[Federal Register Volume 73, Number 197 (Thursday, October 9, 2008)]
[Proposed Rules]
[Pages 59589-59590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22794]

[[Page 59589]]



48 CFR Parts 504 and 552

[GSAR Case 2006-G510; Docket 2008-0007; Sequence 19]
RIN 3090-AI72

General Services Acquisition Regulation; GSAR Case 2006-G510; 
Rewrite of GSAR Part 504, Administrative Matters

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

ACTION: Proposed rule.


SUMMARY: The GSA is proposing to amend the General Services Acquisition 
Regulation (GSAR) to revise the language regarding requirements for 
administrative matters.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before December 8, 2008 to be considered 
in the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2006-G510 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``GSAR Case 
2006-G510'' under the heading ``Comment or Submission''. Select the 
link ``Send a Comment or Submission'' that corresponds with GSAR Case 
2006-G510. Follow the instructions provided to complete the ``Public 
Comment and Submission Form''. Please include your name, company name 
(if any), and ``GSAR Case 2006-G510'' 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 2006-
G510 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 2006-G510.


A. Background

    The GSA is amending the GSAR to update the text addressing GSAR 
Part 504, Administrative Matters; Subpart 504.4, Safeguarding 
Classified Information Within Industry; Subpart 504.5, Electronic 
Commerce in Contracting; Subpart 504.6, Contract Reporting; Subpart 
504.11, Central Contractor Registration; and Subpart 504.13, Personal 
Identify Verification of Contractor Personnel. This rule is a result of 
the GSA Acquisition Manual (GSAM) Rewrite initiative undertaken by the 
GSA to revise the GSAM to maintain consistency with the Federal 
Acquisition Regulation (FAR) and implement streamlined and innovative 
acquisition procedures that contractors, offerors, and GSA acquisition 
personnel can utilize when entering into and administering contractual 
relationships. The GSAM incorporates the GSAR as well as internal 
agency acquisition policy.
    The GSA will rewrite each part of the GSAR and GSAM, and as each 
GSAR part is rewritten, GSA will publish it in the Federal Register.
    This rule covers the rewrite of GSAR Parts 504 and 552. The rule 
revises GSAR Subpart 504.4, Safeguarding Classified Information Within 
Industry; revises Section 504.402, General; deletes duplicative 
information already addressed in FAR 4.402; deletes the definition for 
``U.S. Industry'' as the term is not referred in the subpart; revises 
Section 504.475, Return of classified information, to ensure 
grammatical and structural consistency; deletes Subpart 504.5, 
Electronic Commerce in Contracting, in its entirety because it 
duplicates information already addressed in FAR 4.5; in Subpart 504.6, 
Contract Reporting, redesignates Section 504.602-71, Federal 
Procurement Data System-Public Access, as Section 504.605-70, Federal 
Procurement Data System-Public Access, to establish a one-time fee for 
direct public access to Federal Procurement Data System Database; adds 
a new Subpart 504.11, Central Contractor Registration (CCR) and a new 
Section 504.1103, Procedures, to ensure that prospective contractors 
register in CCR in accordance with the FAR 4.1103; adds a new Subpart 
504.13, Personal Identity Verification of Contractor Personnel and new 
Sections 504.1301, Policy, and 504.1303, Contract Clause, to establish 
agency policy for ensuring compliance with Homeland Security 
Presidential Directive, HSPD-12, and prescribe the requirements for 
inserting a new clause FAR 552.204-9, Personal Identify Verification 
Requirements, in solicitations and contracts when contractor employees 
will require access to Federal facilities or information.
    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 GSA 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. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. We 
invite comments from small businesses and other interested parties. The 
GSA will consider comments from small entities concerning the affected 
GSAR Parts 504 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 2006-G510), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the GSAR 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 504 and 552

    Government procurement.

    Dated: September 18, 2008
Al Matera,
Director, Office of Acquisition Policy.

    Therefore, GSA proposes to amend 48 CFR parts 504 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 504 and 552 continues to 
read as follows:

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


    2. Revise section 504.402 to read as follows:

504.402   General.

    (a) This subpart prescribes procedures for safeguarding classified 
information required to be disclosed to contractors

[[Page 59590]]

in connection with the solicitation of offers, and the award, 
performance, and termination of contracts.
    (b) As used in this subpart, the term ``Contractor(s)'' means 
prospective contractors, subcontractors, vendors, and suppliers.
    3. Amend section 504.475 by revising paragraph (a), paragraph (b) 
introductory text, and paragraphs (b)(1) thru (b)(5)(i) to read as 

504.475   Return of classified information.

    (a) Contracting officers must recover classified information, 
unless it has been destroyed as provided in Section 7 of Chapter 5 of 
the National Industrial Security Program Operating Manual (NISPOM). The 
Government agency that provided classified information to a GSA 
contractor is responsible for the return of the information.
    (b) Contracting officers must ensure that classified information 
provided by the government is returned immediately after any of the 
following events:
    (1) Bid opening or closing date for receipt of proposals by non-
responding offerors.
    (2) Contract award by unsuccessful offerors.
    (3) Termination or completion of the contract.
    (4) Notification that authorization to release classified 
information has been withdrawn.
    (5) After Notification that a facility--
    (i) Does not have adequate means to safeguard classified 
information; or
* * * * *

Subpart 504.5 [Removed]

    4. Remove Subpart 504.5.

504.602-71   [Redesignated as 504.605-70]

    5. Redesignate section 504.602-71 as 504.605-70.
    6. Add Subpart 504.11 to read as follows:

Subpart 504.11--Central Contractor Registration

504.1103 Procedures.

Subpart 504.11--Central Contractor Registration

504.1103   Procedures.

    In addition to the requirements found in FAR 4.1103, prior to 
awarding a contractual instrument the contracting officer must--
    (1) Verify that the prospective contractor's exact legal business 
name, Doing-Business-As (DBA) name (if any), physical street address, 
and Data Universal Number System (DUNS) number or DUNS+4 number, as 
found in the CCR, matches the information that will be placed on the 
contract, order, or agreement from the vendor's quote or proposal. 
Correct mismatches by having the vendor amend the information in the 
CCR or the quote or proposal. The CCR information can be accessed 
through GSA's CCR repository. (Contact the GSA Systems Programming 
Branch for instructions, a user ID, and password.)
    (2) Ensure that the contractor's address code exists in Pegasys and 
that it is CCR enabled with the contractor's DUNS or DUNS+4 number. 
This can be done by searching Pegasys records using the contractor's 
Taxpayer Identification Number (TIN). If no code exists, request that a 
new address code be established by the Finance Center for CCR 
    (3) Ensure that the contractor's identifying information is 
correctly placed on the contractual instrument, using special care to 
ensure that the legal name and ``remit to'' name match exactly. (Note: 
Lockbox names or numbers should not be used to replace the contractor's 
name in the remittance block on the contractual instrument.)
    7. Add Subpart 504.13 to read as follows:

Subpart 504.13--Personal Identity Verification of Contractor 

504.1301 Policy.
504.1303 Contract clause.

Subpart 504.13--Personal Identity Verification of Contractor 

504.1301   Policy.

    Contracting officers must follow the procedures contained in the 
GSA HSPD-12 Personal Identify Verification and Credentialing Standard 
Operating Procedures, found at http://insite.gsa.gov/hspd12implementation, to ensure compliance with Homeland Security 
Presidential Directive-12 (HSPD-12) ``Policy for a Common 
Identification Standard for Federal Employees and Contractors,'' Office 
of Management and Budget Memorandum M-05-24, and Department of Commerce 

504.1303   Contract clause.

    Insert the clause at 552.204-9, Personal Identity Verification 
Requirements, in solicitations and contracts when it is determined that 
contractor employees will require routine physical access to federally 
controlled facilities or information systems to perform contract 


    8. Add section 552.204-9 to read as follows:

552.204-9   Personal Identity Verification Requirements.

    As prescribed in 504.1303, insert the following clause:
    The Contractor shall comply with GSA personal identity verification 
requirements, identified by the Contracting Officer, if Contractor 
employees require routine physical access to GSA controlled facilities 
or information systems to perform contract requirements.
    (End of clause)
[FR Doc. E8-22794 Filed 10-8-08; 8:45 am]