82576 Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules 

hold final payment until the noncompliance has been resolved. 

III. Executive Order 12866 

This is not a significant regulatory 

action and, therefore, is 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. 

IV. Regulatory Flexibility Act 

DoD, GSA, and NASA certify 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 

requirements of the actions required and 

the clause are not significantly 

burdensome. Currently, it is a common 

business practice to have procedures in 

place to revoke and return PIV cards 

when no longer in use by the contractor. 

V. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the 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. 

List of Subjects in 48 CFR Parts 4 and 

52 

Government procurement. 

Dated: December 22, 2010. 

Millisa Gary, 

Acting Director, Federal Acquisition Policy 

Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 4 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 4 and 52 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). 

PART 4–ADMINISTRATIVE MATTERS 

■ 2. Amend section 4.1301 by adding 

paragraph (d) to read as follows: 

4.1301 Policy. 

* * * * * 

(d)(1) Agency procedures for the 

return of Personal Identity Verification 

(PIV) products shall ensure that 

Government contractors account for all 

forms of Government-provided 

identification issued to Government 

contractor employees under a contract, 

i.e., the PIV cards or other similar 

badges, and shall ensure that contractors 

return such identification to the issuing 

agency as soon as any of the following 

occurs, unless otherwise determined by 

the agency: 

(i) When no longer needed for 

contract performance. 

(ii) Upon completion of a contractor 

employee’s employment. 

(iii) Upon contract completion or 

termination. 

(2) The contracting officer may delay 

final payment under a contract if the 

contractor fails to comply with these 

requirements. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 3. Amend section 52.204–9 by 

revising the date of the clause; 

redesignating paragraph (b) as paragraph 

(d); adding a new paragraph (b); adding 

paragraph (c); and revising newly 

redesignated paragraph (d) to read as 

follows: 

52.204–9 Personal Identity Verification of 

Contractor Personnel. 

* * * * * 

Personal Identity Verification of 

Contractor Personnel (JAN 2011) 

* * * * * 

(b) The Contractor shall account for all 

forms of Government-provided identification 

issued to the Contractor employees in 

connection with performance under this 

contract. The Contractor shall return such 

identification to the issuing agency at the 

earliest of any of the following, unless 

otherwise determined by the Government: 

(1) When no longer needed for contract 

performance. 

(2) Upon completion of the Contractor 

employee’s employment. 

(3) Upon contract completion or 

termination. 

(c) The Contracting Officer may delay final 

payment under a contract if the Contractor 

fails to comply with these requirements. 

(d) The Contractor shall insert the 

substance of this clause, including this 

paragraph (d), in all subcontracts when the 

subcontractor‘s employees are required to 

have routine physical access to a Federallycontrolled facility and/or routine access to a 

Federally-controlled information system. It 

shall be the responsibility of the prime 

Contractor to return such identification to the 

issuing agency in accordance with the terms 

set forth in paragraph (b) of this section, 

unless otherwise approved in writing by the 

Contracting Officer. 

(End of Clause) 

[FR Doc. 2010–32895 Filed 12–29–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 49 

[FAC 2005–48; FAR Case 2009–031; Item 

III; Docket 2010–0090, Sequence 1] 

RIN 9000–AL56 

Federal Acquisition Regulation; 

Terminating Contracts 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

clarify the applicability of procedures 

regarding the termination of contracts to 

the acquisition of commercial items. 

DATES: Effective Date: January 31, 2011. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Jeritta Parnell, at (202) 501–4082. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–48, FAR 

Case 2009–031. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published a 

proposed rule with request for 

comments in the Federal Register on 

May 20, 2010 (75 FR 28228). This rule 

clarifies that FAR part 49, Termination 

of Contracts, does not apply to the 

acquisition of commercial items when 

using FAR part 12 procedures. 

Discussion of Public Comments 

One respondent provided two 

comments. A discussion of the 

comments and the changes made to the 

proposed rule are summarized as 

follows: 

1. Comment: The respondent 

recommended clarifying the coverage at 

FAR 49.501 by moving the existing 

language to FAR 49.002. This language 

clarifies that FAR part 49 does not apply 

to commercial item contracts awarded 

using FAR part 12 procedures. 

Response: The Defense Acquisition 

Regulation Council and the Civilian 

Agency Acquisition Council (Councils) 

agree. The language at FAR 49.501, 

pertaining to the applicability of FAR 

part 49 to commercial item contracts has 


emcdonald on DSK2BSOYB1PROD with RULES4
Federal Register / Vol. 75, No. 250 / Thursday, December 30, 2010 / Proposed Rules 82577 

been relocated to FAR 49.002. FAR 

49.002(a) is reformatted by adding ‘‘(1)’’ 

to existing language for sequencing. 

Additionally, new language was added 

in (a)(2) to clarify that FAR part 49 does 

not apply to the acquisition of 

commercial items when using 

procedures at FAR part 12. 

2. Comment: The respondent 

recommends simplifying FAR 49.502(a) 

by removing and relocating the 

reference to the exceptions for FAR 

52.212–4 and 52.213–4 to FAR 49.002. 

Response: The Councils agree. The 

language pertaining to FAR 52.212–4 

was relocated to FAR 49.002 as 

addressed under the first comment. 

Reference to FAR 52.213–4 remains in 

FAR 49.501. 

II. Executive Order 12866 

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 

is not a major rule under 5 U.S.C. 804. 

III. Regulatory Flexibility Act 

DOD, GSA, and NASA certify 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 does not impose any additional 

requirements on small entities. The rule 

merely clarifies that FAR part 49 does 

not apply to the acquisition of 

commercial items when using 

procedures in FAR part 12. 

IV. Paperwork Reduction Act 

The final rule does not contain 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 Part 49 

Government procurement. 

Dated: December 22, 2010. 

Millisa Gary, 

Acting Director, Federal Acquisition Policy 

Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR part 49 as set forth 

below: 

PART 49—TERMINATION OF 

CONTRACTS 

■ 1. The authority citation for 48 CFR 

part 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). 

■ 2. Amend section 49.002 by revising 

paragraph (a) to read as follows: 

49.002 Applicability. 

(a)(1) This part applies to contracts 

that provide for termination for the 

convenience of the Government or for 

the default of the contractor (see also 

12.403 and 13.302–4). 

(2) This part does not apply to 

commercial item contracts awarded 

using part 12 procedures. See 12.403 for 

termination policies for contracts for the 

acquisition of commercial items. 

However, for contracts for the 

acquisition of commercial items, this 

part provides administrative guidance 

which may be followed unless it is 

inconsistent with the requirements and 

procedures in 12.403, Termination, and 

the clause at 52.212–4, Contract Terms 

and Conditions—Commercial Items. 

* * * * * 

■ 3. Revise section 49.501 to read as 

follows: 

49.501 General. 

This subpart prescribes the principal 

contract termination clauses. This 

subpart does not apply to contracts that 

use the clause at 52.213–4, Terms and 

Conditions—Simplified Acquisitions 

(Other Than Commercial Items). In 

appropriate cases, agencies may 

authorize the use of special purpose 

clauses, if consistent with this chapter. 

[FR Doc. 2010–32893 Filed 12–29–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 52 and 53 

[FAC 2005–48; FAR Case 2009–018; Item 

IV; Docket 2010–0082, Sequence 1] 

RIN 9000–AL53 

Federal Acquisition Regulation; 

Payrolls and Basic Records 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA have 

adopted as final, with one change, the 

interim rule amending the Federal 

Acquisition Regulation (FAR) to revise 

the FAR clause, Payrolls and Basic 

Records. This revision implements a 

Department of Labor rule that protects 

the privacy of workers. 

DATES: Effective Date: December 30, 

2010. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Clare McFadden, Procurement Analyst, 

at (202) 501–0044. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–48, FAR Case 2009–018. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

75 FR 34286 on June 16, 2010. The 

interim rule implemented changes from 

the Department of Labor’s (DOL’s) final 

rule, Protecting the Privacy of Workers: 

Labor Standards Provisions Applicable 

to Contracts Covering Federally 

Financed and Assisted Construction, 

published in the Federal Register at 73 

FR 77504 on December 19, 2008, that 

removed the requirement to submit 

complete social security numbers and 

home addresses of individual workers 

in weekly payroll submissions. DOL 

concluded that such disclosure of 

personal information from the prime 

contractor was unnecessary and created 

an increased risk of privacy violations. 

The public comment period closed on 

August 16, 2010. No comments were 

received and, as a result, DoD, GSA, and 

NASA have determined to adopt the 

interim rule as final with a minor 

change to add a DOL updated form WH– 

347 found at FAR 53.303–WH–347. 

II. Executive Order 12866 

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. 

III. Regulatory Flexibility Act 

DoD, GSA, and NASA certify 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 this 

rule provides relief for contractors from 

submitting more personal information 

than is necessary in the weekly payroll 

submissions and will not impose any 

measurable costs on contractors. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) does apply; however, 

these changes to the FAR do not impose 

additional information collection 

requirements to the paperwork burden 


emcdonald on DSK2BSOYB1PROD with RULES4