Federal Acquisition Regulation; Procurement Integrity (Ethics)

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 3 and 52

[FAR Case 94-804]

Federal Acquisition Regulation; Procurement Integrity (Ethics)

AGENCIES: Department of Defense (DOD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: This proposed rule is issued pursuant to the Federal

Acquisition Streamlining Act of 1994, Public Law 103-355 (the Act). The

FAR Council is considering implementing Section 8301(e) of the Act by

excluding procurements of commercial items from certain certification

requirements. This regulatory action was not subject to Office of

Management and Budget review under Executive Order 12866, dated

September 30, 1993.

DATES: Comments should be submitted on or before January 30, 1995 to be

considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to:

General Services Administration, FAR Secretariat (VRS), 18th & F

Streets, NW, Room 4037, Washington, DC 20405.

Please cite FAR case 94-804 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Mr. Julius Rothlein, Ethics Team

Leader, at (703) 697-4349 in reference to this FAR case. For general

information, contact the FAR Secretariat, Room 4037, GS Building,

Washington, DC 20405 (202) 501-4755. Please cite FAR case 94-804.

SUPPLEMENTARY INFORMATION:

A. Background

The Federal Acquisition Streamlining Act of 1994, Public Law 103-

355, provides authorities that streamline the acquisition process and

minimize burdensome government-unique requirements. Major changes that

can be expected in the acquisition process as a result of Federal

Acquisition Streamlining Act implementation include changes in the

areas of Commercial Item Acquisition, Simplified Acquisition

Procedures, the Truth in Negotiations Act, and introduction of the

Federal Acquisition Network.

FAR case 94-804 originated because Section 8301(e) excludes

procurements of commercial items from the certification requirement of

the Procurement Integrity Act (PIA) which requires that contractor

employees certify familiarity with the PIA and will report violations

of the PIA. This exclusion will be reflected in the addition of

language to FAR

3.104-9(b)(1)(iii) and 3.104(f), and in amendment to the certificates

found at 52.203-8 and 52.203-9.-

The FAR Council is interested in an exchange of ideas and opinions

with respect to the regulatory implementation of the Act. For that

reason, the FAR Council is conducting a series of public meetings.

However, the FAR Council has not scheduled a public meeting on this

rule (FAR case 94-804) because of the clarity and non-controversial

nature of the rule. If the public believes such a meeting is needed

with respect to this rule, a letter requesting a public meeting and

outlining the nature of the requested meeting shall be submitted to and

received by the FAR Secretariat (see ADDRESSES caption) on or before

January 3, 1995.

The FAR Council will consider such requests in determining whether

a public meeting on this rule should be scheduled.

B. Regulatory Flexibility Act

The proposed rule is not expected to have significant adverse

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 exclusion will have a beneficial impact on small entities

as the paperwork burden is reduced. An Initial Regulatory Flexibility

Analysis has, therefore, not been performed. Comments are invited from

small businesses and other interested parties. Comments from small

entities concerning the affected FAR subpart will also be considered in

accordance with Section 610 of the Act. Such comments must be submitted

separately and cite FAR case 94-804 in correspondence.

C. Paperwork Reduction Act

The proposed changes do not impose increased record keeping or

information collection requirements on members of the public under the

Paperwork Reduction Act which would require the approval of OMB under

44 U.S.C. 3501, et seq. This proposed rule reduces paperwork burden by

excluding commercial products from certain certification requirements

of the Procurement Integrity Act.

List of Subjects in 48 CFR Parts 3 and 52

Government procurement.

Dated: November 23, 1994.

Edward C. Loeb,

Deputy Project Manager for the Implementation of the Federal

Acquisition Streamlining Act of 1994.

-Therefore, it is proposed that 48 CFR Parts 3 and 52 be amended as

set forth below:-

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF

INTEREST-

1. The authority citation for 48 CFR Parts 3 and 52 continues to

read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42

U.S.C. 2473(c).

2. Section 3.104-9 is amended--

In paragraph (b)(1)(iii) by removing the word ``Certify'' and

inserting in its place ``Except in the case of a contract for the

procurement of commercial items, certify'';

--In paragraph (f) by redesignating the introductory text as

``(f)(1)''; redesignating (f)(1) and (f)(2) as ``(f)(1)(i) and (ii)'';

by redesignating ``(f)(1)(i) through (iv)'' as ``(f)(1)(ii)(A) through

(D)''; and by adding paragraph (f)(2) to read as follows:

3.104-9 Certification requirements.

* * * * *-

(f)(1) * * *

(2) The certification required by subsection 27(e)(1)(B) is not

required in contracts for the procurement of commercial items or

modifications to such contracts.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES-

3. Section 52.203-8 is amended in the introductory text of

paragraph (b) by removing the colon and inserting a period in its

place; and adding a new sentence to read as follows:

52.203-8 Requirement for Certificate of Procurement Integrity.

* * * * *-

(b) * * * The certification in paragraph (b)(2) is not required for

a procurement of commercial items.

* * * * *-

4. Section 52.203-9 is amended in the introductory text of

paragraph (c) by removing the colon and inserting a period in its

place; and adding a new sentence to read as follows:

52.203-9 Requirement for Certificate of Procurement Integrity--

Modification.

* * * * *-

(c) * * * The certification in paragraph (c)(2) is not required for

modifications to contracts for the procurement of commercial items.

* * * * *

[FR Doc. 94-29423 Filed 11-30-94; 8:45 am]

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