Federal Register / Vol. 76, No. 48 / Friday, March 11, 2011 / Proposed Rules 13327 

equipment, transport vehicle or 

packaging, and vessel into which the 

material is transferred, including— 

(i) Measures to evacuate the transfer 

system and depressurize the 

containment vessel; 

(ii) Measures to safely disconnect the 

transfer equipment; and 

(iii) Measures to secure fittings, 

valves, and closures. 

(5) Design, maintenance, and testing 

of transfer equipment. Transfer 

equipment, used to unload cargo tanks 

must be compatible with the lading and 

meet the performance requirements in 

part 178, subpart J of this subchapter, as 

appropriate for the cargo tank 

specification. Transfer equipment and 

systems, including pumps, piping, 

hoses, and connections, must be 

properly maintained and tested (see 

§ 180.416 for liquefied compressed 

gases). Each person who conducts these 

operations must develop and implement 

a periodic maintenance schedule to 

prevent deterioration of equipment and 

conduct periodic operational tests to 

ensure that the equipment functions as 

intended. Equipment and system repairs 

must be completed promptly and prior 

to any subsequent loading or unloading 

operation. The procedures developed in 

accordance with this paragraph must 

include a hose maintenance program. 

(6) Facility oversight of carrier 

personnel. An operator of a facility 

required to perform a risk assessment in 

accordance with paragraph (a) of this 

section must ensure that any carrier 

who loads or unloads a cargo tank motor 

vehicle at that facility— 

(i) Is supervised by trained facility 

personnel who are trained on the 

facility’s loading and unloading 

operating procedures; 

(ii) Is provided with written 

instructions on how to conduct the 

transfer operation in accordance with 

the facility’s procedures; or 

(iii) Has sufficient information to 

conduct the transfer operation in 

accordance with the facility’s 

procedures. 

(7) Recordkeeping. The operating 

procedures must be in writing and must 

be retained for as long as the procedures 

remain in effect. The operating 

procedures must be clearly written and 

easy to understand and must be 

reviewed annually and updated as 

necessary to ensure that they reflect 

current operating practices, materials, 

technology, personnel responsibilities, 

and equipment. Facility operating 

procedures must be available at the 

loading or unloading facility. Motor 

carrier operating procedures must be 

carried in the transport vehicle. 

Operating procedures must be made 

available, upon request, to an 

authorized official of a Federal, State, or 

local government agency at reasonable 

times and locations. 

(c) Exceptions: To avoid unnecessary 

duplication, risk assessments, and 

operating procedures that conform to 

regulations, standards, protocols, or 

guidelines issued by other Federal 

agencies, state agencies, international 

organizations, or industry organizations 

may be used to satisfy the requirements 

in this part, or portions thereof, 

provided such operating procedures 

address the requirements specified in 

this part. Examples include the 

Occupational Safety and Health 

Administration’s Process Safety 

Management Standards at 29 CFR 

1910.119 and the Environmental 

Protection Agency’s Risk Management 

Program regulations at 40 CFR part 68 

and Spill Prevention, Control and 

Countermeasures Program at 40 CFR 

part 112; state regulations or standards, 

such as state incorporation of National 

Fire Protection Association Standard 58, 

LP–Gas Code; or standards, protocols, or 

guidelines issued by industry 

organizations or consensus-standards 

organizations. 

5. In § 177.834, the section heading is 

revised to read as follows, and 

paragraph (i) is removed and reserved: 

§ 177.834 Additional general requirements. 

* * * * * 

Issued in Washington, DC, on March 1, 

2011, under authority delegated in 49 CFR 

part 106. 

Magdy El-Sibaie, 

Associate Administrator for Hazardous 

Materials Safety. 

[FR Doc. 2011–5335 Filed 3–10–11; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 203 and 252 

RIN 0750–AG98 

Defense Federal Acquisition 

Regulation Supplement; Display of 

DoD Inspector General Fraud Hotline 

Posters (DFARS Case 2010–D026) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to issue a 

rule amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to require contractors to 

display the DoD fraud hotline poster in 

common work areas. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before May 

10, 2011, to be considered in the 

formation of the final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2010–D026, 

using any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting 

‘‘DFARS Case 2010–D026’’ under the 

heading ‘‘Enter keyword or ID’’ and 

selecting ‘‘Search.’’ Select the link 

‘‘Submit a Comment’’ that corresponds 

with ‘‘DFARS Case 2010–D026.’’ Follow 

the instructions provided at the ‘‘Submit 

a Comment’’ screen. Please include your 

name, company name (if any), and 

‘‘DFARS Case 2010–D026’’ on your 

attached document. 

• E-mail: dfars@osd.mil. Include 

DFARS Case 2010–D026 in the subject 

line of the message. 

• Fax: 703–602–0350. 

• Mail: Defense Acquisition 

Regulations System, Attn: Ms. Clare 

Zebrowski, OUSD (AT&L) DPAP/DARS, 

Room 3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http:// 

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Clare Zebrowski, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), Room 3B855, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Telephone 703–602–0289; 

facsimile 703–602–0350. Please cite 

DFARS Case 2010–D026. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This rule proposes to implement the 

recommendations of the DoD Inspector 

General (IG), by providing a DFARS 

clause to use in lieu of the FAR clause 

52.203–14, Display of Hotline Poster(s). 

GAO Report GAO–09–591, Regarding 

the Display of DoD Inspector General 

Fraud Hotline Posters by DoD 

Contractors, recommended that the DoD 

IG determine the need for defense 

contractors’ display of the DoD IG’s 

fraud hotline poster, including directing 

a contractor to display the DoD IG 

hotline poster in common work areas for 

performance of DoD contracts. 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
13328 Federal Register / Vol. 76, No. 48 / Friday, March 11, 2011 / Proposed Rules 

The DoD IG determined that DoD 

contractors, including contractors who 

have an ethics and compliance program 

that includes a reporting mechanism 

such as a hotline poster, need to display 

DoD fraud hotline posters in a common 

work area within business segments 

performing work under the contract and 

at contract work sites. 

FAR 52.203–14(c) states that ‘‘If the 

Contractor has implemented a business 

ethics and conduct awareness program, 

including a reporting mechanism, such 

as a hotline poster, then the Contractor 

need not display any agency fraud 

hotline posters, other than any required 

DHS posters.’’ 

The DoD IG finds that this exemption 

has the potential to make the DoD 

hotline program less effective by 

ultimately reducing contractor exposure 

to DoD IG fraud hotline posters and 

diminishing the means by which fraud, 

waste, and abuse can be reported under 

the protection of Federal whistleblower 

protection laws. Some contractor’s 

posters may not be as effective as the 

DoD poster in advertising the hotline 

number, which is integral to the fraud 

program. The DoD IG is also revising the 

DoD IG fraud hotline poster to inform 

contractor employees of their Federal 

whistleblower protections. 

The new DFARS clause therefore 

provides no exception to the use of the 

DoD hotline poster for contractors that 

have implemented a business ethics and 

conduct awareness program, including a 

reporting mechanism such as a hotline 

poster. The clause also provides for 

display of any applicable Department of 

Homeland Security hotline poster 

identified by the contracting officer. 

II. Executive Order 12866 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. This rule is not a 

major rule under 5 U.S.C. 804. 

III. Executive Order 13563 

In accordance with Executive Order 

13563, Improving Regulation and 

Regulatory Review, dated January 18, 

2011, DoD has determined that this rule 

is not excessively burdensome to the 

public, and is consistent with 

requirements to report fraud, waste, and 

abuse under the protection of Federal 

whistleblower protection laws. 

IV. Regulatory Flexibility Act 

DoD 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 requirement to 

display posters has minimal economic 

impact and the rule only applies to 

contracts and subcontracts that exceed 

$5 million in value, so many small 

business concerns are not impacted at 

all. Nevertheless, an initial regulatory 

flexibility analysis has been performed 

and is summarized as follows: 

This proposed rule is in response to 

a study by the General Accountability 

Office (GAO–09–591), which 

recommended that the DoD IG 

determine the need for defense 

contractors’ display of the DoD IG’s 

fraud hotline poster, including directing 

a contractor to display the DoD IG 

hotline poster in common work areas for 

performance of DoD contracts. 

The DoD IG determined that DoD 

contractors, including contractors who 

have an ethics and compliance program 

that includes a reporting mechanism 

such as a hotline poster (currently 

exempt), need to display DoD fraud 

hotline posters in a common work area 

within business segments performing 

work under the contract and at contract 

work sites. 

The objective of the proposed rule is 

to remove this exemption for contractors 

that post their own posters, and require 

all DoD contractors with contracts that 

exceed $5 million to post the DoD IG 

fraud hotline poster. The DoD IG finds 

that this exemption has the potential to 

make the DoD hotline program less 

effective by ultimately reducing 

contractor exposure to DoD IG fraud 

hotline posters and diminishing the 

means by which fraud, waste, and abuse 

can be reported under the protection of 

Federal whistleblower protection laws. 

Some contractors’ posters may not be as 

effective as the DoD poster in 

advertising the hotline number, which 

is integral to the fraud program. The 

DoD IG is also revising the DoD IG fraud 

hotline poster to inform contractor 

employees of their Federal 

whistleblower protections. The legal 

basis for the rule is 41 U.S.C. 1303 and 

48 CFR chapter 1. 

The rule applies to all contractors 

with DoD contracts that exceed $5 

million. Many small businesses are, 

therefore, not impacted at all. The FAR 

currently provides that ‘‘If the 

Contractor has implemented a business 

ethics and conduct awareness program, 

including a reporting mechanism, such 

as a hotline poster, then the Contractor 

need not display any agency fraud 

hotline posters, other than any required 

DHS posters.’’ Therefore, even those 

contractors with contracts that exceed 

$5 million are not significantly 

impacted, because they are already 

required to post either their own fraud 

hotline poster or the DoD fraud hotline 

poster. This rule just removes the 

exemption for contractors that post their 

own fraud hotline posters. 

There is no information collection 

requirement associated with this 

proposed rule. 

The rule does not duplicate, overlap, 

or conflict with any other Federal rules. 

There are no known significant 

alternatives to the rule that would 

achieve the objectives of the rule. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2010–D026) in 

correspondence. 

V. Paperwork Reduction Act 

The rule does not impose 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. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 203 and 252 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. 

PART 203—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

2. In section 203.1004, revise 

paragraph (b)(2)(ii) to read as follows: 

* * * * * 

(b) Unless the contract is for the 

acquisition of a commercial item or will 

be performed entirely outside the 

United States, if the contract exceeds $5 

million, use the clause at 252.203–700X, 

Display of Fraud Hotline Poster(s), in 

lieu of the clause at FAR 52.203–14, 

Display of Hotline Poster(s). 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

3. Add section 252.203–700X to read 

as follows: 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
Federal Register / Vol. 76, No. 48 / Friday, March 11, 2011 / Proposed Rules 13329 

252.203–700X Display of Fraud Hotline 

Poster(s). 

As prescribed in 203.1004(b), use the 

following clause: 

DISPLAY OF FRAUD HOTLINE 

POSTER(S) (DATE) 

(a) Definition. 

United States, as used in this clause, means 

the 50 States, the District of Columbia, and 

outlying areas. 

(b) Display of fraud hotline poster(s). (1) 

The Contractor shall display prominently in 

common work areas within business 

segments performing work in the United 

States under Department of Defense (DoD) 

contracts— 

(i) DoD fraud hotline posters prepared by 

the DoD Office of the Inspector General. DoD 

fraud hotline posters may be obtained from 

the DoD Inspector General, ATTN: Defense 

Hotline, 400 Army Navy Drive, Washington, 

DC 22202–2884. 

(ii) Department of Homeland Security 

(DHS) fraud hotline poster identified in 

paragraph (b)(2) of this clause; and 

(iii) Any DHS fraud hotline poster 

subsequently identified by the Contracting 

Officer. 

(2) Any required DHS posters may be 

obtained as follows: 

Poster(s) Obtain from 

lllllllll lllllllll 

lllllllll lllllllll 

(Contracting Officer shall insert— 

(i) Title of applicable Department of 

Homeland Security fraud hotline poster; and 

(ii) The Web site(s) or other contact 

information for obtaining the poster(s).) 

(3) Additionally, if the Contractor 

maintains a company Web site as a method 

of providing information to employees, the 

Contractor shall display an electronic version 

of the poster(s) at the Web site. 

(c) Subcontracts. The Contractor shall 

include the substance of this clause, 

including this paragraph (c), in all 

subcontracts that exceed $5 million except 

when the subcontract— 

(1) Is for the acquisition of a commercial 

item; or 

(2) Is performed entirely outside the United 

States. 

(End of clause) 

[FR Doc. 2011–5600 Filed 3–10–11; 8:45 am] 

BILLING CODE 5001–08–P 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Part 532 

[GSAR Case 2010–G509; Docket 2011–0009; 

Sequence 1] 

RIN 3090–AJ13 

Reinstatement of Coverage Pertaining 

to Final Payment Under Construction 

and Building Services 

AGENCY: Office of Acquisition Policy, 

General Services Administration (GSA). 

ACTION: Proposed rule. 

SUMMARY: GSA is proposing to amend 

the General Services Administration 

Acquisition Regulation (GSAR) to 

amend the GSAR to restore guidance on 

making final payments under 

construction and building service 

contracts to ensure contractors are paid 

in accordance with their contract 

requirements and not overpaid or 

receive improper payments for work 

performed. This guidance, which 

prescribed the use of GSA Form 1142, 

Release of Claims, for releases of claims 

under construction and building service 

contracts, was inadvertently deleted as 

part of the Rewrite of GSAR regulations 

on Contract Financing. GSA Contracting 

Officers have used this form to achieve 

uniformity and consistency in the 

release of claims process. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat on or before May 10, 2011 to 

be considered in the formulation of a 

final rule. 

ADDRESSES: Submit comments 

identified by GSAR Case 2010–G509 by 

any of the following methods: 

• Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting ‘‘GSAR 

Case 2010–G509’’ under the heading 

‘‘Enter Key Word or ID’’. Follow the 

instructions provided to ‘‘Submit a 

Comment’’. Please include your name, 

company name (if any), and ‘‘GSAR Case 

2010–G509’’ on your attached 

document. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat, 

1275 First Street, NE., 7th Floor, ATTN: 

Hada Flowers, Washington, DC 20417. 

Instructions: Please submit comments 

only and cite GSAR Case 2010–G509 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. 

Edward N. Chambers at (202) 501–3221, 

or by e-mail at 

edward.chambers@gsa.gov. For 

information pertaining to the status or 

publication schedules, contact the 

Regulatory Secretariat, 7th Floor, GS 

Building, Washington, DC 20417, (202) 

501–4755. Please cite GSAR Case 2010– 

G509. 

SUPPLEMENTARY INFORMATION: 

A. Background 

A release of claims is a requirement 

under GSAR clause 552.232–72, Final 

Payment, precedent to making final 

payment under construction and 

building service contracts. Prior to 

deleting the form, GSA Contracting 

Officers relied upon GSA Form 1142 to 

obtain the release of claims under these 

contracts. However, GSAR 532.905–71 

which prescribed the use of GSA Form 

1142 for releases of claims under 

construction and building service 

contracts was inadvertently deleted as 

part of the Rewrite of GSAR Part 532, 

Contract Financing published in the 

Federal Register at 74 FR 54915, on 

October 29, 2009, GSAR Case 2006– 

G515. GSAR 532.905–71 also provided 

guidance on deductions to final 

payments under construction and 

building service contracts. 

GSA Form 1142, Release of Claims, 

uses standard language for contractors 

to attest that is has no claims, or no 

claims except for those they may set 

forth where indicated on the form. The 

form requires a signature from the 

contractor and a witness. Additionally, 

there is a location for the firm’s seal. 

GSA believes that GSA Form 1142 

provides great value and accountability 

in providing uniformity and consistency 

for the release of claims process. 

Without the GSA Form 1142, GSA 

Contracting Officers will be required to 

verify that contractor release of claims 

letter includes appropriate wording 

before final payment is made, resulting 

in their devotion of considerable 

additional resources to this process. 

Further, the coverage on deductions 

under GSAR 532.905–71 was useful in 

preventing overpayments to contractors 

consistent with the Administration 

Improper Payments Elimination and 

Recovery Act and OMB efforts to 

eliminate improper payments. 

Consequently, GSA proposes to 

amend the GSAR to restore the coverage 

at GSAR 532.905–71. Since the 

referenced GSAR Rewrite of Part 532 (74 

FR 54915) also deleted GSAR 532.905– 

70, this coverage will be restored at 

GSAR 532.905–70 vice GSAR 532.905– 

71. 


jlentini on DSKJ8SOYB1PROD with PROPOSALS