[Federal Register Volume 73, Number 221 (Friday, November 14, 2008)]
[Rules and Regulations]
[Page 67650]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26906]

[[Page 67649]]


Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration


48 CFR Chapter 1, Parts 2, 22, and 52

Federal Acquisition Regulation; Final Rules and Small Entity Compliance 

Federal Register / Vol. 73, No. 221 / Friday, November 14, 2008 / 
Rules and Regulations

[[Page 67650]]





48 CFR Chapter 1

[Docket FAR 2008-0003, Sequence 4]

Federal Acquisition Regulation; Federal Acquisition Circular 
2005-29; Introduction

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Summary presentation of final rule.


SUMMARY: This document summarizes the Federal Acquisition Regulation 
(FAR) rule agreed to by the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council in this Federal Acquisition 
Circular (FAC) 2005-29. A companion document, the Small Entity 
Compliance Guide (SECG), follows this FAC. The FAC, including the SECG, 
is available via the Internet at http://www.regulations.gov.

DATES: For effective date, see the document following this notice.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
the analyst whose name appears in the table below in relation to the 
FAR case. Please cite FAC 2005-29, FAR Case 2007-013. For information 
pertaining to status or publication schedules, contact the FAR 
Secretariat at (202) 501-4755.

                                           Rule Listed in FAC 2005-29
                 Item                               Subject                FAR case              Analyst
I.....................................  Employment Eligibility                2007-013  Murphy.

SUPPLEMENTARY INFORMATION: A summary of the FAR rule follows. For the 
actual revisions and/or amendments to this FAR case, refer to FAR Case 
    FAC 2005-29 amends the FAR as specified below:

Item I--Employment Eligibility Verification (FAR Case 2007-013)

    This final rule implements Executive Order 12989, as amended June 
6, 2008, and the selection of the Secretary for Homeland Security of 
the E-Verify system as the electronic system to be used for certain 
contractors and subcontractors as the means of verifying that certain 
of their employees are eligible to work in the United States. This 
final rule inserts a clause into Federal contracts that are above the 
simplified acquisition threshold and have a performance period of at 
least 120 days, committing Government contractors to use the U.S. 
Citizenship and Immigration Services' E-Verify system to verify that 
all of the contractors' new hires, and all employees (existing and new) 
directly performing work under Federal contracts, are authorized to 
work in the United States.
    Exemptions include contracts that are for commercially available 
off-the-shelf (COTS) items and items that would be COTS items but for 
minor modifications. The final rule requires prime contractors to 
include the clause in subcontracts over $3,000 for services or for 
    In exceptional circumstances, a head of the contracting activity, 
without power of redelegation, is authorized to waive the requirement 
to include the clause.
    In response to public comments, the final rule significantly 
extends the timelines for registering, beginning to use the system for 
new and existing employees, and using the program to initiate 
verification of new hires.
    Applicability to certain entities was limited in the following 
     Institutions of higher education need only verify 
employees assigned to a covered Federal contract.
     State and local governments and Federally Recognized 
Indian Tribes need only verify employees assigned to a covered Federal 
     Sureties performing under a takeover agreement entered 
into with a Federal agency pursuant to a performance bond need only 
verify employees assigned to the covered Federal contract.
    In addition, the final rule exempts from verification requirements 
(a) employees who hold an active security clearance of confidential, 
secret, or top secret and (b) employees for whom background 
investigations have been completed and credentials issued pursuant to 
Homeland Security Presidential Directive (HSPD)-12. Contractors 
concerned with costs associated with identifying and separating 
existing employees assigned to a Federal contract, for the purpose of 
E-Verify, are provided the option of verifying all employees of the 
contractor, including any existing employees not currently assigned to 
a Government contract.

    Dated: November 6, 2008.
Al Matera,
Director, Office of Acquisition Policy.

    Federal Acquisition Circular (FAC) 2005-29 is issued under the 
authority of the Secretary of Defense, the Administrator of General 
Services, and the Administrator for the National Aeronautics and 
Space Administration.
    Unless otherwise specified, all Federal Acquisition Regulation 
(FAR) and other directive material contained in the FAC 2005-29 is 
effective January 15, 2009.

    Dated: November 5, 2008.
Linda W. Neilson,
Acting Deputy Director, Defense Procurement, Acquisition Policy, and 
Strategic Sourcing (Defense Acquisition Regulations System).

David A. Drabkin,
Senior Procurement Executive & Deputy Chief Acquisition Officer, U.S. 
General Services Administration.

    Dated: November 5, 2008.
William P. McNally,
Assistant Administrator for Procurement, National Aeronautics and Space 
[FR Doc. E8-26906 Filed 11-13-08; 8:45 am]