[Federal Register Volume 73, Number 150 (Monday, August 4, 2008)]
[Proposed Rules]
[Pages 45194-45195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-17790]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 503 and 552
[GSAR Case 2008-G502; Docket 2008-0007; Sequence 12]
RIN 3090-AI63
General Services Acquisition Regulation; GSAR Case 2008-
G502;Improper Personal Conflicts of Interest
AGENCY: Office of the Chief Acquisition Officer, General Services
Administration (GSA).
ACTION: Proposed rule.
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SUMMARY: The General Services Administration (GSA) is proposing to
amend the General Services Acquisition Regulation (GSAR) to revise
language regarding requirements for improper business practices and
personal conflicts of interest.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat on or before October 3, 2008 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments identified by GSAR Case 2008-G502 by any of
the following methods:
Regulations.gov: http://www.regulations.gov.Submit
comments via the Federal eRulemaking portal by inputting ``GSAR Case
2008-G502'' under the heading ``Comment or Submission''. Select the
link ``Send a Comment or Submission'' that corresponds with GSAR Case
2008-G502. Follow the instructions provided to complete the ``Public
Comment and Submission Form''. Please include your name, company name
(if any), and ``GSAR Case 2008-G502'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VPR), 1800 F Street, NW, Room 4041, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite GSAR Case 2008-
G502 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: For clarification of content, contact
Mr. Ernest Woodson at (202) 501-3775, or by e-mail at
[email protected]. For information pertaining to the status or
publication schedules, contact the Regulatory Secretariat (VPR), Room
4041, GS Building, Washington, DC 20405, (202) 501-4755. Please cite
GSAR Case 2008-G502.
SUPPLEMENTARY INFORMATION:
A. Background
The General Services Administration (GSA) is amending the General
Services Administration Acquisition Regulation (GSAR) to update the
text addressing GSAR Part 503, Improper Business Practices and Personal
Conflicts of Interest; Subpart 503.1, Safeguards; Subpart 503.2,
Contractor Gratuities to Government Personnel; Subpart 503.4,
Contingent Fees; Subpart 503.5, Other Improper Business Practices;
Subpart 503.7, Voiding and Rescinding Contracts; and Subpart 503.10,
Contractor Code of Business Ethnics and Conduct.
This rule is a result of the General Services Administration
Acquisition Manual (GSAM) Rewrite initiative. The initiative was
undertaken by GSA to revise the GSAM to maintain consistency with the
FAR and implement streamlined and innovative acquisition procedures
that contractors, offerors, and GSA acquisition personnel can use when
entering into and administering contractual relationships. The GSAM
incorporates the General Services Administration Acquisition Regulation
(GSAR) as well as internal agency acquisition policy.
GSA will rewrite each part of the GSAR and GSAM, and as each GSAR
part is rewritten, will publish it in the Federal Register.
This rule covers the rewrite of the regulatory portion of Part 503.
The rule revises GSAR Subpart 503.1, Safeguards, to delete 503.104-1,
Definitions, and 503.104-9, Contracts clauses, to ensure consistency
with the GSAM that provides that the acquisition of leasehold interests
in real property is established by GSAM Part 570; Subpart 503.2,
Contractor Gratuities to Government Personnel, to revise 503.204(a)(2)
to delete the term ``joint venture'' to ensure grammatical and
structural clarity; to delete from 503.204(c) the reference to the
Chairman of the GSA Board of Contract Appeals which no longer exists,
and revise 503.204(f); to ensure consistency with FAR 3.204(f), Subpart
503.4, Contingents Fees, to delete 503.404, Contract clause, to ensure
consistency with the GSAM that provides that the acquisition of
leasehold interests in real property is established by GSAM Part 570;
Subpart 503.5, Other Improper Business Practices, to revise 503.570-1,
Policy, to delete the term ``referring'' and add ``making references''
for clarity; Subpart 503.7, Voiding and Rescinding
[[Page 45195]]
Contracts, to revise 503.702 to delete the definition for ``Notice''
and ``Voiding and rescinding official'' as the terms do not require
definition; to add a new section 503.703, Authority, to identify the
Senior Procurement Executive as having the authority to void and
rescind contracts pursuant to FAR 3.703 and 3.705(b); to relocate
503.705 from the GSAR to the manual part of the GSAM because it relates
to internal administrative procedures; to add a new Subpart 503.10,
Contractor Code of Business Ethics and Conduct, to establish a lower
threshold for the inclusion of FAR 52.203-14, Display of Hotline
Poster(s), at 503.1004(a) and include the name of the poster and where
the poster may be obtained at 503.1004(b)(i) and (ii) pursuant to FAR
52.203.14(b)(3); to delete GSAR 552.203-5, Covenant Against Contingent
Fees, to ensure consistency with the GSAM that provides that the
acquisition of leasehold interests in real property is established by
GSAM Part 570; and to delete GSAR 552.203, Price Adjustment for Illegal
or Improper Activity, to ensure consistency with the GSAM requirements
that leasehold interests in real property is established by GSAM Part
570.
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 General Services Administration does 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 revisions are not considered
substantive. The revisions only update the GSAR and reorganize existing
coverage. An Initial Regulatory Flexibility Analysis has, therefore,
not been performed. We invite comments from small businesses and other
interested parties. GSA will consider comments from small entities
concerning the affected GSAR Parts 503 and 552 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. (GSAR case 2008-G502), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the GSAM do 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 Parts 503 and 552
Government procurement.
Dated: July 28, 2008
Al Matera,
Director, Office of Acquisition Policy.
Therefore, GSA proposes to amend 48 CFR parts 503 and 552 as set
forth below:
PART 503--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
1. The authority citation for 48 CFR part 503 is revised to read as
follows:
Authority: 40 U.S.C. 121(c).
503.104-3 and 503-104-9 [Removed]
2. Remove sections 503.104-3 and 503.104-9.
3. Amend section 503.204 by--
a. Removing from paragraph (a)(2) ``or joint venture'';
b. Removing from paragraph (c) ``designated by the Chairman of the
GSA Board of Contract Appeals.'' and adding a period, in its place; and
c. Revising paragraph (f).
The revised text reads as follows:
503.204 Treatment of violations.
* * * * *
(f) If the Gratuities clause was violated, the contractor may
present evidence of mitigating factors to the Senior Procurement
Executive, or designee, in accordance with FAR 3.204(b), either orally
or in writing, consistent with a schedule the Senior Procurement
Executive, or designee, establishes. The Senior Procurement Executive,
or designee, exercises the Government's rights under FAR 3.204(c) only
after considering mitigating factors.
503.404 [Removed]
4. Remove section 503.404.
503.570-1 [Amended]
5. Amend section 503.570-1 by removing ``referring'' and adding
``making references'' in its place.
503.702 [Removed]
6. Remove section 503.702.
503.703 [Added]
7. Add section 503.703 to read as follows:
503.703 Authority.
Pursuant to FAR 3.703 and 3.705(b), the authority to void or
rescind contracts resides with the Senior Procurement Executive.
8. Add Subpart 503.10 to read as follows:
Subpart 503.10--Contractor Code of Business Ethics and Conduct
503.1004 Contract clauses.
(a) The FAR threshold for the clause at 52.203-14, Display of
Hotline Poster(s), is $5,000,000. However, GSA has exercised the
authority provided at FAR 3.1004(b)(1)(i) to establish a lower
threshold, $1,000,000, for inclusion of the clause when the contract or
order is funded with disaster assistance funds.
(b) The information required to be inserted in the clause at FAR
52.203-14, Display of Hotline Poster(s), is as follows:
(i) Poster: GSA OIG ``FRAUDNET HOTLINE''; and
(ii) Obtain from: Contracting Officer.
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
9. The authority citation for 48 CFR part 552 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
552.203-5 and 552.203-70 [Removed]
10. Remove sections 552.203-5 and 552.203-70.
[FR Doc. E8-17790 Filed 8-1-08; 8:45 am]
BILLING CODE 6820-61-S