[Federal Register Volume 59, Number 134 (Thursday, July 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17094]


[[Page Unknown]]

[Federal Register: July 14, 1994]


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DEPARTMENT OF DEFENSE

48 CFR Parts 209 and 252

 

Defense Federal Acquisition Regulation Supplement; Debarment and 
Suspension

AGENCY: Department of Defense.

ACTION: Proposed rule and request for comments.

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SUMMARY: The Defense Acquisition Regulations (DAR) Council is proposing 
to amend the Defense Federal Acquisition Regulation Supplement to add 
restrictions on placing orders against indefinite quantity contracts 
and Federal supply schedule contracts in instances in which the 
contractor has been debarred, suspended, or proposed for debarment.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before September 12, 1994, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, ATTN: Mrs. Linda Holcombe, 
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 604-5971. Please cite DFARS Case 93-
D018 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Mrs. Linda Holcombe, (703) 604-5929.

SUPPLEMENTARY INFORMATION:

A. Background

    The proposed rule is intended to address issues raised by the 
General Accounting Office in a February 1987 report on debarment and 
suspension that identified improvements needed to debarment and 
suspension procedures. One recommendation in that report was to clarify 
that under certain types of contracts, agencies are not required to 
place orders for supplies with a debarred or suspended contractor. The 
proposed rule adds restrictions on placing orders against indefinite 
quantity contracts and schedule contracts and the exercise of options 
under contracts, when the contractor was debarred, suspended, or 
proposed for debarment.

B. Regulatory Flexibility Act

    The proposed rule is not expected to 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 it adds 
restrictions which were already discretionary under the Federal 
Acquisition Regulation (FAR). The FAR currently permits discontinuation 
of current contracts or subcontracts in existence at the time the 
contractor was debarred, suspended, or proposed for debarment when 
directed by the acquiring agency's head or a designee. The proposed 
rule removes the requirement for this direction for the Department of 
Defense. No new requirements are being imposed on the public. An 
initial Regulatory Flexibility Analysis has therefore not been 
performed. The proposed rule applies to both large and small 
businesses. Comments are invited from small businesses and other 
interested parties. Comments from small entities will be considered in 
accordance with 5 U.S.C. 610. Such comments must be submitted 
separately and cite DFARS Case 93-D018 in all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
rule does not impose reporting or recordkeeping requirements which 
require the approval of the OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 209

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, 48 CFR part 209 is proposed to be amended as follows:
    1. The authority citation for 48 CFR part 209 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR part 1.

PART 209-CONTRACTOR QUALIFICATIONS

    2. Section 209.405-1 is added to read as follows:


Sec. 209.405-1  Continuation of current contracts.

    (a) Unless the agency head makes a written determination that a 
compelling reason exists to do so, ordering activities shall not--
    (i) Place orders exceeding the guaranteed minimum under indefinite 
quantity contracts; or
    (ii) When the agency is an optional user, place orders against 
Federal supply schedule contracts.
    (b) This includes exercise of options.

[FR Doc. 94-17094 Filed 7-13-94; 8:45 am]
BILLING CODE 5000-04-M