Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Proposed Rules 73187 

1The OIG Semiannual Report can be accessed 

through the OIG Web site at http://oig.hhs.gov/ 

publications/semiannual.html. 

certain non-abusive arrangements, while 

encouraging beneficial and innocuous 

arrangements’’ (56 FR 35952, July 29, 

1991). Health care providers and others 

may voluntarily seek to comply with 

these provisions so that they have the 

assurance that their business practices 

will not be subject to any enforcement 

action under the anti-kickback statute or 

related administrative authorities. 

To date, OIG has developed and 

codified in 42 CFR 1001.952 a total of 

22 final safe harbors that describe 

practices that are sheltered from 

liability. 

B. OIG Special Fraud Alerts 

OIG has also periodically issued 

Special Fraud Alerts to give continuing 

guidance to health care providers with 

respect to practices OIG finds 

potentially fraudulent or abusive. The 

Special Fraud Alerts encourage industry 

compliance by giving providers 

guidance that can be applied to their 

own practices. OIG Special Fraud Alerts 

are intended for extensive distribution 

directly to the health care provider 

community, as well as to those charged 

with administering the Federal health 

care programs. 

In developing these Special Fraud 

Alerts, OIG has relied on a number of 

sources and has consulted directly with 

experts in the subject field, including 

those within OIG, other agencies of the 

Department, other Federal and State 

agencies, and those in the health care 

industry. To date, OIG has issued 12 

individual Special Fraud Alerts. 

C. Section 205 of Public Law 104–191 

Section 205 of Public Law 104–191 

requires the Department to develop and 

publish an annual notice in the Federal 

Register formally soliciting proposals 

for modifying existing safe harbors to 

the anti-kickback statute and for 

developing new safe harbors and 

Special Fraud Alerts. 

In developing safe harbors for a 

criminal statute, OIG is required to 

engage in a thorough review of the range 

of factual circumstances that may fall 

within the proposed safe harbor subject 

area so as to uncover potential 

opportunities for fraud and abuse. Only 

then can OIG determine, in consultation 

with the Department of Justice, whether 

it can effectively develop regulatory 

limitations and controls that will permit 

beneficial and innocuous arrangements 

within a subject area while, at the same 

time, protecting the Federal health care 

programs and their beneficiaries from 

abusive practices. 

II. Solicitation of Additional New 

Recommendations and Proposals 

In accordance with the requirements 

of section 205 of Public Law 104–191, 

OIG last published a Federal Register 

solicitation notice for developing new 

safe harbors and Special Fraud Alerts on 

December 10, 2004 (69 FR 71766). As 

required under section 205, a status 

report of the public comments received 

in response to that notice is set forth in 

Appendix F to the OIG’s Semiannual 

Report covering the period April 1, 

2005, through September 30, 2005.1 OIG 

is not seeking additional public 

comment on the proposals listed in 

Appendix F at this time. Rather, this 

notice seeks additional 

recommendations regarding the 

development of proposed or modified 

safe harbor regulations and new Special 

Fraud Alerts beyond those summarized 

in Appendix F to the OIG Semiannual 

Report referenced above. 

A. Criteria for Modifying and 

Establishing Safe Harbor Provisions 

In accordance with section 205 of 

HIPAA, we will consider a number of 

factors in reviewing proposals for new 

or modified safe harbor provisions, such 

as the extent to which the proposals 

would affect an increase or decrease in: 

• Access to health care services, 

• The quality of services, 

• Patient freedom of choice among 

health care providers, 

• Competition among health care 

providers, 

• The cost to Federal health care 

programs, 

• The potential overutilization of the 

health care services, and 

• The ability of health care facilities 

to provide services in medically 

underserved areas or to medically 

underserved populations. 

In addition, we will also take into 

consideration other factors, including, 

for example, the existence (or 

nonexistence) of any potential financial 

benefit to health care professionals or 

providers that may take into account 

their decisions whether to (1) order a 

health care item or service or (2) arrange 

for a referral of health care items or 

services to a particular practitioner or 

provider. 

B. Criteria for Developing Special Fraud 

Alerts 

In determining whether to issue 

additional Special Fraud Alerts, we will 

also consider whether, and to what 

extent, the practices that would be 

identified in a new Special Fraud Alert 

may result in any of the consequences 

set forth above, as well as the volume 

and frequency of the conduct that 

would be identified in the Special Fraud 

Alert. 

A detailed explanation of 

justifications for, or empirical data 

supporting, a suggestion for a safe 

harbor or Special Fraud Alert would be 

helpful and should, if possible, be 

included in any response to this 

solicitation. 

Dated: November 30, 2005. 

Daniel R. Levinson, 

Inspector General. 

[FR Doc. 05–23624 Filed 12–8–05; 8:45 am] 

BILLING CODE 4150–04–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 208, 252, and 253 and 

Appendix B to Chapter 2 

[DFARS Case 2003–D072] 

Defense Federal Acquisition 

Regulation Supplement; Required 

Sources of Supply 

AGENCY: Department of Defense (DoD). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

update text addressing acquisitions 

made through Government supply 

sources. This proposed rule is a result 

of a transformation initiative undertaken 

by DoD to dramatically change the 

purpose and content of the DFARS. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

February 7, 2006, to be considered in 

the formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2003–D072, 

using any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Defense Acquisition Regulations 

Web Site: http://emissary.acq.osd.mil/ 

dar/dfars.nsf/pubcomm. Follow the 

instructions for submitting comments. 

• E-mail: dfars@osd.mil. Include 

DFARS Case 2003–D072 in the subject 

line of the message. 

• Fax: (703) 602–0350. 

• Mail: Defense Acquisition 

Regulations Council, Attn: Ms. Robin 

Schulze, OUSD (AT&L) DPAP (DAR), 

IMD 3C132, 3062 Defense Pentagon, 

Washington, DC 20301–3062. 

73188 Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Proposed Rules 

• Hand Delivery/Courier: Defense 

Acquisition Regulations Council, 

Crystal Square 4, Suite 200A, 241 18th 

Street, Arlington, VA 22202–3402. 

All comments received will be posted 

to http://emissary.acq.osd.mil/dar/ 

dfars.nsf. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Robin Schulze, (703) 602–0326. 

SUPPLEMENTARY INFORMATION: 

A. Background 

DFARS Transformation is a major 

DoD initiative to dramatically change 

the purpose and content of the DFARS. 

The objective is to improve the 

efficiency and effectiveness of the 

acquisition process, while allowing the 

acquisition workforce the flexibility to 

innovate. The transformed DFARS will 

contain only requirements of law, DoDwide policies, delegations of FAR 

authorities, deviations from FAR 

requirements, and policies/procedures 

that have a significant effect beyond the 

internal operating procedures of DoD or 

a significant cost or administrative 

impact on contractors or offerors. 

Additional information on the DFARS 

Transformation initiative is available at 

http://www.acq.osd.mil/dpap/dars/ 

dfars/transformation/index.htm. 

This proposed rule is a result of the 

DFARS Transformation initiative. The 

proposed DFARS changes: 

• Delete informational text on GSA 

Federal Supply Schedules that is 

unnecessary for inclusion in the 

DFARS. 

• Delete text on the Defense National 

Stockpile and the acquisition of helium. 

These issues are adequately addressed 

in the Federal Acquisition Regulation at 

8.003 and subpart 8.5. 

• Delete obsolete text on the DoD 

Industrial Preparedness Production 

Planning Program. There is no longer a 

DoD-wide Program. 

• Delete procedures for ordering from 

central nonprofit agencies; for 

acquisition of items under the DoD 

Coordinated Acquisition Program; for 

contracting or performing field service 

functions for NASA; for use of the DoD 

Precious Metals Recovery Program; and 

for use of enterprise software 

agreements for acquiring commercial 

software and related services. Text on 

these subjects will be relocated to the 

new DFARS companion resource, 

Procedures, Guidance, and Information 

(PGI). Additional information on PGI is 

available at http://www.acq.osd.mil/ 

dpap/dars/pgi. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD does not expect this rule 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, et seq., 

because the rule deletes unnecessary, 

obsolete, or procedural DFARS text, but 

makes no significant change to DoD 

contracting policy. Therefore, DoD has 

not performed an initial regulatory 

flexibility analysis. DoD invites 

comments from small businesses and 

other interested parties. DoD also will 

consider comments from small entities 

concerning the affected DFARS subparts 

in accordance with 5 U.S.C. 610. Such 

comments should be submitted 

separately and should cite DFARS Case 

2003–D072. 

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 Parts 208, 

252, and 253 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, DoD proposes to amend 48 

CFR parts 208, 252, and 253 and 

Appendix B to Chapter 2 as follows: 

1. The authority citation for 48 CFR 

parts 208, 252, and 253 and Appendix 

B to subchapter I continues to read as 

follows: 

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

Chapter 1. 

PART 208—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

2. Section 208.002 is revised to read 

as follows: 

208.002 Priorities for use of Government 

supply sources. 

(a)(1)(v) See subpart 208.70, 

Coordinated Acquisition, and subpart 

208.74, Enterprise Software Agreements. 

208.003 [Removed] 

3. Section 208.003 is removed. 

4. Section 208.705 is revised to read 

as follows: 

208.705 Procedures. 

Follow the procedures at PGI 208.705 

when placing orders with central 

nonprofit agencies. 

208.7000 [Amended] 

5. Section 208.7000 is amended in 

paragraph (a), in the parenthetical, by 

removing ‘‘appendix B’’ and adding in 

its place ‘‘PGI 208.7006’’. 

6. Sections 208.7002–1 and 208.7002–

2 are revised to read as follows: 

208.7002–1 Acquiring department 

responsibilities. 

See PGI 208.7002–1 for the acquiring 

department’s responsibilities. 

208.7002–2 Requiring department 

responsibilities. 

See PGI 208.7002–2 for the requiring 

department’s responsibilities. 

7. Section 208.7003–1 is amended by 

revising paragraph (a) introductory text 

and paragraph (b) to read as follows: 

208.7003–1 Assignments under integrated 

materiel management (IMM). 

(a) Acquire all items assigned for IMM 

from the IMM manager except—

* * * * * 

(b) Follow the procedures at PGI 

208.7003–1(b) when an item assigned 

for IMM is to be acquired by the 

requiring department in accordance 

with paragraph (a)(3) of this subsection. 

8. Section 208.7004 is revised to read 

as follows: 

208.7004 Procedures. 

Follow the procedures at PGI 

208.7004 for processing coordinated 

acquisition requirements. 

208.7004–1 through 208.7004–10 

[Removed] 

9. Sections 208.7004–1 through 

208.7004–10 are removed. 

10. Sections 208.7005 and 208.7006 

are revised to read as follows: 

208.7005 Military Interdepartmental 

Purchase Requests. 

Follow the procedures at: 

(a) PGI 253.208–1 when using DD 

Form 448, Military Interdepartmental 

Purchase Request; and 

(b) PGI 253.208–2 when using DD 

Form 448–2, Acceptance of MIPR. 

208.7006 Coordinated acquisition 

assignments. 

See PGI 208.7006 for coordinated 

acquisition assignments. 

11. Sections 208.7101 and 208.7102 

are revised to read as follows: 

208.7101 Policy. 

Departments and agencies shall 

cooperate fully with NASA in making 

acquisition services, equipment, 

personnel, and facilities available on the 

basis of mutual agreement. 

Federal Register / Vol. 70, No. 236 / Friday, December 9, 2005 / Proposed Rules 73189 

208.7102 Procedures. 

Follow the procedures at PGI 

208.7102 when contracting or 

performing services for NASA. 

208.7103 through 208.7105 [Removed] 

12. Sections 208.7103, 208.7104, and 

208.7105 are removed. 

Subpart 208.72 [Removed and 

Reserved] 

13. Subpart 208.72 (consisting of 

§§ 208.7201, 208.7202, 208.7203, and 

208.7204) is removed and reserved. 

208.7301 [Amended] 

14. Section 208.7301 is amended by 

removing the definitions of ‘‘Dual 

pricing evaluation procedure’’ and 

‘‘Precious Metals Indicator Code 

(PMIC)’’. 

208.7302 [Amended] 

15. Section 208.7302 is amended in 

the first sentence by removing 

‘‘(PMRP)’’. 

16. Sections 208.7303 and 208.7304 

are revised to read as follows: 

208.7303 Procedures. 

Follow the procedures at PGI 

208.7303 for use of the Precious Metals 

Recovery Program. 

208.7304 Refined precious metals. 

See PGI 208.7304 for a list of refined 

precious metals managed by DSCP. 

208.7401 [Amended] 

17. Section 208.7401 is amended by 

removing the definitions of ‘‘Golden 

Disk’’ and ‘‘Software product manager’’. 

18. Section 208.7403 is revised to read 

as follows: 

208.7403 Acquisition procedures. 

Follow the procedures at PGI 

208.7403 when acquiring commercial 

software and related services. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

19. Section 252.225–7025 is amended 

by revising the clause date and 

paragraph (a)(1) to read as follows: 

252.225–7025 Restriction on Acquisition 

of Forgings. 

* * * * * 

Restriction on Acquisition of Forgings 

(XXX 2005) 

(a) * * * 

(1) Domestic manufacture means: 

(i) Manufactured in the United States 

or its outlying areas; or 

(ii) Manufactured in Canada, if the 

Canadian firm normally produces 

similar items or is currently producing 

the item in support of DoD contracts (as 

a contractor or a subcontractor). 

* * * * * 

PART 253—FORMS 

20. Sections 253.208–1 and 253.208–

2 are revised to read as follows: 

253.208–1 DD Form 448, Military 

Interdepartmental Purchase Request. 

Follow the procedures at PGI 

253.208–1 for use of DD Form 448. 

253.208–2 DD Form 448–2, Acceptance of 

MIPR. 

Follow the procedures at PGI 

253.208–2 for use of DD Form 448–2. 

Appendix B to Chapter 2 [Removed 

and Reserved] 

21. Appendix B to Chapter 2 is 

removed and reserved. 

[FR Doc. 05–23724 Filed 12–8–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 225 and 252 

[DFARS Case 2005–D002] 

Defense Federal Acquisition 

Regulation Supplement; Restriction on 

Carbon, Alloy, and Armor Steel Plate 

AGENCY: Department of Defense (DoD). 

ACTION: Proposed rule with request for 

comments. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

clarify the restriction on the acquisition 

of foreign carbon, alloy, or armor steel 

plate. The restriction implements 

provisions of annual DoD 

appropriations acts. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

February 7, 2006, to be considered in 

the formation of the final rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2005–D002, 

using any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Defense Acquisition Regulations 

Web Site: http://emissary.acq.osd.mil/ 

dar/dfars.nsf/pubcomm. Follow the 

instructions for submitting comments. 

• E-mail: dfars@osd.mil. Include 

DFARS Case 2005–D002 in the subject 

line of the message. 

• Fax: (703) 602–0350. 

• Mail: Defense Acquisition 

Regulations Council, Attn: Ms. Amy 

Williams, OUSD(AT&L)DPAP(DAR), 

IMD 3C132, 3062 Defense Pentagon, 

Washington, DC 20301–3062. 

• Hand Delivery/Courier: Defense 

Acquisition Regulations Council, 

Crystal Square 4, Suite 200A, 241 18th 

Street, Arlington, VA 22202–3402. 

All comments received will be posted 

to http://emissary.acq.osd.mil/dar/ 

dfars.nsf. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, (703) 602–0328. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 8111 of the Fiscal Year 1992 

DoD Appropriations Act (Pub. L. 102–

172) and similar sections in subsequent 

DoD Appropriations Acts (the most 

recent being section 8029 of Pub. L. 

108–287) contain a restriction on the 

acquisition of carbon, alloy, or armor 

steel plate, that is not melted and rolled 

in the United States or Canada, for use 

in any Government-owned facility or 

property under the control of DoD. This 

restriction is implemented in the 

DFARS at 225.7011–1 through 

225.7011–3 and in the corresponding 

contract clause at 252.225–7030. The 

wording of these DFARS sections is 

presently inconsistent. To clarify the 

restriction, this proposed rule revises 

DFARS 225.7011–1 and 225.7011–3 for 

consistency with the wording in 

paragraph (b) of the clause at 252.225–

7030. In addition, the proposed rule 

separates paragraph (b) of the clause 

into subparagraphs to further clarify the 

applicability of the restriction. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

DoD does not expect this rule 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, et seq., 

because the proposed DFARS changes 

clarify existing policy regarding the 

statutory restriction on the acquisition 

of foreign carbon, alloy, or armor steel 

plate. Therefore, DoD has not performed 

an initial regulatory flexibility analysis. 

DoD invites comments from small 

businesses and other interested parties. 

DoD also will consider comments from 

small entities concerning the affected 

DFARS subparts in accordance with 5 

U.S.C. 610. Such comments should be 

submitted separately and should cite 

DFARS Case 2005–D002. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not