[Federal Register Volume 72, Number 54 (Wednesday, March 21, 2007)]
[Proposed Rules]
[Pages 13234-13235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1318]



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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 12, and 52

[FAR Case 2006-029; Docket No. 2007-0001; Sequence 5]
RIN 9000-AK72


Federal Acquisition Regulation; FAR Case 2006-029, Federal 
Funding Accountability and Transparency Act (FFATA)--Reporting 
Requirement of Subcontractor Award Data

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to require that contractors report 
specific subcontract awards to a public database. The Federal Funding 
Accountability and Transparency Act of 2006 (FFATA) (Pub. L. 109-282) 
requires the existence and operation of a searchable website that 
provides public access to information about Federal expenditures. The 
FFATA specifically requires that a pilot program be established to test 
the collection and accession of subcontract award data. As a result, 
subcontracts awarded and funded with Federal appropriated funds will be 
disclosed to the public in a single searchable website.

DATES: Interested parties should submit written comments to the FAR 
Secretariat on or before May 21, 2007 to be considered in the 
formulation of a final rule.

ADDRESSES: Submit comments identified by FAR case 2006-029 by any of 
the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Search for any document by first selecting the proper document types 
and selecting ``Federal Acquisition Regulation'' as the agency of 
choice. At the ``Keyword'' prompt, type in the FAR case number (for 
example, FAR Case 2006-001) and click on the ``Submit'' button. Please 
include any personal and/or business information inside the document. 
You may also search for any document by clicking on the ``Advanced 
search/document search'' tab at the top of the screen, selecting from 
the agency field ``Federal Acquisition Regulation'', and typing the FAR 
case number in the keyword field. Select the ``Submit'' button.
    <bullet> Fax: 202-501-4067.
    <bullet> Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR case 2006-
029 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: Mr. Ernest Woodson, Procurement 
Analyst, at (202) 501-3775 for clarification of content. For 
information pertaining to status or publication schedules, contact the 
FAR Secretariat at (202) 501-4755. Please cite FAR case 2006-029.

SUPPLEMENTARY INFORMATION:

A. Background

    The FFATA requires the existence and operation of a searchable 
website that provides public access to information about Federal 
expenditures. Section 2(d) of the FFATA requires that a pilot program 
be established to test the collection and accession of subcontract 
award data.
    In order to implement Section 2(d) of the FFATA, the Councils 
propose to add a new subpart to FAR Part 4, with an associated clause 
in FAR Part 52, which addresses reporting subcontract awards. The pilot 
program will begin no later than July 1, 2007 and will terminate no 
later than January 1, 2009.
    This rule applies to contracts with values equal to or greater than 
$500,000,000 awarded and performed in the United States, and requires 
the awardees to report all first tier subcontract awards exceeding 
$1,000,000 to the FFATA database at www.federalspending.gov. The 
Councils chose these thresholds to ensure that a sufficient number of 
subcontract award reports will be entered in the database to permit 
assessment of its effectiveness without imposing a significant burden 
on contractors during the pilot program. The Government does not 
guarantee the reliability of the data reported. The Government has no 
mechanism to verify the data submitted. Before completion of the pilot 
program, the Councils will initiate a separate rulemaking process to 
establish the requirements for the final subcontract reporting database 
pursuant to the statute. The Councils anticipate that the final 
reporting requirement will apply to contracts with values equal to or 
greater than the simplified acquisition threshold and will require the 
reporting of subcontracts with values greater than $25,000, regardless 
of the award or performance locations of the prime contract or 
subcontracts. This rule does not apply to classified contracts or 
commercial item contracts issued under FAR Part 12. FFATA did not 
explicitly apply its provisions to commercial items, and the statute 
will be added to the list of laws inapplicable to commercial contracts 
at 12.503(a), under 41 U.S.C. 430.
    The Councils specifically invite comments on the following--
    (a) The pilot program--
    (1) The burden imposed;
    (2) Whether making this information publicly available will affect 
the contractor's competitiveness; and
    (3) Whether availability of this information on a public website 
raises industrial, national or other security concerns.
    (b) Possible final reporting requirements--
    (1) Whether the final reporting requirements (after the pilot 
program) should apply to contracts and subcontracts;
    (i) Awarded or performed outside the United States;
    (ii) With values greater than $25,000; and
    (iii) Awards below the first tier.
    (2) Whether the reporting period should be 30 days after award of a 
subcontract as expressed in the statute or a longer period; and
    (3) Whether the unique subcontractor identifier should be the DUNS 
number, the Taxpayer Identification Number (TIN) some other number, or 
a non-numerical unique identifier.
    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 Councils do 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 contract dollar threshold chosen for application of the 
pilot program ($500,000,000) ensures that any small businesses 
receiving such large prime contract awards are estimated to be 
minuscule to none. An Initial Regulatory Flexibility Analysis has,

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therefore, not been performed. We invite comments from small businesses 
and other interested parties. The Councils will consider comments from 
small entities concerning the affected FAR Parts 4, 12, and 52 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. (FAR case 
2006-029), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) applies because the 
proposed rule contains information collection requirements. 
Accordingly, the FAR Secretariat will submit a request for approval of 
a new information collection requirement concerning OMB Control Number 
9000-00XX, FFATA--Reporting Requirement of Subcontractor Award Data to 
the Office of Management and Budget under 44 U.S.C. 3501, et seq.
    Annual Reporting Burden:
    Public reporting burden for this collection of information is 
estimated to average 1 hour per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    The annual reporting burden is estimated as follows:
    Respondents: 143
    Responses per respondent: 28
    Total annual responses: 4,004
    Preparation hours per response: 1
    Total response burden hours: 4,004.

D. Request for Comments Regarding Paperwork Burden

    Submit comments, including suggestions for reducing this burden, 
not later than May 21, 2007 to: FAR Desk Officer, OMB, Room 10102, 
NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, FAR Secretariat (VIR), 1800 F Street, NW, Room 4035, 
Washington, DC 20405.
    Public comments are particularly invited on: whether this 
collection of information is necessary for the proper performance of 
functions of the FAR, and will have practical utility; whether our 
estimate of the public burden of this collection of information is 
accurate, and based on valid assumptions and methodology; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways in which we can minimize the burden of the 
collection of information on those who are to respond, through the use 
of appropriate technological collection techniques or other forms of 
information technology.
    Requester may obtain a copy of the justification from the General 
Services Administration, FAR Secretariat (VIR), Room 4035, Washington, 
DC 20405, telephone (202) 501-4755. Please cite OMB Control Number 
9000-00XX, FFATA--Reporting Requirement of Subcontractor Award Data, in 
all correspondence.

List of Subjects in 48 CFR Parts 4, 12, and 52

    Government procurement.

    Dated: March 13, 2007.
Al Matera
Acting Director, Contract Policy Division.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 4, 12, 
and 52 as set forth below:
    1. The authority citation for 48 CFR parts 4, 12, 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. Add Subpart 4.14 to read as follows:

Subpart 4.14--Reporting Subcontract Awards


4.1400  Scope of subpart.

    This subpart implements Section 2(d) of the Federal Funding 
Accountability and Transparency Act of 2006 (Pub. L. 109-282) by 
establishing a pilot program for a single searchable website, available 
to the public at no charge, that includes information on Federal 
subcontracts. This pilot program will expire not later than January 1, 
2009.


4.1401  Contract clause.

    (a) Except as provided in paragraph (b) of this section, insert the 
clause at 52.204-10, Reporting Subcontract Awards, in all solicitations 
and contracts with values of $500,000,000 or more when the contract 
will be awarded and performed in the United States.
    (b) The clause is not required in--
    (1) Solicitations and contracts for commercial items issued under 
FAR Part 12; or
    (2) Classified solicitations and contracts.

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    3. Amend section 12.503 by adding paragraph (a)(7) to read as 
follows:


12.503  Applicability of certain laws to Executive agency contracts for 
the acquisition of commercial services.

    (a) * * *
    (7) 31 U.S.C. 6101 Note, P. L. 109-282 Federal Funding 
Accountability and Transparency Act of 2006, requirement to report 
subcontract data.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Add section 52.204-10 to read as follows:


52.204-10  Reporting Subcontract Awards.

    As prescribed in 4.1401(a), insert the following clause:
    REPORTING SUBCONTRACT AWARDS (DATE)
    (a) Definition. Subcontract, as used in this clause, means any 
contract as defined in FAR Subpart 2.1 entered into by the 
Contractor to furnish supplies or services for performance of this 
contract. It includes, but is not limited to, purchase orders and 
changes and modifications to purchase orders, but does not include 
contracts that provide supplies or services benefiting two or more 
contracts.
    (b) Section 2(d) of the Federal Funding Accountability and 
Transparency Act of 2006 (Pub. L. No. 109-282) requires 
establishment of a pilot program for a single searchable website, 
available to the public at no charge, that includes information on 
Federal subcontracts.
    (c) Within thirty days after the end of March, June, September, 
and December of each year through 2008, the Contractor shall report 
the following information at www.federalspending.gov for each 
subcontract award with a value greater than $1,000,000 made during 
that quarter. The Contractor shall follow the instructions at 
www.federalspending.govto report the data:
    (1) Name of the subcontractor.
    (2) Amount of the award.
    (3) Date of award.
    (4) The applicable North American Industry Classification System 
code.
    (5) Funding agency or agencies.
    (6) Award title descriptive of the purpose of the action.
    (7) Contract number.
    (8) Subcontractor location including address.
    (9) Subcontract primary performance location including address.
    (10) Unique identifier for the subcontractor.
    (End of clause)
[FR Doc. 07-1318 Filed 3-20-07; 8:45 am]
BILLING CODE 6820-EP-S