[Federal Register Volume 72, Number 136 (Tuesday, July 17, 2007)]
[Proposed Rules]
[Pages 39285-39287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-13745]

[[Page 39285]]


Part IV

Department of Housing and Urban Development


48 CFR Part 2409

 HUD Acquisition Regulation (HUDAR) Debarment and Suspension 
Procedures; Proposed Rule

Federal Register / Vol. 72, No. 136 / Tuesday, July 17, 2007 / 
Proposed Rules

[[Page 39286]]



48 CFR Part 2409

[Docket No. FR-5098-P-01]
RIN 2535-AA28

HUD Acquisition Regulation (HUDAR) Debarment and Suspension 

AGENCY: Office of the Chief Procurement Officer, HUD.

ACTION: Proposed rule.


SUMMARY: This rule proposes to amend HUD's Acquisition Regulation 
(HUDAR) to codify the suspension and debarment procedures applicable to 
HUD's procurement contracts. Such an amendment would affirm that the 
suspension and debarment procedures in 24 CFR part 24 apply to 
procurement as well as nonprocurement contracts. The contracting 
community is familiar with the suspension and debarment procedures in 
part 24 and this rule is limited to amending the HUDAR regulations to 
reflect the applicability of these requirements to procurement 

DATES: Comment Due Date: September 17, 2007.

ADDRESSES: Interested persons are invited to submit comments regarding 
this rule to the Regulations Division, Office of General Counsel, 
Department of Housing and Urban Development, 451 Seventh Street, SW., 
Room 10276, Washington, DC 20410-0500. Interested persons also may 
submit comments electronically through the Federal eRulemaking Portal 
at www.regulations.gov. HUD strongly encourages commenters to submit 
comments electronically so that HUD can make them immediately available 
to the public. Commenters should follow the instructions provided on 
that site to submit comments electronically. Facsimile (FAX) comments 
are not acceptable. In all cases, communications must refer to the 
docket number and title. All comments and communications submitted to 
HUD will be available for public inspection and copying between 8 a.m. 
and 5 p.m. weekdays at the above address. Due to security measures at 
the HUD Headquarters building, an advance appointment to review the 
public comments must be scheduled by calling the Regulations Division 
at (202) 708-3055 (this is not a toll-free number). Copies of all 
comments submitted are available for inspection and downloading at 
www.regulations.gov. Hearing-or speech-impaired individuals may access 
this number through TTY by calling the toll-free Federal Information 
Relay Service at (800) 877-8339.

FOR FURTHER INFORMATION CONTACT: Frederick Graves, Office of Policy and 
Systems, Office of the Chief Procurement Officer (Seattle Outstation), 
Department of Housing and Urban Development, Seattle Federal Office 
Building, 909 First Avenue, Seattle, WA 98104-1000; telephone (206) 
220-5259, FAX (206) 220-5247 (these are not toll-free numbers). Persons 
with hearing or speech impairments may access the telephone number via 
TTY by calling the toll-free Federal Information Relay Service at (800) 


I. Background

    The uniform regulation for the procurement of supplies and services 
by Federal departments and agencies, the Federal Acquisition Regulation 
(FAR), was promulgated on September 19, 1983 (48 FR 42102). The FAR is 
codified in title 48, chapter 1, of the Code of Federal Regulations 
(CFR). HUD promulgated its regulation to implement the FAR on March 1, 
1984 (49 FR 7696). The HUDAR (title 48, chapter 24 of the CFR) is 
prescribed under section 7(d) of the Department of HUD Act (42 U.S.C. 
3535(d)); section 205(c) of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 486(c)); and the general authorization 
in FAR 1.301.

II. This Proposed Rule

    This proposed rule makes one change to 48 CFR 2409.7001 to clarify 
that HUD's suspension and debarment procedures, found at 24 CFR part 
24, apply to procurement contracts. (On March 23, 2007, HUD published a 
proposed rule (72 FR 14015) that would redesignate 24 CFR part 24 to 2 
CFR part 2424. The proposed rule published in today's Federal Register 
refers to the current regulations at 24 CFR part 24. A conforming 
change will be made at the final rule stage to reflect the 
    On November 26, 2003, HUD adopted, with minor revisions, the 
governmentwide nonprocurement debarment and suspension common rule (68 
FR 66534). The governmentwide rule sets forth the common policies and 
procedures that federal executive branch agencies must use in taking 
suspension or debarment actions. The amendments made by the November 
26, 2003, rule limited covered transactions to nonprocurement 
contracts. For many years prior to the promulgation in 2003 of the 
governmentwide debarment and suspension common rule, HUD applied, to 
procurement contracts, the same suspension and debarment procedures 
that it uses for nonprocurement contracts. HUD is unable to amend the 
governmentwide debarment and suspension procedures. Therefore, to 
reflect the applicability of debarment and suspension requirements to 
procurement contracts, HUD is proposing to revise the HUDAR to affirm 
that the suspension and debarment rules in 24 CFR part 24 apply to 
procurement contracts. This regulatory clarification does not impose 
any additional requirements because the suspension and debarment 
procedures in part 24 are well established and the contracting 
community is already familiar with the requirements.

III. Findings and Certifications

Paperwork Reduction Act Statement

    The information collection requirements contained in this proposed 
rule are currently approved by the Office of Management and Budget 
(OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520) and assigned OMB control number 2535-0091. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information, unless the collection displays a currently 
valid OMB control number.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 
U.S.C. 1531-1538) establishes requirements for federal agencies to 
assess the effects of their regulatory actions on state, local, and 
tribal governments and the private sector. This rule does not impose 
any federal mandate on any state, local, or tribal government or the 
private sector within the meaning of UMRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This proposed rule makes clarifying changes to existing governmentwide 
suspension and debarment procedures and does not make any major changes 
that would significantly impact small entities. Accordingly, the 
undersigned certifies that this rule will not have a significant

[[Page 39287]]

economic impact on a substantial number of small entities.
    Notwithstanding HUD's determination that this rule will not have a 
significant economic impact on a substantial number of small entities, 
HUD specifically invites comments regarding less burdensome 
alternatives to this rule that will meet HUD's objectives as described 
in this preamble.

Environmental Impact

    This proposed rule does not direct, provide for assistance or loan 
and mortgage insurance for, or otherwise govern or regulate real 
property acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
proposed rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. This proposed rule would not have 
federalism implications and would not impose substantial direct 
compliance costs on state and local governments or preempt state law 
within the meaning of the Executive Order.

List of Subjects for 48 CFR Part 2409

    Government procurement.

    For the reasons discussed in the preamble, HUD proposes to amend 48 
CFR part 2409 to read as follows:


    1. The authority citation for part 2409 continues to read as 

    Authority: 40 U.S.C. 486(c); 42 U.S.C. 3535(d).
    2. Revise 2409.7001 to read as follows:

2409.7001  HUD regulations on debarment, suspension, and ineligibility.

    HUD's policies and procedures concerning debarment and suspension 
are contained in 24 CFR part 24 and, notwithstanding 24 CFR 
24.220(a)(1), apply to procurement contracts.

    Dated: June 7, 2007.
Joseph A. Neurauter,
Chief Procurement Officer.
 [FR Doc. E7-13745 Filed 7-16-07; 8:45 am]