[Federal Register Volume 59, Number 230 (Thursday, December 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29423]


[[Page Unknown]]

[Federal Register: December 1, 1994]


=======================================================================
-----------------------------------------------------------------------

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.

-----------------------------------------------------------------------

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]
BILLING CODE 6820-34-P