[Federal Register Volume 63, Number 47 (Wednesday, March 11, 1998)]
[Rules and Regulations]
[Pages 11850-11852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6166]


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DEPARTMENT OF DEFENSE

48 CFR Parts 209, 212, 213, 217, 222, and 252

[DFARS Case 97-D314]


Defense Federal Acquisition Regulation Supplement; Veterans 
Employment Emphasis

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Section 8117 of the National Defense Appropriations Act 
for Fiscal Year 1998, which prohibits the obligation or expenditure of 
funds under a contract with a contractor that has not submitted a 
required report pertaining to employment of veterans.

DATES: Effective date: March 11, 1998.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before May 11, 1998, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Michael Pelkey, PDUSD 
(A&T) DP

[[Page 11851]]

(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-3062. 
Telefax number (703) 602-0350.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected]
    Please cite DFARS Case 97-D314 in all correspondence related to 
this issue, E-mail comments should cite DFARS Case 97-D314 in the 
subject line.

FOR FURTHER INFORMATION CONTACT:
Michael Pelkey, (703) 602-0131.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 8117 of the National Defense Appropriations Act for Fiscal 
Year 1998 (Pub. L. 105-56) prohibits the obligation or expenditure of 
funds appropriated by the Act to enter into or renew a contract with a 
contractor that is subject to the reporting requirements of 38 U.S.C. 
4212(d), but has not submitted the most recent report required for 1997 
or a subsequent year. The report is prescribed in 41 CFR 61-250 and is 
known as the ``Federal Contractor Veterans' Employment Report VETS-
100.'' Reports for 1997 are due on March 31, 1998.

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 
requires only that an offeror represent, by submission of its offer, 
that is has submitted the most recent report required by 38 U.S.C. 
4212(d) pertaining to employment of veterans. 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-D314 in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require 
approval by the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements Section 8117 of the National Defense 
Appropriations Act for Fiscal Year 1998, which prohibits the obligation 
or expenditure of fiscal year 1998 funds under a contract with a 
contractor that has not submitted the most recent report required by 38 
U.S.C. 4212(d) for 1997 or a subsequent year. Immediate implementation 
is necessary to preclude violation of the prohibition, which could 
occur after the 1997 reports are due to the Department of Labor on 
March 31, 1998. Comments received in response to the publication of 
this interim rule will be considered in formulating the final rule.

List of Subjects in 48 CFR Parts 209, 212, 213, 217, 222, and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 209, 212, 213, 217, 222, and 252 are 
amended as follows:
    1. The authority citation for 48 CFR Parts 209, 212, 213, 217, 222, 
and 252 continues to read as follows:

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

PART 209--CONTRACTOR QUALIFICATIONS

    2. Section 209.104-1 is amended by adding paragraph (g)(iii) at the 
end of the section to read as follows:


Sec. 209.104-1  General standards.

* * * * *
    (g) * * *
    (iii) A contracting officer shall not enter into or renew a 
contract with a contractor that is subject to the reporting 
requirements of 38 U.S.C. 4212(d) pertaining to employment of veterans, 
but has not submitted the most recent report required by 38 U.S.C. 
4212(d) for 1997 or a subsequent year (see 222.1304(b)).
    3. Section 209.104-70 is amended by adding paragraph (c) to read as 
follows:


Sec. 209.104-70  Solicitation provisions.

* * * * *
    (c) Use the provision at 252.209-7003, Compliance with Veterans' 
Employment Reporting Requirements, in solicitations with a value 
estimated to exceed the simplified acquisition threshold.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

    4. Section 212.503 is amended by adding paragraph (a)(xii) to read 
as follows:


Sec. 212.503  Applicability of certain laws to Executive Agency 
contracts for the acquisition of commercial items.

    (a) * * *
    (xii) Section 8117, Pub. L. 105-56, Restriction on Use of Funds 
Appropriated for Fiscal Year 1998 (see 222.1304(b)).
* * * * *

PART 213--SIMPLIFIED ACQUISITION PROCEDURES

    5. Section 213. 005 is added immediately following section 213.000 
to read as follows:


Sec. 213.005  Federal Acquisition Streamlining Act of 1994 list of 
inapplicable laws.

    (a) The restriction on use of funds appropriated for fiscal year 
1998 in Section 8117 of the National Defense Appropriations Act for 
Fiscal Year 1998 (Pub. L. 105-56) is inapplicable to contracts at or 
below the simplified acquisition threshold (see 222.1304(b)).

PART 217--SPECIAL CONTRACTING METHODS

    6. Section 217.207 is added to read as follows:


Sec. 217.207  Exercise of options.

    (c) Except for contracts for the acquisition of commercial items, 
if the contractor has any contract containing the clause at FAR 52.222-
37, Employment Reports on Disabled Veterans and Veterans of the Vietnam 
Era, the contracting officer may exercise an option with a value 
exceeding the simplified acquisition threshold only after determining 
that the contractor has submitted the most recent report required by 
that clause (see 222.1304(b)).

PART 222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    7. Section 222.1304 is added to read as follows:


Sec. 222.1304  Department of Labor notices and reports.

    (b) As provided in Section 8117 of the National Defense 
Appropriations Act for Fiscal Year 1998 (Pub. L. 105-56), no funds made 
available in that Act may be obligated or expended to enter into or 
renew a contract with a contractor that is subject to the reporting 
requirements of 38 U.S.C. 4212(d) (i.e., the VETS-100 report required 
by FAR 52.222-37, Employment Reports on Disabled Veterans and Veterans 
of the Vietnam Era) but has not submitted the most recent report 
required by 38 U.S.C. 4212(d) for 1997 or a subsequent year.

[[Page 11852]]

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    8. Section 252.209-7003 is added to read as follows:


Sec. 252.209-7003  Compliance with Veterans' Employment Reporting 
Requirements.

    As prescribed in 222.1304(b) use the following provision:

Compliance With Veterans' Employment Reporting Requirements (Mar 1998)

    By submission of its offer, the offeror represents that, if it 
is subject to the reporting requirements of 37 U.S.C. 4212(d) (i.e., 
the VETS-100 report required by Federal Acquisition Regulation 
clause 52.222-37, Employment Reports on Disabled Veterans and 
Veterans of the Vietnam Era), it has submitted the more recent 
report required by 37 U.S.C. 4212(d).

(End of provision)

[FR Doc. 98-6166 Filed 3-10-98; 8:45 am]
BILLING CODE 5000-04-M