[Federal Register Volume 67, Number 213 (Monday, November 4, 2002)]
[Proposed Rules]
[Page 67282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27268]



[[Page 67281]]

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Part III





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Part 9



Federal Acquisition Regulation; Debarment and Suspension-Order 
Placement and Option Exercise; Proposed Rule

  Federal Register / Vol. 67, No. 213 / Monday, November 4, 2002 / 
Proposed Rules  

[[Page 67282]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 9

[FAR Case 2002-010]
RIN: 9000-AJ48


Federal Acquisition Regulation; Debarment and Suspension--Order 
Placement and Option Exercise

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 Acquisition Regulation (FAR) to address the placement of orders 
against existing contracts with contractors that have been debarred, 
suspended, or proposed for debarment.

DATES: Interested parties should submit comments in writing on or 
before January 3, 2003, to be considered in the formulation of a final 
rule.

ADDRESSES: Submit written comments to--General Services Administration, 
FAR Secretariat (MVA), 1800 F Street, NW, Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to--farcase.2002-
[email protected].
    Please submit comments only and cite FAR case 2002-010 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, at (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 2002-010.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule revises FAR 9.405-1(b) to require that 
discretionary actions on the part of the agency meet the same standards 
as agencies would have to meet in awarding new contracts. Therefore, 
for contractors debarred, suspended, or proposed for debarment, unless 
the agency head makes a written determination of the compelling reasons 
for doing so, ordering activities shall not place orders exceeding the 
guaranteed minimum under indefinite-quantity contracts; place orders 
against optional use Federal Supply Schedule contracts; or add new 
work, exercise options, or otherwise extend the duration of current 
contracts or orders.
    In addition, minor editorial corrections are made in sections 
9.405, 9.405-1, and 9.405-2. The various deletions of ``or a designee'' 
from the phrase ``agency head or designee'' does not signify a change 
in policy, but implements the FAR convention at FAR 1.108(b) that each 
authority is delegable unless specifically stated otherwise.
    This is not a significant regulatory action and, therefore, was not 
subject to 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 it only affects orders placed by civilian agencies against 
existing indefinite quantity contracts with contractors debarred, 
suspended, or proposed for debarment. The Defense FAR Supplement 
already prohibits the placement of such orders. 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 Part 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 2002-010), 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 Part 9

    Government procurement.

    Dated: October 18, 2002.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA propose amending 48 CFR part 9 as set 
forth below:

PART 9--CONTRACTOR QUALIFICATIONS

    1. The authority citation for 48 CFR part 9 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).

    2. Amend section 9.405 by revising paragraph (a); and removing from 
paragraphs (d)(2) and (d)(3) the words ``or a designee''. The revised 
text reads as follows:


9.405  Effect of listing.

    (a) Contractors debarred, suspended, or proposed for debarment are 
excluded from receiving contracts, and agencies shall not solicit 
offers from, award contracts to, or consent to subcontracts with these 
contractors, unless the agency head determines that there is a 
compelling reason for such action (see 9.405-1(b), 9.405-2, 9.406-1(c), 
9.407-1(d), and 23.506(e)). Contractors debarred, suspended, or 
proposed for debarment are also excluded from conducting business with 
the Government as agents or representatives of other contractors.
* * * * *
    3. Amend section 9.405-1 by removing from the first sentence of 
paragraph (a) the words ``or a designee''; revising paragraph (b); and 
removing paragraph (c). The revised text reads as follows:


9.405-1  Continuation of current contracts.

* * * * *
    (b) For contractors debarred, suspended, or proposed for debarment, 
unless the agency head makes a written determination of the compelling 
reasons for doing so, ordering activities shall not--
    (1) Place orders exceeding the guaranteed minimum under indefinite-
quantity contracts;
    (2) Place orders against optional use Federal Supply Schedule 
contracts; or
    (3) Add new work, exercise options, or otherwise extend the 
duration of current contracts or orders.


9.405-2  [Amended]

    4. Amend section 9.405-2 by removing from the first sentence of 
paragraph (a) the words ``or a designee''.

[FR Doc. 02-27268 Filed 11-1-02; 8:45 am]
BILLING CODE 6820-EP-P