[Federal Register Volume 65, Number 146 (Friday, July 28, 2000)]
[Proposed Rules]
[Pages 46558-46559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19077]



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Part II





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Parts 2, 4, 14, and 32



Federal Acquisition Regulation; Definitions for Classified 
Acquisitions; Proposed Rule

  Federal Register / Vol. 65, No. 146 / Friday, July 28, 2000 / 
Proposed Rules  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 4, 14, and 32

[FAR Case 2000-404]
RIN 9000-AI81


Federal Acquisition Regulation; Definitions for Classified 
Acquisitions

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

ACTION:  Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquistion Regulation (FAR) to provide consistent definitions 
for classified acquisitions. This case is one of a series of cases in 
response to the White House memorandum, Plain Language in Government 
Writing, dated June 1, 1999.
    The Councils' proposed amendments are intended only to reorganize, 
simplify, and clarify the FAR. The Councils do not intend to make any 
substantive changes to the FAR by these amendments. Comments should 
address any potential unintended substantive changes to the FAR 
resulting from the proposed amendments.

DATES: Submit comments on or before September 26, 2000 to be considered 
in the formulation of a final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVR), Attn: Ms. Laurie Duarte, 1800 F Street, NW, Room 
4035; Washington, DC 20405.
    Submit electronic comments via the Internet to: [email protected].
    Please submit comments only and cite FAR case 2000-404 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Ralph De Stefano, Procurement Analyst, at (202) 
501-1758. Please cite FAR case 2000-404.

SUPPLEMENTARY INFORMATION:

A. Background

    The rule amends the Federal Acquisition Regulation (FAR) to address 
perceived inconsistencies in definitions that are used for classified 
acquisitions. The rule moves the definitions of ``classified 
acquisition,'' ``classified contract,'' and ``classified information'' 
from FAR 4.401 to FAR 2.101 because the definitions apply to more than 
one FAR part. Those definitions also have been amended in accordance 
with plain language guidelines. We have also amended the policy 
regarding bid openings for classified acquisitions at FAR 14.402-2 to 
conform to plain language guidelines.
    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

B. Regulatory Flexibility Act

    The Councils do not expect this proposed rule 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 while we have made changes in accordance with plain language 
guidelines, we have not substantively changed procedures for award and 
administration of contracts. An Initial Regulatory Flexibility Analysis 
has, therefore, not been performed. We invite comments from small 
businesses and other interested parties. The Councils will consider 
comments from small entities concerning the affected FAR Parts 2, 4, 
14, and 32 in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 601, et seq. 
(FAR case 2000-404), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 2, 4, 14, and 32

    Government procurement.

    Dated: July 24, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA propose that 48 CFR parts 2, 4, 14, 
and 32 be amended as set forth below:
    1. The authority citation for 48 CFR parts 2, 4, 14, and 32 
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).

PART 2--DEFINITIONS OF WORDS AND TERMS

    2. Section 2.101 is amended by adding, in alphabetical order, the 
definitions ``classified acquisition'', ``classified contract'', and 
``classified information'' to read as follows:


2.101  Definitions.

* * * * *
    Classified acquisition means an acquisition in which offerors must 
have access to classified information to properly submit an offer or 
quotation, to understand the performance requirements, or to perform 
the contract.
    Classified contract means any contract in which the contractor or 
its employee must have access to classified information during contract 
performance. A contract may be a classified contract even though the 
contract document itself is unclassified.
    Classified information means any knowledge that can be communicated 
or documentary material, regardless of its physical form or 
characteristics, that--
    (1) Is owned by, produced by or for, or is under the control of the 
United States Government; and
    (2) Must be protected against unauthorized disclosure according to 
Executive Order 12958, Classified National Security Information, April 
17, 1995, as amended, or classified in accordance with the Atomic 
Energy Act of 1954, as amended.
* * * * *

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PART 4--ADMINISTRATIVE MATTERS


4.401  [Reserved]

    3. Section 4.401 is removed and reserved.

PART 14--SEALED BIDDING


14.103-1  [Amended]

    4. Amend section 14.103-1 in paragraph (c) by removing ``(see 
4.401)''.

    5. Section 14.402-2 is revised to read as follows:


14.402-2  Classified bids.

    The general public may not attend bid openings for classified 
acquisitions. A bidder or its representative may attend and record the 
results if the individual has the appropriate security clearance. The 
contracting officer may also make the bids available at a later time to 
properly cleared bidders or their properly cleared representatives. The 
contracting officer must not make a public record of the bids or the 
bid prices.

PART 32--CONTRACT FINANCING


32.1103  [Amended]

    6. Amend section 32.1103 in paragraph (d) by removing ``(see 
4.401)''.

[FR Doc. 00-19077 Filed 7-27-00; 8:45 am]
BILLING CODE 6820-EP-M