51510 Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Rules and Regulations 

Further, the changes that are being 

made to the Addendum by this 

Correction Notice, including the 

changes to reflect the correct CIPI of 1.2 

percent, do not constitute rules subject 

to notice and comment rulemaking 

under section 553 of the Administrative 

Procedure Act, as the changes merely 

ensure that the Addendum conforms to 

the rules and methodologies that have 

already been adopted through such 

notice and comment rulemaking. 

(Catalog of Federal Domestic Assistance 

Program No. 93.773, Medicare—Hospital 

Insurance; and Program No. 93.774, 

Medicare—Supplementary Medical 

Insurance Program) 

Dated: October 2, 2009. 

Dawn L. Smalls, 

Executive Secretary to the Department. 

[FR Doc. E9–24202 Filed 10–2–09; 4:15 pm] 

BILLING CODE 4120–01–P 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Parts 503 and 552 

GSAR Amendment 2009–12; GSAR Case 

2008–G502 (Change 40) Docket 2008–0007; 

Sequence 7 

RIN 3090–AI63 

General Services Administration 

Acquisition Regulation; Rewrite of 

GSAR Part 503; Improper Personal 

Conflicts of Interest 

AGENCIES: General Services 

Administration (GSA), Office of the 

Acquisition Policy. 

ACTION: Final rule. 

SUMMARY: The General Services 

Administration (GSA) is amending the 

General Services Administration 

Acquisition Regulation (GSAR) by 

revising the regulations pertaining to 

Improper Business Practices and 

Personal Conflicts of Interest. This rule 

is a product of the GSAM Rewrite 

Initiative undertaken by GSA to revise 

the regulation to maintain consistency 

with the FAR and implement 

streamlined and innovative acquisition 

procedures for contractors, offerors, and 

GSA contracting personnel. The GSAM 

incorporates the General Services 

Administration Acquisition Regulation 

(GSAR) as well as internal agency 

acquisition policy. 

DATES: Effective Date: October 7, 2009. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ernest 

Woodson, Procurement Analyst, at (202) 

501–3775. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat (MVR), Room 

4041, 1800 F Street, NW, Washington, 

DC, 20405, (202) 501–4755. Please cite 

Amendment 2009–12, GSAR case 2008– 

G502 (Change 40). 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule is a result of the 

General Services Administration 

Acquisition Manual (GSAM) Rewrite 

initiative undertaken by GSA to revise 

the GSAM to maintain consistency with 

the FAR and to 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. 

An Advanced Notice of Proposed 

Rulemaking was published at 71 FR 

7910, February 15, 2006, for the GSAM 

Rewrite Projects and public comments 

were received. However, none of the 

comments were specific to Part 503. The 

case was assigned to GSAM Part 503 

Rewrite Team on February 18, 2008. A 

Team report was completed on March 3, 

2008. 

To ensure completeness, internal 

comments were solicited and received 

from GSA Regions 1, 2, 3, 6, 7, 8, 10, 

and 11, GSA published a proposed rule 

with request for comments in the 

Federal Register at 73 FR 45194, August 

4, 2008. The public comment period 

closed October 3, 2008. One response 

was received with three comments. This 

final rule reconciles the conclusions 

from the Team report with the internal 

comments, and public comment as 

follows: 

Public Comments 

Comment: The respondent was 

concerned that the requirement in 

503.204(c) for an agency fact-finding 

official to be designated by GSA Board 

of Contract Appeals was not revised to 

indicate that the Civilian Board of 

Contract Appeals (CBCA) would 

designate the official as means of 

ensuring that disputes over gratuities 

violations are handled independently 

and objectively. 

Response: The CBCA will not 

designate an agency fact-finding official 

for the treatment of violations under 

503.204, as its current operating 

procedures do not encompass the 

activity. The Senior Procurement 

Executive will refer matters under the 

jurisdiction of GSAR 503.204 to the 

Suspension and Debarment Official, in 

accordance with GSAR 509.403, because 

the Suspension and Debarment Official 

is the individual who can appoint a factfinding official, should one be 

necessary. 

Comment: The respondent was 

concerned that 503.1004 does not 

provide a specific rationale for 

establishing a lower threshold, or why 

that threshold would be $1,000,000. The 

respondent believes that the subsection 

makes the threshold sound arbitrary. 

Response: FAR 3.1004(b)(1)(i) 

provides for agencies to establish a 

threshold lower than $5,000,000. 

Pursuant to FAR 1.302(b), agency 

acquisition regulations may supplement 

the FAR to include additional policies 

and procedures that satisfy the specific 

needs of the agency. GSA’s lower 

threshold of $1,000,000 is based on 

GSA’s unique acquisition mission and 

the dollar amount of an order that may 

be placed by GSA, under a task and 

delivery order contract. Further, the 

lower threshold insures greater visibility 

for the detection of fraud in Federal 

contracts ensuring protection for the 

taxpayer. 

Comment: 503.1004(b)—The fill-in 

includes the acronym ‘‘OIG’’. Spell out 

as Office of the Inspector General. The 

FAR does otherwise include a reference 

to OIG. 

Response: GSA concurs with the 

respondent and will make the change 

accordingly. 

The Rewrite of Part 503 

This final rule contains revisions to 

Part 503, Improper Business Practices 

and Personal Conflicts of Interest. There 

are no substantive changes to the 

policies. The rule revises GSAR Subpart 

503.1 Safeguards; deletes 503.104–1 and 

503.104–9, to ensure consistency with 

the GSAM that provides that the 

acquisition of leasehold interests in real 

property is established by GSAM Part 

570; deletes 503.104–4, because post 

employment restrictions are covered 

under Federal conflicts of interest laws 

and the Procurement Integrity Act that 

every employee has a responsibility to 

know; adds 503.104–2, to indicate that 

acquisition officials are responsible for 

knowing the post-employment 

restrictions in FAR 3.104–2(b)(3) and in 

the Procurement Integrity Act; 

renumbers 503.104–5 to 503.104–4 and 

revises 503.104–4, adds appropriate 

GSAM and FAR references for the 

release of information to outside 

evaluators and deletes inappropriate 

forms and language already addressed 

in other GSAM subsections; and 

renumbers 503.104–10 to 503.104–7, for 

consistency with the FAR numbering 

sequence. 


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Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Rules and Regulations 51511 

Revises Subpart 503.2 Contractor 

Gratuities to Government Personnel; 

revises 503.203(a) by deleting the 

reference to the Code of Federal 

Regulations and relocating the reference 

at the end of 503.203(c) in order to 

ensure the integrity of the subsection; 

revises 503.204(a)(2), by deleting the 

phrase ‘‘joint venture’’ in order to 

ensure grammatical and structural 

clarity; revises 503.204(c), by replacing 

‘‘the Chairman of the GSA Board of 

Contract Appeals’’ with ‘‘the 

Suspension and Debarment Official in 

accordance with FAR 509.403,’’ because 

the GSA Board of Contract Appeals no 

longer exists; and revises 503.204(f), to 

ensure consistency with FAR 3.204(f). 

Revises Subpart 503.3 Reports of 

Suspected Antitrust Violations; revises 

503.303, to ensure grammatical and 

structural clarity. 

Revises Subpart 503.4 Contingents 

Fees; by deleting 503.404, in order to 

ensure consistency with the GSAM 

which provides that the acquisition of 

leasehold interests in real property is 

established by GSAM Part 570, and 

revises 503.405 to ensure grammatical 

and structural clarity. 

Revises Subpart 503.5 Other Improper 

Business Practices; revises 503.570–1 to 

delete the term ‘‘referring’’ and add 

‘‘making references’’ for clarity. 

Revises Subpart 503.7 Voiding and 

Rescinding Contracts; revises 503.702 to 

delete the definition for ‘‘Notice’’ and 

‘‘Voiding and rescinding official’’ as the 

terms do not require definition; adds a 

new section 503.703 in order to identify 

the Senior Procurement Executive as 

having the authority to void and rescind 

contracts pursuant to FAR 3.703 and 

3.705(b); relocates 503.705 from the 

GSAR to the manual part of the GSAM, 

because it relates to internal 

administrative procedures; revises 

503.705 by revising 503.705(a)(1) to add 

‘‘the contracting officer shall’’ to ensure 

clarity; revises 503.705(a)(2), to delete 

‘‘you may’’ and ‘‘voiding and rescinding 

official’’ and add ‘‘the contracting 

officer shall,’’ ‘‘Senior Procurement 

Executive,’’ and ‘‘and shall,’’ to ensure 

clarity and continuity; revises 

503.705(a)(2)(i) to add ‘‘Identify’’ to 

ensure clarity; revises 503.705(2) by 

adding paragraphs (ii) and (iii) to ensure 

grammatical and structural integrity; 

deletes 503.705(a)(3) because the 

contracting officer does not have the 

authority cited in the subsection; revises 

503.705(b) to delete ‘‘Voiding and 

rescinding official’s,’’ and add ‘‘Senior 

Procurement Executive’’ to ensure 

continuity; revises 503.705(b)(1), to 

delete ‘‘the voiding and rescinding 

official’’ to ensure continuity; revises 

503.705(b)(2) to ensure grammatical and 

structural integrity; revises 503.705(b)(3) 

to ensure grammatical and structural 

integrity; revises 503.705(b)(4) to delete 

‘‘voiding and rescinding official’’ and 

add ‘‘Senior Procurement Executive,’’ in 

order to ensure continuity; revises 

503.705(b)(5), to delete ‘‘The official’’ to 

ensure clarity; and revises 503.705(c)(5), 

to ensure clarity. 

Revises Subpart 503.8 Limitation on 

the Payment of Funds to Influence 

Federal Transactions; revises 503.806 to 

ensure grammatical and structural 

integrity, and deletes ‘‘Inspector General 

for Investigation’’ and adds ‘‘Special 

Agent in Charge,’’ to ensure clarity. 

Adds a new Subpart 503.10 

Contractor Code of Business Ethics and 

Conduct; establishes a lower threshold 

for the inclusion of FAR 52.203–14 

Display of Hotline Poster(s) at 

503.1004(a) and includes 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). 

Deletes GSAR 552.203–5 Covenant 

Against Contingent Fees; in order to 

ensure consistency with the GSAM that 

provides that the acquisition of 

leasehold interests in real property is 

established by GSAM Part 570, and 

deletes GSAR 552.203–70 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 

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 no new requirements are being 

placed on the vendor community. No 

comments on this issue were received 

from small business concerns or other 

interested parties. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

GSAR do not impose recordkeeping or 

information collection requirements, or 

otherwise collect information from 

offerors, contractors, or members of the 

public that require approval of the 

Office of Management and Budget under 

44 U.S.C. Chapter 35, et seq. 

List of Subjects in 48 CFR Parts 503 and 

552 

Government procurement. 

Dated: September 30, 2009 

David A. Drabkin, 

Senior Procurement Executive, Office of 

Acquisition Policy, General Services 

Administration. 

■ Therefore, GSA amends 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 the period at the end of 

paragraph (a)(1) and adding ‘‘;’’ in its 

place; 

■ b. Removing from paragraph (a)(2) ‘‘or 

joint venture’’ and adding ‘‘; and’’ in its 

place; 

■ c. Revising the first sentence of the 

introductory text of paragraph (c); 

removing the period at the end of 

paragraphs (c)(1) and (c)(2) and adding 

‘‘;’’ in its place; and removing the period 

at the end of paragraph (c)(3) and 

adding ‘‘; and’’ in its place; and 

■ d. Revising the first sentence of 

paragraph (f). 

The revised text reads as follows: 

503.204 Treatment of violations. 

* * * * * 

(c) If there is a dispute of fact material 

to making a determination, the Senior 

Procurement Executive, or designee, 

may refer the matter to an agency factfinding official, designated by the 

Suspension and Debarment Official, in 

accordance with GSAR 509.403. * * * 

* * * * * 

(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. * * * 

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. 


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51512 Federal Register / Vol. 74, No. 193 / Wednesday, October 7, 2009 / Rules and Regulations 

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. 

503.705 [Removed] 

■ 8. Remove section 503.705. 

■ 9. 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: 

(1) Poster: GSA Office of Inspector 

General ‘‘FRAUDNET HOTLINE’’; and 

(2) Obtain from: Contracting Officer. 

PART 552—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 10. 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] 

■ 11. Remove sections 552.203–5 and 

552.203–70. 

[FR Doc. E9–24158 Filed 10–6–09; 8:45 am] 

BILLING CODE 6820–61–S 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 0809251266–81485–02] 

RIN 0648–XR94 

Fisheries of the Northeastern United 

States; Scup Fishery; Commercial 

Quota Harvested for 2009 Summer 

Period 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Temporary rule; closure. 

SUMMARY: NMFS announces the closure 

of the scup commercial coastwide 

fishery from Maine through North 

Carolina for the remainder of the 

Summer Period. Regulations governing 

the scup fishery require publication of 

this notification to advise the coastal 

states from Maine through North 

Carolina that this quota has been 

harvested and to advise Federal vessel 

permit holders and Federal dealer 

permit holders that no commercial 

quota is available for landing scup in 

these states. Federally permitted 

commercial vessels may not land scup 

in these states for the remainder of the 

2009 Summer quota period (through 

October 31, 2009). 

DATES: Effective 0001 hours, Thursday, 

October 7 through October 31, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Sarah Bland, Fishery Management 

Specialist, (978) 281–9257. 

SUPPLEMENTARY INFORMATION: 

Regulations governing the scup fishery 

are found at 50 CFR part 648. The 

regulations at § 648.121 require the 

Regional Administrator to monitor the 

commercial scup quota for each quota 

period and, based upon dealer reports, 

state data, and other available 

information, to determine when the 

commercial quota for a period has been 

harvested. NMFS is required to publish 

a notification in the Federal Register 

advising and notifying commercial 

vessels and dealer permit holders that, 

effective upon a specific date, the scup 

commercial quota has been harvested 

and no commercial quota is available for 

landing scup for the remainder of the 

Summer Period. Based upon recent 

projections, the Regional Administrator 

has determined that the Federal 

commercial quota of 2,930,733 lb (1,329 

mt) for the 2009 Summer Period will be 

fully harvested by or before October 31, 

2009. To maintain the integrity of the 

2009 Summer Period quota by avoiding 

or minimizing quota overages, the 

commercial scup fishery will close for 

the remainder of the Summer Period 

(through October 31, 2009) in Federal 

waters, effective as of the date specified 

above (see DATES). 

Section 648.4(b) provides that Federal 

scup moratorium permit holders agree, 

as a condition of the permit, not to land 

scup in any state after NMFS has 

published a notification in the Federal 

Register stating that the commercial 

quota for the period has been harvested 

and that no commercial quota for scup 

is available. Therefore, effective 0001 

hours, Thursday, October 8, 2009, 

further landings of scup by vessels 

holding Federal scup moratorium 

permits are prohibited through October 

31, 2009. Effective 0001 hours, 

Thursday, October 8, 2009, federally 

permitted dealers are also advised that 

they may not purchase scup from 

federally permitted vessels that land in 

coastal states from Maine through North 

Carolina for the remainder of the 

Summer Period (through October 31, 

2009). The Winter II Period for 

commercial scup harvest will open on 

November 1, 2009. 

Classification 

This action is required by 50 CFR part 

648 and is exempt from review under 

Executive Order 12866. 

Authority: 16 U.S.C. 1801 et seq. 

Dated: October 2, 2009. 

Emily H. Menashes, 

Acting Director, Office of Sustainable 

Fisheries, National Marine Fisheries Service. 

[FR Doc. E9–24177 Filed 10–05–09; 8:45 am] 

BILLING CODE 3510–22–S 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 679 

[Docket No. 090601946–91010–01] 

RIN 0648–AX94 

Fisheries of the Exclusive Economic 

Zone Off Alaska, Groundfish Observer 

Program; Correction 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Correcting amendments. 

SUMMARY: This action makes four 

corrections to regulations. It corrects a 

final rule removing the December 31, 

2007, expiration date for regulations 

governing the North Pacific Observer 

Program. NMFS intended this final rule 

to remove the expiration date from all 

paragraphs, however, due to the overlay 

of an additional and overlooked 

expiration date in a different final rule, 

NMFS inadvertently removed the 

regulations governing observer coverage 

for catcher/processors and motherships 

participating in the pollock fisheries in 

the Bering Sea and Aleutian Islands 

management area. This correcting 

amendment reinstates those observer 

coverage requirements. In addition, this 

rule corrects a cross-reference error; 

removes an expiration date; and 

removes effective dates that have now 

passed from certain paragraphs. 

DATES: Effective October 7, 2009. 


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