[Federal Register Volume 81, Number 29 (Friday, February 12, 2016)]
[Rules and Regulations]
[Pages 7478-7480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02745]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

48 CFR Parts 436 and 452

RIN 0599-AA21


Agriculture Acquisition Regulation, Fire Suppression and 
Liability

AGENCY: Office of Procurement and Property Management, U.S. Department 
of Agriculture

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Procurement and Property Management (OPPM) of 
the U.S. Department of Agriculture (USDA) amends the Agriculture 
Acquisition Regulation (AGAR) by adding a new clause entitled ``Fire 
Suppression and Liability.'' Section 8205 of the Agricultural Act of 
2014 (2014 Act) provided the USDA Forest Service with permanent 
authority for Stewardship End Result Contracting by adding a new 
Section 604 to the Healthy Forests Restoration Act of 2003. Section 
8205 contains a requirement that the agency use a fire liability 
provision in all stewardship contracts and agreements that is in 
substantially the same form as the fire liability provisions contained 
in the integrated resource timber contract in Forest Service Contract 
Numbered 2400-13, Part H, Section H.4. This final rule establishes a 
new clause in the AGAR, the USDA supplement to the Federal Acquisition 
Regulation (FAR), for use in Integrated Resource Service Contracts 
(IRSC) subject to the FAR. This new AGAR clause addresses fire 
liability on stewardship contracts as required in the 2014 Agricultural 
Act.

DATES: Effective March 14, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Ismaela Ramirez, Senior 
Procurement Analyst, USDA, Office of Procurement and Property 
Management at (202) 730-7997.

SUPPLEMENTARY INFORMATION:
I. Authority
II. Background
III. Discussion of Comments
IV. Summary of the Comments
V. Regulatory Information
List of Subjects

I. Authority

    The enactment of Section 8205 of the Agricultural Act of 2014 (Pub. 
L. 113-79) establishes permanent authority to conduct Stewardship End 
Result Contracting projects by adding a new Section 604 to the Healthy 
Forests Restoration Act of 2003 (HFRA) (16 U.S.C. 6591c). Section 8205 
of the 2014 Agricultural Act contains a requirement that the agency use 
a fire liability provision in all stewardship contracts and agreements 
that is in substantially the same form as the fire liability provisions 
contained in the integrated resource timber contract in Forest Service 
Contract Numbered 2400-13, Part H, Section H.4 and timber sale 
contracts conducted pursuant to Section 14 of the National Forest 
Management Act of 1976 (16 U.S.C. 472a).

II. Background

    Beginning in 1998 with the enactment of Section 347 of the 
Department of the Interior and Related Agencies Appropriation Act, 
1999, the Forest Service has been authorized to carry out Stewardship 
End Result Contracting Projects; first on a pilot basis and then, 
through a succession of subsequent amendments, this authority was 
expanded. The enactment of Section 8205 of the Agricultural Act of 2014 
sets forth the permanent authority for conducting Stewardship End 
Resulting Contracting Projects by adding a new Section 604 to the 
Healthy Forests Restoration Act of 2003. Section 8205 contains a 
provision that ``not later than 90 days after the date of enactment of 
this section, the Chief of the Forest Service and the Director of the 
Bureau of Land Management shall issue for use in all contracts and 
agreements under this section fire liability provisions that are in 
substantially the same form as the fire liability provisions contained 
in-- (A) integrated resource timber contracts, as described in the 
Forest Service Contract Numbered 2400-13, Part H, Section H.4; and (B) 
timber sale contracts conducted pursuant to Section 14 of the National 
Forest Management Act of 1976 (16 U.S.C. 472a).''
    This final rule establishes a new AGAR clause for use in 
stewardship contracts subject to the FAR. This clause addresses fire 
liability on Stewardship End Result Contracting, as required in the 
2014 Agricultural Act. The text of the clause is closely specified in 
the law.

III. Discussion of Comments

    USDA solicited comments on the interim rule on May 22, 2014. USDA 
received two comments at the end of the

[[Page 7479]]

posted comment period on June 23, 2014.
    Both comments were received from the Federal Forest Resource 
Coalition (FFRC), a national trade association comprised of large and 
small companies, regional and state associations, county governments, 
and others concerned about the management of our National Forests and 
the landscape covered by Bureau of Land Management.
    Both comments recommend changes to add clarity and consistency to 
the language in the regulations. The comments suggest that USDA follow 
the requirement of implementing a liability clause for IRSC contracts 
that mirrored Integrated Resource Timber Contracts (IRTC). The comments 
from FFRC are presented below, along with USDA's responses and are 
grouped by the Code of Federal Regulations (CFR) section numbers to 
which they apply.

48 CFR 436.578

    Comment (1) In Section 436.578, we recommend that you delete ``as 
applicable''. Section 8205 of the Agricultural Act of 2014 states that 
``. . . the Chief and Director shall issue for use in all [emphasis 
added] contracts and agreements under this section fire liability 
provisions . . .''

48 CFR 452.236-78

    Comment (2) In Section 452.236-78, we recommend that you change 
``may be inserted'' to ``shall be inserted''. Again, Section 8205 of 
the Agricultural Act of 2014 states that ``. . . the Chief and Director 
shall issue for use in all [emphasis added] contracts and agreements 
under this section fire liability provisions . . .''
    Response: FFRC stated that the plain language in Section 8205 of 
the Agricultural Act of 2014 (Pub. L. 113-79) makes clear that Congress 
intended the fire liability provisions to be non-discretionary, both 
for the issuance of the provision and its use in all contracts. 
However, they believe that the language in the Interim Rule conveys 
discretion that is not found in the statute. The Forest Service agrees 
with both comments and will amend the CFR to read as follows: ``the 
Chief shall issue for use in all contracts and agreements under this 
section fire liability provisions that are in substantially the same 
form (16 U.S.C. 472a) for all IRSC solicitations issued after May 22, 
2014. Contracts and agreements in effect on May 22, 2014, are not 
eligible to insert this provision.'' The Forest Service believes the 
aforementioned statement in response to the two comments reflects the 
intention of the Farm Bill with regards to implementing a fire 
liability clause for Integrated Resources Services Contracts that 
mirrors current Timber Sales Contracts. This creates the same fire 
liability for all Forest Service stewardship contract types.

IV. Summary of the Comments

    As a result of public comments received on the interim rule, USDA 
will amend the CFR to add clarity and consistency that reflects the 
intention of the Farm Bill with regard to implementing a fire liability 
clause for IRSCs that mirrors current Timber Sales Contracts.

V. Regulatory Information

Regulatory Flexibility Act

    USDA certifies that this final rule will not have a significant 
impact on a substantial number of small entities, as defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. There is no 
additional submission required as a result of this action. The rule 
will not have a significant impact on the small business community or 
on a substantial number of small businesses.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the final rule 
does not impose any record keeping or information collection 
requirements that require approval by the Office of Management and 
Budget.

Environmental Impact

    The USDA has determined that this final rule falls within this 
category of actions and that no extraordinary circumstances exist that 
would require preparation of an environmental assessment or 
environmental impact statement.

Regulatory Impact

    This final rule has been reviewed under USDA procedures and 
Executive Order 12866 on Regulatory Planning and Review. It has been 
determined that this is not a significant rule. This rule would not 
have an annual effect of $100 million or more on the economy, nor would 
it adversely affect productivity, competition, jobs, the environment, 
public health and safety, or State or local governments. This final 
rule would not interfere with an action taken or planned by another 
agency, nor raise new legal or policy issues. Finally, this final rule 
would not alter the budgetary impact of entitlement, grant, user fee, 
or loan programs or the rights and obligations of beneficiaries of such 
programs. Accordingly, this final rule is not subject to Office of 
Management and Budget (OMB) review under Executive Order (E.O.) 12866.

No Takings Implications

    The USDA has analyzed this final rule in accordance with the 
principles and criteria contained in E.O. 12630 and determined that the 
rule would not pose the risk of a taking of private property.

Civil Justice Reform Act

    The USDA has reviewed this final rule under E.O. 12778, Civil 
Justice Reform. Under this rule, (1) all State and local laws and 
regulations that conflict with this rule or that impede its full 
implementation would be preempted; (2) no retroactive effect would be 
given to this final rule; and (3) it would require administrative 
proceedings before parties may file suit in court challenging its 
provisions.

Federalism and Consultation and Coordination With Indian Tribal 
Governments

    The USDA has considered this final rule under the requirements of 
E.O. 13132 on Federalism and has determined that this rule conforms to 
the Federalism principles in the E.O. The rule would not impose any 
compliance costs on the States; and would not have any substantial 
direct effects on the States, the relationship between the Federal 
Government and the States, or the distribution of power and 
responsibilities among the various levels of government. Moreover, this 
final rule does not have tribal implications as defined by E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, and 
therefore advance consultation with tribes is not required.

Energy Effects

    The USDA has reviewed this final rule under E.O. 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or use and has determined that this rule would not 
constitute a significant energy action as defined in the E.O.

Unfunded Mandates Reform

    Pursuant to Title II of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1531-1538), the USDA assessed the effects of this final rule on 
State, local, and tribal governments and the private sector. This rule 
would not compel the expenditure of $100 million or more by State, 
local, and tribal governments, or by the private sector. Therefore, a 
statement under Section 202 of the Act is not required.

[[Page 7480]]

List of Subjects 48 CFR Parts 436 and 452

    Government procurement.

    For the reasons set forth in the preamble, the U.S. Department of 
Agriculture amends 48 CFR Chapter 4, in the following manner:

PART 436--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

0
1. The authority citation for part 436 is revised to read as follows:

    Authority: 5 U.S.C. 301 and 40 U.S.C. 121(c)


0
2. Section 436.578 is revised to read as follows:


436.578   Contract clause.

    Insert the clause at 452.236-78, Fire Suppression and Liability in 
solicitations and contracts for Integrated Resource Service Contracts 
(IRSC) awarded for the Forest Service.

PART 452--SOLICITATION PROVISION AND CONTRACT CLAUSES

0
3. The authority citation for part 452 is revised to read as follows:

    Authority: 5 U.S.C. 301 and 40 U.S.C. 121(c)


0
4. Section 452.236-78 is revised to read as follows:


452.236-78   Fire Suppression and Liability.

    As prescribed in section 436.578, the following clause shall be 
inserted in Intergrated Resource Service Contracts (IRSC) awarded for 
the Forest Service.

Fire Suppression and Liability Clause

    (a) Contractor's Responsibility for Fire Fighting. The Contractor, 
under the provisions of FAR clause at 52.236-9, Protection of Existing 
Vegetation, Structures, Equipment, Utilities, and Improvements, shall 
immediately extinguish all fires on the work site other than those 
fires in use as a part of the work. The Contractor may be held liable 
for all damages and for all costs incurred by the Government for labor, 
subsistence, equipment, supplies, and transportation deemed necessary 
to control or suppress a fire set or caused by the Contractor or the 
Contractor's agents or employees subject to the following fire 
classifications listed in subsection (b).
    (b) Fire Suppression Costs. The Contractor's obligations for cost 
of fire suppression vary according to three classifications of fires as 
follows:
    (1) Operations Fire. An ``operations fire'' is a fire caused by the 
Contractor's operations other than a negligent fire. The Contractor 
agrees to reimburse Forest Service for such cost for each operations 
fire, subject to a maximum dollar amount of [Contracting Officer insert 
amount]. The cost of the Contractor's actions, supplies, and equipment 
on any such fire, or otherwise provided at the request of Forest 
Service, shall be credited toward such maximum. If the Contractor's 
actual cost exceeds contractor's obligation stated above, Forest 
Service shall reimburse the contractor for the excess.
    (2) Negligent Fire. A ``negligent fire'' is a fire caused by the 
negligence or fault of the Contractor's operations including, but not 
limited to, one caused by smoking by persons engaged in the 
Contractor's operations during the course of their employment, or 
during rest or lunch periods; or if the Contractor's failure to comply 
with requirements under this contract results in a fire starting, or 
permits a fire to spread. Damages and the cost of suppressing negligent 
fires shall be borne by the Contractor.
    (3) Other Fires on Contract Area. Forest Service shall pay the 
Contractor, at firefighting rates common in the area or at prior agreed 
rates, for equipment or personnel furnished by the Contractor at the 
request of Forest Service, on any fire on contract area other than an 
operations fire or a negligent fire.
    (c) Contractor's Responsibility for Notification in Case of Fire. 
The Contractor shall immediately notify the Government of any fires 
sighted on or in the vicinity of the work site.
    (d) Contractor's Responsibility for Responding to Emergencies. When 
directed by the Contracting Officer, the Contractor shall temporarily 
redirect employees and equipment from the work site for emergency work 
(anticipated to be restricted to firefighting). This is considered to 
be within the general scope of the contract. An equitable adjustment 
for any such redirection of employees and equipment will be made under 
the FAR clause at 52.243-4, Changes.
    (e) Performance by the Contractor. Where the Contractor's 
employees, agents, contractors, subcontractors, or their employees or 
agents perform the Contractor's operations in connection with fire 
responsibilities, the Contractor's obligations shall be the same as if 
performance was by Contractor.
    (f) State Law. The Contractor shall not be relieved by the terms of 
this contract of any liability to the United States for fire 
suppression costs recovered in an action based on State law, except for 
such costs resulting from operations fires. Amounts due to the 
Contractor for firefighting expenditures on operations fires shall not 
be withheld pending settlement of any such claim or action based on 
State law.


(End of Clause)

    Dated: February 4, 2016.
Gregory L. Parham,
U.S. Department of Agriculture, Assistant Secretary for Administration.
[FR Doc. 2016-02745 Filed 2-11-16; 8:45 am]
BILLING CODE 3410-TX-P