```

[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Rules and Regulations]
[Pages 4999-5001]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01431]

-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 203, 204, 212, 222, and 252

RIN 0750-AH93

Defense Federal Acquisition Regulation Supplement: Further 
Implementation of Trafficking in Persons Policy (DFARS Case 2013-D007)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to further implement DoD 
trafficking in persons policy, and to supplement Governmentwide changes 
proposed in connection with Executive Order 13627, to improve 
awareness, compliance, and enforcement.

DATES: Effective January 29, 2015.

FOR FURTHER INFORMATION CONTACT: Amy Williams, telephone 571-372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    The United States Government's longstanding policy prohibiting 
human trafficking in Federal supply chains is codified in 
Governmentwide acquisition regulations at FAR subpart 22.17. DoD is 
strengthening its policies and practices to ensure that no taxpayer 
resources are used to support such egregious labor violations. DoD has 
identified a number of important supplementary actions to help 
eradicate trafficking in its own supply chain. The DFARS coverage 
ensures that employees of DoD contractors are fully aware of their 
labor rights and that they have a means of reporting suspected labor 
violations directly to the DoD Inspector General's office. These added 
protections will further improve stability, productivity, and certainty 
in the contingency operations that DoD supports, and they will ensure 
that DoD contractors do not benefit from the use of coerced labor.
    DoD published a proposed rule in the Federal Register at 78 FR 
59325 on September 26, 2013, to further implement DoD trafficking in 
persons policies to improve awareness, compliance, and enforcement. Two 
respondents submitted public comments in response to the proposed rule.

[[Page 5000]]

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments follows:

A. Summary of Significant Changes From the Proposed Rule

    There were no changes from the proposed rule as a result of public 
comments. One minor editorial change was made to the title of the new 
provision 252.222-7007, Representation Regarding Combating Trafficking 
in Persons, to use the word ``regarding'' in lieu of ``with regard 
to.''

B. Analysis of Public Comments

    Comment: Both respondents commended the drafters of the proposed 
rule. One respondent expressed appreciation that the drafters listened 
to stakeholder organizations that offered comments at the public 
meeting on ending trafficking in persons earlier in 2013. The other 
respondent stated that the proposed rule goes a significant way towards 
implementing the requirements of Executive Order 13627 and title XVII 
of the National Defense Authorization Act for FY 2013. The respondents 
did not suggest any changes to the DFARS proposed rule.
    Response: Noted.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 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

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
and is summarized as follows:
    This rule amends the Defense Federal Acquisition Regulations 
Supplement (DFARS) to improve awareness, compliance, and enforcement of 
DoD policies on combating trafficking in persons. This rule requires 
the display of hotline posters on combating trafficking in persons and 
whistleblower protection for contracts and subcontracts, not for the 
acquisition of commercial items, that exceed $5 million (for 
performance both inside and outside the United States), display of a 
contractor employee bill of rights when the contract includes the DFARS 
clause 252.225-7040, Contractor Personnel Supporting U.S. Armed Forces 
Deployed Outside the United States, and a representation regarding 
hiring policies that is required in all DoD solicitations and contracts 
that exceed the simplified acquisition threshold.
    There were no public comments in response to the Initial Regulatory 
Flexibility Analysis.
    About 58,000 small entities do business with DoD. The mandatory 
disclosure requirements and the hotline poster requirements only apply 
to small business concerns with DoD contracts or subcontracts, not for 
the acquisition of commercial items, that exceed $5 million. The 
representation regarding hiring practices applies to all small business 
concerns (and all other businesses) that respond to solicitations with 
an estimated value exceeding the simplified acquisition threshold. The 
requirement to display the contractor employee bill of rights only 
applies to contracts with contractor personnel supporting U.S. Armed 
Forces deployed outside the United States in contingency operations, 
humanitarian or peacekeeping operations, or other military operations 
or exercises, when designated by the combatant commander. None of these 
requirements is expected to impose a significant economic burden on 
small business concerns.
    There are no information collection requirements in this rule. This 
rule adopts dollar thresholds wherever possible and limits certain 
requirements to contracts where contractor personnel support U.S. Armed 
Forces deployed outside the United States. There were no additional 
alternatives identified that could further decrease the impact on small 
entities.

V. Paperwork Reduction Act

    The 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 Parts 203, 204, 212, 222, and 252

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 203, 204, 212, 222, and 252 are amended as 
follows:

0
1. The authority citation for 48 CFR parts 203, 204, 212, 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

0
2. In section 203.1004, paragraph (b)(2)(ii) is revised to read as 
follows:

203.1004  Contract clauses.

* * * * *
    (b)(2)(ii) Unless the contract is for the acquisition of a 
commercial item, use the clause at 252.203-7004, Display of Hotline 
Posters, in lieu of the clause at FAR 52.203-14, Display of Hotline 
Poster(s), in solicitations and contracts, if the contract value 
exceeds $5 million. If the Department of Homeland Security (DHS) 
provides disaster relief funds for the contract, DHS will provide 
information on how to obtain and display the DHS fraud hotline poster 
(see FAR 3.1003).

PART 204--ADMINISTRATIVE MATTERS

204.1202  [Amended]

0
3. In section 204.1202, redesignate paragraphs (2)(iv) through (xiii) 
as paragraphs (2)(v) through (xiv), respectively, and add a new 
paragraph (2)(iv) as follows:
    204.1202 Solicitation provision.
* * * * *
    (2) * * *
    (iv) 252.222-7007, Representation Regarding Combating Trafficking 
in Persons.
* * * * *

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
4. In section 212.301, redesignate paragraphs (f)(vii) through 
(f)(xvii) as paragraphs (f)(viii) through (xviii), respectively, and 
add a new paragraph (f)(vii) to read as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (vii) Part 222--Application of Labor Laws to Government 
Acquisitions. Use

[[Page 5001]]

the provision at 252.222-7007, Representation Regarding Combating 
Trafficking in Persons, as prescribed in 222.1771.
* * * * *

PART 222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

0
5. The authority citation for 48 CFR part 222 is revised to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

0
6. Add sections 222.1770 and 222.1771 to subpart 222.17 to read as 
follows:

222.1770  Procedures.

    For a sample checklist for auditing compliance with Combating 
Trafficking in Persons policy, see the Defense Contract Management 
Agency checklist, Afghanistan Universal Examination Record Combating 
Trafficking in Persons, available at DFARS Procedures Guidance and 
Information 222.17.

222.1771  Solicitation provision.

    Unless the solicitation includes the provision at 252.204-7007, use 
the provision at 252.222-7007, Representation Regarding Combating 
Trafficking in Persons, in all solicitations and contracts that exceed 
the simplified acquisition threshold, including solicitations and 
contracts using FAR part 12 procedures for the acquisition of 
commercial items.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
7. Section 252.203-7004 is revised to read as follows:

252.203-7004  Display of Hotline Posters.

    As prescribed in 203.1004(b)(2)(ii), use the following clause:

DISPLAY OF HOTLINE POSTERS (JAN 2015)

    (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 the DoD fraud hotline poster, prepared by the 
DoD Office of the Inspector General, in common work areas within 
business segments performing work in the United States under 
Department of Defense (DoD) contracts.
    (2) If the contract is funded, in whole or in part, by 
Department of Homeland Security (DHS) disaster relief funds, the DHS 
fraud hotline poster shall be displayed in addition to the DoD fraud 
hotline poster. If a display of a DHS fraud hotline poster is 
required, the Contractor may obtain such poster from:
    __________
[Contracting Officer shall insert the appropriate DHS contact 
information or Web site.]
    (c) Display of combating trafficking in persons and 
whistleblower protection hotline posters. The Contractor shall 
display prominently the DoD Combating Trafficking in Persons and 
Whistleblower Protection hotline posters, prepared by the DoD Office 
of the Inspector General, in common work areas within business 
segments performing work under DoD contracts.
    (d)(1) These DoD hotline posters may be obtained from: Defense 
Hotline, The Pentagon, Washington, DC 20301-1900, or are also 
available via the internet at http://www.dodig.mil/hotline/hotline_posters.htm.
    (2) If a significant portion of the employee workforce does not 
speak English, then the posters are to be displayed in the foreign 
languages that a significant portion of the employees speak. Contact 
the DoD Inspector General at the address provided in paragraph 
(d)(1) of this clause if there is a requirement for employees to be 
notified of this clause and assistance with translation is required.
    (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 these required posters at the 
Web site.
    (e) Subcontracts. The Contractor shall include the substance of 
this clause, including this paragraph (e), in all subcontracts that 
exceed $5 million except when the subcontract is for the acquisition 
of a commercial item.

(End of clause)

0
8. Section 252.204-7007 is amended by--
0
a. Removing the provision date ``(DEC 2014)'' and adding ``(JAN 2015)'' 
in its place; and
0
b. Redesignating paragraphs (d)(1)(iii) through (vii) as paragraphs 
(d)(1)(iv) through (viii), respectively, and adding a new paragraph 
(d)(1)(iii).
    The addition reads as follows:

252.204-7007   Alternate A, Annual Representations and Certifications.

* * * * *
    (d)(1) * * *
    (iii) 252.222-7007, Representation Regarding Combating Trafficking 
in Persons, as prescribed in 222.1771. Applies to solicitations with a 
value expected to exceed the simplified acquisition threshold.
* * * * *

0
9. Add new section 252.222-7007 to read as follows:

252.222-7007  Representation Regarding Combating Trafficking in 
Persons.

    As prescribed in 222.1771, use the following provision:

REPRESENTATION REGARDING COMBATING TRAFFICKING IN PERSONS (JAN 2015)

    By submission of its offer, the Offeror represents that it--
    (a) Will not engage in any trafficking in persons or related 
activities, including but not limited to the use of forced labor, in 
the performance of this contract;
    (b) Has hiring and subcontracting policies to protect the rights 
of its employees and the rights of subcontractor employees and will 
comply with those policies in the performance of this contract; and
    (c) Has notified its employees and subcontractors of--
    (1) The responsibility to report trafficking in persons 
violations by the Contractor, Contractor employees, or subcontractor 
employees, at any tier; and
    (2) Employee protection under 10 U.S.C. 2409, as implemented in 
DFARS subpart 203.9, from reprisal for whistleblowing on trafficking 
in persons violations.

(End of provision)

0
10. Section 252.225-7040 is amended by--
0
a. Removing the clause date ``(MAY 2014)'' and adding ``(JAN 2015)'' in 
its place; and
0
b. Adding paragraph (d)(8).
    The addition reads as follows:

252.225-7040  Contractor Personnel Supporting U.S. Armed Forces 
Deployed Outside the United States.

* * * * *
    (d) * * *
    (8)(i) The Contractor shall ensure that Contractor employees 
supporting the U.S. Armed Forces are aware of their rights to--
    (A) Hold their own identity or immigration documents, such as 
passport or driver's license, regardless of the documents' issuing 
authority;
    (B) Receive agreed upon wages on time;
    (C) Take lunch and work-breaks;
    (D) Elect to terminate employment at any time;
    (E) Identify grievances without fear of reprisal;
    (F) Have a copy of their employment contract in a language they 
understand;
    (G) Receive wages that are not below the legal host-country 
minimum wage;
    (H) Be notified of their rights, wages, and prohibited 
activities prior to signing their employment contract; and
    (I) If housing is provided, live in housing that meets host-
country housing and safety standards.
    (ii) The Contractor shall post these rights in employee work 
spaces in English and in any foreign language(s) spoken by a 
significant portion of the workforce.
    (iii) The Contractor shall enforce the rights of Contractor 
personnel supporting the U.S. Armed Forces.
* * * * *
[FR Doc. 2015-01431 Filed 1-28-15; 8:45 am]
BILLING CODE 5001-06-P
```