[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]



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.


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.


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\

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

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:


1. The authority citation for 48 CFR part 3019 is revised 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.

3019.708-70  [Amended]

2. Section 3019.708-70 is amended by:
a. Removing paragraph (a); and
b. Redesignating paragraphs (b) and (c) as paragraphs (a) and (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.

3052.219-70  [Removed]

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]