[Federal Register Volume 75, Number 99 (Monday, May 24, 2010)]
[Proposed Rules]
[Pages 28771-28772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12334]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4 and 52

[FAR Case 2009-027; Docket 2010-0091; Sequence 1]
RIN: 9000-AL60


Federal Acquisition Regulation; FAR Case 2009-027, Personal 
Identity Verification of Contractor Personnel

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to provide additional regulatory 
coverage in Subpart 4.13 and in clause 52.204-9 to reinforce the 
requirement of collecting from contractors all forms of Government 
provided identification once they are no longer needed to support a 
contract.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before July 23, 2010 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by FAR case 2009-027 by any of 
the following methods:
    <bullet> Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by inputting ``FAR Case 
2009-027'' under the heading ``Enter Keyword or ID'' and selecting 
``Search''. Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2009-027''. Follow the instructions provided at the `` 
Submit a Comment'' screen. Please include your name, company name (if 
any), and ``FAR Case 2009-027'' on your attached document.
    <bullet> Fax: 202-501-4067.
    <bullet> Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR case 2009-
027, in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT Ms. Suzanne Neurauter, Procurement 
Analyst, at (202) 219-0310 for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAR case 2009-
027.

SUPPLEMENTARY INFORMATION:

A. Background

    Department of Defense Inspector General Audit Report No. D02009-
005, titled Controls Over the Contractor Common Access Card (CAC) Life 
Cycle, was performed to determine whether Government controls were in 
place over contractor CACs. A CAC is the DoD term for a Personal 
Identity Verification (PIV) card. A PIV card is required in order to 
gain access to a Federal facility. The most prevalent issue of the 
audit report, and the one that the Councils are undertaking with this 
case, was that the

[[Page 28772]]

CACs were not adequately accounted for after contract performance.
    The Councils are proposing to amend the FAR by inserting new 
paragraphs (d)(1) and (2) under section 4.1301, Policy. Paragraph 
(d)(1) will provide policy on recovering PIVs. The text in paragraph 
(d)(1) states that agency procedures shall ensure that Government 
contractors account for all forms of Government-provided identification 
issued to Government contractors under a contract, and return such 
identification to the issuing agency at the earliest of any of the 
following, unless otherwise determined by the agency: when no longer 
needed for contract performance; upon completion of a contractor 
employee's employment; upon contract completion or termination. The 
text in paragraph (d)(2) states that the contracting officer may delay 
final payment under a contract if the contractor fails to comply with 
these requirements.
    The Councils are also proposing to modify FAR clause 52.204-9, 
Personal Identity Verification of Contractor Personnel to be consistent 
with Part 4.
    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 Councils do not expect this proposed 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 requirements of the actions required and the clause are not 
significantly burdensome. Currently, it is a common business practice 
to have procedures in place to revoke/return access cards when no 
longer in use by the contractor. An Initial Regulatory Flexibility 
Analysis has, therefore, not been performed. We invite comments from 
small businesses and other interested parties. The Councils will 
consider comments from small entities concerning the affected FAR Parts 
4 and 52 in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 601, et seq. 
(FAR case 2009-027), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. Chapter 35, et seq.

List of Subjects in 48 CFR Parts 4 and 52

    Government procurement.

    Dated: May 17, 2010.
Edward Loeb,
Acting Director, Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 4 and 
52 as set forth below:
    1. The authority citation for 48 CFR parts 4 and 52 continues to 
read as follows:

    AUTHORITY:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 4--ADMINISTRATIVE MATTERS

    2. Amend section 4.1301 by adding paragraphs (d)(1) and (d)(2) to 
read as follows:


4.1301  Policy.

* * * * *
    (d)(1) Agency procedures shall ensure that Government contractors 
account for all forms of Government-provided identification issued to 
Government contractors under a contract, i.e., the Personal Identity 
Verification (PIV) cards or other similar badges, and shall ensure that 
contractors return such identification to the issuing agency as soon as 
any of the following occurs, unless otherwise determined by the agency:
    (i) When no longer needed for contract performance.
    (ii) Upon completion of a contractor employee's employment.
    (iii) Upon contract completion or termination.
    (2) The contracting officer may delay final payment under a 
contract if the contractor fails to comply with these requirements.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Amend section 52.204-9 by:
    a. Revising the date of the clause;
    b. Redesignating paragraph (b) as paragraph (d), and adding new 
paragraphs (b) and (c); and revising the newly designated paragraph 
(d).
    The added and revised text reads as follows:


52.204-9  Personal Identity Verification of Contractor Personnel.

* * * * *
    PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (DATE)
    (b) The Contractor shall account for all forms of Government-
provided identification issued to the Contractor under this contract. 
The contractor shall return such identification to the issuing agency 
at the earliest of any of the following, unless otherwise determined by 
the Government:
    (1) When no longer needed for contract performance.
    (2) Upon completion of the Contractor employee's employment.
    (3) Upon contract completion or termination.
    (c) The contracting officer may delay final payment under a 
contract if the contractor fails to comply with these requirements.
    (d) The Contractor shall insert the substance of this clause, 
including this paragraph (d), in all subcontracts when the 
subcontractor is required to have routine physical access to a 
Federally-controlled facility and/or routine access to a Federally-
controlled information system.
    (End of clause)
[FR Doc. 2010-12334 Filed 5-21-10; 8:45 am]
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