[Federal Register: September 2, 2009 (Volume 74, Number 169)]
[Proposed Rules]
[Page 45394-45396]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02se09-21]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 8, 12, 15, 42, and 49
[FAR Case 2008-016; Docket 2009-0032, Sequence 1]
RIN 9000-AL45
Federal Acquisition Regulation; FAR Case 2008-016, Termination
for Default Reporting
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA),
[[Page 45395]]
and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to establish procedures for
contracting officers to provide contractor information into the Past
Performance Information System (PPIRS). This case sets forth
requirements for reporting defective cost or pricing data and
terminations for cause or default. Evaluation of past performance
information, especially terminations, manages risks associated with
timely, effective and cost efficient completion of contracts, a key
objective of the President's March 4, 2009, Memorandum on Government
Contracting.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat on or before November 2, 2009 to be considered
in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAR case 2008-016 by any of
the following methods:
Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by inputting
``FAR Case 2008-016'' into the field ``Keyword''. Select the link that
corresponds with FAR Case 2008-016. Follow the instructions provided to
submit your comment. Please include your name, company name (if any),
and ``FAR Case 2008-016'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VPR), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers,
Washington, DC 20405.
Instructions: Please submit comments only and cite FAR case 2008-
016 in all correspondence related to this case. All comments received
will be posted without change to http://www.regulations.gov, including
any personal and/or business confidential information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Beverly Cromer, Procurement
Analyst, at (202) 501-1448 for clarification of content. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAR case 2008-
016.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed case is subsequent to and supplements FAR Case 2006-
022, Contractor Performance Information, that was published in the
Federal Register as a final rule on July 1, 2009 (74 FR 31557). FAR
Case 2006-022 provided requirements for contractor performance
information to be entered into PPIRS. This case, at the request of the
Office of Federal Procurement Policy (OFPP), expands on FAR Case 2006-
022 by adding requirements for other contractor information to be
entered into PPIRS, such as defective cost or pricing data and
terminations for cause or default.
The Councils further considered the memorandum issued by the Office
of the Under Secretary of Defense, subject Termination Notification
dated July 23, 2008, in drafting this proposed rule. (See
www.acq.osd.mil/dpap/ops/policy_vault_archive.html.)
This proposed FAR rule includes the following:
1. Addition of language in FAR 8.406-8, Reporting, for the ordering
activity contracting officer, in accordance with agency procedures, to
ensure that information related to termination for cause notices and
any amendments are included in PPIRS, and in the event the termination
for cause is subsequently converted to a termination for convenience,
or is otherwise withdrawn, the contracting officer shall ensure that a
notice of the conversion or withdrawal is included in PPIRS.
2. Addition of language in FAR 12.403(c)(4) for the contracting
officer, in accordance with agency procedures, to ensure that
information related to termination for cause notices and any amendments
are included in PPIRS in accordance with FAR 42.1503(f), and, in the
event the termination for cause is subsequently converted to a
termination for convenience, or is otherwise withdrawn, the contracting
officer shall ensure that a notice of the conversion or withdrawal is
included in PPIRS.
3. Addition of language in FAR 15.407-1(d) for the contracting
officer, in accordance with agency procedures, to ensure that
information relating to a determination that the contractor submitted
defective cost or pricing data is provided for inclusion in PPIRS.
4. Addition of language in FAR 42.1503(f) setting forth the
procedure for contracting officers within 10 days after determining
that a contractor has submitted defective cost or pricing data, or a
termination for cause or default notice has been issued or any
subsequent conversions or withdrawals have been issued, to ensure
information related to these issues are provided for inclusion in
PPIRS.
5. Addition of language in FAR 49.402-8, Reporting Information, for
the contracting officer, in accordance with agency procedures, to
ensure that information relating to the termination for default notice
and any subsequent conversions or withdrawals are provided for
inclusion in PPIRS.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Councils do not expect this proposed rule to have 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.,
because the rule does not impose any additional requirements on small
businesses. The collection and reporting of contractor information is
an internal process to the Government. An Initial Regulatory
Flexibility Analysis has, therefore, not been performed. We invite
comments from small businesses and other interested parties. The
Councils will consider comments from small entities concerning the
affected FAR Parts 8, 12, 15, 42, and 49 in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should
cite 5 U.S.C. 601, et seq. (FAR case 2008-016), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose information collection requirements
that require the approval of the Office of Management and Budget under
44 U.S.C. Chapter 35, et seq.
List of Subjects in 48 CFR Parts 8, 12, 15, 42, and 49
Government procurement.
Dated: August 27, 2009.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 8, 12,
15, 42, and 49 as set forth below:
1. The authority citation for 48 CFR parts 8, 12, 15, 42, and 49
continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[[Page 45396]]
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
2. Add section 8.406-8 to read as follows:
8.406-8 Reporting.
An ordering activity contracting officer, in accordance with agency
procedures, shall ensure that information related to termination for
cause notices and any amendments are included in PPIRS in accordance
with 42.1503(f). In the event the termination for cause is subsequently
converted to a termination for convenience, or is otherwise withdrawn,
the contracting officer shall ensure that a notice of the conversion or
withdrawal is included in PPIRS.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
3. Amend section 12.403 by adding paragraph (c)(4) to read as
follows:
12.403 Termination.
* * * * *
(c) * * *
(4) The contracting officer, in accordance with agency procedures,
shall ensure that information related to termination for cause notices
and any amendments are included in PPIRS in accordance with 42.1503(f).
In the event the termination for cause is subsequently converted to a
termination for convenience, or is otherwise withdrawn, the contracting
officer shall ensure that a notice of the conversion or withdrawal is
included in PPIRS.
* * * * *
PART 15--CONTRACTING BY NEGOTIATION
4. Amend section 15.407-1 by adding a new sentence to the end of
paragraph (d) to read as follows:
15.407-1 Defective cost or pricing data.
* * * * *
(d) * * * When the contracting officer determines that the
contractor submitted defective cost or pricing data, the contracting
officer, in accordance with agency procedures, shall ensure that
information relating to the determination is provided for inclusion in
PPIRS in accordance with 42.1503(f).
* * * * *
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
5. Amend section 42.1502 by adding paragraph (i) to read as
follows:
42.1502 Policy.
* * * * *
(i) Agencies shall promptly provide other contractor information
for inclusion in PPIRS in accordance with 42.1503(f).
6. Amend section 42.1503 by removing from paragraph (a) the words
``office, end'' and adding ``office, audit office, end'' in its place;
and adding paragraph (f) to read as follows:
42.1503 Procedures.
* * * * *
(f) Other contractor information. Within 10 days after a
contracting officer determines that a contractor has submitted
defective cost or pricing data, or a termination for cause or default
notice has been issued or any subsequent conversions or withdrawals
have been issued, agencies shall ensure information related to these
issues are provided for inclusion in PPIRS.
PART 49--TERMINATION OF CONTRACTS
7. Add section 49.402-8 to read as follows:
49.402-8 Reporting Information.
The contracting officer, in accordance with agency procedures,
shall ensure that information relating to the termination for default
notice and any subsequent conversions or withdrawals are provided for
inclusion in PPIRS in accordance with 42.1503(f).
[FR Doc. E9-21176 Filed 9-1-09; 8:45 am]
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