[Federal Register Volume 84, Number 154 (Friday, August 9, 2019)]
[Rules and Regulations]
[Pages 39201-39203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16771]



Defense Acquisition Regulations System

48 CFR Parts 203 and 252

[Docket DARS-2019-0042]
RIN 0750-AK48

Defense Federal Acquisition Regulation Supplement: Modification 
of DFARS Clauses Related to the Display of Hotline Posters (DFARS Case 

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Final rule.


SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to update contact information 
in two DFARS clauses that address the display of hotline posters.

DATES: Effective August 9, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, telephone 571-372-


I. Background

    DoD is amending the DFARS to update the DoD hotline poster online 
address included in DFARS clause 252.203-7004, Display of Hotline 
Posters, and to update the DoD Office of the Inspector General (OIG) 
contact information in DFARS clause 252.203-7003, Agency Office of the 
Inspector General.
    DFARS clause 252.203-7004 is included in noncommercial 
solicitations and contracts with an estimated value exceeding $5 
million, in lieu of the clause at Federal Acquisition Regulation (FAR) 
52.203-14, Display of Hotline Posters. The DFARS clause requires 
contractors to display DoD hotline posters when contract performance is 
in the United States or overseas and provides contractors with an 
online address to use to obtain the current DoD hotline poster. This 
rule updates the DoD hotline poster online address in the clause, which 
is no longer accurate.

[[Page 39202]]

    Additionally, DoD is amending the DFARS to update the DoD OIG 
contact information in DFARS clause 252.203-7003 and subpart 203.1003. 
This rule updates the mailing address to correct the suite number and 
provides a website for the DoD OIG.

II. Discussion and Analysis

    The modification of DFARS clause 252.203-7004 supports a 
recommendation from the DoD Regulatory Reform Task Force. On February 
24, 2017, the President signed Executive Order (E.O.) 13777, 
``Enforcing the Regulatory Reform Agenda,'' which established a Federal 
policy ``to alleviate unnecessary regulatory burdens'' on the American 
people. In accordance with E.O. 13777, DoD established a Regulatory 
Reform Task Force to review and validate DoD regulations, including the 
DFARS. A public notice of the establishment of the DFARS Subgroup to 
the DoD Regulatory Reform Task Force, for the purpose of reviewing 
DFARS provisions and clauses, was published in the Federal Register at 
82 FR 35741 on August 1, 2017, and requested public input. Two 
respondents submitted public comments on DFARS clause 252.203-7004, 
which are summarized below:
    Comment: The respondents advised that the DFARS clause should be 
eliminated; or, at a minimum, revised to either allow the electronic 
poster to suffice, or to allow the contractor's internal anonymous 
reporting channels to substitute for the DoD hotline poster. The 
respondents expressed that it is burdensome and costly to hang the 
posters and translate them into the local language, when necessary. The 
respondents noted that contractors are required under FAR 52.203-13, 
Contractor Code of Business Ethics and Conduct, to have robust ethics 
and compliance programs, reporting channels for misconduct, and to 
disclose evidence of certain types of misconduct to the Inspector 
General's office. The respondents state that requiring the distribution 
and translation of posters does not add benefits that outweigh the 
costs of the requirement.
    Response: In support of the requirements of Executive Order 13627, 
Strengthening Protections Against Trafficking in Persons in Federal 
Contracts, it is a DoD initiative to ensure that no taxpayer resources 
are used to support human trafficking. DFARS clause 252.203-7004 is 
used in lieu of the FAR clause and requires the display of hotline 
posters for applicable contracts being performed overseas, as well 
within the United States. DoD requires posters to be displayed to 
ensure that contractor employees who do not have access to the internet 
are aware of their labor rights and have a means of reporting suspected 
labor violations directly to the DoD OIG. It is also necessary that the 
posters be translated into the local language so that contractor 
employees understand the content of the posters.
    The DoD Task Force reviewed the requirements of DFARS clause 
252.203-7004, and determined that the DFARS clause was out of date and 
recommended its modification to update the contact information. No 
change is made to the clause as a result of the public comments 

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only updates contact information in two existing clauses. 
The rule does not impose any new requirements on contracts at or below 
the simplified acquisition threshold and for commercial items, 
including commercially available off-the-shelf items.

IV. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the FAR is Office of 
Federal Procurement Policy statute (codified at title 41 of the United 
States Code). Specifically, 41 U.S.C. 1707(a)(1) requires that a 
procurement policy, regulation, procedure or form (including an 
amendment or modification thereof) must be published for public comment 
if it relates to the expenditure of appropriated funds, and has either 
a significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because DoD is not issuing a new regulation; rather, this rule is 
merely updating contact information already provided for in existing 

V. Executive Orders 12866 and 13563

    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.

VI. Executive Order 13771

    This final rule is not subject to E.O. 13771, because this rule is 
not a significant regulatory action under E.O. 12866.

VII. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section IV. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required, and none has been prepared.

VIII. 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 Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 203 and 252 are amended as follows:

1. The authority citation for 48 CFR parts 203 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.


2. Amend section 203.1003(b) by--
a. Removing ``Investigative Policy and Oversight'' and adding 
``Administrative Investigations'' in its place;
b. Removing ``Suite 11H25'' and adding ``Suite 14L25'' in its place; 
b. Removing ``866-429-8011.'' and adding ``866-429-8011. Website: 
https://www.dodig.mil/Programs/Contractor-Disclosure-Program/.'' in its 

[[Page 39203]]


252.203-7003   [Amended]

3. Amend section 252.203-7003 by--
a. Removing the clause date ``(DEC 2012)'' and adding ``(AUG 2019)'' in 
its place;
a. Removing ``Investigative Policy and Oversight'' and adding 
``Administrative Investigations'' in its place;
b. Removing ``Suite 11H25'' and adding ``Suite 14L25'' in its place; 
b. Removing ``866-429-8011.'' and adding ``866-429-8011. Website: 
https://www.dodig.mil/Programs/Contractor-Disclosure-Program/.'' in its 

252.203-7004  [Amended]

4. Amend section 252.203-7004 by--
a. Removing the clause date ``(MAY 2019)'' and adding ``(AUG 2019)'' in 
its place; and
c. In paragraph (c)(1), removing ``http://www.dodig.mil/hotline/
hotline_posters.htm'' and adding, ``https://www.dodig.mil/Resources/Posters-and-Brochures/'' in its place.

[FR Doc. 2019-16771 Filed 8-8-19; 8:45 am]