Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations 101821 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 12, 22, 47, and 52 

[FAC 2025–02; FAR Case 2019–017, Item 

I; Docket No. FAR–2019–0017; Sequence 

No. 1] 

RIN 9000–AO00 

Federal Acquisition Regulation: 

Training To Prevent Human Trafficking 

for Certain Air Carriers 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

implement a section of the Frederick 

Douglass Trafficking Victims Prevention 

and Protection Reauthorization Act of 

2018, which requires that domestic 

carriers who contract with the Federal 

Government to provide air 

transportation must submit an annual 

report with certain information related 

to prevention of human trafficking. 

DATES: Effective January 3, 2025. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Malissa Jones, Procurement Analyst, at 

571–882–4687 or by email at 

malissa.jones@gsa.gov. For information 

pertaining to status or publication 

schedules contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAC 

2025–02, FAR Case 2019–017. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published a 

proposed rule at 88 FR 52102 on August 

7, 2023, to implement section 111 of the 

Frederick Douglass Trafficking Victims 

Prevention and Protection 

Reauthorization Act of 2018 (Pub. L. 

115–425), enacted January 8, 2019. 

Section 111 amends 49 U.S.C. 40118 to 

require that domestic carriers who 

contract with the Federal Government to 

provide air transportation submit an 

annual report to the Administrator of 

General Services, the Secretary of 

Transportation, the Secretary of Labor, 

the Administrator of the Transportation 

Security Administration, and the 

Commissioner of U.S. Customs and 

Border Protection. Per 41 U.S.C. 

40118(g) (as amended through Pub. L. 

118–63), the annual report shall 

include: the number of personnel 

trained in the detection and reporting of 

potential severe forms of human 

trafficking in persons and sex 

trafficking; the number of notifications 

of potential human trafficking victims 

received from staff or other passengers; 

and, for each notification, whether the 

air carrier notified the National Human 

Trafficking Hotline or law enforcement 

at the relevant airport of the potential 

human trafficking victim, and if so, 

when the notification was made. 

Section 111 does not apply to contracts 

awarded by the Department of Defense. 

For further details please see the 

proposed rule. Four respondents 

submitted comments on the proposed 

rule. 

II. Discussion and Analysis 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council (the Councils) 

reviewed the public comments in the 

development of the final rule. A 

discussion of the comments and the 

changes made to the rule as a result of 

those comments are provided as 

follows: 

A. Summary of Significant Changes 

The following significant changes 

from the proposed rule are made in the 

final rule at 52.247–69, Reporting 

Requirement for U.S.-Flag Air Carriers 

Regarding Training to Prevent Human 

Trafficking: 

1. Definitions 

The definition of ‘‘potential human 

trafficking’’ in paragraph (a) of the 

clause at FAR 52.247–69 has been 

removed, and definitions of ‘‘human 

trafficking,’’ ‘‘severe forms of trafficking 

in persons,’’ and ‘‘sex trafficking’’ have 

been added in its place. The definitions 

of ‘‘severe forms of trafficking in 

persons’’ and ‘‘sex trafficking’’ added to 

FAR 52.247–69 in this final rule are the 

same as the definitions of these terms as 

implemented in FAR subpart 22.17, 

Combating Trafficking in Persons, 

which come from 22 U.S.C. 7102. 

‘‘Human trafficking’’ as used in the 

clause at FAR 52.247–69, is defined to 

mean ‘‘severe forms of trafficking in 

persons’’ or ‘‘sex trafficking.’’ The 

change in the final rule aligns with 49 

U.S.C. 40118(g), which refers to the 

definitions of ‘‘severe forms of 

trafficking in persons’’ and ‘‘sex 

trafficking’’ in 22 U.S.C. 7102 when 

describing ‘‘human trafficking.’’ Section 

108 of the Justice for Victims of 

Trafficking Act of 2015 (Pub. L. 114–22) 

has further amended the definition of 

‘‘sex trafficking’’ at 22 U.S.C. 7102. 

Amendments to the definitions at 

22.1702 and 52.222–50 are not 

included; those changes are being 

implemented under FAR Case 2024– 

004, titled ‘‘Combating Trafficking in 

Persons—Definition and Agency 

Responsibilities.’’ The proposed rule 

was published July 18, 2024, at 89 FR 

58323. 

2. Clarification Regarding ‘‘Staff’’ 

Paragraph (b)(2)(ii) of the clause at 

FAR 52.247–69 has been revised to use 

the term ‘‘staff or other passengers’’ to 

align with the statute. The terms 

‘‘contractor personnel’’ and 

‘‘subcontractors’’ have been removed 

from the final rule to avoid unintended 

confusion. 

3. Time Period for Reporting 

Paragraph (b)(2) of the clause at FAR 

52.247–69 has been revised to include 

the time period for reporting. The 

proposed rule included the date by 

which the annual report must be 

submitted to the five Government 

agencies, but did not specify the time 

period in which the contractors are 

reporting. 

B. Analysis of Public Comments 

1. Support for the Rule 

Comment: One respondent expressed 

support for the rule. 

Response: The Councils acknowledge 

the respondent’s support for the rule. 

2. Definition of ‘‘Potential Human 

Trafficking’’ 

Comment: One respondent 

recommended deletion of paragraph (a), 

Definitions, in the clause at FAR 

52.247–69 because the definition of 

‘‘potential human trafficking’’ in the 

proposed rule is overly complicated. 

The respondent noted that the 

definition merely refers to a statute and 

otherwise does not reflect plain 

language. The respondent further 

asserted that the definition is 

‘‘meaningless’’ because the word 

‘‘potential’’ does not appear in the 

statutory definitions of ‘‘severe forms of 

trafficking in persons’’ and ‘‘sex 

trafficking’’ that together comprised the 

definition of ‘‘potential human 

trafficking’’ as stated in the proposed 

rule. 

Response: The Councils acknowledge 

the respondent’s concern and have 

replaced the definition of ‘‘potential 

human trafficking’’ in the final rule at 

FAR 52.247–69(a) with a definition of 

‘‘human trafficking’’ that encompasses 

the definitions of ‘‘severe forms of 

trafficking in persons’’ and ‘‘sex 

trafficking’’ at FAR subpart 22.17. See 


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discussion of change in section II.A.1. of 

this preamble. 

3. Proposed Regulation Differs From 49 

U.S.C. 40118(g) 

a. Application of the Rule to Contractors 

and Subcontractors 

Comment: One respondent stated that 

the ‘‘proposed regulation differs from 49 

U.S.C. 40118(g)(2)’’, because it uses the 

terms ‘‘contractor personnel’’ and 

‘‘subcontractors,’’ while the current 

statute only requires reporting for those 

notifications ‘‘received from staff or 

other passengers.’’ 

Response: Changes have been made in 

paragraph (b)(2)(ii) of the clause at FAR 

52.247–69 to use the term ‘‘staff or other 

passengers’’ to align with the statute and 

remove the terms ‘‘contractor 

personnel’’ and ‘‘subcontractors.’’ 

b. Date and Method of Notification of 

Potential Human Trafficking Instances 

Comment: One respondent suggested 

that the proposed rule expands the 

reporting requirements under 49 U.S.C. 

40118(g) resulting in additional burden 

not required by the statute. For example, 

the respondent stated that the rule 

improperly expands upon statutory 

requirements by requiring reporting the 

date and method of notification of 

potential human trafficking instances. 

Response: The specific reporting 

requirements in the rule align with the 

requirements in 49 U.S.C. 40118(g). In 

particular, 49 U.S.C. 40118(g)(2) 

requires reporting of ‘‘the number of 

notifications of potential human 

trafficking victims received from staff or 

other passengers.’’ Further, 49 U.S.C. 

40118(g)(3) requires the annual report 

include ‘‘whether the air carrier notified 

the National Human Trafficking Hotline 

or law enforcement at the relevant 

airport of the potential human 

trafficking victim for each such 

notification of potential human 

trafficking, and if so, when the 

notification was made.’’ In 

implementing these reporting 

requirements, FAR 52.247–69(b)(2)(iii) 

seeks the number of notifications 

received by the contractor; the date of 

any such notification; and the method 

by which the notification was made. 

The Government interprets the statutory 

language ‘‘when the notification was 

made’’ in 49 U.S.C. 41108(g)(3) as 

requiring the ‘‘date’’ the notification was 

made. The Government interprets the 

statutory language ‘‘whether the air 

carrier notified the National Human 

Trafficking Hotline or law enforcement 

at the relevant airport’’ in 49 U.S.C. 

41108(g)(3) as requiring the ‘‘method’’ 

by which the contractor made the 

notification, e.g., whether the Contractor 

notified the Global Human Trafficking 

Hotline, another comparable hotline, or 

law enforcement at the relevant airport. 

These are reasonable interpretations of 

the statute and are not viewed as 

creating burden beyond what is required 

by 49 U.S.C. 40118(g). 

c. Vicarious Liability 

Comment: One respondent 

recommended that the Government 

‘‘adopt what is required by statute (49 

U.S.C. 40118(g)(2–3)) without any 

amendment as imparting vicarious 

liability on air carriers in a regulatory 

framework lacks foundational 

predicate.’’ 

Response: As explained in the 

responses to the public comments 

summarized in paragraphs a. and b. of 

this section, changes have been made at 

FAR 52.247–69(b)(2)(ii) to align the final 

rule with the statute by removing the 

terms ‘‘contractor personnel’’ and 

‘‘subcontractors’’ and using the term 

‘‘staff or other passengers’’ instead. 

Therefore, this rule does not amend the 

statute in a manner that imparts 

additional vicarious liability. 

4. Retroactive Applicability 

Comment: One respondent 

recommended clarifying the 

applicability of the reporting 

requirements to existing contracts. 

Additionally, the respondent requested 

that the final rule, if adopted, apply 

only to new contracts. 

Response: In accordance with FAR 

1.108(d), FAR changes made by this rule 

apply to solicitations issued on or after 

the effective date of the rule unless 

otherwise specified. The effective date 

of this final rule is November 1, 2024; 

therefore the first report will be due 

October 30, 2025 (see FAR 52.247– 

69(b)). 

5. Reporting Requirements 

a. Reporting Requirements for 

Nonscheduled Freight Air 

Transportation 

Comment: One respondent stated that 

requiring contractors who provide 

nonscheduled air transportation for 

wildfire suppression to comply with 

section 111 of the Frederick Douglass 

Trafficking Victims Prevention and 

Protection Reauthorization Act of 2018 

would be ‘‘unnecessary and inefficient.’’ 

The respondent asserted that contracts 

for these aircraft involve freight 

(retardant or water) or passenger 

(firefighters) services used to support 

wildfire suppression. The respondent 

suggested the rule should include the 

possibility of waiver for nonscheduled 

freight air transportation. 

Response: 49 U.S.C. 41108 does not 

include an exception, or allow for 

waiver, for passengers, regardless of the 

reason they are travelling (i.e., 

firefighter passengers) on nonscheduled 

air transportation for wildfire 

suppression, and the suggestion to allow 

for the possibility of waiver is therefore 

declined. 

b. Practicality of Requirement to Report 

Notifications 

Comment: One respondent stated that 

the requirement to report notifications 

of potential human trafficking instances 

is ‘‘not operationally reasonable’’ 

without substantiating or investigating 

the notification. 

Response: This rule requires the air 

carrier or contractor to report the 

number of employees trained and the 

number of notifications they receive 

from their staff and other passengers. 

This rule does not create a training 

requirement nor does the contract 

clause at FAR 52.247–69 create a 

mandatory reporting requirement to 

hotlines and law enforcement; training 

requirements already existed prior to 

section 111 (e.g., 49 U.S.C. 44734(a)(4)) 

and apply to all U.S.-flag air carriers, 

regardless of whether they are 

contractors of the Federal Government. 

The statute and implementing FAR rule 

do not require contractors to 

substantiate or investigate notifications 

of potential human trafficking victims. 

This rule simply requires data related to 

the training that has occurred and 

notifications that have been made. 

c. Duplicate Reporting Requirements 

Comment: One respondent appeared 

to interpret that the proposed rule 

sought to amend 41 U.S.C. 1906 to 

expand the reporting requirement to 

commercial services. The respondent 

believed this would result in duplicate 

reporting from Federal Government 

contractors and non-Federal 

Government contractors. For this 

reason, the respondent recommended 

not implementing section 111 in the 

FAR. 

Response: 49 U.S.C. 41108 requires 

that domestic carriers who contract with 

the Federal Government to provide air 

transportation must submit an annual 

report with certain information related 

to prevention of human trafficking. The 

changes to the FAR under this rule are 

necessary to implement this statute. 41 

U.S.C. 1906 requires DoD, GSA, NASA, 

and the Office of Federal Procurement 

Policy to make a determination if it is 

in the best interest of the Federal 

Government to exempt commercial 

contracts. Section III of the proposed 

rule notified the public that DoD, GSA, 


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NASA, and the Office of Federal 

Procurement Policy intend to make a 

determination that it would not be in 

the best interest of the Federal 

Government to exempt contracts for the 

acquisitions of commercial services 

from the requirements of 49 U.S.C. 

40118(g). DoD, GSA, NASA, and the 

Office of Federal Procurement Policy 

have made that determination with this 

final rule (see section III of this 

preamble). No similar determination is 

made for commercial products. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

or for Commercial Services 

This final rule adds a new clause at 

FAR 52.247–69, Reporting Requirement 

for U.S-Flag Air Carriers Regarding 

Training to Prevent Human Trafficking, 

to implement 49 U.S.C. 40118(g). The 

clause is prescribed at FAR 47.405(b) for 

use in solicitations and contracts with a 

U.S.-flag air carrier for the 

transportation by air of passengers. This 

clause is not applicable to solicitations 

issued or contracts awarded by the 

Department of Defense. 

A. Applicability to Contracts at or Below 

the Simplified Acquisition Threshold 

41 U.S.C. 1905 governs the 

applicability of laws to acquisitions at 

or below the SAT. Section 1905 

generally limits the applicability of new 

laws when agencies are making 

acquisitions at or below the SAT, but 

provides that such acquisitions will not 

be exempt from a provision of law 

under certain circumstances, including 

when the Federal Acquisition 

Regulatory Council (FAR Council) 

makes a written determination and 

finding that it would not be in the best 

interest of the Federal Government to 

exempt contracts and subcontracts in 

amounts not greater than the SAT from 

the provision of law. The FAR Council 

has made a determination to apply this 

statute to acquisitions at or below the 

SAT. 

B. Applicability to Contracts for the 

Acquisition of Commercial Products, 

Including Commercially Available OffThe-Shelf (COTS) Items, and 

Commercial Services 

41 U.S.C. 1906 governs the 

applicability of laws to contracts for the 

acquisition of commercial products and 

commercial services and is intended to 

limit the applicability of laws to 

contracts for the acquisition of 

commercial products and commercial 

services. Section 1906 provides that if 

the FAR Council makes a written 

determination that it is not in the best 

interest of the Federal Government to 

exempt commercial contracts, the 

provision of law will apply to contracts 

for the acquisition of commercial 

products and commercial services. 41 

U.S.C. 1907 states that acquisitions of 

COTS items will be exempt from certain 

provisions of law unless the 

Administrator for Federal Procurement 

Policy makes a written determination 

and finds that it would not be in the best 

interest of the Federal Government to 

exempt contracts for the procurement of 

COTS items. The FAR Council has made 

a determination to apply this statute to 

acquisitions for commercial services 

only. The Administrator for Federal 

Procurement Policy did not make a 

determination to apply this statute to 

acquisitions for COTS items. 

C. Determinations 

Section 111 of the Frederick Douglass 

Trafficking Victims Prevention and 

Protection Reauthorization Act of 2018 

added 49 U.S.C. 40118(g) to require that 

domestic carriers who contract with the 

Federal Government to provide air 

transportation submit an annual report 

to the Administrator of General 

Services, the Secretary of 

Transportation, the Secretary of Labor, 

the Administrator of the Transportation 

Security Administration, and the 

Commissioner of U.S. Customs and 

Border Protection, with the following 

information: 

• The number of personnel trained in 

the detection and reporting of potential 

severe forms of human trafficking and 

sex trafficking (as described in 22 U.S.C. 

7102 in the paragraphs titled ‘‘Severe 

forms of trafficking in persons’’ and 

‘‘Sex trafficking’’), including the 

training required under 49 U.S.C. 

44734(a)(4); 

• The number of notifications of 

potential human trafficking victims 

received from staff or other passengers; 

and 

• Whether the air carrier notified the 

National Human Trafficking Hotline or 

law enforcement at the relevant airport 

of the potential human trafficking 

victim for each such notification of 

potential human trafficking, and if so, 

when the notification was made. 

The purpose of the Frederick 

Douglass Trafficking Victims Prevention 

and Protection Reauthorization Act of 

2018 is to combat human trafficking. 

Section 111 of the Act is meant to 

further that objective. The purpose of 

this rule is to implement 49 U.S.C. 

40118(g) as added by section 111. 

The law is silent on the applicability 

of these requirements to acquisitions at 

or below the SAT. The law does not 

include terms making express reference 

to 41 U.S.C. 1905 and its applicability 

to acquisitions at or below the SAT, nor 

does the law independently provide for 

criminal or civil penalties. Therefore, 

the law does not apply to acquisitions 

at or below the SAT unless the FAR 

Council makes a written determination 

as required by 41 U.S.C. 1905. 

Application of the law to contracts at or 

below the SAT, currently $250,000, will 

further the important public policy 

objective of combating trafficking of 

persons. According to the Federal 

Procurement Data System, 

approximately seventy percent (70%) of 

the contracts for air transportation (as 

identified either by the Product Service 

Codes of V121 (Air Charter), V211 (Air 

Passenger), and V221 (Passenger air 

charter) or by North American Industry 

Classification System codes in the 

4811XX and 4822XX fields (Scheduled 

Air Transportation and Nonscheduled 

Air Transportation industries) were at or 

below the SAT during fiscal years 2021 

and 2022. Failure to apply 49 U.S.C. 

40118(g) to contracts at or below the 

SAT would exclude a significant 

number of U.S. flag air-carriers who are 

awarded contracts at or below the SAT, 

which would undermine the important 

public policy objective of combating 

human trafficking. For this reason, it is 

in the best interest of the Federal 

Government to apply the requirements 

of the rule to contracts at or below the 

SAT. With regard to subcontracts at or 

below the SAT, it is determined to not 

be in the best interest of the Federal 

Government to apply section 111 to 

such acquisitions. Based on FPDS data 

for fiscal years 2021 and 2022, agencies 

reviewed seventy-five (75) of the likely 

acquisitions for air transportation. The 

results of that review reflected that only 

0.3% of the awards were further 

subcontracted out to another air carrier. 

Based on the above evidence, section 

111 will not apply to subcontracts at or 

below the SAT. 

The law is silent on the applicability 

of these requirements to acquisitions of 

commercial products and commercial 

services. The law does not include 

terms making express reference to 41 

U.S.C. 1906 and its application to 

acquisitions of commercial products or 

commercial services, nor does the law 

independently provide for criminal or 

civil penalties. Therefore, this law does 

not apply to acquisitions of commercial 

products and commercial services 

unless the FAR Council makes a written 

determination as required by 41 U.S.C. 

1906. Considering that air 

transportation, such as passenger air 


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travel, is a commercial service, failing to 

apply 49 U.S.C. 40118(g) to the 

acquisition of commercial services 

would be failing to implement section 

111 in its entirety. For this reason, the 

FAR Council has determined that it is 

in the best interest of the Federal 

Government not to exempt acquisitions 

of commercial services from the 

requirements of 49 U.S.C. 40118(g). No 

similar determination is made for 

contracts for commercial products. As 

such, this rule will apply to acquisitions 

of commercial services, but not 

acquisitions of commercial products. 

The law is silent on the applicability 

of this requirement to acquisitions of 

COTS items. The law does not include 

terms making express reference to 41 

U.S.C. 1907 and its application to 

acquisitions of COTS items, nor does 

the law independently provide for 

criminal or civil penalties. Therefore, it 

does not apply to acquisitions of COTS 

items unless the Administrator for 

Federal Procurement Policy makes a 

written determination as provided at 41 

U.S.C. 1907. Considering that air 

transportation does not meet the 

definition of a COTS item (i.e., it is a 

service, not a product), 49 U.S.C. 

40118(g) cannot apply to acquisitions of 

such items regardless of the 

requirements at 41 U.S.C. 1907. 

Therefore, a determination is 

unnecessary. This rule is not applicable 

to acquisitions of COTS items. 

IV. Expected Impact of the Rule 

A. Requirement 

This final rule creates a new contract 

clause at FAR 52.247–69, Reporting 

Requirement for U.S.-Flag Air Carriers 

Regarding Training to Prevent Human 

Trafficking, that requires domestic 

carriers who contract with the Federal 

Government (excluding DoD) for air 

transportation to provide to five Federal 

Government agencies the annual report 

required by 49 U.S.C. 40118(g). The 

report must contain the number of 

personnel trained in the detection of 

human trafficking, the number of 

notifications of human trafficking the 

contractor received from staff and other 

passengers, and the actions the 

contractor took with regards to those 

notifications. 

This rule does not create any new 

training requirements for domestic air 

carrier personnel, nor does it mandate 

that domestic air carriers report 

potential human trafficking to hotlines 

or law enforcement. U.S.-flag air carriers 

are already required by statute to train 

certain personnel on recognizing and 

responding to potential human 

trafficking victims. 49 U.S.C. 44734(a)(4) 

requires air carriers to provide such 

training on an annual basis to flight 

attendants that are employed or 

contracted by the air carrier, regardless 

of whether the air carrier has contracted 

with the Federal Government to provide 

air transportation. 49 U.S.C. 44738 

further requires air carriers to provide 

this training to ticket counter agents, 

gate agents, and other air carrier workers 

whose jobs require regular interaction 

with passengers. This final rule simply 

requires domestic air carriers to report 

by October 30th each year the total 

number of personnel who received the 

training in the previous Government 

fiscal year (October 1–September 30). 

The annual report required by the 

new clause at FAR 52.247–69 must also 

include the number of notifications that 

the air carrier received from staff and 

other passengers and whether the air 

carrier notified the Global Human 

Trafficking Hotline (or comparable 

hotline) or law enforcement at the 

relevant airport. If the air carrier 

notified a hotline or law enforcement, 

then the air carrier must also report 

when and how the notification was 

made. Again, this final rule does not 

mandate that the air carrier report the 

notifications it receives from staff or 

other passengers to the hotline or law 

enforcement, nor does this rule direct 

air carriers to seek out whether their 

staff or other passengers notified a 

hotline or law enforcement. However, 

this final rule does require air carriers 

to report basic information about any 

notifications made in the previous 

Government fiscal year (October 1– 

September 30). 

B. Impact 

According to the Department of 

Transportation (DOT), as of March 2022, 

there are approximately 183 U.S. 

Certificated Air Carriers or U.S.-Flag Air 

Carriers (see DOT list available at 

https://www.transportation.gov/policy/ 

aviation-policy/certificated-air-carrierslist). According to data available in the 

Federal Procurement Data System 

(FPDS) for fiscal years 2021 and 2022, 

civilian agencies contracted with 121 

and 177 unique entities, respectively, in 

the Scheduled Air Transportation and 

Nonscheduled Air Transportation 

Industries (North American Industry 

Classification System (NAICS) codes 

4811XX and 4822XX). Considering this 

information, the Government assumes 

that approximately 180 U.S.-flag air 

carriers may be required to submit the 

annual report required by the clause at 

FAR 52.247–69. These air carriers will 

need to ensure that they are able to 

report annually on the number of 

personnel trained in detecting and 

responding to potential human 

trafficking, the number of notifications 

of potential human trafficking received 

from staff and other passengers, and 

whether and how the air carrier notified 

a hotline or law enforcement at the 

relevant airport for each notification 

received. 

1. Public Cost 

In the proposed rule, the Government 

estimated that, on average, the public 

reporting burden for this collection of 

information is five hours per response, 

which includes two hours to compile 

and report information related to the 

number of personnel trained in the 

previous year and three hours to 

compile and report information on 

notifications made to hotlines or law 

enforcement in the previous year (see 

section VII of the proposed rule 

preamble). The following is a summary 

of the estimated burden and cost 

associated with these reporting 

requirements for the 180 air carriers. 

a. Reports on Training 

Given the existing statutory 

requirements for domestic air carriers to 

provide training to its personnel, it is 

anticipated that domestic air carriers 

already have procedures in place that 

enable them to capture the total number 

of employees receiving training. The 

Government anticipates that the 

contractor employee compiling and 

reporting the data is in a position 

equivalent to a General Schedule (GS) 

Grade 12/Step 5 position in the Federal 

Government. In the final rule, the fully 

burdened hourly rate is calculated using 

the Office of Personnel Management 

(OPM) GS–12/step 5 employee hourly 

rate for the rest of the United States for 

calendar year 2024, plus a 36.25 percent 

fringe factor and a 12 percent overhead 

rate. The revised loaded hourly rate is 

$72 ($47.22/hour * 1.3625 * 1.12, 

rounded to the nearest whole dollar). 

Therefore, the total estimated public 

cost of this annual reporting 

requirement on training is $25,920 per 

year (180 air carriers * 1 report/air 

carrier * 2 hours per report on training 

* $72/hour). 

b. Reports on Notifications 

It is also anticipated that most 

domestic air carriers have procedures in 

place to track when staff and passengers 

notify the air carrier of potential human 

trafficking. According to information 

available on domestic air carrier 

websites, many already have procedures 

in place to encourage staff to report 

potential human trafficking to a hotline, 

leadership, or by other means. For 

example, some air carriers participate in 


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the Blue Lightning Initiative (BLI) 

promoted by the Department of 

Transportation (DOT) and the 

Department of Homeland Security 

(DHS). As part of the BLI, air carrier 

personnel receive training on detecting 

and reporting human trafficking; these 

employees are encouraged to follow 

their organization’s internal reporting 

protocol and to contact the Homeland 

Security Investigations (HSI) Tip Line 

(see https://www.dhs.gov/bluecampaign/blue-lightning-initiative). It is 

expected that air carriers will leverage 

their existing internal reporting 

protocols to gather the required 

information on notifications received by 

the air carrier. 

The Government anticipates that the 

contractor employee compiling and 

reporting this information is also in a 

position equivalent to a GS–12/Step 5 

position in the Federal Government. 

The Government estimates that the air 

carrier will spend three hours compiling 

and submitting the annual report. 

Therefore, the total estimated public 

cost of this annual reporting 

requirement is $38,880 per year (180 air 

carriers * 1 report/air carrier * 3 hours 

per report * $72/hour). 

2. Government Cost 

The 180 air carriers are to submit their 

reports to the Administrator of General 

Services, the Secretary of 

Transportation, the Secretary of Labor, 

the Administrator of the Transportation 

Security Administration, and the 

Commissioner of U.S. Customs and 

Border Protection by October 30th each 

year. Since there is no statutory 

requirement for these agencies to use or 

process the information in the reports in 

any specific manner, it is estimated that 

each agency will spend 15 minutes to 

review and log each report. The 

employee who is reviewing the report is 

anticipated to be a GS–12/Step 5 

Government employee. Therefore, the 

total estimated Government cost 

associated with reviewing the reports 

from domestic air carriers is $16,200 (5 

agencies * 180 report * 0.25 hours/ 

report * $72/hour). 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 (as 

amended by E.O. 14094) and 13563 

direct agencies to assess 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. 

VI. Congressional Review Act 

Pursuant to the Congressional Review 

Act, DoD, GSA, and NASA will send 

this rule to each House of the Congress 

and to the Comptroller General of the 

United States. The Office of Information 

and Regulatory Affairs (OIRA) in the 

Office of Management and Budget has 

determined that this rule does not meet 

the definition in 5 U.S.C. 804(2). 

VII. Regulatory Flexibility Act 

DoD, GSA, and NASA have prepared 

a Final Regulatory Flexibility Analysis 

(FRFA) consistent with the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. The 

FRFA is summarized as follows: 

DoD, GSA and NASA are amending the 

Federal Acquisition Regulation (FAR) to 

implement section 111 of the Frederick 

Douglass Trafficking Victims Prevention and 

Protection Reauthorization Act of 2018 (Pub. 

L. 115–425). Section 111 requires that 

domestic carriers who contract with the 

Federal Government to provide 

transportation by air of passengers must 

submit an annual report with certain 

information related to prevention of human 

trafficking. Section 111 does not apply to 

contracts awarded by the Department of 

Defense. 

There were no significant issues raised by 

the public in response to the initial 

regulatory flexibility analysis (IRFA). 

The rule is not expected 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. 

601–612. This rule will impact domestic air 

carriers (i.e., U.S.-flag air carriers as 

described in 49 U.S.C. 41102), including 

small business U.S.-flag air carriers. 

Based on a review of the Department of 

Transportation (DOT) Certificated Air Carrier 

List (see https://www.transportation.gov/ 

policy/aviation-policy/certificated-aircarriers-list), the Government estimates that 

there may be approximately 180 U.S. Flag Air 

Carriers that contract with the Federal 

Government each year for air transportation. 

Of these air carriers, approximately 62 are 

small businesses for the NAICS codes for 

Scheduled Air Transportation and 

Nonscheduled Air Transportation industries 

(4811XX and 4822XX). Therefore, the 

estimated number of total small entities to 

which this rule could apply is 62. 

This rule does not include any 

recordkeeping or other compliance 

requirements for small businesses. However, 

the rule does contain a reporting requirement 

for small businesses. 

Small business U.S.-flag air carriers who 

contract with the Federal Government 

(except for DoD) for air transportation will be 

required to provide an annual report to five 

agencies, on the number of personnel trained 

in the detection of human trafficking, the 

number of notifications of human trafficking 

the contractor received, and actions the 

contractor took with regards to those 

notifications. This rule is not creating a 

training requirement nor does this contract 

clause create a mandatory reporting 

requirement to hot lines and law 

enforcement; those requirements already 

existed prior to section 111 (e.g., 49 U.S.C. 

44734(a)(4)), and are applied to all U.S.-flag 

air carriers, regardless of whether they are 

contractors of the Federal Government. This 

rule simply requires data related to the 

training that has occurred and notifications 

that have been made. 

DoD, GSA, and NASA were unable to 

identify any alternatives to the rule that 

would reduce the impact on small entities 

and still meet the requirements of the statute. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. 

However, Section 108 of the Justice for 

Victims of Trafficking Act of 2015 (Pub. L. 

114–22) has amended the definition of ‘‘Sex 

trafficking’’ at 22 U.S.C. 7102. Those 

amendments are not included in this final 

rule; those changes are being implemented 

under FAR Case 2024–004, titled ‘‘Combating 

Trafficking in Persons—Definition and 

Agency Responsibilities.’’ The proposed rule 

was published July 18, 2024, at 89 FR 58323. 

Interested parties may obtain a copy 

of the FRFA from the Regulatory 

Secretariat Division. The Regulatory 

Secretariat Division has submitted a 

copy of the FRFA to the Chief Counsel 

for Advocacy of the Small Business 

Administration. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. 3501–3521) applies. The rule 

contains information collection 

requirements. The Office of 

Management and Budget (OMB) has 

provided pre-approval of the revised 

information collection requirements 

under OMB Control Number 9000–0061, 

FAR Part 47 Transportation 

Requirements. 

A. OMB Control Number, Title, and Any 

Associated Form(s) 

OMB Control Number 9000–0061, 

FAR Part 47 Transportation 

Requirements. 

B. Need and Uses 

The rule creates a new contract clause 

at FAR 52.247–69, Reporting 

Requirement for U.S.-Flag Air Carriers 

Regarding Training to Prevent Human 

Trafficking, that requires domestic 


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101826 Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations 

carriers who contract with the Federal 

Government (excluding DoD), for air 

transportation to provide to five Federal 

Government agencies the annual report 

required by 49 U.S.C. 40118(g). The 

report must contain the number of 

personnel trained in the detection of 

human trafficking, the number of 

notifications of human trafficking the 

contractor received from staff and other 

passengers, and the actions the 

contractor took with regards to those 

notifications. 

C. Annual Burden 

Public reporting burden for this 

collection of information includes the 

time to compile and report information 

related to the number of personnel 

trained in the previous year and the 

time to compile and report information 

on notifications made to hotlines or law 

enforcement in the previous year. The 

following is a summary of the estimated 

burden associated with these reporting 

requirements for 180 air carriers. 

Respondents: 180. 

Total annual responses: 180. 

Estimated hrs/response: 5. 

Estimated total burden/hrs: 900. 

D. Public Comment 

As part of the proposed rule, a 60-day 

notice was published in the Federal 

Register at 88 FR 52102, on August 7, 

2023. One comment was received. 

Specifically, one respondent suggested 

that the proposed rule expands the 

reporting requirements under 49 U.S.C. 

40118(g) resulting in additional burden 

not required by the statute. 

For example, the respondent stated 

that the rule improperly expands upon 

statutory requirements by requiring 

reporting of the date and method of 

notification of potential human 

trafficking instances. 

Response: The specific reporting 

requirements in the rule align with the 

requirements in 49 U.S.C 40118(g). In 

particular, 49 U.S.C. 40118(g)(2) 

requires reporting of ‘‘the number of 

notifications of potential human 

trafficking victims received from staff or 

other passengers.’’ Further, 49 U.S.C. 

40118(g)(3) requires the annual report 

include ‘‘whether the air carrier notified 

the National Human Trafficking Hotline 

or law enforcement at the relevant 

airport of the potential human 

trafficking victim for each such 

notification of potential human 

trafficking, and if so, when the 

notification was made.’’ In 

implementing these reporting 

requirements, FAR 52.247–69(b)(2)(iii) 

seeks the number of notifications 

received by the contractor; the date of 

any such notification; and the method 

by which the notification was made. 

The Government interprets the statutory 

language ‘‘when the notification was 

made’’ in 49 U.S.C. 41108(g)(3) as 

requiring the ‘‘date’’ the notification was 

made. The Government interprets the 

statutory language ‘‘whether the air 

carrier notified the National Human 

Trafficking Hotline or law enforcement 

at the relevant airport’’ in 49 U.S.C. 

41108(g)(3) as requiring the ‘‘method’’ 

by which the contractor made the 

notification, e.g., whether the Contractor 

notified the Global Human Trafficking 

Hotline, another comparable hotline, or 

law enforcement at the relevant airport. 

These are reasonable interpretations of 

the statute and are not viewed as 

creating burden beyond what is required 

by 49 U.S.C. 40118(g). No changes were 

made to the final rule because of this 

public comment. Written comments and 

recommendations for these information 

collections should be sent within 30 

days of publication of this rule to 

www.reginfo.gov/public/do/PRAMain. 

Find these information collections by 

selecting ‘‘Currently under Review— 

Open for Public Comments’’ or by using 

the search function. 

E. Obtaining Copies 

Requesters may obtain a copy of the 

information collection documents from 

the GSA Regulatory Secretariat Division, 

by calling 202–501–4755 or emailing 

GSARegSec@gsa.gov. Please cite OMB 

Control Number 9000–0061, Federal 

Acquisition Regulation Part 47 

Transportation Requirements. 

List of Subjects in 48 CFR Parts 1, 12, 

22, 47, and 52 

Government procurement. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Therefore, DoD, GSA, and NASA are 

amending 48 CFR parts 1, 12, 22, 47, 

and 52 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 12, 22, 47, and 52 continues to 

read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 4 and 10 U.S.C. chapter 137 legacy 

provisions (see 10 U.S.C. 3016); and 51 

U.S.C. 20113. 

PART 1— FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

■ 2. In section 1.106 amend in the table 

following the introductory text, by 

adding in numerical order, an entry for 

‘‘52.247–69’’ to read as follows. 

1.106 OMB approval under the Paperwork 

Reduction Act. 

* * * * * 

FAR segment OMB control No. 

* * * * * 

52.247–69 ......................... 9000–0061 

* * * * * 

* * * * * 

PART 12—ACQUISITION OF 

COMMERCIAL PRODUCTS AND 

COMMERCIAL SERVICES 

■ 3. Amend section 12.503 by revising 

paragraph (b)(4) to read as follows: 

12.503 Applicability of certain laws to 

Executive agency contracts for the 

acquisition of commercial products and 

commercial services. 

* * * * * 

(b) * * * 

(4) 49 U.S.C. 40118, Requirement for 

a clause under provisions of the 

Government-financed air transportation 

statute, commonly referred to as the Fly 

America Act, except that 49 U.S.C. 

40118(g) is applicable to the acquisition 

of commercial services (see 47.405). 

* * * * * 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

■ 4. Amend section 22.1703 by revising 

the introductory text to read as follows: 

22.1703 Policy. 

The United States Government has 

adopted a policy prohibiting trafficking 

in persons, including the traffickingrelated activities below. Additional 

information about trafficking in persons 

may be found at the website for the 

Department of State’s Office to Monitor 

and Combat Trafficking in Persons at 

http://www.state.gov/j/tip/. See 

47.405(b) for contract reporting 

requirements concerning training to 

prevent human trafficking for domestic 

carrier air transportation; 47.405(b) is 

not applicable to contracts awarded by 

the Department of Defense or contracts 

for commercial products. Government 

solicitations and contracts shall— 

* * * * * 

PART 47—TRANSPORTATION 

■ 5. Amend section 47.101 by revising 

paragraph (g) to read as follows: 

47.101 Policies. 

* * * * * 


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Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations 101827 

(g) Agencies shall comply with the 

requirements for Government-financed 

air transportation (commonly referred to 

as the Fly America Act), the Cargo 

Preference Act, and related statutes as 

prescribed in subparts 47.4, Air 

Transportation by U.S.-Flag Carriers, 

and 47.5, Ocean Transportation by U.S.- 

Flag Vessels. 

* * * * * 

■ 6. Add section 47.400 to subpart 47.4 

to read as follows: 

47.400 Scope of subpart. 

This subpart prescribes policies and 

procedures for implementing 49 U.S.C. 

40118, Government-financed air 

transportation, commonly referred to as 

the Fly America Act. 

■ 7. Amend section 47.401 by revising 

the definition of ‘‘U.S.-flag air carrier’’ 

to read as follows: 

47.401 Definitions. 

* * * * * 

U.S.-flag air carrier means an entity 

granted authority to provide air 

transportation in the form of a certificate 

of public convenience and necessity 

under 49 U.S.C. 41102. 

■ 8. Revise section 47.402 to read as 

follows: 

47.402 Policy. 

Federal employees and their 

dependents, consultants, contractors, 

grantees, and others must use U.S.-flag 

air carriers for U.S. Governmentfinanced international air travel and 

transportation of their personal effects 

or property, if available (49 U.S.C. 

40118, Government-financed air 

transportation, commonly referred to as 

the Fly America Act). 

■ 9. Revise section 47.405 to read as 

follows: 

47.405 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 52.247–63, Preference for 

U.S.-Flag Air Carriers, in solicitations 

and contracts whenever it is possible 

that U.S. Government-financed 

international air transportation of 

personnel (and their personal effects) or 

property will occur in the performance 

of the contract. This clause does not 

apply to contracts awarded using the 

simplified acquisition procedures in 

part 13 or contracts for commercial 

products (see part 12). 

(b) The contracting officer shall insert 

the clause at 52.247–69, Reporting 

Requirement for U.S.-Flag Air Carriers 

Regarding Training to Prevent Human 

Trafficking, in solicitations and 

contracts with a U.S.-flag air carrier for 

the transportation by air of passengers. 

This clause is not applicable to 

solicitations issued or contracts 

awarded— 

(1) By the Department of Defense; or 

(2) For commercial products. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 10. Amend section 52.212–5 by 

revising the date of the clause and 

adding paragraph (c)(10) to read as 

follows: 

52.212–5 Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial Products 

and Commercial Services. 

* * * * * 

Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial 

Products and Commercial Services 

(JAN 2025) 

* * * * * 

(c) * * * 

__(10) 52.247–69, Reporting Requirement 

for U.S.-Flag Air Carriers Regarding Training 

to Prevent Human Trafficking (JAN 2025) (49 

U.S.C. 40118(g)). 

* * * * * 

■ 11. Amend section 52.213–4 by 

revising the date of the clause; and 

adding paragraph (b)(1)(xxiv) to read as 

follows: 

52.213–4 Terms and Conditions— 

Simplified Acquisitions (Other Than 

Commercial Products and Commercial 

Services). 

* * * * * 

Terms And Conditions—Simplified 

Acquisitions (Other Than Commercial 

Products and Commercial Services) 

(JAN 2025) 

* * * * * 

(b) * * * 

(1) * * * 

(xxiv) 52.247–69, Reporting Requirement 

for U.S.-Flag Air Carriers Regarding Training 

to Prevent Human Trafficking (JAN 2025) (49 

U.S.C. 40118(g)). (Applies to contracts with 

a U.S.-flag carrier for the transportation by air 

of passengers; does not apply to contracts 

awarded by the Department of Defense or 

contracts for commercial products). 

* * * * * 

■ 12. Amend section 52.247–63 by— 

■ a. In the introductory text, removing 

‘‘47.405’’ and adding ‘‘47.405(a)’’ in its 

place; 

■ b. Revising the date of the clause; 

■ c. In paragraph (a), revising the 

definition of ‘‘U.S.-flag air carrier’’; 

■ d. Revising paragraph (b); and 

■ e. Adding headings to paragraphs (c), 

(d) and (e). 

The revisions read as follows: 

52.247–63 Preference for U.S.-Flag Air 

Carriers. 

* * * * * 

Preference for U.S.-Flag Air Carriers 

(JAN 2025) 

(a) * * * 

U.S.-flag air carrier means an entity 

granted authority to provide air 

transportation in the form of a certificate of 

public convenience and necessity under 49 

U.S.C. 41102. 

(b) U.S. Government-financed international 

air transportation. 49 U.S.C. 40118, 

Government-financed air transportation 

(commonly referred to as the Fly America 

Act), requires that all Federal agencies and 

Government contractors and subcontractors 

use U.S.-flag air carriers for U.S. 

Government-financed international air 

transportation of personnel (and their 

personal effects) or property, to the extent 

that service by those carriers is available. It 

requires the General Services Administration 

to issue regulations that, in the absence of 

satisfactory proof of the necessity for foreignflag air transportation, disallow expenditures 

from funds, appropriated or otherwise 

established for the account of the United 

States, for international air transportation 

secured aboard a foreign-flag air carrier if a 

U.S.-flag air carrier is available to provide 

such services. 

(c) Use of U.S.-flag carriers for 

international air transportation. * * * 

(d) Statement of unavailability of U.S.-flag 

air carriers. * * * 

(e) Subcontracts. * * * 

* * * * * 

■ 13. Add section 52.247–69 to read as 

follows: 

52.247–69 Reporting Requirement for U.S.- 

Flag Air Carriers Regarding Training to 

Prevent Human Trafficking. 

As prescribed in 47.405(b), insert the 

following clause: 

Reporting Requirement for U.S.-Flag 

Air Carriers Regarding Training To 

Prevent Human Trafficking (JAN 2025) 

(a) Definitions. As used in this clause— 

Human trafficking means ‘‘Severe forms of 

trafficking in persons’’ or ‘‘Sex trafficking.’’ 

Severe forms of trafficking in persons 

means— 

(1) Sex trafficking in which a commercial 

sex act is induced by force, fraud, or 

coercion, or in which the person induced to 

perform such act has not attained 18 years of 

age; or 

(2) The recruitment, harboring, 

transportation, provision, or obtaining of a 

person for labor or services, through the use 

of force, fraud, or coercion for the purpose of 

subjection to involuntary servitude, peonage, 

debt bondage, or slavery. 

Sex trafficking means the recruitment, 

harboring, transportation, provision, or 

obtaining of a person for the purpose of a 

commercial sex act. 

(b) Annual reporting requirement. 

(1) In accordance with 49 U.S.C. 40118(g), 

the Contractor shall provide the annual 


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101828 Federal Register / Vol. 89, No. 241 / Monday, December 16, 2024 / Rules and Regulations 

report described in paragraph (b)(2) of this 

clause by October 30th, via email, to the 

following agencies: 

(i) General Services Administration: 

TraffickingPreventionReport@gsa.gov; 

(ii) U.S. Department of Transportation: 

trafficking@dot.gov; 

(iii) Department of Labor: AirCarrierHTreports@dol.gov; 

(iv) Transportation Security 

Administration: ics-cchtfams@tsa.dhs.gov; 

(v) U.S. Customs and Border Protection: 

CLP@cbp.dhs.gov; and 

(vi) DHS Center for Countering Human 

Trafficking: Info@CCHT.dhs.gov. 

(2) The annual report shall include 

information from the preceding Government 

fiscal year (October 1 through September 30) 

regarding— 

(i) The number of personnel trained in the 

detection and reporting of potential human 

trafficking, including the training required 

under 49 U.S.C. 44734(a)(4); 

(ii) The number of notifications of potential 

human trafficking victims received from staff 

or other passengers; and 

(iii)(A) Whether the Contractor notified the 

Global Human Trafficking Hotline, another 

comparable hotline, or law enforcement at 

the relevant airport of the potential human 

trafficking victim for each such notification 

of potential human trafficking; and 

(B) If the Contractor made a notification, 

the date the notification was made and the 

method of notification (e.g., text to Hotline, 

call to law enforcement). 

(c) Training. In accordance with 49 U.S.C. 

44734 and 44738, personnel trained in the 

detection and reporting of potential human 

trafficking should include the following: 

(1) Flight attendants; 

(2) Ticket counter agents; 

(3) Gate agents; and 

(4) Other air carrier workers whose jobs 

require regular interaction with passengers. 

(End of clause) 

[FR Doc. 2024–29373 Filed 12–13–24; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 6, 9, 18, 19, and 52 

[FAC 2025–02; FAR Case 2022–009, Item 

II; Docket No. FAR–2022–0009; Sequence 

No. 1] 

RIN 9000–AO46 

Federal Acquisition Regulation: 

Certification of Service-Disabled 

Veteran-Owned Small Businesses 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA have 

adopted as final, without change, an 

interim rule amending the Federal 

Acquisition Regulation (FAR) to 

implement the final rules published by 

the Small Business Administration to 

implement sections of the National 

Defense Authorization Acts for Fiscal 

Years 2021 and 2022. 

DATES: Effective December 16, 2024. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Carrie Moore, Procurement Analyst, at 

571–300–5917, or by email at 

carrie.moore@gsa.gov. For information 

pertaining to status or publication 

schedules contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAC 

2025–02, FAR Case 2022–009. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule at 89 FR 13950 on February 

23, 2024, to implement regulatory 

changes made by the Small Business 

Administration (SBA) in its final rules 

published on November 29, 2022, at 87 

FR 73400 and at 88 FR 42592 on July 

3, 2023, to implement section 862 of the 

William M. (Mac) Thornberry National 

Defense Authorization Act (NDAA) for 

Fiscal Year (FY) 2021 (Pub. L. 116–283; 

15 U.S.C. 657f). This final rule also 

partially implements section 863 of the 

NDAA for FY 2022 (Pub. L. 117–81; 15 

U.S.C. 634(i)), as implemented by SBA 

in its final rule published on April 27, 

2023, at 88 FR 26164. For further details 

please see the interim rule. Three 

respondents submitted comments on the 

interim rule. 

II. Discussion and Analysis 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council (the Councils) 

reviewed the public comments in the 

development of the final rule. A 

discussion of the comments and the 

changes made to the rule as a result of 

those comments are provided as 

follows: 

A. Summary of Significant Changes 

There are no significant changes from 

the interim rule. 

B. Analysis of Public Comments 

1. Exceptions to Implementation 

Comment: One respondent 

recommended the grace period for 

certification be extended to allow 

businesses additional time to comply 

with the new requirements. 

Response: This rule implements 

section 862 of the NDAA for FY 2021. 

Section 862 provides for a one-year 

grace period after the transfer date of 

January 1, 2023, for service-disabled 

veteran-owned small businesses 

(SDVOSBs) to submit an application for 

certification to SBA. 

Therefore, since the grace period is 

statutory, it cannot be extended by the 

Councils. 

Comment: One respondent 

recommended that SBA expand its 

outreach and support services to ensure 

that all interested businesses are able to 

successfully navigate the certification 

process. 

Response: To implement SDVOSB 

certification, SBA established a website 

at https://veterans.certify.sba.gov. This 

website streamlines and facilitates the 

SDVOSB certification process and 

provides links for SDVOSBs to obtain 

assistance, including both online and 

telephonic support. 

2. Outside the Scope of the Rule. 

Comment: One respondent submitted 

a comment that is unrelated to this case. 

Response: This comment is outside of 

the scope of this rule. 

Comment: One respondent took 

exception to the certification 

requirements for SDVOSBs and took 

exception to the three-year certification 

period for SDVOSBs, indicating that it 

is too long and may result in fraud. 

Response: This rule implements 

regulatory changes made by the SBA in 

its final rules published on November 

29, 2022, at 87 FR 73400 and at 88 FR 

42592 on July 3, 2023. SBA regulations 

regarding the Veteran Small Business 

Certification Program, including 

SDVOSB certification requirements, are 

addressed at 13 CFR part 128. SBA’s 

regulations regarding recertification 

requirements are implemented at 13 

CFR 128.306. This rule simply 

implements SBA’s regulations; 

therefore, this comment is outside the 

scope of this rule. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

or for Commercial Services 

This rule amends the following 

provisions and clauses at FAR: 52.212– 

3, Offeror Representations and 

Certifications—Commercial Products 

and Commercial Services; 52.212–5, 

Contract Terms and Conditions 

Required To Implement Statutes or 

Executive Orders—Commercial 

Products and Commercial Services; 

52.213–4, Terms and ConditionsVerDate Sep<11>2014 19:25 Dec 13, 2024 Jkt 262001 PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 E:\FR\FM\16DER4.SGM 16DER4

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