[Federal Register Volume 60, Number 140 (Friday, July 21, 1995)]
[Rules and Regulations]
[Pages 37773-37774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17935]



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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]
BILLING CODE 6820-EP-M