[Federal Register Volume 72, Number 20 (Wednesday, January 31, 2007)]
[Proposed Rules]
[Pages 4475-4476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1534]
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DEPARTMENT OF STATE
48 CFR Part 601
[Public Notice 5684]
RIN 1400-AB98
Department of State Acquisition Regulation
AGENCY: State Department.
ACTION: Proposed rule.
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SUMMARY: This proposed rule makes one change to the DOSAR. It revises
the DOSAR to expand contracting authority to non-U.S. citizen locally
employed staff, i.e., Foreign Nationals and Third Country Nationals.
Presently, only U.S. citizens who are Government employees may be
appointed as contracting officers.
DATES: The Department will accept comments from the public up to April
2, 2007.
ADDRESSES: You may submit comments, identified by any of the following
methods:
E-mail: [email protected]. You must include the RIN in the
subject line of your message.
Mail (paper, disk, or CD-ROM submissions): Gladys Gines,
Procurement Analyst, Department of State, Office of the Procurement
Executive, 2201 C Street, NW., Suite 603, State Annex Number 6,
Washington, DC 20522-0602.
Fax: 703-875-6155.
Persons with access to the Internet may also view this notice and
provide comments by going to the regulations.gov Web site at http://www.regulations.gov/index.cfm.
FOR FURTHER INFORMATION CONTACT: Gladys Gines, Procurement Analyst,
Department of State, Office of the Procurement Executive, 2201 C
Street, NW., Suite 603, State Annex Number 6, Washington, DC 20522-
0602; e-mail address: [email protected].
SUPPLEMENTARY INFORMATION: The Department of State initiated a pilot
program in which a non-U.S. citizen locally employed staff (LES) member
at an Embassy was given contracting authority at $2,500 (the micro-
purchase threshold). The pilot resulted in savings in time to process
transactions, allowed the Contracting Officer at the Embassy additional
time to concentrate on other procurement and non-procurement issues,
and increased morale among LES staff through a sense of greater
empowerment. Although the pilot did not identify specific cost or
headcount savings, the Department believes that further dissemination
of contracting authority at increased levels up to $25,000 presents an
opportunity for overseas posts (Embassies and Consulates) to achieve
reductions in cost and headcount while improving service, largely by
providing management flexibility to reconfigure the work portfolios of
overseas contracting officers. Approximately 97% of all overseas
procurement transactions are below $25,000. Effective management
controls will minimize the risks associated with providing contracting
authority to non-U.S. citizen LES. These controls are similar to those
currently used successfully in the purchase card program for similar
transactions. They consist of:
Review of LES transactions on a monthly basis by a U.S.
citizen contracting officer;
Determination and approval of adequate local conditions
such as rule of law and level of corruption as well as the integrity of
LES staff recommended for the contracting authority;
Evaluation of LES delegated procurement by the Office of
the Procurement Executive;
Certification by the Ambassadors on an annual basis that
the management controls are sufficient; and
Time-limited contracting officer authority to LES to
permit periodic revalidation of management controls.
Because the current DOSAR language states that all contracting officers
must be U.S. citizens, a change to the regulation is required. Because
the rulemaking process will take some time, the Department will select
several additional pilot posts to continue the deployment process
during the rulemaking timeframe.
[[Page 4476]]
Regulatory Findings
Administrative Procedure Act
In accordance with provisions of the Administrative Procedure Act
governing rules promulgated by federal agencies that affect the public
(5 U.S.C. 552), the Department is publishing this proposed rule and
inviting public comment.
Regulatory Flexibility Act
The Department of State, in accordance with the Regulatory
Flexibility Act (5 U.S.C. 605(b)), has reviewed this regulation and, by
approving it, certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Unfunded Mandates Act of 1995
This rule will not result in the expenditure by State, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any year and it will not significantly or uniquely
affect small governments. Therefore, no actions were deemed necessary
under the provisions of the Unfunded Mandates Act of 1995.
Small Business Regulatory Enforcement Fairness Act of 1996
This rule is not a major rule as defined by section 804 of the
Small Business Regulatory Enforcement Act of 1996. This rule will not
result in an annual effect on the economy of $100 million or more; a
major increase in costs or prices; or significant adverse effects on
competition, employment, investment, productivity, innovation, or on
the ability of United States-based companies to compete with foreign
based companies in domestic and import markets.
Executive Order 13132
This rule will not have substantial direct effects on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government. Therefore, in accordance with section 6 of
Executive Order 13132, it is determined that this rule does not have
sufficient federalism implications to require consultations or warrant
the preparation of a federalism summary impact statement.
Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Part 601
Government procurement.
Accordingly, for reasons set forth in the preamble, title 48,
chapter 6 of the Code of Federal Regulations is proposed to be amended
as follows:
Subchapter A--General
PART 601--DEPARTMENT OF STATE ACQUISITION REGULATION SYSTEM
1. The authority citation for 48 CFR part 601 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 22 U.S.C. 2658.
2. Section 601.603-3 is amended by revising paragraph (c) to read
as set forth below:
601.603-3 Appointment.
* * * * *
(c) Non-Federal employees. Only United States Government employees
shall be appointed as contracting officers. For acquisitions at $25,000
and below only, this includes locally employed staff (i.e., Foreign
Service Nationals and Third Country nationals). Personal services
contractors are not eligible for appointment as DOS contracting
officers.
* * * * *
Dated: January 23, 2007.
Corey M. Rindner,
Procurement Executive, Department of State.
[FR Doc. E7-1534 Filed 1-30-07; 8:45 am]
BILLING CODE 4710-24-P