[Federal Register Volume 76, Number 101 (Wednesday, May 25, 2011)]
[Rules and Regulations]
[Pages 30264-30265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-12993]



[[Page 30264]]

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DEPARTMENT OF STATE

48 CFR Part 601

[Public Notice: 7480]
RIN 1400-AB98


Department of State Acquisition Regulation; Foreign Nationals and 
Third Country Nationals

AGENCY: State Department.

ACTION: Final rule.

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SUMMARY: This final rule makes one administrative change to the 
Department of State Acquisition Regulation (DOSAR). It revises the 
DOSAR to allow the appointment of selected non-U.S. citizen locally 
employed staff, i.e., Foreign Nationals and Third Country Nationals, as 
contracting officers for acquisitions at $25,000 and below. This change 
will permit streamlined procurement processes at applicable Department 
of State overseas posts.

DATES: Effective Date: This rule is effective June 24, 2011.

FOR FURTHER INFORMATION CONTACT: Barbara Latvanas, Procurement Analyst, 
Department of State, Office of the Procurement Executive, 2201 C 
Street, NW., Suite 900, State Annex Number 27, Washington, DC 20522; 
telephone number: 703-516-1755; e-mail address: [email protected]

SUPPLEMENTARY INFORMATION: The Department published a proposed rule, 
Public Notice 5684 at 72 FR 4475, January 31, 2007, with a request for 
comments to expand contracting authority at applicable overseas posts 
(Embassies and Consulates) to selected non-U.S. citizen locally 
employed staff (LES) for acquisitions at $25,000 and below. Because the 
current DOSAR language indicates that all contracting officers must be 
U.S. citizens, a change to the regulation is required. By way of 
background, the Department conducted a pilot program at 15 overseas 
posts in the following locations: Bridgetown, Barbados; Brussels, 
Belgium; Ljubljana, Slovenia; Melbourne, Australia; Munich, Germany; 
Nicosia, Cyprus; Oslo, Norway; Paris, France; Seoul, Korea; Singapore; 
Tallinn, Estonia; The Hague, Netherlands; Tokyo, Japan; Valletta, 
Malta; and Vienna, Austria. To ensure adequate rule of law, each of the 
locations involved in the pilot program had a score of at least 5.0 on 
the Transparency International Corruption Perceptions Index, available 
at the following Web site: http://www.transparency.org/. This 
successful pilot program resulted in streamlined procurement processes 
and increased management flexibility in awarding acquisitions at 
$25,000 and below. As a result of this successful pilot program, the 
Department wants to adopt the proposed rule as final. As specified in 
the proposed rule, appropriate enhanced management controls, including 
review of LES transactions by a U.S. Citizen contracting officer, will 
be imposed. For example, these controls will incorporate the following 
mandatory requirements:
     Available only at posts with a score of least 5.0 on the 
Transparency International Corruption Perceptions Index;
     Available only to selected LES staff with a minimum of 
five years of Department of State experience, unquestioned integrity, 
and one week of specified simplified acquisition training;
     Review of LES transactions on a monthly basis by a U.S. 
citizen contracting officer; and
     Periodic evaluation of LES delegated procurement by the 
Office of the Procurement Executive.
    This DOSAR change is administrative in nature and is intended to 
provide management flexibility to Department of State overseas posts. 
The proposed rule was discussed in detail in Public Notice 5684. No 
public comments were received. The Department is now promulgating a 
final rule with no changes from the proposed rule.

Regulatory Findings

Administrative Procedure Act

    The Department of State does not consider this rule to be a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review. In addition, the Department is 
exempt from Executive Order 12866 except to the extent that it is 
promulgating regulations in conjunction with a domestic agency that are 
significant regulatory actions. The Department has nevertheless 
reviewed the regulation to ensure its consistency with the regulatory 
philosophy and principles set forth in that Executive Order.

Regulatory Flexibility Act

    The Department of State, in accordance with the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by 
approving it, certifies that this rule will not have a significant 
economic impact on a substantial number of small entities.

Unfunded Mandates Act of 1995

    This rule will not result in the expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any year and it will not significantly or uniquely 
affect small governments. Therefore, no actions were deemed necessary 
under the provisions of the Unfunded Mandates Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 804 of the 
Small Business Regulatory Enforcement Act of 1996. This rule will not 
result in an annual effect on the economy of $100 million or more; a 
major increase in costs or prices; or significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based companies to compete with foreign 
based companies in domestic and import markets.

 Executive Order 13563 and Executive Order 12866

    The Department of State does not consider this rule to be a 
``significant regulatory action'' under Executive Order 12866, section 
3(f), Regulatory Planning and Review, as amended by Executive Order 
13563. In addition, the Department is exempt from Executive Order 12866 
except to the extent that it is promulgating regulations in conjunction 
with a domestic agency that are significant regulatory actions. The 
Department has nevertheless reviewed the regulation to ensure its 
consistency with the regulatory philosophy and principles set forth in 
that Executive Order.

Executive Order 13132

    This rule will not have substantial direct effects on the States, 
on the relationship between the national government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Therefore, in accordance with section 6 of 
Executive Order 13132, it is determined that this rule does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
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 Part 601

    Government procurement.


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    Accordingly, for reasons set forth in the preamble, title 48, 
chapter 6 of the Code of Federal Regulations is amended as follows:

Subchapter A--General

PART 601--DEPARTMENT OF STATE ACQUISITION REGULATION SYSTEM

0
1. The authority citation for 48 CFR part 601 continues to read as 
follows:

    Authority:  40 U.S.C. 486(c); 22 U.S.C. 2658.


0
2. Section 601.603-3 is amended by revising paragraph (c) to read as 
set forth below:


601.603-3  Appointment.

* * * * *
    (c) Non-Federal employees. Only United States Government employees 
shall be appointed as contracting officers. For acquisitions at $25,000 
and below only, this includes locally employed staff (i.e., Foreign 
Service Nationals and Third Country nationals). Personal services 
contractors are not eligible for appointment as DOS contracting 
officers.
* * * * *

    Dated: May 19, 2011.
Corey M. Rindner,
Procurement Executive, Bureau of Administration, Department of State.
[FR Doc. 2011-12993 Filed 5-24-11; 8:45 am]
BILLING CODE 4710-24-P