[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30660]


[Federal Register: December 28, 1994]


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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 9

[FAC 90-23; FAR Case 89-89; Item IX]
RIN 9000-AD72


Federal Acquisition Regulation; Debarment, Suspension, and 
Ineligibility

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to clarify to what extent, 
absent a termination by the issuing agency, an individual may place 
orders against an existing contract notwithstanding a debarment, 
suspension, or proposed debarment of the contractor. The final rule 
also clarifies that an optional (permissive) user may elect to place a 
delivery order and a compelling reason determination would not be 
required. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758 
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 90-23, FAR case 89-89.

SUPPLEMENTARY INFORMATION:

A. Background

    This revision was initiated as a result of a report from the 
General Accounting Office (GAO) dated February, 1987. GAO identified a 
number of areas for improvement concerning debarment and suspension 
procedures. One of the GAO's recommendations was that the FAR be 
revised to clarify to what extent orders may be placed against 
indefinite delivery contracts notwithstanding the fact that the 
contractor has been debarred or suspended.
    The proposed rule was published in the Federal Register at 55 FR 
416, January 4, 1990. The proposed rule invited comments. Twenty-one 
comments were received. All comments received were considered during 
development of the final rule.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because the change does not impose any new requirements 
on contractors, large or small, and serves only to clarify existing 
regulatory coverage. The rule was published as a proposed rule in the 
Federal Register at 55 FR 516, January 4, 1990, and invited comments 
from small entities concerning the affected FAR subpart. No comments 
were received relating to the Regulatory Flexibility Act.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 9

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 9 is amended as set forth below:

PART 9--CONTRACTOR QUALIFICATIONS

    1. The authority citation for 48 CFR part 9 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).


9.405  [Amended]

    2. Section 9.405 is amended by removing the words ``acquiring 
agency's head or designee'' and inserting ``agency head or a designee'' 
in the following places:
    (a) 9.405(a); and
    (b) 9.405(d)(2) and 9.405(d)(3).
    3. Section 9.405-1 is amended in the first sentence of paragraph 
(a) by removing the words ``acquiring agency's'' and inserting 
``agency'' in its place; by redesignating paragraph (b) as (c) and 
revising it; and adding a new paragraph (b) to read as follows:


9.405-1  Continuation of current contracts.

* * * * *
    (b) Ordering activities may continue to place orders against 
existing contracts, including indefinite delivery contracts, in the 
absence of a termination.
    (c) Agencies shall not renew or otherwise extend the duration of 
current contracts, or consent to subcontracts, with contractors 
debarred, suspended, or proposed for debarment, unless the agency head 
or a designee authorized representative states, in writing, the 
compelling reasons for renewal or extension.


9.405-2  [Amended]

    4. Section 9.405-2 is amended in paragraph (a) by removing the 
words ``acquiring agency's'' and inserting ``agency'' in their place.
* * * * *


9.406-1  [Amended]

    5. Section 9.406-1 is amended in paragraph (c) by removing the 
words ``an acquiring agency's'' and inserting ``the agency'' in their 
place.
* * * * *


9.406-3  [Amended]

    6. Section 9.406-3 is amended in paragraph (e)(1)(iv) by removing 
the word ``acquiring''.


9.407-1  [Amended]

    7. Section 9.407-1 is amended in paragraph (d) by removing the 
words ``an acquiring agency's'' and inserting ``the agency'' in their 
place.
* * * * *
[FR Doc. 94-30660 Filed 12-27-94; 8:45 am]
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