11336 Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations 

to make a state-level commitment for 

five years. 

(c) Deployment schedule. Recipients 

of Phase II funding must complete 

deployment to 85% of supported 

locations within three years of 

notification of Phase II support 

authorization and to 100% of supported 

locations within five years of 

notification of Phase II support 

authorization. For purposes of meeting 

the obligation to deploy to the requisite 

number of supported locations, 

incumbent price cap carriers accepting 

a state-level commitment may serve 

locations in census blocks with costs 

above the extremely high-cost threshold 

instead of locations in eligible census 

blocks, provided that they meet the 

public interest obligations set forth in 

§ 54.309 for those locations, and 

provided that the total number of 

locations covered is greater than or 

equal to the number of locations in the 

eligible census blocks for which the 

state-level commitment is made. 

(d) Disbursement of Phase II funding. 

An eligible telecommunications carrier 

will be advised by public notice when 

it is authorized to receive support. The 

public notice will detail how 

disbursements will be made. 

■ 4. In § 54.313, revise paragraphs (e)(1), 

(e)(2) and (e)(3) introductory text to read 

as follows: 

§ 54.313 Annual reporting requirements 

for high-cost recipients 

* * * * * 

(e) * * * 

(1) In the calendar year no later than 

three years after notification of 

authorization of CAF Phase II funding, 

a certification that the recipient is 

providing broadband meeting the 

requisite public interest obligations 

specified in § 54.309 to 85% of its 

supported locations. 

(2) In the calendar year no later than 

five years after notification of 

authorization of CAF Phase II funding, 

a certification that the recipient is 

providing broadband meeting the 

requisite public interest obligations 

specified in § 54.309 to 100% of its 

supported locations. 

(3) In the calendar year after the filing 

of its initial five-year service quality 

improvement plan, and every year 

thereafter, a progress report on the 

company’s five-year service quality 

improvement plan, including the 

following information: 

* * * * * 

[FR Doc. 2014–04313 Filed 2–27–14; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 203 and 252 

RIN 0750–AH97 

Defense Federal Acquisition 

Regulation Supplement: Enhancement 

of Contractor Employee Whistleblower 

Protections (DFARS Case 2013–D010) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has adopted as final, 

with changes, an interim rule amending 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement statutory amendments to 

whistleblower protections for contractor 

and subcontractor employees. 

DATES: Effective February 28, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Amy Williams, telephone 571–372– 

6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This final rule finalizes an interim 

rule that revised the DFARS to 

implement section 827 (except 

paragraph (g)) of the National Defense 

Authorization Act for Fiscal Year 2013 

(Pub. L. 112–239, enacted January 2, 

2013). Section 827, entitled 

‘‘Enhancement of Whistleblower 

Protections for Contractor Employees,’’ 

made extensive changes to 10 U.S.C. 

2409, entitled ‘‘Contractor employees: 

Protection from reprisal or disclosure.’’ 

Paragraph (g) of section 827, which 

amended paragraph (k) of 10 U.S.C. 

2324, entitled ‘‘Allowable costs under 

defense contracts,’’ is addressed under a 

separate DFARS case, 2013–D022, 

Allowability of Legal Costs for 

Whistleblower Proceedings. 

Section 827 of the NDAA for FY 2013 

created a standalone statute for DoD that 

is independent of the FAR coverage. 

DoD published an interim rule in the 

Federal Register at 78 FR 59851 on 

September 30, 2013, to implement 

statutory amendments to the 

whistleblower protections for contractor 

and subcontractor employees. One 

respondent submitted a public comment 

in response to the interim rule. 

II. Discussion and Analysis 

A. Public Comments 

DoD reviewed the public comment in 

the development of the final rule. A 

discussion of the comment is provided 

below. 

Comment: The respondent 

recommended reinstating the clarifying 

statements at DFARS 203.903 and 

203.905 that ‘‘The following policy 

applies to DoD instead of the policy at 

FAR 3.903/3.905.’’ 

Response: In the final rule, DoD has 

inserted a statement in section 203.900, 

Scope, to indicate that DFARS subpart 

203.9 is to be used in lieu of FAR 

subpart 3.9. DFARS contractor 

whistleblower policies are based on 10 

U.S.C. 2409, which is no longer 

implemented in the FAR (see FAR 

3.900). 

B. Other Changes 

DoD has incorporated other nonsubstantive editorial changes in the final 

rule. In addition to redesignation of 

some paragraphs to conform to DFARS 

numbering conventions and minor 

wording changes for clarity, DoD has 

relocated DFARS 203.907, Classified 

information, to DFARS 203.903(2), 

because section 3.907 in the FAR is 

titled ‘‘Whistleblower Protections Under 

the American Recovery and 

Reinvestment Act of 2009 (the Recovery 

Act).’’ DoD cannot assign a new title to 

the corresponding section in the 

DFARS. 

II. 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 not a significant 

regulatory action and, therefore, was not 

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: 

The Department of Defense (DoD) is 

amending the Defense Federal 

Acquisition Regulations Supplement 

(DFARS) to implement changes to 

existing protections for contractor 

whistleblower employees in accordance 

with section 827 of the National Defense 


emcdonald on DSK67QTVN1PROD with RULES
Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations 11337 

Authorization Act for Fiscal Year 2013. 

Section 827 amends 10 U.S.C. 2409 and 

10 U.S.C. 2324(k), making the changes 

applicable to DoD and NASA. Each 

agency is amending its FAR 

supplement. This analysis pertains only 

to the DFARS final rule. DFARS is 

revising subpart 203.9, ‘‘Whistleblower 

Protections for Contractor Employees.’’ 

The subpart covers the policy, 

procedures for filing and investigating 

complaints, remedies, and the 

prescription for the clause at DFARS 

252.203–7002, entitled ‘‘Requirement to 

Inform Employees of Whistleblower 

Rights.’’ 

The rule applies to all entities, small 

as well as large, at the prime contract 

and subcontract level. However, not all 

entities will have a situation that 

requires an employee to use the 

whistleblower provisions, and there is 

no way to predict the potential number 

of whistleblowers in advance. However, 

a small entity could be impacted by a 

whistleblower employee either as a 

Government prime contractor or 

subcontractor. In addition, the impact 

on an entity is directly related to the 

seriousness of the alleged wrongdoing. 

No comments were received from the 

public on the Regulatory Flexibility 

analysis. No comments were received 

from the Chief Counsel for Advocacy of 

the Small Business Administration. 

There are no reporting requirements 

associated with this rule. However, a 

firm accused of retaliating against an 

employee whistleblower is likely to be 

required to furnish human resources 

documentation to disprove the 

accusation. This documentation, 

however, would only be required in the 

course of an investigation of the 

accusation, not as a result of a contract 

clause. 

There are no alternatives to this rule. 

Because of the terms used in the statute, 

DoD is unable to exempt small entities 

or establish a dollar threshold for 

coverage. Regardless of the size of the 

business, a whistleblower employee 

must be protected from retaliation by 

his/her employer. 

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 and 

252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Accordingly, the interim rule 

amending 48 CFR parts 203 and 252, 

which was published in the Federal 

Register at 78 FR 59851 on September 

30, 2013, is adopted as a final rule with 

the following changes: 

PART 203—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

■ 1. The authority citation for 48 CFR 

part 203 continues to read as follows: 

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

chapter 1. 

■ 2. Section 203.900 is amended by— 

■ a. Adding introductory text; 

■ b. Redesignating paragraphs (a) and 

(b) as paragraphs (1) and (2); and 

■ c. In redesignated paragraph (2), 

further redesignating paragraphs (1) and 

(2) as paragraphs (2)(i) and (ii). 

The addition reads as follows: 

203.900 Scope of subpart. 

This subpart applies to DoD instead of 

FAR subpart 3.9. 

* * * * * 

203.901 [Amended] 

■ 3. Section 203.901 heading is 

amended by removing ‘‘Definition’’ and 

adding in its place ‘‘Definitions’’. 

■ 4. Section 203.903 is amended by— 

■ a. Revising paragraph (1); 

■ b. Redesignating paragraphs (2), (3), 

and (4) as paragraphs (3), (4), and (5), 

respectively; and 

■ c. Adding a new paragraph (2). 

The revision and addition read as 

follows: 

203.903 Policy. 

(1) Prohibition. 10 U.S.C. 2409 

prohibits contractors and subcontractors 

from discharging, demoting, or 

otherwise discriminating against an 

employee as a reprisal for disclosing, to 

any of the entities listed at paragraph (2) 

of this section, information that the 

employee reasonably believes is 

evidence of gross mismanagement of a 

DoD contract, a gross waste of DoD 

funds, an abuse of authority relating to 

a DoD contract, a violation of law, rule, 

or regulation related to a DoD contract 

(including the competition for or 

negotiation of a contract), or a 

substantial and specific danger to public 

health or safety. Such reprisal is 

prohibited even if it is undertaken at the 

request of an executive branch official, 

unless the request takes the form of a 

non-discretionary directive and is 

within the authority of the executive 

branch official making the request. 

(2) Classified information. As 

provided in section 827(h) of the 

National Defense Authorization Act for 

Fiscal Year 2013, nothing in this subpart 

provides any rights to disclose classified 

information not otherwise provided by 

law. 

* * * * * 

203.904 [Amended] 

■ 5. Section 203.904 is amended by— 

■ a. Redesignating paragraphs (a), (b), 

and (c) as paragraphs (1), (2), and (3), 

respectively; and 

■ b. In the newly redesignated 

paragraph (3), further redesignating 

paragraphs (1), (2), (3), (4), and (5) as 

paragraphs (3)(i), (ii), (iii), (iv), and (v), 

respectively. 

■ 6. Section 203.905 is amended by 

revising paragraph (2) to read as follows: 

203.905 Procedures for investigating 

complaints. 

* * * * * 

(2) If the DoD Inspector General 

investigates the complaint, the DoD 

Inspector General will— 

(i) Notify the complainant, the 

contractor alleged to have committed 

the violation, and the head of the 

agency; and 

(ii) Provide a written report of 

findings to the complainant, the 

contractor alleged to have committed 

the violation, and the head of the 

agency. 

* * * * * 

203.907 [Removed] 

■ 7. Remove Section 203.907. 

[FR Doc. 2014–04158 Filed 2–27–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204, 212, 227, 237, and 

252 

RIN 0750–AH54 

Defense Federal Acquisition 

Regulation Supplement; Disclosure to 

Litigation Support Contractors (DFARS 

Case 2012–D029) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Interim rule. 


emcdonald on DSK67QTVN1PROD with RULES