[Federal Register Volume 64, Number 57 (Thursday, March 25, 1999)]
[Rules and Regulations]
[Pages 14397-14398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7135]
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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 Defense-Contract-
Related Felonies
AGENCY: Department of Defense (DoD).
ACTION: Final rule.
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SUMMARY: The Director of Defense Procurement has issued a final rule
amending 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 defense-contract-related felonies
to serve, and to provide that the period of such a prohibition on
service may exceed 5 years.
EFFECTIVE DATE: March 25, 1999.
FOR FURTHER INFORMATION CONTACT:
Mr. Michael Pelkey, Defense Acquisition Regulations Council, PDUSD
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telephone (703) 602-0131; telefax (703) 602-0350. Please cite
DFARS Case 97-D020.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends DFARS 203.570-2 and 252.203-7001 to expand
the list of positions in which a person convicted of a felony arising
out of a DoD contract may not serve, and to provide that the period of
such a prohibition on service may exceed 5 years.
A proposed rule with request for comments was published in the
Federal Register on October 2, 1997 (62 FR 51623). Two sources
submitted comments on the proposed rule. All comments were considered
in the development of the final rule.
B. Regulatory Flexibility Act
DoD certifies that this final rule will not 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 applies only to the employment of persons convicted of
a felony arising out of a DoD contract.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval
[[Page 14398]]
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 Regulation Council.
Therefore, 48 CFR Parts 203 and 252 are amended as follows:
1. The authority citation for 48 CFR Parts 203 and 252 continue 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 frauds or other defense-
contract-related felonies.
203.570-2 Policy.
(a) A contractor or subcontractor shall not knowingly allow a
person, convicted after September 29, 1988, of fraud or any other
felony arising out of a contract with the 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) DoD has sole responsibility for determining the period of the
prohibition described in paragraph (a) of this subsection. The
prohibition period--
(1) Shall not be less than 5 years from the date of conviction
unless the agency head or a designee grants a waiver in the interest of
national security; and
(2) May be more than 5 years from the date of conviction if the
agency head or a designee makes a written determination of the need for
the longer period. The agency shall provide a copy of the determination
to the Bureau of Justice Assistance, U.S. Department of Justice, 810
Seventh Street, NW, 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, Prohibition on Persons Convicted of
Fraud or Other Defense-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,
clause title and date, and paragraphs (b) and (c); in paragraphs
(a)(1)(i) and (ii) by removing the comma and adding in its place a
semicolon; in paragraph (d) introductory text by removing the word
``further''; in paragraph (f) introductory text by removing the word
``prohibitions'' and adding in its place the world ``prohibition''; in
paragraph (f)(3) by removing the comma; and in paragraph (h) by adding,
before the world ``Benefits'', the world ``Federal''. The revised text
reads as follows:
252.203-7001 Prohibition on persons convicted of fraud or other
defense-contract-related felonies.
* * * * *
PROHIBITION ON PERSONS CONVICTED OF FRAUD OR OTHER DEFENSE-CONTRACT-
RELATED FELONIES (MARCH 1999)
* * * * *
(b) Any individual who is convicted after September 29, 1988, of
fraud or any other felony arising out of a contract with the 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 for 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.
* * * * *
[FR Doc. 99-7135 Filed 3-24-99; 8:45 am]
BILLING CODE 5000-04-M