[Federal Register Volume 73, Number 150 (Monday, August 4, 2008)]
[Proposed Rules]
[Pages 45194-45195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-17790]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 503 and 552

[GSAR Case 2008-G502; Docket 2008-0007; Sequence 12]
RIN 3090-AI63


General Services Acquisition Regulation; GSAR Case 2008-
G502;Improper Personal Conflicts of Interest

AGENCY:  Office of the Chief Acquisition Officer, General Services 
Administration (GSA).

ACTION:  Proposed rule.

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SUMMARY:  The General Services Administration (GSA) is proposing to 
amend the General Services Acquisition Regulation (GSAR) to revise 
language regarding requirements for improper business practices and 
personal conflicts of interest.

DATES:  Interested parties should submit written comments to the 
Regulatory Secretariat on or before October 3, 2008 to be considered in 
the formulation of a final rule.

ADDRESSES:  Submit comments identified by GSAR Case 2008-G502 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov.Submit 
comments via the Federal eRulemaking portal by inputting ``GSAR Case 
2008-G502'' under the heading ``Comment or Submission''. Select the 
link ``Send a Comment or Submission'' that corresponds with GSAR Case 
2008-G502. Follow the instructions provided to complete the ``Public 
Comment and Submission Form''. Please include your name, company name 
(if any), and ``GSAR Case 2008-G502'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VPR), 1800 F Street, NW, Room 4041, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2008-
G502 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT:  For clarification of content, contact 
Mr. Ernest Woodson at (202) 501-3775, or by e-mail at 
[email protected]. For information pertaining to the status or 
publication schedules, contact the Regulatory Secretariat (VPR), Room 
4041, GS Building, Washington, DC 20405, (202) 501-4755. Please cite 
GSAR Case 2008-G502.

SUPPLEMENTARY INFORMATION:

A. Background

    The General Services Administration (GSA) is amending the General 
Services Administration Acquisition Regulation (GSAR) to update the 
text addressing GSAR Part 503, Improper Business Practices and Personal 
Conflicts of Interest; Subpart 503.1, Safeguards; Subpart 503.2, 
Contractor Gratuities to Government Personnel; Subpart 503.4, 
Contingent Fees; Subpart 503.5, Other Improper Business Practices; 
Subpart 503.7, Voiding and Rescinding Contracts; and Subpart 503.10, 
Contractor Code of Business Ethnics and Conduct.
    This rule is a result of the General Services Administration 
Acquisition Manual (GSAM) Rewrite initiative. The initiative was 
undertaken by GSA to revise the GSAM to maintain consistency with the 
FAR and implement streamlined and innovative acquisition procedures 
that contractors, offerors, and GSA acquisition personnel can use when 
entering into and administering contractual relationships. The GSAM 
incorporates the General Services Administration Acquisition Regulation 
(GSAR) as well as internal agency acquisition policy.
    GSA will rewrite each part of the GSAR and GSAM, and as each GSAR 
part is rewritten, will publish it in the Federal Register.
    This rule covers the rewrite of the regulatory portion of Part 503. 
The rule revises GSAR Subpart 503.1, Safeguards, to delete 503.104-1, 
Definitions, and 503.104-9, Contracts clauses, to ensure consistency 
with the GSAM that provides that the acquisition of leasehold interests 
in real property is established by GSAM Part 570; Subpart 503.2, 
Contractor Gratuities to Government Personnel, to revise 503.204(a)(2) 
to delete the term ``joint venture'' to ensure grammatical and 
structural clarity; to delete from 503.204(c) the reference to the 
Chairman of the GSA Board of Contract Appeals which no longer exists, 
and revise 503.204(f); to ensure consistency with FAR 3.204(f), Subpart 
503.4, Contingents Fees, to delete 503.404, Contract clause, to ensure 
consistency with the GSAM that provides that the acquisition of 
leasehold interests in real property is established by GSAM Part 570; 
Subpart 503.5, Other Improper Business Practices, to revise 503.570-1, 
Policy, to delete the term ``referring'' and add ``making references'' 
for clarity; Subpart 503.7, Voiding and Rescinding

[[Page 45195]]

Contracts, to revise 503.702 to delete the definition for ``Notice'' 
and ``Voiding and rescinding official'' as the terms do not require 
definition; to add a new section 503.703, Authority, to identify the 
Senior Procurement Executive as having the authority to void and 
rescind contracts pursuant to FAR 3.703 and 3.705(b); to relocate 
503.705 from the GSAR to the manual part of the GSAM because it relates 
to internal administrative procedures; to add a new Subpart 503.10, 
Contractor Code of Business Ethics and Conduct, to establish a lower 
threshold for the inclusion of FAR 52.203-14, Display of Hotline 
Poster(s), at 503.1004(a) and include the name of the poster and where 
the poster may be obtained at 503.1004(b)(i) and (ii) pursuant to FAR 
52.203.14(b)(3); to delete GSAR 552.203-5, Covenant Against Contingent 
Fees, to ensure consistency with the GSAM that provides that the 
acquisition of leasehold interests in real property is established by 
GSAM Part 570; and to delete GSAR 552.203, Price Adjustment for Illegal 
or Improper Activity, to ensure consistency with the GSAM requirements 
that leasehold interests in real property is established by GSAM Part 
570.
    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 General Services Administration does 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 the revisions are not considered 
substantive. The revisions only update the GSAR and reorganize existing 
coverage. An Initial Regulatory Flexibility Analysis has, therefore, 
not been performed. We invite comments from small businesses and other 
interested parties. GSA will consider comments from small entities 
concerning the affected GSAR Parts 503 and 552 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. (GSAR case 2008-G502), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the GSAM 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 503 and 552

    Government procurement.

    Dated: July 28, 2008
Al Matera,
Director, Office of Acquisition Policy.
    Therefore, GSA proposes to amend 48 CFR parts 503 and 552 as set 
forth below:

PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    1. The authority citation for 48 CFR part 503 is revised to read as 
follows:

    Authority:  40 U.S.C. 121(c).


503.104-3 and 503-104-9  [Removed]

    2. Remove sections 503.104-3 and 503.104-9.
    3. Amend section 503.204 by--
    a. Removing from paragraph (a)(2) ``or joint venture'';
    b. Removing from paragraph (c) ``designated by the Chairman of the 
GSA Board of Contract Appeals.'' and adding a period, in its place; and
    c. Revising paragraph (f).
    The revised text reads as follows:


503.204  Treatment of violations.

* * * * *
    (f) If the Gratuities clause was violated, the contractor may 
present evidence of mitigating factors to the Senior Procurement 
Executive, or designee, in accordance with FAR 3.204(b), either orally 
or in writing, consistent with a schedule the Senior Procurement 
Executive, or designee, establishes. The Senior Procurement Executive, 
or designee, exercises the Government's rights under FAR 3.204(c) only 
after considering mitigating factors.


503.404  [Removed]

    4. Remove section 503.404.


503.570-1  [Amended]

    5. Amend section 503.570-1 by removing ``referring'' and adding 
``making references'' in its place.


503.702  [Removed]

    6. Remove section 503.702.


503.703  [Added]

    7. Add section 503.703 to read as follows:


503.703  Authority.

    Pursuant to FAR 3.703 and 3.705(b), the authority to void or 
rescind contracts resides with the Senior Procurement Executive.
    8. Add Subpart 503.10 to read as follows:

Subpart 503.10--Contractor Code of Business Ethics and Conduct


503.1004  Contract clauses.

    (a) The FAR threshold for the clause at 52.203-14, Display of 
Hotline Poster(s), is $5,000,000. However, GSA has exercised the 
authority provided at FAR 3.1004(b)(1)(i) to establish a lower 
threshold, $1,000,000, for inclusion of the clause when the contract or 
order is funded with disaster assistance funds.
    (b) The information required to be inserted in the clause at FAR 
52.203-14, Display of Hotline Poster(s), is as follows:
    (i) Poster: GSA OIG ``FRAUDNET HOTLINE''; and
    (ii) Obtain from: Contracting Officer.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    9. The authority citation for 48 CFR part 552 continues to read as 
follows:

    Authority:  40 U.S.C. 121(c).


552.203-5 and 552.203-70  [Removed]

    10. Remove sections 552.203-5 and 552.203-70.
[FR Doc. E8-17790 Filed 8-1-08; 8:45 am]
BILLING CODE 6820-61-S