[Federal Register Volume 81, Number 204 (Friday, October 21, 2016)]
[Unknown Section]
[Pages 73005-73006]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25317]
Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 /
Rules
[[Page 73005]]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 203 and 252
[Docket DARS-2016-0016]
RIN 0750-AI94
Defense Federal Acquisition Regulation Supplement: Display of
Hotline Posters (DFARS Case 2016-D018)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: This rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to consolidate the multiple hotline posters into one
poster that delineates multiple reportable offenses.
DATES: Effective October 21, 2016.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571-372-
6106.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 81 FR
28816 on May 10, 2016, to revise DFARS clause 252.203-7004, Display of
Hotline Posters, to reduce the number of fraud, waste, and abuse
hotline posters required to be displayed and to remove the United
States only restriction for use of the poster. One respondent submitted
a public comment in response to the proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in the development of the final
rule. A discussion of the comments and the changes made to the rule as
a result of the comment is provided, as follows:
A. Summary of Significant Changes From the Proposed Rule
The following two changes from the proposed rule are based on
internal Government comments:
At DFARS 203.1003, paragraph (c) is added to permit
alternative means of notifying contractor personnel of the DoD Hotline
program in lieu of displaying the posters, when performance is outside
the United States and security concerns can be appropriately
demonstrated to the contracting officer. In the DFARS 252.203-7004
clause, a similar statement is also added at paragraph (b)(1)(ii).
The final rule also removes from the DFARS 252.203-7004
clause the statement regarding assistance with translation. The
contractor bears the individual and financial responsibility for
translation and accuracy of translated hotline posters.
B. Analysis of Public Comment
Comment: The respondent supports the proposed rule to display a
consolidated poster, and recommends the DoD Office of the Inspector
General consider publishing several poster variations that combine
these three initiatives and that any one of these posters may be
displayed at the option of the contractor. This will permit contractors
to periodically rotate posters in order to refresh interest and
attention by contractor employees, and also permit contractors to
select posters that more closely match their respective corporate
culture. In addition, the respondent recommended that at least some
posters emphasize the benefits of a culture that does not tolerate
fraud or human trafficking and encourages reporting, rather than just
the negative, punitive aspects of compliance failure.
Response: This comment is outside the scope of this rule and no
change is made to the rule.
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
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
and is summarized as follows:
The Defense Federal Acquisition Regulation Supplement (DFARS)
clause 252.203-7004, Display of Hotline Posters, required three
separate hotline posters which have now been combined into one poster.
The objective of the rule is to reduce the number of fraud, waste, and
abuse hotline posters required to be displayed and to remove the United
States only restriction for use of the poster.
There were no public comments in response to the initial regulatory
flexibility analysis.
DFARS clause 252.203-7004 is required for use in contracts with an
estimated value greater than $5.5 million, except contracts awarded
using Federal Acquisition Regulations part 12 commercial item
procedures for the acquisition of commercial item. According to data
available in the Federal Procurement Data System, in fiscal year (FY)
2015, DoD awarded 4,180 contracts meeting this criteria to 2,656 unique
vendors, of which 1,598 (approximately 60% percent) were small
businesses. DoD estimates the total number of small businesses affected
by this rule to be approximately 1,920 small businesses (the total for
FY 2015 plus 20 percent to accommodate subcontractor applicability).
There are no reporting or recordkeeping burdens associated with
this rule.
The rule has no significant economic impact on small entities. DoD
did not identify any significant alternatives that would reduce the
impact on small entities and still meet the objectives of the statute.
V. Paperwork Reduction Act
The 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).
List of Subjects in 48 CFR Parts 203 and 252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 203 and 252 are amended as follows:
0
1. The authority citation for parts 203 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
0
2. Amend section 203.1003 by adding paragraph (c) to read as follows:
203.1003 Requirements.
* * * * *
(c) Fraud hotline poster. For contracts performed outside the
United States, when security concerns can be
[[Page 73006]]
appropriately demonstrated, the contracting officer may provide the
contractor the option to publicize the program to contractor personnel
in a manner other than public display of the poster required by
203.1004(b)(2)(ii), such as private employee written instructions and
briefings.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Amend section 252.203-7004 by--
0
a. Removing the clause date ``(OCT 2015)'' and adding ``(OCT 2016)'' in
its place;
0
b. Revising paragraph (b);
0
c. Removing paragraph (c);
0
d. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
respectively;
0
e. In newly redesignated paragraph (c)(1), removing ``These DoD hotline
posters'' and adding ``The DoD hotline poster'' in its place and
removing ``or are also'' and adding ``or is also'' in its place;
0
f. In newly redesignated paragraph (c)(2), removing ``posters are'' and
adding ``poster is'' in its place and removing the last sentence;
0
g. In the newly redesignated paragraph (c)(3), removing ``these
required posters'' and adding ``the required poster'' in its place; and
0
h. In newly designated paragraph (d), removing the phrase ``the
substance of'' and removing ``paragraph (e)'' and adding ``paragraph
(d)'' in its place.
The revision reads as follows:
252.203-7004 Display of Hotline Posters.
* * * * *
(b) Display of hotline poster(s). (1)(i) The Contractor shall
display prominently the DoD fraud, waste, and abuse hotline poster
prepared by the DoD Office of the Inspector General, in effect at time
of contract award, in common work areas within business segments
performing work under Department of Defense (DoD) contracts.
(ii) For contracts performed outside the United States, when
security concerns can be appropriately demonstrated, the contracting
officer may provide the contractor the option to publicize the program
to contractor personnel in a manner other than public display of the
poster, such as private employee written instructions and briefings.
(2) If the contract is funded, in whole or in part, by Department
of Homeland Security (DHS) disaster relief funds and the work is to be
performed in the United States, the DHS fraud hotline poster shall be
displayed in addition to the DoD hotline poster. If a display of a DHS
fraud hotline poster is required, the Contractor may obtain such poster
from--
(i) DHS Office of Inspector General/MAIL STOP 0305, Attn: Office of
Investigations--Hotline, 245 Murray Lane SW., Washington, DC 20528-
0305; or
(ii) Via the Internet at https://www.oig.dhs.gov/assets/Hotline/DHS_OIG_Hotline-optimized.jpg.
* * * * *
[FR Doc. 2016-25317 Filed 10-20-16; 8:45 am]
BILLING CODE 5001-06-P