Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 2631

requirements for supplies available from

the Committee for Purchase From

People Who Are Blind or Severely

Disabled also applies when contractors

purchase the supply items for

Government use.

3. Section 8.003 is added to read as

follows:

8.003 Contract clause.

The contracting officer shall insert the

clause at 52.208–9, Contractor Use of

Mandatory Sources of Supply, in

solicitations and contracts which

require a contractor to purchase supply

items for Government use that are

available from the Committee for

Purchase from People Who Are Blind or

Severely Disabled. The contracting

officer shall identify in the contract

schedule the items which must be

purchased from a mandatory source and

the specific source.

PART 51—USE OF GOVERNMENT

SOURCES BY CONTRACTORS

4. Section 51.101 is amended by

adding paragraph (c) to read as follows:

51.101 Policy.

* * * * *

(c) Contracting officers shall authorize

contractors purchasing supply items for

Government use that are available from

the Committee for Purchase from People

Who Are Blind or Severely Disabled

(see subpart 8.7) to purchase such items

from the Defense Logistics Agency

(DLA), the General Services

Administration (GSA), and the

Department of Veterans Affairs (VA) if

they are available from these agencies

through their distribution facilities.

Mandatory supplies that are not

available from DLA/GSA/VA shall be

ordered through the appropriate central

nonprofit agency (see 52.208–9(c)).

5. Section 51.102 is amended in the

first sentence of the introductory text of

paragraph (a) by inserting after the word

‘‘sources’’ the phrase ‘‘in accordance

with 51.101 (a) or (b),’’; adding a new

second sentence; and revising paragraph

(c)(3) to read as follows:

51.102 Authorization to use Government

supply sources.

(a) * * * A written finding is not

required when authorizing use of the

Government supply sources in

accordance with 51.101(c). * * *

* * * * *

(c) * * *

(3) Approval for the contractor to use

Department of Veterans Affairs (VA)

supply sources from the Deputy

Assistant Secretary for Acquisition and

Materiel Management (Code 90), Office

of Acquisition and Materiel

Management, Department of Veterans

Affairs, 810 Vermont Avenue, NW.,

Washington, DC 20420;

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

6. Section 52.208–9 is added to read

as follows:

52.208–9 Contractor Use of Mandatory

Sources of Supply.

As prescribed in 8.003, insert the

following clause:

Contractor Use Of Mandatory Sources Of

Supply (Mar 1996)

(a) Certain supplies to be provided under

this contract for use by the Government are

required by law to be obtained from the

Committee for Purchase from People Who

Are Blind or Severely Disabled (JavitsWagner-O’ Day Act (JWOD) (41 U.S.C. 48)).

Additionally, certain of these supplies are

available from the Defense Logistics Agency

(DLA), the General Services Administration

(GSA), or the Department of Veterans Affairs

(VA). The Contractor shall obtain mandatory

supplies to be provided for Government use

under this contract from the specific sources

indicated in the contract schedule.

(b) The Contractor shall immediately notify

the Contracting Officer if a mandatory source

is unable to provide the supplies by the time

required, or if the quality of supplies

provided by the mandatory source is

unsatisfactory. The Contractor shall not

purchase the supplies from other sources

until the Contracting Officer has notified the

Contractor that the mandatory source has

authorized purchase from other sources.

(c) Price and delivery information for the

mandatory supplies is available from the

Contracting Officer for the supplies obtained

through the DLA/GSA/VA distribution

facilities. For mandatory supplies that are not

available from DLA/GSA/VA, price and

delivery information is available from the

appropriate central nonprofit agency.

Payments shall be made directly to the

source making delivery. Points of contract for

JWOD central nonprofit agencies are:

(1) National Industries for the Blind (NIB)

1901 North Beauregard Street, Suite 200

Alexandria, VA 22311–1705 (703) 998–

0770

(2) NISH, 2235 Cedar Lane, Vienna, VA

22182–5200 (703) 560–6800

(End of clause)

[FR Doc. 96–1016 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 9

[FAC 90–37; FAR Cases 93–301 and 93–

306; Item III]

RIN 9000–AF40

Federal Acquisition Regulation; Made

in America Labels/Unfair Trade

Practices

AGENCY: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

implement sections 201 and 202 of the

Defense Production Act. Section 201

directs that the FAR be amended to

address the responsibility of contractors

who engage in unfair trade practices as

defined in section 201. Section 202

directs that the FAR be amended to

address the responsibility of persons

that intentionally affix a label bearing a

fraudulent ‘‘Made in America’’

inscription to a product sold in or

shipped to the United States. This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993.

EFFECTIVE DATE: January 26, 1996.

FOR FURTHER INFORMATION CONTACT:

Mr. Ralph De Stefano (202) 501–1758 in

reference to these combined FAR cases.

For general information, contact the

FAR Secretariat, Room 4037, GS

Building, Washington, DC 20405 (202)

501–4755. Please cite FAC 90–37, FAR

cases 93–301 and 93–306.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule implements the

requirements of sections 201 and 202 of

the Defense Production Act. Section 201

of the Defense Production Act (Public

Law 102–558) provides that any

contractor who has engaged in unfair

trade practices may be found to lack

such business integrity to affect the

contractor’s responsibility to perform a

Government contract or subcontract.

Section 201 defines ‘‘unfair trade
2632 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

practices’’ as the commission by a

contractor of any of the following acts:

(1) A violation of Section 337 of the

Tariff Act of 1930 (19 U.S.C. 1337), as

determined by the International Trade

Commission (2) A violation, as

determined by the Secretary of

Commerce, of any agreement of the

group known as the ‘‘Coordination

Committee’’ for purposes of the Export

Administration Act of 1979 (50 U.S.C.

App. 2401, et seq.) or any similar

bilateral or multilateral export control

agreement, or (3) A knowingly false

statement regarding a material element

of a certification concerning the foreign

content of an item of supply, as

determined by the Secretary of the

Department or the head of the agency to

which such certificate was furnished.

Section 201 mandates that this

statement of public contract law policy

be implemented by amending FAR

subpart 9.4, not later than 270 days after

the date of enactment of the Defense

Production Act (October 28, 1992).

Section 202 of the Defense Production

Act (Public Law 102–558) provides that

any person determined to have

intentionally affixed a label bearing a

‘‘Made in America’’ inscription (or any

inscription having the same meaning) to

a product sold in or shipped to the

United States, when such product was

not made in the United States, may be

found to lack business integrity or

business honesty to such a degree as to

affect their responsibility to perform a

Federal contract or subcontract. Section

202 mandates that this statement of

policy be implemented by amending

FAR Subpart 9.4 (Debarment,

Suspension, and Ineligibility) not later

than 270 days (July 28, 1993) after the

date of enactment of the Defense

Production Act (October 28, 1992).

A combined interim rule was

published in the Federal Register at 59

FR 11368 on March 10, 1994. Two

sources submitted public comments. No

changes were made as a result of those

comments.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not have a significant

economic impact on a substantial

number of small entities under the

Regulatory Flexibility Act, 5 U.S.C. 601,

et seq., because the rule only applies to

entities who engage in unfair trade

practices or who intentionally affix

fraudulent ‘‘Made in America’’ labels to

products sold in or shipped to the

United States.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 9

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Interim Rule Adopted as Final Without

Change

Accordingly, the interim rule

amending 48 CFR part 9, which was

published at 59 FR 11371, March 10,

1994, (FAC 90–20, Item II) is adopted as

a final rule without change.

The authority citation for 48 CFR part

9 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

[FR Doc. 96–1017 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 9 and 52

[FAC 90–37; FAR Case 92–615; Item IV]

RIN 9000–AF57

Federal Acquisition Regulation;

Debarment and Suspension Certificate

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

add tax evasion as a cause for

consideration for suspension or

debarment. This regulatory action was

not subject to Office of Management and

Budget review under Executive Order

12866, dated September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

FOR FURTHER INFORMATION CONTACT:

Mr. Ralph De Stefano at (202) 501–1758

in reference to this FAR case. For

general information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405, (202) 501–4755.

Please cite FAC 90–37, FAR case 92–

615.

SUPPLEMENTARY INFORMATION:

A. Background

The Twentieth Report by the

Committee on Government Operations

entitled ‘‘Coins, Contracting, and

Chicanery: Treasury and Justice

Departments Fail to Coordinate’’ dated

May 27, 1992, among other things,

stated that there was a very real

possibility that the U.S. Government did

business with a man indicted as being

one of the biggest tax evaders in history.

In order to prevent this from happening

in the future, a revision to the FAR was

proposed to address tax evasion.

A proposed rule was published in the

Federal Register at 58 FR 63494 on

December 1, 1993. Four sources

submitted public comments. No changes

were made as a result of those

comments.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not have a significant

economic impact on a substantial

number of small entities under the

Regulatory Flexibility Act, 5 U.S.C. 601,

et seq., because offerors already must

certify whether they have been

convicted of or had a civil judgment

rendered against them for a list of

offenses. This rule will add ‘‘tax

evasion’’ to the existing certification, as

well as to the list of offenses for which

contractors may be suspended or

debarred from Federal contracts.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of OMB

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

List of Subjects in 48 CFR Parts 9 and

52

Government procurement.