17098 Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Rules and Regulations 

By Order of the Maritime Administrator. 

Dated: April 6, 2009. 

Leonard Sutter, 

Secretary, Maritime Administration. 

[FR Doc. E9–8226 Filed 4–13–09; 8:45 am] 

BILLING CODE 4910–81–P 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Parts 528 and 552 

[GSAR Amendment 2009–02; GSAR Case 

2006–G517 (Change 28); Docket 2008-0007; 

Sequence 3] 

RIN 3090–AI64 

General Services Administration 

Acquisition Regulation; GSAR Case 

2006–G517, Rewrite of GSAR Part 528, 

Bonds and Insurance 

AGENCIES: General Services 

Administration (GSA), Office of the 

Chief Acquisition Officer. 

ACTION: Final rule. 

SUMMARY: The General Services 

Administration (GSA) is amending the 

GSA Acquisition Regulation (GSAR) to 

update the text addressing bonds and 

insurance. This rule is a result of the 

GSA Acquisition Manual (GSAM) 

rewrite initiative undertaken by GSA to 

revise the GSAM to maintain 

consistency with the Federal 

Acquisition Regulation (FAR), and to 

implement streamlined and innovative 

acquisition procedures that contractors, 

offerors, and GSA contracting personnel 

can utilize when entering into and 

administering contractual relationships. 

The GSAM incorporates the GSAR as 

well as internal agency acquisition 

policy. 

DATES: Effective Date: May 14, 2009. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Mr. 

Michael O. Jackson at (202) 208–4949. 

For information pertaining to the status 

or publication schedules, contact the 

Regulatory Secretariat (VPR), Room 

4041, GS Building, Washington, DC 

20405, (202) 501–4755. Please cite 

GSAR Case 2006–G517 (Change 28). 

SUPPLEMENTARY INFORMATION: 

A. Background 

The General Services Administration 

published an Advance Notice of 

Proposed Rulemaking (ANPR) in the 

Federal Register at 71 FR 7910 on 

February 15, 2006, with request for 

comments on all parts of the GSAM. No 

comments were received on Part 528. 

However, internal review comments 

have been incorporated as appropriate. 

A proposed rule for the regulatory 

portion of the GSAM was published in 

the Federal Register at 73 FR 45378 on 

August 5, 2008. The public comment 

period for GSAR Part 528 closed on 

October 6, 2008, and no comments were 

received. 

The Rewrite of Part 528 

This final rule contains the revisions 

made to Part 528, Bonds and Insurance, 

as a result of internal review comments. 

The rule revises Part 528 to address the 

text at GSAR 528.202, Acceptability of 

corporate sureties, and GSAR 528.310, 

Contract clause for work on a 

Government installation. The rule adds 

GSAR 528.311, Solicitation provision 

and contract clause on liability 

insurance under cost-reimbursement 

contracts, and GSAR 552.228–5, 

Government as Additional Insured, and 

deletes GSAR 552.228–70, Workers’ 

Compensation Laws. The specific 

changes are as follows: 

• The language in GSAR 528.202, 

Acceptability of corporate sureties is 

revised to change ‘‘you’’ to the 

‘‘contracting officer.’’ 

• The change in GSAR 528.310, 

Contract clause for work on a 

Government installation deletes GSAR 

528.310 paragraph (b) and GSAR 

552.228–70, Workers’ Compensation 

Laws. The clause GSAR 552.228–70 is 

deleted because its only purpose is to 

recite the fact that 40 U.S.C. 3172 effects 

a limited cession of jurisdiction to states 

with respect to enforcement of worker’s 

compensation laws and has no 

contractual effect. Paragraph (b) in 

GSAR 528.310 is being deleted because 

it relates to the deletion of GSAR 

552.228–70 where it states ‘‘in the case 

of an owner-controlled insurance 

program, or wrap-up insurance, the 

clause will be a part of the policy 

holder’s requirements’’ the phrase ‘‘the 

clause’’ refers to GSAR 552.528–70. 

• GSA is adding GSAR 528.311, 

Solicitation provision and contract 

clause on liability insurance under costreimbursement contracts. The new 

language at section 528.311–l clarifies 

the usage for the FAR clause 52.228–7, 

Insurance—Liability to Third Persons, 

in solicitations and contracts. The 

language states that other than contracts 

and solicitations for construction and 

architect-engineer services, when a costreimbursement contract is 

contemplated, unless the head of the 

contracting activity waives the 

requirement for use of the clause, FAR 

clause 52.228–7 is required. 

• GSA is adding clause 552.228–5 to 

the GSAR. The language in this clause 

was previously in the GSAR and based 

upon GSA’s experience with contracts 

that do not have such a clause, it is 

being reinstated to protect the Federal 

Government’s interest. In essence, the 

new GSAR 552.228–5 replaced the 

newly deleted GSAR 552.228–70. GSAR 

552.228–70 (formerly GSAR 552.228– 

75) did not serve any purpose other than 

to recite the fact that 40 U.S.C. 3172 

(formerly 40 U.S.C. 290) effects a 

limited cession of jurisdiction to states 

with respect to enforcement of worker’s 

compensation laws. GSAR clause 

552.228–70 had no contractual effect 

and was superfluous. 

Discussion of Comments 

There were no public comments 

received in response to the Advanced 

Notice of Proposed Rulemaking 

published in the Federal Register at 71 

FR 7910 on February 15, 2006. A 

proposed rule was published in the 

Federal Register at 73 FR 45378 on 

August 5, 2008. The comment period 

closed October 6, 2008, and no 

comments were received. 

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 the revisions are not considered 

substantive. The revisions only update 

and reorganize existing coverage. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

apply; however, these changes to the 

GSAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved under OMB Control Number 

3090–0027. 

List of Subjects in 48 CFR Parts 528 and 

552 

Government procurement. 

Dated: March 6, 2009 

Rodney P. Lantier, 

Acting, Senior Procurement Executive, Office 

of the Chief Acquisition Officer, General 

Services Administration. 

■ Therefore, GSA amends 48 CFR parts 

528 and 552 as set forth below: 

PART 528—BONDS AND INSURANCE 

■ 1. The authority citation for 48 CFR 

part 528 is revised to read as follows: 

Authority: 40 U.S.C. 121(c). 

Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Rules and Regulations 17099 

■ 2. Revise section 528.202 to read as 

follows: 

528.202 Acceptability of corporate 

sureties. 

Corporate surety bonds must be 

manually signed by the Attorney-in-Fact 

or officer of the surety company and the 

corporate seal affixed. The contracting 

officer may waive failure of the surety 

to affix the corporate seal as a minor 

informality. (See B–184120, July 2, 

1975, 75–2 CPD 9.) 

■ 3. Revise section 528.310 to read as 

follows: 

528.310 Contract clause for work on a 

Government installation. 

Insert the clause at 552.228–5, 

Government as Additional Insured, in 

each solicitation and contract that meets 

all the following conditions: 

(a) The contract amount is expected to 

exceed the simplified acquisition 

threshold; and 

(b) The contract will require work to 

be performed on Government property. 

■ 4. Add sections 528.311 and 528.311– 

1 to read as follows: 

528.311 Solicitation provision and 

contract clause on liability insurance under 

cost-reimbursement contracts. 

528.311—1 Contract clause. 

Use the clause at FAR 52.228–7, 

Insurance—Liability to Third Persons, 

in solicitations and contracts, other than 

those for construction and those for 

architect-engineer services, when a costreimbursement contract is 

contemplated, unless the head of the 

contracting activity waives the 

requirement for use of the clause. 

PART 552—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 5. The authority citation for 48 CFR 

part 552 continues to read as follows: 

Authority: 40 U.S.C. 121(c). 

■ 6. Add section 552.228–5 to read as 

follows: 

552.228–5 Government as Additional 

Insured. 

As prescribed in 528.310, insert the 

following clause: 

GOVERNMENT AS ADDITIONAL 

INSURED (MAY 2009) 

(a) This clause supplements the 

requirements set forth in FAR clause 

52.528–5, Insurance—Work on a 

Government Installation. 

(b) Each insurance policy required 

under this contract, other than workers’ 

compensation insurance, shall contain 

an endorsement naming the United 

States as an additional insured with 

respect to operations performed under 

this contract. The insurance carrier is 

required to waive all subrogation rights 

against any of the named insured. 

(End of clause) 

552.228–70 [Removed] 

■ 7. Remove section 552.228–70. 

[FR Doc. E9–8402 Filed 4–13–09; 8:45 am] 

BILLING CODE 6820–61–S 

DEPARTMENT OF TRANSPORTATION 

Pipeline and Hazardous Materials 

Safety Administration 

49 CFR Parts 192 and 195 

[Docket No. PHMSA–2008–0334.] 

RIN 2137–AE42 

Pipeline Safety: Incorporation by 

Reference Update: American 

Petroleum Institute (API) Standards 5L 

and 1104 

AGENCY: Pipeline and Hazardous 

Materials Safety Administration 

(PHMSA), Department of Transportation 

(DOT). 

ACTION: Direct final rule. 

SUMMARY: This direct final rule 

incorporates by reference the most 

recent editions of API Specification 5L 

‘‘Specification for Line Pipe’’ and API 

1104 ‘‘Welding of Pipelines and Related 

Facilities.’’ The purpose of this update 

is to enable pipeline operators to utilize 

current technology, materials, and 

practices to help maintain a high level 

of safety relative to their pipeline 

operations. PHMSA is not eliminating 

the use of the current referenced 

standards but simply allowing the 

additional use of these new standards. 

PHMSA may in the future propose to 

eliminate the incorporation of the 

existing referenced standards. 

DATES: Effective Date: This rule is 

effective April 14, 2009 without further 

action, unless adverse comment is 

received by June 15, 2009. If adverse 

comment is received, PHMSA will 

publish a timely withdrawal of the rule 

in the Federal Register. 

Incorporation by Reference Date: The 

incorporation by reference of certain 

publications listed in this rule is 

approved by the Director of the Federal 

Register as of April 14, 2009. 

ADDRESSES: Comments should reference 

DOT Docket ID Number PHMSA–2008– 

0334 and may be submitted by any of 

the following methods: 

• E-Gov Web: http:// 

www.regulations.gov. This web site 

allows the public to enter comments on 

any Federal Register notice issued by 

any agency. Follow the online 

instructions for submitting comments. 

• Mail: Docket Management System: 

U.S. Department of Transportation, 1200 

New Jersey Avenue, SE., West Building 

Ground Floor, Room W12–140, 

Washington, DC 20590–0001. 

• Hand Delivery or Courier: DOT 

Docket Management System, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue, SE., between 

9 a.m. and 5 p.m. ET, Monday through 

Friday, except Federal holidays. 

• Fax: 202–493–2251. 

Instructions: Identify the docket ID, 

PHMSA 2008–0334, at the beginning of 

your comments. If you submit your 

comments by mail, submit two copies. 

If you wish to receive confirmation that 

PHMSA received your comments, 

include a self-addressed stamped 

postcard. Internet users may submit 

comments at http:// 

www.regulations.gov. 

Note: All comments received will be 

posted without edits to http:// 

www.regulations.gov, including any personal 

information provided. Please see the Privacy 

Act heading below. 

Privacy Act: Anyone is able to search 

the electronic form of all comments 

received into any of our dockets by the 

name of the individual submitting the 

comment (or signing the comment, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (65 FR 

19477–78) or you may visit http:// 

DocketInfo.dot.gov. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.regulations.gov or the street 

address listed above. Follow the online 

instructions for accessing the dockets. 

FOR FURTHER INFORMATION CONTACT: For 

information about the technical 

standards contact Mike Israni, (202) 

366–4571, or by e-mail at 

mike.israni@dot.gov. For all other 

information contact John Gale by phone 

at (202) 366–4046 or by e-mail at 

john.gale@dot.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

This direct final rule adopts the most 

recent editions of two consensus 

technical standards, the American 

Petroleum Institute (API) 5L (44th 

edition) and API 1104 (20th edition). 

Through use of these consensus 

standards, pipeline operators will be 

able to use current technology, 

materials, and practices. The 

incorporation of the most recent