product identified by an available material 
identifier.
    <bullet> An editorial change was made throughout to correct an 
administrative error by removing the words ``or services'' from the 
definition of ``item risk'', as item risk does not apply to services.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold, for Commercial Services, and for Commercial Products, 
Including Commercially Available Off-the-Shelf Items

    This rule creates a new solicitation provision, DFARS 252.204-7024, 
Notice on the Use of the Supplier Performance Risk System. The 
provision at DFARS 252.204-7024 is prescribed at DFARS 204.7604 for use 
in in solicitations for supplies and services, including solicitations 
using FAR part 12 procedures for the acquisition of commercial products 
and commercial services. The provision is applicable to acquisitions at 
or below the simplified acquisition threshold (SAT) and to acquisitions 
of commercial products, including commercially available off-the-shelf 
(COTS) items, and commercial services. Not applying this provision to 
contracts at or below the SAT and for the acquisition of commercial 
products, including COTS items, and commercial services would exclude 
contracts intended to be covered by this rule and undermine the 
overarching purpose of the rule. Consequently, DoD is applying the rule 
to contracts below the SAT, for the acquisition of commercial services, 
and for the acquisition of commercial products, including COTS items.

IV. 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.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VI. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This final rule is necessary to revise the Defense Federal 
Acquisition Regulation Supplement (DFARS) to incorporate the expanded 
capabilities of the Supplier Performance Risk System (SPRS), made 
possible by recent technical enhancements. SPRS is a DoD enterprise 
application that retrieves price, item, quality, delivery, and 
contractor performance data from Government reporting systems. SPRS 
collects quality and delivery data from Government systems to develop 
risk assessments. The system provides three risk assessments for 
contracting officer use in evaluations of quotations and offers: an 
item risk assessment, a price risk assessment, and a supplier risk 
assessment.
    The objective of the final rule is to notify offerors, via the new 
solicitation provision at DFARS 252.204-7024, that SPRS collects 
performance data from a variety of Government sources on awarded 
contracts to develop item risk, price risk, and supplier risk 
assessments for contracting officers to consider during evaluation of 
quotations or offers. The final rule also requires contracting officers 
to consider the supplier risk assessment in the determination of 
contractor responsibility.
    No comments were received in response to the initial regulatory 
flexibility analysis.
    The Federal Procurement Data System indicates that in fiscal years 
2020 through 2022, DoD awarded an average of 483,364 contracts per year 
for both products and services, of which an average of 338,039 
(approximately 70 percent) were awarded to an average of 22,760 unique 
small businesses.
    This rule does not require any specific reporting, recordkeeping, 
or compliance requirements.
    No significant economic impact on small businesses is anticipated 
as a result of the final rule. DoD does not expect small entities will 
be materially affected by this rule. There are no

[[Page 17338]]

known significant alternatives to the rule.

VII. 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 204, 208, 209, 212, 213, 215, 216, 
and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 204, 208, 209, 212, 213, 215, 216, and 252 
are amended as follows:

0
1. The authority citation for 48 CFR parts 204, 208, 209, 212, 213, 
215, 216, and 252 continues to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 204--ADMINISTRATIVE AND INFORMATION MATTERS

0
2. Add subpart 204.76 to read as follows:

Subpart 204.76--Supplier Performance Risk System
204.7600 Scope of subpart.
204.7601 Definitions.
204.7602 Applicability.
204.7603 Procedures.
204.7604 Solicitation provision.

Subpart 204.76--Supplier Performance Risk System


204.7600   Scope of subpart.

    This subpart provides policies and procedures for use of the 
Supplier Performance Risk System (SPRS) risk assessments in the 
evaluation of a quotation or offer.


204.7601   Definitions.

    As used in this subpart--
    Item risk means the probability that a product, based on intended 
use, will introduce performance risk resulting in safety issues, 
mission degradation, or monetary loss.
    Price risk means the measure of whether a proposed price for a 
product or service is consistent with historical prices paid for that 
item or service.
    Supplier risk means the probability that an award may subject the 
procurement to the risk of unsuccessful performance or to supply chain 
risk (see 239.7301).


204.7602   Applicability.

    Use of SPRS risk assessments is required for the evaluation of 
quotations or offers in response to solicitations for supplies and 
services, including solicitations using FAR part 12 procedures for the 
acquisition of commercial products and commercial services, excluding 
solicitations for the procurement of supplies or services exempted by 
the Department of Defense Instruction (DoDI) 5000.79, Defense-wide 
Sharing and Use of Supplier and Product Performance Information. SPRS 
retrieves item, price, quality, delivery, and contractor information 
from contracts in Government reporting systems in order to develop risk 
assessments of contractors. SPRS is available at <a href="https://piee.eb.mil/">https://piee.eb.mil/</a>, 
and the SPRS user's guides are available at <a href="https://www.sprs.csd.disa.mil/reference.htm">https://www.sprs.csd.disa.mil/reference.htm</a>.


204.7603   Procedures.

    The contracting officer shall consider price risk and supplier 
risk, if available in SPRS, as a part of the award decision. For 
procurement of an end product identified by a material identifier that 
is available as described at PGI 204.7603, the contracting officer 
shall also consider assessments of item risk, if available, as a part 
of the award decision. Offerors or quoters without a risk assessment in 
SPRS shall not be considered favorably or unfavorably. Contracting 
officers shall use their discretion in considering the information 
available in SPRS on item risk, price risk, and supplier risk as 
follows:
    (a) Item risk. (1) Consider item risk to determine whether the 
procurement of products represents a high performance risk to the 
Government. If an item has a high risk rating, then the SPRS item risk 
report will display the reason(s) an item is identified as high risk.
    (2) Before issuing a solicitation for the procurement of an end 
product identified by a material identifier that is available as 
described at PGI 204.7603, the contracting officer shall ensure a SPRS 
item risk search has been performed and shall consider any item risk 
warnings provided. When evaluating quotations or offers for an end 
product identified by a material identifier, a SPRS item risk search is 
required for any end product that did not have an item risk search 
performed prior to solicitation. If there are item risk warnings, the 
contracting officer shall consider strategies to mitigate risk, such as 
the following:
    (i) Consulting with the program office.
    (ii) Including mitigating requirements in the statement of work, as 
provided by the requiring activity.
    (iii) Including FAR and DFARS clauses identified in the SPRS 
application, as appropriate.
    (b) Price risk. (1) When procuring a service or an end product 
identified by a material identifier that is available as described at 
PGI 204.7603, the contracting officer shall consider price risk 
assessment in determining if a proposed price is consistent with 
historical prices paid for an item or otherwise creates a risk to the 
Government. Contracting officers shall not rely solely on the price 
risk assessment when determining prices to be fair and reasonable.
    (2) The contracting officer shall consider strategies to mitigate 
price risk, such as the following:
    (i) Not awarding to offerors or quoters with high risk price 
ratings unless there is a way to justify the price through additional 
price or cost analysis.
    (ii) Utilizing appropriate price negotiation techniques and 
procedures.
    (iii) Using price reasonableness or price realism techniques at FAR 
13.106 or 15.4. See also 215.403-3 when making award decisions.
    (c) Supplier risk. The contracting officer shall consider supplier 
risk, to assess the risk of unsuccessful performance and supply chain 
risk, in award decisions. Supplier risk assessments in SPRS include 
quality, delivery, and other contractor performance information.


204.7604   Solicitation provision.

    Except for supplies or services exempted by DoDI 5000.79, use the 
provision at 252.204-7024, Notice on the Use of the Supplier 
Performance Risk System, in solicitations for supplies and services, 
including solicitations using FAR part 12 procedures for the 
acquisition of commercial products and commercial services.

PART 208--REQUIRED SOURCES OF SUPPLIES AND SERVICES

0
3. Amend section 208.405 by adding paragraph (4) to read as follows:


208.405   Ordering procedures for Federal Supply Schedules.

* * * * *
    (4) See 204.7603 for procedures on the required use of the Supplier 
Performance Risk System (SPRS) risk assessments.
    (i) The contracting officer shall ensure SPRS assessments of price 
risk and supplier risk are considered as a part of the award decision.

[[Page 17339]]

    (ii) When placing an order with a schedule contractor for an end 
product identified by a material identifier that is available as 
described at PGI 204.7603, and item risk was not previously considered 
during award of the schedule contract, the contracting officer shall 
also consider SPRS assessments of item risk in the award decision.
    (iii) Use the provision at 252.204-7024, Notice on the Use of the 
Supplier Performance Risk System, as prescribed in 204.7604 to the 
extent permitted by the Federal Supply Schedule.

PART 209--CONTRACTOR QUALIFICATIONS

0
4. Amend section 209.105-1 by revising paragraph (2) to read as 
follows:


209.105-1   Obtaining information.

* * * * *
    (2) A satisfactory performance record is a factor in determining 
contractor responsibility (see FAR 9.104-1(c)).
    (i) One source of information relating to contractor performance is 
the Contractor Performance Assessment Reporting System (CPARS), 
available at <a href="https://www.cpars.gov/">https://www.cpars.gov/</a>.
    (ii) Information relating to contract terminations for cause and 
for default is also available through the Federal Awardee Performance 
and Integrity Information System (FAPIIS) module of CPARS, available at 
<a href="https://sam.gov">https://sam.gov</a> (see FAR subpart 42.15). This termination information 
is just one consideration in determining contractor responsibility.
    (iii) Contracting officers shall consider the supplier risk 
assessment available in the Supplier Performance Risk System at <a href="https://piee.eb.mil/">https://piee.eb.mil/</a> when determining responsibility. See 204.7603(c).

PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL 
SERVICES

0
5. Amend section 212.203 by adding paragraph (3) to read as follows:


212.203   Procedures for solicitation, evaluation, and award.

* * * * *
    (3) See 204.7603 for procedures on the required use of Supplier 
Performance Risk System risk assessments as part of the award decision.

0
6. Amend section 212.301 by--
0
a. Adding paragraph (f)(ii)(O);
0
b. Removing paragraph (f)(v); and
0
c. Redesignating paragraphs (f)(vi) through (xx) as paragraphs (f)(v) 
through (xix).
    The addition reads as follows:


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

* * * * *
    (f) * * *
    (ii) * * *
    (O) Use the provision at 252.204-7024, Notice on the Use of the 
Supplier Performance Risk System, as prescribed in 204.7604.
* * * * *

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

0
7. Revise section 213.106-2 to read as follows:


213.106-2   Evaluation of quotations or offers.

    (b)(i) See 204.7603 for procedures on the requirement for 
contracting officers to consider Supplier Performance Risk System risk 
assessments as a basis of award.

0
8. Revise section 213.106-2-70 to read as follows:


213.106-2-70   Solicitation provision.

    Use the provision at 252.204-7024, Notice on the Use of the 
Supplier Performance Risk System, as prescribed in 204.7604.

PART 215--CONTRACTING BY NEGOTIATION

0
9. Amend section 215.304 by adding paragraph (c)(viii) to read as 
follows:


215.304   Evaluation factors and significant subfactors.

    (c) * * *
    (viii)(A) When procuring supplies or services, the contracting 
officer shall ensure Supplier Performance Risk System (SPRS) 
assessments of price risk and supplier risk are considered as a part of 
the award decision. See 204.7603.
    (B) When procuring an end product identified by a material 
identifier that is available as described at PGI 204.7603, the 
contracting officer shall also consider SPRS assessments of item risk 
in the award decision.

0
10. Amend section 215.404-1 by adding paragraph (b)(viii) to read as 
follows:


215.404-1  Proposal analysis techniques.

* * * * *
    (b) * * *
    (viii) When procuring a service or an end product identified by a 
material identifier that is available as described at PGI 204.7603, the 
contracting officer shall consider the Supplier Performance Risk System 
price risk assessments in determining if a proposed price is consistent 
with historical prices paid for an item or otherwise creates a risk to 
the Government. See also 215.403-3(a)(1).
* * * * *

PART 216--TYPES OF CONTRACTS

0
11. Amend section 216.505 by adding paragraph (a)(S-71) to read as 
follows:


216.505   Ordering.

    (a) * * *
    (S-71) See 204.7603 for procedures on the required use of the 
Supplier Performance Risk System (SPRS) risk assessments.
    (i) The contracting officer shall ensure SPRS assessments of price 
risk and supplier risk are considered as a part of the award decision.
    (ii) When placing an order for an end product identified by a 
material identifier that is available as described at PGI 204.7603, and 
item risk was not previously considered during award of the contract, 
the contracting officer shall also consider SPRS assessments of item 
risk in the award decision.
    (iii) Use the provision at 252.204-7024, Notice on the Use of the 
Supplier Performance Risk System, as prescribed in 204.7604 to the 
extent permitted by the contract.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. Add section 252.204-7024 to read as follows:


252.204-7024   Notice on the Use of the Supplier Performance Risk 
System.

    As prescribed in 204.7604, use the following provision:

Notice on the Use of the Supplier Performance Risk System (Mar 2023)

    (a) Definitions. As used in this provision--
    Item risk means the probability that a product, based on 
intended use, will introduce performance risk resulting in safety 
issues, mission degradation, or monetary loss.
    Price risk means a measure of whether a proposed price for a 
product or service is consistent with historical prices paid for 
that item or service.
    Supplier risk means the probability that an award may subject 
the procurement to the risk of unsuccessful performance or to supply 
chain risk (see Defense Federal Acquisition Regulation Supplement 
239.7301).
    (b) The Supplier Performance Risk System (SPRS), available at 
<a href="https://piee.eb.mil/">https://piee.eb.mil/</a>, will be used in the evaluation of the Quoter 
or Offeror's performance. SPRS retrieves item, price, quality, 
delivery, and contractor information on contracts from Government

[[Page 17340]]

reporting systems in order to develop risk assessments.
    (c) The Contracting Officer will consider SPRS risk assessments 
during the evaluation of quotations or offers received in response 
to this solicitation as follows:
    (1) Item risk will be considered to determine whether the 
procurement represents a high performance risk to the Government.
    (2) Price risk will be considered in determining if a proposed 
price is consistent with historical prices paid for a product or a 
service or otherwise creates a risk to the Government.
    (3) Supplier risk, including but not limited to quality and 
delivery, will be considered to assess the risk of unsuccessful 
performance and supply chain risk.
    (d) SPRS risk assessments are generated daily. Quoters or 
Offerors are able to access their risk assessments by following the 
access instructions in the SPRS user's guide available at <a href="https://www.sprs.csd.disa.mil/reference.htm">https://www.sprs.csd.disa.mil/reference.htm</a>. Quoters and Offerors are 
granted access to SPRS for their own risk assessment classifications 
only. SPRS reporting procedures and risk assessment methodology are 
detailed in the SPRS user's guide. The method to challenge a rating 
generated by SPRS is also provided in the user's guide. SPRS 
evaluation criteria are available at <a href="https://www.sprs.csd.disa.mil/pdf/SPRS_DataEvaluationCriteria.pdf">https://www.sprs.csd.disa.mil/pdf/SPRS_DataEvaluationCriteria.pdf</a>.
    (e) The Contracting Officer may consider any other available and 
relevant information when evaluating a quotation or an offer.

    (End of provision)


252.213-7000  [Removed and Reserved]

0
13. Remove and reserve section 252.213-7000.

[FR Doc. 2023-05671 Filed 3-21-23; 8:45 am]
BILLING CODE 5001-06-P


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