[Federal Register Volume 78, Number 120 (Friday, June 21, 2013)]
[Rules and Regulations]
[Pages 37675-37676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-14611]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1 and 7

[FAC 2005-67; FAR Case 2013-004; Item II; Docket 2013-0004, Sequence 1]
RIN 9000-AM52


Federal Acquisition Regulation; Contracting Officer's 
Representative

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to improve contract surveillance 
by clarifying the contracting officer's representative (COR) 
responsibilities.

DATES: Effective Date: July 22, 2013.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-67, FAR Case 2013-
004.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are issuing a final rule to improve contract 
surveillance by clarifying the COR responsibilities in FAR 1.602-2(d). 
In addition, a corresponding change is also made at FAR 7.104(e).
    This case originated from a DoD Panel on Contracting Integrity 
recommendation. The DoD Panel on Contracting Integrity, an internal DoD 
panel, consists of senior-level DoD officials from across DoD working 
to review progress made by DoD to eliminate areas of vulnerability of 
the defense contracting system that allow fraud, waste, and abuse to 
occur, and recommend changes in law, regulations, and policy to 
eliminate the areas of vulnerability. In order to improve the 
contracting environment, this rule provides additional explanation in 
the FAR to ensure that CORs understand their duties and 
responsibilities to survey contractor performance.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    Publication of proposed regulations, 41 U.S.C. 1707, is the statute 
which applies to the publication of the Federal Acquisition Regulation. 
Paragraph (a)(1) of the statute requires that a procurement policy, 
regulation, procedure, or form (including an amendment or modification 
thereof) must be published for public comment if it has either a 
significant effect beyond the internal operation procedures of the 
agency issuing the policy, regulation, procedure, or form or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment 
because it only involves internal Government procedures regarding the 
appointment of CORs and the clarification of COR responsibilities. This 
rule does not have a significant effect beyond the internal operation 
procedures of the agency issuing the policy, regulation, procedure, or 
form, and there is no significant cost or administrative impact on 
contractors or offerors.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision and 41 
U.S.C. 1707 does not require publication for public comment.

V. Paperwork Reduction Act

    The final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

[[Page 37676]]

List of Subjects in 48 CFR Parts 1 and 7

    Government procurement.

    Dated: June 13, 2013.
William Clark,
Acting Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 1 and 7 as set 
forth below:

0
1. The authority citation for 48 CFR parts 1 and 7 continues to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM

0
2. Amend section 1.602-2 by--
0
a. Removing from the end of paragraph (b) ``and'';
0
b. Removing from paragraph (c) ``.'' and adding ``; and'' in its place; 
and
0
c. Revising paragraph (d) to read as follows:


1.602-2  Responsibilities.

* * * * *
    (d) Designate and authorize, in writing and in accordance with 
agency procedures, a contracting officer's representative (COR) on all 
contracts and orders other than those that are firm-fixed price, and 
for firm-fixed-price contracts and orders as appropriate, unless the 
contracting officer retains and executes the COR duties. See 7.104(e). 
A COR--
    (1) Shall be a Government employee, unless otherwise authorized in 
agency regulations;
    (2) Shall be certified and maintain certification in accordance 
with the current Office of Management and Budget memorandum on the 
Federal Acquisition Certification for Contracting Officer 
Representatives (FAC-COR) guidance, or for DoD, in accordance with the 
current applicable DoD policy guidance;
    (3) Shall be qualified by training and experience commensurate with 
the responsibilities to be delegated in accordance with agency 
procedures;
    (4) May not be delegated responsibility to perform functions that 
have been delegated under 42.202 to a contract administration office, 
but may be assigned some duties at 42.302 by the contracting officer;
    (5) Has no authority to make any commitments or changes that affect 
price, quality, quantity, delivery, or other terms and conditions of 
the contract nor in any way direct the contractor or its subcontractors 
to operate in conflict with the contract terms and conditions;
    (6) Shall be nominated either by the requiring activity or in 
accordance with agency procedures; and
    (7) Shall be designated in writing, with copies furnished to the 
contractor and the contract administration office--
    (i) Specifying the extent of the COR's authority to act on behalf 
of the contracting officer;
    (ii) Identifying the limitations on the COR's authority;
    (iii) Specifying the period covered by the designation;
    (iv) Stating the authority is not redelegable; and
    (v) Stating that the COR may be personally liable for unauthorized 
acts.

PART 7--ACQUISITION PLANNING

0
3. Amend section 7.104 by revising paragraph (e) to read as follows:


7.104  General procedures.

* * * * *
    (e) The planner shall ensure that a COR is nominated as early as 
practicable in the acquisition process by the requirements official or 
in accordance with agency procedures. The contracting officer shall 
designate and authorize a COR as early as practicable after the 
nomination. See 1.602-2(d).

[FR Doc. 2013-14611 Filed 6-20-13; 8:45 am]
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