[Federal Register Volume 83, Number 248 (Friday, December 28, 2018)]
[Rules and Regulations]
[Pages 67123-67124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28142]
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DEPARTMENT OF HOMELAND SECURITY
48 CFR Parts 3019 and 3052
[Docket No. DHS-2018-0024]
RIN 1601-AA83
Rescinding Department of Homeland Security Acquisition Regulation
(HSAR) Clause Regarding Small Business Subcontracting Plan Reporting
(HSAR Case 2017-001)
AGENCY: Office of the Chief Procurement Officer, Department of Homeland
Security (DHS).
ACTION: Final rule.
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SUMMARY: This final rule amends the HSAR by removing the HSAR clause
regarding small business subcontracting plan reporting because the
requirements of this clause duplicate the requirements in a Federal
Acquisition Regulation (FAR) clause. The HSAR clause is no longer
needed to provide guidance to contractors and DHS proposes to remove
the clause from the HSAR.
DATES: Effective Date: January 28, 2019.
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] for
clarification of content. When using email, include HSAR Case 2017-001
in the ``Subject'' line.
SUPPLEMENTARY INFORMATION:
I. Background
In a Notice of Proposed Rulemaking (NPRM) published in the Federal
Register (83 FR 25638) on June 4, 2018, the Department of Homeland
Security, Office of the Chief Procurement Officer, proposed to remove
HSAR clause 3052.219-70 and the cross-reference to it found in
paragraph (a) of 48 CFR 3019.708-70.
As explained in the NPRM, on December 4, 2003, DHS published an
interim final rule to establish the Department of Homeland Security
Acquisition Regulation (HSAR). 68 FR 67867 (Dec. 4, 2003). On May 2,
2006, DHS published a final rule, which adopted the interim rule with
some changes in response to public comment (HSAR final rule). 71 FR
25759 (May 2, 2006). 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 (June 16, 2010). This change to the FAR was issued under
Federal Acquisition Circular 2005-42 of June 16, 2010. 75 FR 34291
(June 16, 2010). 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 amending the HSAR 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 also to amending the authority citation for
part 3019 to conform with the authority of 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\
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\1\ See Public Law 111-350, (Jan. 4, 2011).
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II. Discussion and Analysis
Interested parties were given until July 5, 2018, to comment on the
proposed changes. No public comments were submitted in response to the
proposed rule. Accordingly, DHS will adopt the proposal as set forth in
the NPRM without change.
III. 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.
[[Page 67124]]
DHS 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.
IV. Regulatory Flexibility Act
This action rescinds HSAR clause 3052.219-70 and, as such, DHS
certifies that this final rule will not 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.
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).
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.
For the reasons set forth above, DHS amends 48 CFR parts 3019 and
3052 as follows:
PART 3019--SMALL BUSINESS PROGRAMS
0
1. The authority citation for 48 CFR part 3019 is revised to read as
follows:
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.
3019.708-70 [Amended]
0
2. Section 3019.708-70 is amended by:
0
a. Removing paragraph (a); and
0
b. Redesignating paragraphs (b) and (c) as paragraphs (a) and (b).
PART 3052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. The authority citation for 48 CFR part 3052 continues to read as
follows:
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.
3052.219-70 [Removed]
0
4. Remove section 3052.219-70.
Soraya Correa,
Chief Procurement Officer, Department of Homeland Security.
[FR Doc. 2018-28142 Filed 12-27-18; 8:45 am]
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