Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations 2413 

(b) After receipt of a notification submitted 

in accordance with paragraph (a) of this 

clause, the DoD Program Manager will— 

(1) Conduct a security assessment to 

determine if and by what means access may 

be granted to the IAEA; or 

(2) Provide written justification to the 

component or agency treaty office for a 

national security exclusion, in accordance 

with DoD Instruction 2060.03, Application of 

the National Security Exclusion to the 

Agreements Between the United States of 

America and the International Atomic Energy 

Agency for the Application of Safeguards in 

the United States of America. DoD will notify 

the Contractor if a national security exclusion 

is applied at the Contractor’s location to 

prohibit access by the IAEA. 

(c) If the DoD Program Manager determines 

that a security assessment is required— 

(1) DoD will, at a minimum— 

(i) Notify the Contractor that DoD officials 

intend to conduct an assessment of 

vulnerabilities to IAEA inspections or visits; 

(ii) Notify the Contractor of the time at 

which the assessment will be conducted, at 

least 30 days prior to the assessment; 

(iii) Provide the Contractor with advance 

notice of the credentials of the DoD officials 

who will conduct the assessment; and 

(iv) To the maximum extent practicable, 

conduct the assessment in a manner that 

does not impede or delay operations at the 

Contractor’s facility; and 

(2) The Contractor shall provide access to 

the site and shall cooperate with DoD 

officials in the assessment of vulnerabilities 

to IAEA inspections or visits. 

(d) Following a security assessment of the 

Contractor’s facility, DoD officials will notify 

the Contractor as to— 

(1) Whether the Contractor’s facility has 

any vulnerabilities where potentially 

declarable activities under the U.S.-IAEA AP 

are taking place; 

(2) Whether additional security measures 

are needed; and 

(3) Whether DoD will apply a national 

security exclusion. 

(e) If DoD applies a national security 

exclusion, the Contractor shall not grant 

access to IAEA inspectors. 

(f) If DoD does not apply a national 

security exclusion, the Contractor shall apply 

managed access to prevent disclosure of 

program activities, locations, or information 

in the U.S. declaration. 

(g) The Contractor shall not delay 

submission of any reports required by the 

Department of Commerce or the Nuclear 

Regulatory Commission while awaiting a 

DoD response to a notification provided in 

accordance with this clause. 

(h) The Contractor shall incorporate the 

substance of this clause, including this 

paragraph (h), in all subcontracts that are 

subject to the provisions of the U.S.-IAEA 

AP. 

(End of clause) 

[FR Doc. E9–671 Filed 1–14–09; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 209 

RIN 0750–AG22 

Defense Federal Acquisition 

Regulation Supplement; List of Firms 

Owned or Controlled by the 

Government of a Terrorist Country 

(DFARS Case 2008–D025) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to address procedures for 

notifying the appropriate DoD office of 

any information indicating that a firm or 

a subsidiary of a firm may be owned or 

controlled by the Government of a 

terrorist country. The notifications will 

facilitate maintenance of a list of such 

firms, as required by statute. 

DATES: Effective Date: January 15, 2009. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), IMD 3C132, 3062 

Defense Pentagon, Washington, DC 

20301–3062. Telephone 703–602–0328; 

facsimile 703–602–7887. Please cite 

DFARS Case 2008–D025. 

SUPPLEMENTARY INFORMATION: 

A. Background 

10 U.S.C. 2327(d) requires DoD to 

develop and maintain a list of all firms, 

and subsidiaries of firms, that are 

owned or controlled by the government 

of a terrorist country and that, therefore, 

are subject to a prohibition on DoD 

contract awards. 

To facilitate maintenance of the list 

required by 10 U.S.C. 2327(d), this final 

rule amends DFARS 209.104–1 and 

209.104–70 to address DoD procedures 

for forwarding, to the appropriate office, 

any information indicating that a firm or 

a subsidiary of a firm may be owned or 

controlled by the government of a 

terrorist country. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

This rule will not have a significant 

cost or administrative impact on 

contractors or offerors, or a significant 

effect beyond the internal operating 

procedures of DoD. Therefore, 

publication for public comment under 

41 U.S.C. 418b is not required. 

However, DoD will consider comments 

from small entities concerning the 

affected DFARS subpart in accordance 

with 5 U.S.C. 610. Such comments 

should cite DFARS Case 2008–D025. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply, because the rule does not 

impose any information collection 

requirements that require the approval 

of the Office of Management and Budget 

under 44 U.S.C. 3501, et seq. 

List of Subjects in 48 CFR Part 209 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 209 is 

amended as follows: 

PART 209—CONTRACTOR 

QUALIFICATIONS 

■ 1. The authority citation for 48 CFR 

part 209 continues to read as follows: 

Authority: 41 U.S.C. 421 and 48 CFR 

Chapter 1. 

■ 2. Section 209.104–1 is amended by 

adding paragraph (g)(i)(C) to read as 

follows: 

209.104–1 General standards. 

* * * * * 

(g)(i) * * * 

(C) Forward any information 

indicating that a firm or a subsidiary of 

a firm may be owned or controlled by 

the government of a terrorist country, 

through agency channels, to: Deputy 

Director, Defense Procurement (Contract 

Policy and International Contracting, 

OUSD(AT&L)DPAP(CPIC)), 3060 

Defense Pentagon, Washington, DC 

20301–3060. 

* * * * * 

■ 3. Section 209.104–70 is amended in 

paragraph (a) by revising the second 

sentence to read as follows: 

209.104–70 Solicitation provisions. 

(a) * * * Any disclosure that the 

government of a terrorist country has a 

significant interest in an offeror or a 

subsidiary of an offeror shall be 

forwarded through agency channels to 

the address at 209.104–1(g)(i)(C). 

* * * * * 

[FR Doc. E9–670 Filed 1–14–09; 8:45 am] 

BILLING CODE 5001–08–P 

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