[Federal Register Volume 62, Number 191 (Thursday, October 2, 1997)]
[Proposed Rules]
[Pages 51623-51624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26115]
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DEPARTMENT OF DEFENSE
48 CFR Parts 203 and 252
[DFARS Case 97-D020]
Defense Federal Acquisition Regulation Supplement; Employment
Prohibition on Persons Convicted of Fraud or Other DoD Contract-Related
Felonies
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to expand the
list of positions in which contractors may not allow persons convicted
of fraud or other DoD contract-related felonies to serve, and to
provide that the term of such a prohibition on service may exceed 5
years.
DATES: Comment date: Comments on the proposed rule should be submitted
in writing to the address shown below on or before December 1, 1997, to
be considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, Attn: Mr. Michael Pelkey,
PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC
20301-3062. Telefax number (703) 602-0350.
E-mail comments submitted over the Inernet should be addressed to:
[email protected]
Please cite DFARS Case 97-D020 in all correspondence related to
this issue. E-mail comments should cite DFARS Case 97-D020 in the
subject line.
FOR FURTHER INFORMATION CONTACT:
Mr. Michael Pelkey, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends DFARS 203.570-2 and the clause at
252.203-7001 to expand the list of positions in which a person
convicted of a felony arising out of a contract with DoD may not serve,
and to permit agencies to prohibit such service for periods greater
than 5 years, in accordance with 10 U.S.C. 2408.
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 the rule
pertains only to the employment of persons convicted of a felony
arising out of a DoD contract. 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 DFARS subparts also will be considered
in accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 97-D020 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
rule does not impose any information collection requirements that
require the
[[Page 51624]]
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Parts 203 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 203 and 252 are proposed to be amended as
follows:
1. The authority citation for 48 CFR Parts 203 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
2. Section 203.570 is revised to read as follows:
203.570 Prohibition on persons convicted of fraud or other DoD
contract-related felonies.
3. Section 203.570-2 is revised to read as follows:
203.570-2 Policy.
(a) Contractors or subcontractors shall not knowingly allow a
person, convicted after September 29, 1988, of fraud or any other
felony arising out of a contract with DoD, to serve--
(1) In a management or supervisory capacity on any DoD contract or
first-tier subcontract;
(2) On its board of directors;
(3) As a consultant, agent, or representative; or
(4) In any capacity with the authority to influence, advise, or
control the decisions of any DoD contractor or subcontractor with
regard to any DoD contract or first-tier subcontract.
(b) The period covered by the prohibition in paragraph (a) of this
subsection is not less than 5 years from the date of conviction unless
waived in the interest of national security by the agency head or
designee. Prohibition periods greater than 5 years may be imposed upon
a written determination by the agency head or designee. A copy of each
such determination shall be provided to the Bureau of Justice
Assistance, U.S. Department of Justice, 633 Indiana Avenue, NW., Room
470, Washington, DC 20531.
4. Section 203.570-5 is revised to read as follows:
203.570-5 Contract clause.
Use the clause at 252.203-7001, Special Prohibition on Persons
Convicted of Fraud or Other DoD Contract-Related Felonies, in all
solicitations and contracts exceeding the simplified acquisition
threshold, except solicitations and contracts for commercial items.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 252.203-7001 is amended by revising the section heading,
the clause title and date, paragraphs (b) and (c), the introductory
text of paragraph (d), and paragraph (h) to read as follows:
252.203-7001 Special Prohibition On Persons Convicted of Fraud or
Other DoD Contract-Related Felonies.
* * * * *
Special Prohibition on Persons Convicted of Fraud or Other DOD
Contract-Related Felonies (XXX 19XX)
* * * * *
(b) Any individual who is convicted after September 29, 1988, of
fraud or any other felony arising out of a contract with DoD is
prohibited from serving--
(1) In a management or supervisory capacity on any DoD contract or
first-tier subcontract;
(2) On the board of directors of any DoD contractor or first-tier
subcontractor;
(3) As a consultant, agent, or representative to any DoD contractor
or first-tier subcontractor; or
(4) In any other capacity with the authority to influence, advise,
or control the decisions of any DoD contractor or subcontractor with
regard to any DoD contract or first-tier subcontract.
(c) Unless waived, the prohibition in paragraph (b) of this clause
applies for not less than 5 years from the date of conviction.
(d) 10 U.S.C. 2408 provides that a defense contractor or first-tier
subcontractor shall be subject to a criminal penalty of not more than
$500,000 if convicted of knowingly--
* * * * *
(h) Pursuant to 10 U.S.C. 2408(c), defense contractors and
subcontractors may obtain information as to whether a particular person
has been convicted of fraud or any other felony arising out of a
contract with DoD by contacting The Office of Justice Programs, The
Denial of Federal Benefits Office, U.S. Department of Justice,
telephone (202) 616-3507.
(End of clause)
[FR Doc. 97-26115 Filed 10-1-97; 8:45 am]
BILLING CODE 5000-04-M