[Federal Register Volume 72, Number 208 (Monday, October 29, 2007)]
[Rules and Regulations]
[Pages 61269-61271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-21267]

[[Page 61269]]


Part IV

Department of Housing and Urban Development


48 CFR Part 2409

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

Federal Register / Vol. 72, No. 208 / Monday, October 29, 2007 / 
Rules and Regulations

[[Page 61270]]



48 CFR Part 2409

[Docket No. FR-5098-F-02]
RIN 2535-AA28

HUD Acquisition Regulation (HUDAR) Debarment and Suspension 

AGENCY: Office of the Chief Procurement Officer, HUD.

ACTION: Final rule.


SUMMARY: This rule amends HUD's Acquisition Regulation (HUDAR) to 
codify the suspension and debarment procedures applicable to HUD's 
procurement contracts. Such an amendment affirms that the suspension 
and debarment procedures in 24 CFR part 24 apply to both procurement 
and 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 contracts. This 
final rule follows a July 17, 2007, proposed rule. HUD received no 
public comments on the proposed rule. This final rule adopts the 
proposed rule without change.

DATES: Effective Date: November 28, 2007.

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 number 
(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) 877-8339.


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 Housing and Urban 
Development 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.
    On July 17, 2007, at 72 FR 39286, HUD published for public comment 
a rule that proposed to make 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.\1\ On November 26, 2003, HUD had 
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. To reflect the applicability of debarment and suspension 
requirements to procurement contracts, HUD, through the July 17, 2007, 
rule, proposed 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 

    \1\ 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 
July 17, 2007, proposed rule and this final rule, however, continue 
to use the reference of 24 CFR part 24. A conforming change will be 
made at the final rule stage of the March 23, 2007, rulemaking to 
reflect the redesignation.

II. This Final Rule

    The public comment period for the July 17, 2007, proposed rule 
closed on September 17, 2007. HUD received no public comments on this 
rule. Through this final rule, HUD adopts the July 17, 2007, proposed 
rule without change.

III. Findings and Certifications

Paperwork Reduction Act Statement

    The information collection requirements contained in this 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 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 
economic impact on a substantial number of small entities.

Environmental Impact

    This 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 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

[[Page 61271]]

rule does not have federalism implications and does 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 amends 48 CFR part 2409 
to read as follows:


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

    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: October 19, 2007.
Joseph A. Neurauter,
Chief Procurement Officer.
 [FR Doc. E7-21267 Filed 10-26-07; 8:45 am]