Federal Register / Vol. 69, No. 240 / Wednesday, December 15, 2004 / Rules and Regulations 74989

Reduction Act of 1995 (PRA), Public 

Law 104–13. In addition, therefore, it 

does not contain any new or modified 

‘‘information collection burden for 

small business concerns with fewer than 

25 employees,’’ pursuant to the Small 

Business Paperwork Relief Act of 2002, 

Public Law 107–198, see 44 U.S.C. 

3506(c)(4). 

The Commission will send a copy of 

this Report & Order in a report to be sent 

to Congress and the General 

Accountability Office pursuant to the 

Congressional Review Act, see 5 U.S.C. 

801(a)(1)(A).

List of Subjects in 47 CFR Part 73 

Digital television broadcasting, 

Television.

■ Part 73 of Title 47 of the Code of 

Federal Regulations is amended as 

follows:

PART 73—[AMENDED]

■ 1. The authority citation for part 73 

continues to read as follows:

Authority: 47 U.S.C. 154, 303, 334 and 336.

§ 73.622 [Amended]

■ 2. Section 73.622(b), the Table of 

Digital Television Allotments under 

Hawaii, is amended by removing DTV 

channel *39c and adding DTV channel 

*10c at Honolulu.

Federal Communications Commission. 

Barbara A. Kreisman, 

Chief, Video Division, Media Bureau.

[FR Doc. 04–27446 Filed 12–14–04; 8:45 am] 

BILLING CODE 6712–01–P

DEPARTMENT OF DEFENSE

48 CFR Parts 203, 209, and 252 

[DFARS Case 2003–D012] 

Defense Federal Acquisition 

Regulation Supplement; Improper 

Business Practices and Contractor 

Qualifications Relating to Debarment, 

Suspension, and Business Ethics

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to streamline and clarify text 

pertaining to debarment, suspension, 

and improper business practices. This 

rule is a result of a transformation 

initiative undertaken by DoD to 

dramatically change the purpose and 

content of the DFARS.

EFFECTIVE DATE: December 15, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. 

Euclides Barrera, Defense Acquisition 

Regulations Council, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–0296; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003-D012.

SUPPLEMENTARY INFORMATION: 

A. Background 

DFARS Transformation is a major 

DoD initiative to dramatically change 

the purpose and content of the DFARS. 

The objective is to improve the 

efficiency and effectiveness of the 

acquisition process, while allowing the 

acquisition workforce the flexibility to 

innovate. The transformed DFARS will 

contain only requirements of law, DoDwide policies, delegations of FAR 

authorities, deviations from FAR 

requirements, and policies/procedures 

that have a significant effect beyond the 

internal operating procedures of DoD or 

a significant cost or administrative 

impact on contractors or offerors. 

Additional information on the DFARS 

Transformation initiative is available at 

http://www.acq.osd.mil/dpap/dfars/

transf.htm.

This final rule is a result of the 

DFARS Transformation initiative. The 

DFARS changes include—

• Consolidation of requirements for 

reporting violations and suspected 

violations of certain requirements into a 

new section at DFARS 203.070. This 

results in elimination of DFARS 

sections 203.103, 203.103–2, and 

203.104–10; subparts 203.2, 203.3, and 

203.4; and sections 203.502 and 

203.570–4. 

• Streamlining of text at DFARS 

203.570–1 and 203.570–2 relating to 

prohibitions on persons convicted of 

fraud or other defense-contract-related 

felonies. 

• Revision of the clause at 252.203–

7001, Prohibition on Persons Convicted 

of Fraud or Other Defense-ContractRelated Felonies, to remove unnecessary 

references to first-tier subcontracts in 

paragraphs (b) and (d). Paragraph (g) of 

the clause adequately addresses 

requirements for flow down to first-tier 

subcontracts. 

• Deletion of text at DFARS 203.570–

3 relating to internal DoD procedures for 

waiver of the 5-year period for 

prohibitions on persons convicted of 

fraud or other defense-contract-related 

felonies; and deletion of text at DFARS 

209.105–2, 209.406–3, and 209.407–3 

containing internal DoD procedures for 

referral of matters to agency debarment 

and suspension officials. This text has 

been relocated to the new DFARS 

companion resource, Procedures, 

Guidance, and Information (PGI), 

available at http://www.acq.osd.mil/

dpap/dars/pgi.

DoD published a proposed rule at 69 

FR 8146 on February 23, 2004. Two 

sources submitted comments on the 

proposed rule. A discussion of the 

comments is provided below: 

1. Comment: Section 203.070, which 

specifies the violations or suspected 

violations that must be reported, should 

also include: the Truth in Negotiations 

Act (19 U.S.C. 2306(f)); the False Claims 

Act (31 U.S.C. 3729 et seq.); a reference 

to FAR 9.406–2(a)(3), which lists causes 

for debarment; and a reference to FAR 

9.407–2(a)(3), which lists causes for 

suspension. 

DoD Response: Do not agree. Since 

section 203.070 falls within the scope of 

FAR Part 3 and DFARS Part 203, 

Improper Business Practices and 

Personal Conflicts of Interest, the 

violations listed in section 203.070 are 

limited to those addressed in FAR Part 

3 and DFARS Part 203. 

2. Comment: In section 203.070, the 

reference to ‘‘DoDD 7075.5’’ should be 

corrected to read ‘‘DoDD 7050.5.’’

DoD Response: Agree. This correction 

has been included in the final rule. 

3. Comment: In section 203.070(c), the 

reference to the gratuities clause should 

be corrected to read ‘‘FAR 3.203.’’

DoD Response: Agree. This correction 

has been included in the final rule. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD certifies that this final rule will 

not 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 streamlines and 

clarifies existing DFARS text, with no 

substantive change in policy. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any 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 203, 

209, and 252 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR Parts 203, 209, and 

252 are amended as follows:

74990 Federal Register / Vol. 69, No. 240 / Wednesday, December 15, 2004 / Rules and Regulations 

■ 1. The authority citation for 48 CFR 

Parts 203, 209, and 252 continues to read 

as follows:

Authority: 41 U.S.C. 421 and 48 CFR 

Chapter 1.

PART 203—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST

■ 2. Section 203.070 is added to read as 

follows:

§ 203.070 Reporting of violations and 

suspected violations. 

Report violations and suspected 

violations of the following requirements 

in accordance with 209.406–3 or 

209.407–3 and DoDD 7050.5, 

Coordination of Remedies for Fraud and 

Corruption Related to Procurement 

Activities: 

(a) Certificate of Independent Price 

Determination (FAR 3.103). 

(b) Procurement integrity (FAR 3.104). 

(c) Gratuities clause (FAR 3.203). 

(d) Antitrust laws (FAR 3.303). 

(e) Covenant Against Contingent Fees 

(FAR 3.405). 

(f) Anti-kickback Act (FAR 3.502). 

(g) Prohibitions on persons convicted 

of defense-related contract felonies 

(203.570).

§ 203.103, 203.103–2, and 203.104–10 

[Removed]

■ 3. Sections 203.103, 203.103–2, and 

203.104–10 are removed.

Subparts 203.2 through 203.4 

[Removed]

■ 4. Subparts 203.2 through 203.4 are 

removed.

§ 203.502 [Removed]

■ 5. Section 203.502 is removed.

■ 6. Section 203.502–2 is amended by 

revising the heading to read as follows:

§ 203.502–2 Subcontractor kickbacks.

* * * * *

■ 7. Sections 203.570–1 and 203.570–2 

are revised to read as follows:

§ 203.570–1 Scope. 

This subpart implements 10 U.S.C. 

2408.

§ 203.570–2 Prohibition period. 

DoD has sole responsibility for 

determining the period of the 

prohibition described in paragraph (b) 

of the clause at 252.203–7001, 

Prohibition on Persons Convicted of 

Fraud or Other Defense-ContractRelated Felonies. The prohibition 

period—

(a) Shall not be less than 5 years from 

the date of conviction unless the agency 

head or a designee grants a waiver in the 

interest of national security. Follow the 

waiver procedures at PGI 203.570–2(a); 

and 

(b) May be more than 5 years from the 

date of conviction if the agency head or 

a designee makes a written 

determination of the need for the longer 

period. The agency shall provide a copy 

of the determination to the address at 

PGI 203.570–2(b).

§ 203.570–3 and 203.570–4 [Removed]

■ 8. Sections 203.570–3 and 203.570–4 

are removed.

§ 203.570–5 [Redesignated as 203.570–3]

■ 9. Section 203.570–5 is redesignated as 

section 203.570–3.

PART 209—CONTRACTOR 

QUALIFICATIONS

■ 10. Section 209.105–2 is revised to 

read as follows:

§ 209.105–2 Determinations and 

documentation. 

(a) For guidance on submission of 

determinations to the appropriate 

debarring and suspending official, see 

PGI 209.105–2(a).

■ 11. Section 209.406–3 is revised to 

read as follows:

§ 209.406–3 Procedures. 

Refer all matters appropriate for 

consideration by an agency debarring 

and suspending official as soon as 

practicable to the appropriate debarring 

and suspending official identified in 

209.403. Any person may refer a matter 

to the debarring and suspending official. 

Follow the procedures at PGI 209.406–

3.

■ 12. Section 209.407–3 is revised to 

read as follows:

§ 209.407–3 Procedures. 

Refer all matters appropriate for 

consideration by an agency debarring 

and suspending official as soon as 

practicable to the appropriate debarring 

and suspending official identified in 

209.403. Any person may refer a matter 

to the debarring and suspending official. 

Follow the procedures at PGI 209.407–

3.

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES

■ 13. Section 252.203–7001 is amended 

by revising the introductory text, clause 

date, paragraph (b), paragraph (d) 

introductory text, and paragraph (h) to 

read as follows:

§ 252.203–7001 Prohibition on persons 

convicted of fraud or other defensecontract-related felonies. 

As prescribed in 203.570–3, use the 

following clause:

Prohibition on Persons Convicted of Fraud 

or Other Defense-Contract-Related Felonies 

(Dec 2004)

* * * * *

(b) Any individual who is convicted after 

September 29, 1988, of fraud or any other 

felony arising out of a contract with the DoD 

is prohibited from serving—

(1) In a management or supervisory 

capacity on this contract; 

(2) On the board of directors of the 

Contractor; 

(3) As a consultant, agent, or representative 

for the Contractor; or 

(4) In any other capacity with the authority 

to influence, advise, or control the decisions 

of the Contractor with regard to this contract.

* * * * *

(d) 10 U.S.C. 2408 provides that the 

Contractor shall be subject to a criminal 

penalty of not more than $500,000 if 

convicted of knowingly—

* * * * *

(h) Pursuant to 10 U.S.C. 2408(c), defense 

contractors and subcontractors may obtain 

information as to whether a particular person 

has been convicted of fraud or any other 

felony arising out of a contract with the DoD 

by contacting The Office of Justice Programs, 

The Denial of Federal Benefits Office, U.S. 

Department of Justice, telephone (301) 809–

4904. 

(End of clause)

[FR Doc. 04–27348 Filed 12–14–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 206 

[DFARS Case 2003–D017] 

Defense Federal Acquisition 

Regulation Supplement; Competition 

Requirements

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to update text pertaining to 

competition requirements. This rule is a 

result of a transformation initiative 

undertaken by DoD to dramatically 

change the purpose and content of the 

DFARS.

EFFECTIVE DATE: December 15, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. 

Robin Schulze, Defense Acquisition 

Regulations Council, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062. Telephone (703) 602–0326;