Federal Acquisition Regulation; Procurement Integrity (Ethics)

DEPARTMENT OF DEFENSE

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 3 and 52

[FAC 90-30; FAR Case 94-804; Item II]

RIN 9000-AG17

Federal Acquisition Regulation; Procurement Integrity (Ethics)

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

(GSA),

[[Page 37774]]

and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This final rule is issued pursuant to the Federal Acquisition

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

Acquisition Regulatory Council (FAR Council) is implementing Section

8301(e) of the Act by excluding procurement of commercial items from

certain certification requirements. This regulatory action was subject

to Office of Management and Budget review under Executive Order 12866,

dated September 30, 1993.

EFFECTIVE DATE: September 19, 1995.

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 FAC 90-30, FAR case 94-804.

SUPPLEMENTARY INFORMATION:

A. Background

The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355,

provides authorities that streamline the acquisition process and

minimize burdensome Government-unique requirements. Major changes 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 Computer

Network (FACNET). FAR case 94-804 originated because Section 8301(e)

excludes procurements of commercial items from the certification

requirement of the Procurement Integrity Act which requires that

contractor employees certify that they are familiar with the Act, and

that they will report violations of the Act.

B. Regulatory Flexibility Act

The changes may have a significant 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 elimination of the

certification for commercial items will have a beneficial impact on

small entities by reducing the paperwork burden. A Final Regulatory

Flexibility Analysis (FRFA) has been prepared and will be provided to

the Chief Counsel for Advocacy for the Small Business Administration. A

copy of the FRFA may be obtained from the FAR Secretariat.

C. Paperwork Reduction Act

The final 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 final rule reduces paperwork burden by

excluding commercial products from certain certification requirements

of the Procurement Integrity Act. A correction reflecting the reduction

in paperwork burden was approved by OMB on November 30, 1994, under

Control No. 9000-0103.

D. Public Comments

Fourteen substantive comments were received from 11 commenters in

response to the proposed rule published in the Federal Register on

December 1, 1994 (59 FR 61740). The Federal Acquisition Streamlining

Act Implementation Team fully considered all comments received. The

team's analysis and disposition of the comments may be obtained from

the FAR Secretariat.

List of Subjects in 48 CFR Parts 3 and 52

Government procurement.

Dated: July 17, 1995.

Capt. Barry L. Cohen, SC, USN,

Project Manager for the Implementation of the Federal Acquisition

Streamlining Act of 1994.

Therefore, 48 CFR Parts 3 and 52 are 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).

3.104-9 [Amended]

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''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

3. Section 52.203-8 is amended by revising the date of the

provision to read ``(SEPT 1995)''; at the end of 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.

* * * * *

REQUIREMENT FOR CERTIFICATE OF PROCUREMENT INTEGRITY (SEPT 1995)

* * * * *

(b) * * * The certification in paragraph (b)(2) of this

provision is not required for a procurement of commercial items.

* * * * *

4. Section 52.203-9 is amended by revising the date of the clause

to read ``(SEPT 1995)''; at the end of 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.

* * * * *

REQUIREMENT FOR CERTIFICATE OF PROCUREMENT INTEGRITY--MODIFICATION

(SEPT 1995)

* * * * *

(c) * * * The certification in paragraph (c)(2) of this clause

is not required for a modification which procures commercial items.

* * * * *

[FR Doc. 95-17935 Filed 7-20-95; 8:45 am]

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