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.
Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 2633

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Therefore, 48 CFR Parts 9 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 9 and 52 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).

PART 9—CONTRACTOR

QUALIFICATIONS

9.406–2 [Amended]

2. Section 9.406–2 is amended in

paragraph (a)(3) by inserting ‘‘tax

evasion,’’ after ‘‘false statements,’’.

9.407–2 [Amended]

3. Section 9.407–2 is amended in

paragraph (a)(3) by inserting ‘‘tax

evasion,’’ after ‘‘false statements,’’.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.209–5 [Amended]

4. Section 52.209–5 is amended by

revising the clause date to read ‘‘(MAR

1996)’’; and in paragraph (a)(1)(i)(B) by

inserting ‘‘tax evasion,’’ after ‘‘false

statements’’.

52.212–3 [Amended]

5. Section 52.212–3 is amended by

revising the date of the provision to read

‘‘(MAR 1996)’’; and in paragraph (h)(2)

by adding ‘‘tax evasion,’’ after ‘‘false

statements,’’.

[FR Doc. 96–1018 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 15 and 52

[FAC 90–37; FAR Case 92–010; Item V]

RIN 9000–AF77

Federal Acquisition Regulation;

Nonprofit Institutions Clause

Prescription

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).

These changes revise the prescriptions

for use of the clauses, Termination of

Defined Benefit Pension Plans and

Reversion or Adjustment of Plans for

Postretirment Benefits Other Than

Pensions (PRB), and also clarifies the

language of the clauses. 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. Jeremy Olson at (202) 501–3221 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–

010.

SUPPLEMENTARY INFORMATION:

A. Background

The wording of the prescriptions at

15.804–8(e) and (f) currently implies

that the clauses at 52.215–27,

Termination of Defined Benefit Pension

Plans, and 52.215–39, Reversion or

Adjustment of Plans for Postretirement

Benefits Other Than Pensions, should

also be used in solicitions and contracts

with noncommercial organizations. The

clauses refer to the cost principles

applicable to commercial organizations

in FAR subpart 31.2, whereas OMB

Circulars A–21, A–87 and A–122

contain the cost principles governing

contracts with noncommercial

organizations. In addition, the

prescriptions currently contain

dissimilar criteria concerning the use of

the clauses in preaward or postaward

cost situations. The revisions to the

prescriptions at 15.804–8(e) and (f)

correct these inconsistencies and clarify

when the clauses at 52.215–27 and

52.215–39 should be used. Additional

revisions to the clauses clarify the

requirements specified in them. A

proposed rule was published in the

Federal Register at 59 FR 16389, April

6, 1994. Three public comments were

received. 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 most contracts awarded

to small businesses are awarded on a

competitive, fixed-price basis and the

cost principles do not apply. It is

estimated that the number of contract

actions awarded to small businesses

which require the submission of cost or

pricing data average less than 1 percent

of the total number of small business

actions.

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 Parts 15 and

52

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Therefore, 48 CFR Parts 15 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 15 and 52 continue to read as

follows:

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

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

PART 15—CONTRACTING BY

NEGOTIATION

2. Section 15.804–8 is amended by

revising paragraphs (e) and (f); and in

paragraph (g) by removing the word

‘‘certified’’. The revised text reads as

follows:

15.804–8 Contract clauses and solicitation

provisions.

* * * * *

(e) Termination of defined benefit

pension plans. The contracting officer

shall insert the clause at 52.215–27,

Termination of Defined Benefit Pension

Plans, in solicitations and contracts for

which it is anticipated that cost or

pricing data will be required or for

which any preaward or postaward cost

determinations will be subject to part

31.

(f) Postretirement benefit funds. The

contracting officer shall insert the clause

at 52.215–39, Reversion or Adjustment

of Plans for Postretirement Benefits

Other Than Pensions (PRB), in

solicitations and contracts for which it

is anticipated that cost or pricing data

will be required or for which any

preaward or postaward cost

determination will be subject to part 31.

* * * * *