[Federal Register Volume 83, Number 107 (Monday, June 4, 2018)]
[Proposed Rules]
[Pages 25638-25639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11617]



48 CFR Parts 3019 and 3052

[Docket No. DHS-2018-0024]
RIN 1601-AA83

Rescinding Department of Homeland Security Acquisition Regulation 
(HSAR) Clause 3052.219-70, Small Business Subcontracting Plan Reporting 
(HSAR Case 2017-001)

AGENCY: Office of the Chief Procurement Officer, Department of Homeland 
Security (DHS).

ACTION: Proposed rule.


SUMMARY: DHS is proposing to deregulate HSAR clause 3052.219-70 as the 
requirements of this clause duplicate the requirements in Federal 
Acquisition Regulation (FAR) clause 52.219-9, Small Business 
Subcontracting Plan. As such, HSAR clause 3052.219-70 is no longer 
needed to provide guidance to contractors and DHS proposes to remove 
the clause from the HSAR.

DATES: Interested parties should submit written comments to one of the 
addresses shown below on or before July 5, 2018, to be considered in 
the formation of the final rule.

ADDRESSES: Submit comments identified by HSAR Case 2017-001, Rescinding 
HSAR clause 3052.219-70, Small Business Subcontracting Plan Reporting, 
using any of the following methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by entering 
``HSAR Case 2017-001'' under the heading ``Enter Keyword or ID'' and 
selecting ``Search.'' Select the link ``Submit a Comment'' that 
corresponds with ``HSAR Case 2017-001.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``HSAR Case 2017-001'' on your attached 
     Fax: (202) 447-0520.
     Mail: Department of Homeland Security, Office of the Chief 
Procurement Officer, Acquisition Policy and Legislation, ATTN: Ms. 
Candace Lightfoot, 245 Murray Lane, Mail Stop 0080, Washington, DC 
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check http://www.regulations.gov, approximately two to three days after submission 
to verify posting (except allow 30 days for posting of comments 
submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Candace Lightfoot, Procurement 
Analyst, DHS, Office of the Chief Procurement Officer, Acquisition 
Policy and Legislation at (202) 447-0882 or email [email protected]. When 
using email, include HSAR Case 2017-001 in the ``Subject'' line.


I. Background

    On December 4, 2003, DHS published an interim final rule to 
establish the Department of Homeland Security Acquisition Regulation 
(HSAR). 68 FR 67867. On May 2, 2006, DHS published

[[Page 25639]]

a final rule, which adopted the interim rule with some changes in 
response to public comment (HSAR final rule). 71 FR 25759. The HSAR 
final rule finalized, among other things, HSAR clause 3052.219-70, 
Small Business Subcontracting Reporting Plan (48 CFR 3052.219-70). HSAR 
clause 3052.219-70 requires contractors to: (a) Enter the information 
for the Subcontracting Report for Individual Contracts (formally the 
Standard Form 294 (SF-294)) and the Summary Subcontract Report 
(formally the Standard Form 295 (SF-295)) into the Electronic 
Subcontracting Reporting System (eSRS) at www.esrs.gov; and (b) include 
HSAR clause 3052.219.70 in all subcontracts that include the clause at 
(FAR) 48 CFR 52.219-9. The eSRS is a web-based system, which replaces 
the Standard Forms 294 and 295 as the mechanism for submitting reports 
required by the small business subcontracting program.
    On June 16, 2010, the Civilian Agency Acquisition Council and the 
Defense Acquisition Regulations Council issued a final rule amending 
the Federal Acquisition Regulation (FAR) to require contractors' small 
business subcontract reports be submitted using the eSRS, rather than 
Standard Forms 294 and 295. 75 FR 34260; FAR Case 2005-040. This change 
to the FAR was issued under Federal Acquisition Circular 2005-42 of 
June 16, 2010. 75 FR 34291. As a result of the FAR revision HSAR clause 
3052.219-70 is no longer needed to provide guidance to contractors on 
the eSRS requirements. Therefore, DHS is proposing to remove HSAR 
clause 3052.219-70 and the cross-reference to it found in paragraph (a) 
of 48 CFR 3019.708-70.
    In addition, DHS is proposing to amend the authority citation for 
part 3019 to conform the authority to the Positive Law Codification of 
Title 41, United States code, ``Public Contracts''. The new 
codification of Title 41 was enacted on January 4, 2011.\1\

    \1\ See Public Law 111-350, (Jan. 4, 2011).

II. Executive Orders 12866, 13563, and 13771

    Executive Orders 13563 (``Improving Regulation and Regulatory 
Review'') and 12866 (``Regulatory Planning and Review'') direct 
agencies to assess the 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). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility. Executive Order 13771 (``Reducing 
Regulation and Controlling Regulatory Costs'') directs agencies to 
reduce regulation and control regulatory costs and provides that ``for 
every one new regulation issued, at least two prior regulations be 
identified for elimination, and that the cost of planned regulations be 
prudently managed and controlled through a budgeting process.''
    The Office of Management and Budget (OMB) has not designated this 
rule a ``significant regulatory action,'' under section 3(f) of 
Executive Order 12866. Accordingly, OMB has not reviewed it. OMB 
considers this rule to be an Executive Order 13771 deregulatory action. 
See OMB's Memorandum ``Guidance Implementing Executive Order 13771, 
Titled `Reducing Regulation and Controlling Regulatory Costs''' (April 
5, 2017). This rule is not a major rule under 5 U.S.C. 804.
    There are no quantified costs or cost savings to this rule as it 
simply rescinds requirements that have already been shifted to the FAR. 
DHS believes there are non-monetized efficiency and streamlining 
benefits to this rule as it removes outdated provisions of the HSAR.

III. Regulatory Flexibility Act

    This action rescinds HSAR clause 3052.219-70 and, as such, DHS does 
not expect the proposed change to result in a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.

IV. 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).
    The total hours and costs associated with existing HSAR clause 
3052.219-70, as set forth in HSAR OMB Control Number, 1600-0003, Post-
award Contract Information, are as follows:
    Estimated Respondents: 11,885.
    Average Responses Annually: 3.
    Total Annual Responses: 35,655.
    Estimated Hours: 12.
    Total Hours: 427,860.
    Hourly Rate: $67.86.
    Total Costs: $29,034,579.60.

List of Subjects in 48 CFR Parts 3019 and 3052

    Government procurement.

    Therefore, DHS proposes to revise 48 CFR parts 3019 and 3052 as 


1. Revise the authority citation for 48 CFR part 3019 to read as 

    Authority: 5 U.S.C. 301-302, 41 U.S.C. 1702, 41 U.S.C. 1707, and 
48 CFR part 1 and subpart 1.3.

2. Amend section 3019.708-70 by removing paragraph (a) and 
redesignating paragraph (b) as paragraph (a), and paragraph (c) as 
paragraph (b).


3. The authority citation for 48 CFR part 3052 continues to read as 

    Authority: 5 U.S.C. 301-302, 41 U.S.C. 1702, 41 U.S.C. 1707, and 
48 CFR part 1 and subpart 1.3

4. Remove clause 3052.219-70.

Soraya Correa,
Chief Procurement Officer, Department of Homeland Security.
[FR Doc. 2018-11617 Filed 6-1-18; 8:45 am]