60254 Federal Register / Vol. 75, No. 188 / Wednesday, September 29, 2010 / Rules and Regulations 

entitled ‘‘Federal Contractor Veterans’ 

Employment Report (VETS–100A Report).’’ 

(d) The Contractor shall submit VETS– 

100A Reports no later than September 30 of 

each year. 

(e) The employment activity report 

required by paragraphs (b)(2) and (b)(3) of 

this clause shall reflect total new hires, and 

maximum and minimum number of 

employees, during the most recent 12-month 

period preceding the ending date selected for 

the report. Contractors may select an ending 

date— 

(1) As of the end of any pay period 

between July 1 and August 31 of the year the 

report is due; or 

(2) As of December 31, if the Contractor has 

prior written approval from the Equal 

Employment Opportunity Commission to do 

so for purposes of submitting the Employer 

Information Report EEO–1 (Standard Form 

100). 

(f) The number of veterans reported must 

be based on data known to the contractor 

when completing the VETS–100A. The 

contractor’s knowledge of veterans status 

may be obtained in a variety of ways, 

including an invitation to applicants to selfidentify (in accordance with 41 CFR 60– 

300.42), voluntary self-disclosure by 

employees, or actual knowledge of veteran 

status by the contractor. This paragraph does 

not relieve an employer of liability for 

discrimination under 38 U.S.C. 4212. 

(g) The Contractor shall insert the terms of 

this clause in subcontracts of $100,000 or 

more unless exempted by rules, regulations, 

or orders of the Secretary of Labor. 

(End of clause) 

■ 17. Amend section 52.222–38 by 

revising the date of the provision and 

the provision to read as follows: 

52.222–38 Compliance with Veterans’ 

Employment Reporting Requirements. 

* * * * * 

COMPLIANCE WITH VETERANS’ 

EMPLOYMENT REPORTING 

REQUIREMENTS (SEP 2010) 

By submission of its offer, the offeror 

represents that, if it is subject to the reporting 

requirements of 38 U.S.C. 4212(d) (i.e., if it 

has any contract containing Federal 

Acquisition Regulation clause 52.222–37, 

Employment Reports on Veterans), it has 

submitted the most recent VETS–100A 

Report required by that clause. 

(End of provision) 

■ 18. Amend section 52.244–6 by 

revising the date of the clause and 

paragraph (c)(1)(v) to read as follows: 

52.244–6 Subcontracts for Commercial 

Items. 

* * * * * 

SUBCONTRACTS FOR COMMERCIAL 

ITEMS (SEP 2010) 

* * * * * 

(c)(1) * * * 

(v) 52.222–35, Equal Opportunity for 

Veterans (SEP 2010) (38 U.S.C. 4212(a)); 

* * * * * 

[FR Doc. 2010–24218 Filed 9–28–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 4, 25 and 52 

[FAC 2005–46; FAR Case 2010–012; Item 

II; Docket 2010–0102, Sequence 1] 

RIN 9000–AL71 

Federal Acquisition Regulation; 

Certification Requirement and 

Procurement Prohibition Relating to 

Iran Sanctions 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) are issuing an interim rule 

amending the Federal Acquisition 

Regulation (FAR) to implement section 

102 and partially implements section 

106 of the Comprehensive Iran 

Sanctions, Accountability, and 

Divestment Act of 2010. Section 102 

requires certification that each offeror, 

and any person owned or controlled by 

the offeror, does not engage in any 

activity for which sanctions may be 

imposed under section 5 of the Iran 

Sanctions Act of 1996, as amended (the 

Iran Sanctions Act). Section 106 

imposes a procurement prohibition 

relating to contracts with persons that 

export certain sensitive technology to 

Iran. There will be further 

implementation of section 106 in FAR 

Case 2010–018. 

DATES: Effective Date: September 29, 

2010. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

November 29, 2010 to be considered in 

the formulation of a final rule. 

ADDRESSES: Submit comments 

identified by FAC 2005–46, FAR Case 

2010–012, by any of the following 

methods: 

• Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting ‘‘FAR 

Case 2010–012’’ under the heading 

‘‘Enter Keyword or ID’’ and selecting 

‘‘Search.’’ Select the link ‘‘Submit a 

Comment’’ that corresponds with ‘‘FAR 

Case 2010–012.’’ Follow the instructions 

provided at the ‘‘Submit a Comment’’ 

screen. Please include your name, 

company name (if any), and ‘‘FAR Case 

2010–012’’ on your attached document. 

• Fax: 202–501–4067. 

• 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 FAC 2005–46, FAR Case 

2010–012, 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: For 

clarification of content, contact Ms. 

Cecelia L. Davis, Procurement Analyst, 

at (202) 219–0202. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–46, FAR Case 2010–012. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This interim rule implements section 

102 and partially implements section 

106 of the Comprehensive Iran 

Sanctions, Accountability, and 

Divestment Act of 2010 (Pub. L. 111– 

195), enacted July 1, 2010. Section 102, 

entitled ‘‘Expansion of Sanctions under 

the Iran Sanctions Act of 1996,’’ requires 

that, not later than 90 days after the date 

of the enactment of Public Law 111– 

195, the FAR shall be revised to require 

a certification from each person that is 

a prospective contractor that the person, 

and any person owned or controlled by 

the person, does not engage in any 

activity for which sanctions may be 

imposed under section 5 of the Iran 

Sanctions Act. 

This interim rule has added in FAR 

subpart 25.7 a new section 25.703, 

Prohibition on contracting with entities 

that engage in certain activities relating 

to Iran. This section provides a 

definition of ‘‘person’’ at FAR 25.703–1, 

which is applicable to both of the 

following subsections. 

FAR 25.703–2 implements section 

102 of Public Law 111–195. It explains 

the certification requirement at FAR 

25.703–2(a) and provides a summary of 

the activities for which sanctions may 

be imposed, which are described in 


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more detail in section 5 of the Iran 

Sanctions Act. 

Remedies are located at FAR 25.703– 

2(b). If the head of an executive agency 

determines that a person has submitted 

a false certification, the agency shall 

take one or more of the following 

actions: 

(1) The contracting officer may 

terminate the contract. 

(2) The suspending official may 

suspend the contractor in accordance 

with the procedures in FAR subpart 9.4. 

(3) The debarring official may debar 

the contractor for a period not to exceed 

3 years in accordance with the 

procedures in FAR subpart 9.4. 

Section 102 also provides that the 

remedies set forth shall not apply with 

respect to the procurement of eligible 

products, as defined in section 308(4) of 

the Trade Agreements Act of 1974 (19 

U.S.C. 2518(4)), of any foreign country 

or instrumentality designated under 

section 301(b) of that Act (19 U.S.C. 

2511(b)). The Councils interpreted this 

provision to mean that in acquisitions 

that are subject to trade agreements, 

eligible products from designated 

countries are not subject to the 

certification requirement (FAR 25.703– 

2(c)) or the remedies. 

This interim rule establishes a waiver 

procedure at FAR 25.703–2(d), as 

authorized by the statute. The President 

may waive the requirement of 

subsection 25.703–2(a) on a case-by-case 

basis, if the President determines and 

certifies in writing to the appropriate 

congressional committees (Committee 

on Armed Services of the Senate, 

Committee on Finance of the Senate, 

Committee on Banking, Housing, and 

Urban Affairs of the Senate, Committee 

on Foreign Relations of the Senate, 

Committee on Armed Services of the 

House of Representatives, Committee on 

Ways and Means of the House of 

Representatives, Committee on 

Financial Services of the House of 

Representatives, and Committee on 

Foreign Affairs of the House of 

Representatives) that it is in the national 

interest to do so. ‘‘Appropriate 

congressional committees’’ is defined in 

section 101 of Public Law 111–195, 

which refers to section 14 of the Iran 

Sanctions Act, as amended by section 

102 paragraph (f) of Public Law 111– 

195. In addition, section 102 amended 

section 6 of the Iran Sanctions Act to 

require certification in writing to the 

Committee on Armed Services of the 

Senate and Committee on Armed 

Services of the House of 

Representatives, in addition to the 

‘‘appropriate congressional committees,’’ 

as defined in section 14 of the Iran 

Sanctions Act. The President may 

delegate this authority. 

The statutory certification 

requirement is communicated to 

offerors through a new provision at FAR 

52.225–25, Prohibition on Engaging in 

Sanctioned Activities Relating to Iran— 

Certification. This requirement is also 

applied to acquisition of commercial 

items at FAR 52.212–3, paragraph (o) 

(see Section B, Determinations). Offerors 

will also be able to make an annual 

certification through the Online 

Representations and Certifications 

Application (ORCA), if the offeror is 

registered in the Central Contractor 

Registration. Therefore, conforming 

changes have been made to FAR part 4 

and the FAR clause at 52.204–8, Annual 

Representations and Certifications. 

Section 106 of Public Law 111–195 

(22 U.S.C. 8515) is partially 

implemented in new FAR subsection 

25.703–3. Agencies are prohibited from 

entering into or extending a contract for 

the procurement of goods or services 

with a person that exports certain 

sensitive technology to Iran, as 

determined by the President and listed 

on the Excluded Parties List System. 

There will be further implementation of 

section 106 in FAR Case 2010–018. 

This is a significant regulatory action 

and, therefore, was 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. Determinations 

The Federal Acquisition Regulatory 

(FAR) Council has made the following 

determinations with respect to the rule’s 

applicability of section 102 and 106 of 

the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 

2010 (Pub. L. 111–195), to contracts in 

amounts not greater than the simplified 

acquisition threshold (SAT), contracts 

for the acquisition of commercial items, 

and contracts for the acquisition of 

commercially available off-the-shelf 

(COTS) items. 

1. Applicability to Contracts at or Below 

the Simplified Acquisition Threshold 

Section 4101 of Pub. L. 103–355, the 

Federal Acquisition Streamlining Act 

(FASA) (41 U.S.C. 429), governs the 

applicability of laws to contracts or 

subcontracts in amounts not greater 

than the SAT. It is intended to limit the 

applicability of laws to them. FASA 

provides that if a provision of law 

contains criminal or civil penalties, or if 

the FAR Council makes a written 

determination that it is not in the best 

interest of the Federal Government to 

exempt contracts or subcontracts at or 

below the SAT, the law will apply to 

them. Therefore, given that the 

requirements of sections 102 and 106 of 

the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 

2010 were enacted to widen the 

sanctions against Iran, the FAR Council 

has determined that it is in the best 

interest of the Federal Government to 

apply this rule to all acquisitions 

including contracts at or below the SAT, 

as defined at FAR 2.101. An exception 

for acquisitions at or below the SAT 

would exclude a significant portion of 

Federal contracting and the contractors 

who provide these products and 

services, thereby undermining the 

overarching public policy purpose of 

the law. 

2. Applicability to Contracts for the 

Acquisition of Commercial Items 

Section 8003 of Public Law 103–355, 

the Federal Acquisition Streamlining 

Act (FASA) (41 U.S.C. 430), governs the 

applicability of laws to contracts for the 

acquisition of commercial items, and is 

intended to limit the applicability of 

laws to contracts for the acquisition of 

commercial items. 

FASA provides that if a provision of 

law contains criminal or civil penalties, 

or if the FAR Council makes a written 

determination that it is not in the best 

interest of the Federal Government to 

exempt commercial item contracts, the 

provision of law will apply to contracts 

for the acquisition of commercial items. 

Therefore, given that the requirements 

of sections 102 and 106 of the 

Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 

2010 were enacted to widen the 

sanctions against Iran, the FAR Council 

has determined that it is in the best 

interest of the Federal Government to 

apply the rule to contracts for the 

acquisition of commercial items, as 

defined at FAR 2.101. An exception for 

contracts for the acquisition of 

commercial items would exclude a 

significant portion of Federal 

contracting and the contractors who 

provide these products and services, 

thereby undermining the overarching 

public policy purpose of the law. 

3. Applicability to Contracts for the 

Acquisition of (COTS) Items 

Section 4203 of Public Law 104–106, 

the Clinger-Cohen Act of 1996 (41 

U.S.C. 431), governs the applicability of 

laws to contracts for the acquisition of 

COTS items, and is intended to limit the 

applicability of laws to them. ClingerCohen provides that if a provision of 

law contains criminal or civil penalties, 

or if the Administrator for Federal 

Procurement Policy makes a written 


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60256 Federal Register / Vol. 75, No. 188 / Wednesday, September 29, 2010 / Rules and Regulations 

determination that it is not in the best 

interest of the Federal Government to 

exempt contracts for the acquisition of 

COTS items, the provision of law will 

apply. Therefore, given that the 

requirements of sections 102 and 106 of 

the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 

2010 were enacted to widen the 

sanctions against Iran, the 

Administrator for Federal Procurement 

Policy has determined that it is in the 

best interest of the Federal Government 

to apply the rule to contracts for the 

acquisition of COTS items, as defined at 

FAR 2.101. An exception for contracts 

for the acquisition of COTS items would 

exclude a significant portion of Federal 

contracting and the contractors who 

provide these products and services, 

thereby undermining the overarching 

public policy purpose of the law. 

C. Regulatory Flexibility Act 

The Councils do not expect this 

interim 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 this 

rule will only have significant impact 

on an offeror that is engaging in an 

activity for which sanctions may be 

imposed under section 5 of the Iran 

Sanctions Act or that is exporting 

sensitive technology to Iran. Domestic 

entities generally do not engage in 

activity that would cause them to be 

subject to the procurement bans 

described in this rule due to current 

restrictions on trade with Iran (see, e.g., 

Department of the Treasury Office of 

Foreign Assets Control regulations at 31 

CFR 560). Accordingly, it is expected 

that the number of domestic entities 

significantly impacted by this rule will 

be minimal, if any. The Regulatory 

Flexibility Act is for the protection of 

United States small entities, not foreign 

entities. Therefore, an Initial Regulatory 

Flexibility Analysis has not been 

performed. The Councils invite 

comments from small business concerns 

and other interested parties on the 

expected impact of this rule on small 

entities. 

The Councils will also consider 

comments from small entities 

concerning the existing regulations in 

parts affected by this rule in accordance 

with 5 U.S.C. 610. Interested parties 

must submit such comments separately 

and should cite 5 U.S.C. 610 (FAC 

2005–46, FAR Case 2010–012) in all 

correspondence. 

D. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the 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. 

E. Determination To Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

(DoD), the Administrator of General 

Services (GSA), and the Administrator 

of the National Aeronautics and Space 

Administration (NASA) that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. This 

action is necessary because the rule 

implements sections 102 and 106 of the 

Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 

2010 (Pub. L. 111–195), which was 

signed on July 1, 2010. Section 102 must 

be implemented within 90 days (i.e., 

September 29, 2010). Section 106 was 

effective upon enactment banning 

activity that takes place on or after the 

date that is 90 days after enactment. 

However, pursuant to 41 U.S.C. 418b 

and FAR 1.501–3(b), the Councils will 

consider public comments received in 

response to this interim rule in the 

formation of the final rule. 

List of Subjects in 48 CFR Parts 4, 25, 

and 52 

Government procurement. 

Dated: September 21, 2010. 

Edward Loeb, 

Director, Acquisition Policy Division. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 4, 25, and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 4, 25, 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 4.1202 by 

redesignating paragraphs (bb), (cc), and 

(dd) as paragraphs (cc), (dd), and (ee), 

respectively, and adding a new 

paragraph (bb) to read as follows: 

4.1202 Solicitation provision and contract 

clause. 

* * * * * 

(bb) 52.225–25, Prohibition on 

Engaging in Sanctioned Activities 

Relating to Iran—Certification. 

* * * * * 

PART 25—FOREIGN ACQUISITION 

■ 3. Revise section 25.700 to read as 

follows: 

25.700 Scope of subpart. 

This subpart implements— 

(a) Economic sanctions administered 

by the Office of Foreign Assets Control 

(OFAC) in the Department of the 

Treasury prohibiting transactions 

involving certain countries, entities, and 

individuals; 

(b) The Sudan Accountability and 

Divestment Act of 2007 (Pub. L. 110– 

174); 

(c) The Iran Sanctions Act of 1996 

(Iran Sanctions Act) (Pub. L. 104–172; 

50 U.S.C. 1701 note), including 

amendments by the Iran Freedom 

Support Act (Pub. L. 109–293) and 

section 102 of the Comprehensive Iran 

Sanctions, Accountability, and 

Divestment Act of 2010 (Pub. L. 111– 

195); and 

(d) Section 106 of the Comprehensive 

Iran Sanctions, Accountability, and 

Divestment Act of 2010 (22 U.S.C. 

8515). 

■ 4. Amend section 25.701 by revising 

the section heading to read as follows: 

25.701 Restrictions administered by the 

Department of the Treasury on acquisitions 

of supplies or services from prohibited 

sources. 

* * * * * 

■ 5. Add sections 25.703 through 

25.703–3 to read as follows: 

25.703 Prohibition on contracting with 

entities that engage in certain activities 

relating to Iran. 

25.703–1 Definition. 

Person— 

(1) Means— 

(i) A natural person; 

(ii) A corporation, business 

association, partnership, society, trust, 

financial institution, insurer, 

underwriter, guarantor, and any other 

business organization, any other 

nongovernmental entity, organization, 

or group, and any governmental entity 

operating as a business enterprise; and 

(iii) Any successor to any entity 

described in paragraph (1)(ii) of this 

definition; and 

(2) Does not include a government or 

governmental entity that is not 

operating as a business enterprise. 

25.703–2 Iran Sanctions Act. 

(a) Certification. 

(1) As required by the Iran Sanctions 

Act, unless an exception applies or a 

waiver is granted in accordance with 

paragraph (c) or (d) of this subsection, 

each offeror must certify that the offeror, 

and any person owned or controlled by 

the offeror, does not engage in any 

activity for which sanctions may be 

imposed under section 5 of the Iran 

Sanctions Act. 


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(2) In general, the following activities, 

which are described in detail in section 

5 of the Iran Sanctions Act, are activities 

for which sanctions may be imposed on 

or after July 1, 2010— 

(i) Knowingly making an investment 

of $20,000,000 or more, or a 

combination of investments of 

$5,000,000 or more that equal or exceed 

$20,000,000 in a 12-month period, that 

directly and significantly contribute to 

the enhancement of Iran’s ability to 

develop petroleum resources. 

(ii) Knowingly selling, leasing or 

providing to Iran goods, services, 

technology, information, or support 

with a fair market value of $1,000,000 

or more, or during a 12-month period 

with an aggregate fair market value of 

$5,000,000 or more, that could directly 

and significantly facilitate the 

maintenance or expansion of Iran’s 

domestic production of refined 

petroleum products, including any 

direct and significant assistance with 

respect to the construction, 

modernization, or repair of petroleum 

refineries. 

(iii) Knowingly selling or providing to 

Iran refined petroleum products with a 

fair market value of $1,000,000 or more, 

or during a 12-month period with an 

aggregate fair market value of 

$5,000,000 or more. 

(iv) Knowingly selling, leasing, or 

providing to Iran goods, services, 

technology, information, or support 

with a fair market value of $1,000,000 

or more, or during a 12-month period 

with an aggregate fair market value of 

$5,000,000 or more, that could directly 

and significantly contribute to the 

enhancement of Iran’s ability to import 

refined petroleum products, including— 

(A) Certain insurance or reinsurance, 

underwriting, financing, or brokering for 

the sale, lease, or provision of such 

items, or 

(B) Providing ships or shipping 

services to deliver refined petroleum 

products to Iran. 

(v) Exporting, transferring, or 

otherwise providing to Iran any goods, 

services, technology or other items 

knowing that it would contribute 

materially to the ability of Iran to 

acquire or develop chemical, biological, 

or nuclear weapons or related 

technologies, or acquire or develop 

destabilizing numbers and types of 

advanced conventional weapons. 

(b) Remedies. Upon the determination 

of a false certification under paragraph 

(a) of this subsection, the agency shall 

take one or more of the following 

actions: 

(1) The contracting officer may 

terminate the contract. 

(2) The suspending official may 

suspend the contractor in accordance 

with the procedures in subpart 9.4. 

(3) The debarring official may debar 

the contractor for a period not to exceed 

3 years in accordance with the 

procedures in subpart 9.4. 

(c) Exception for trade agreements. 

The certification requirements of 

paragraph (a) of this subsection do not 

apply with respect to the procurement 

of eligible products, as defined in 

section 308(4) of the Trade Agreements 

Act of 1974 (19 U.S.C. 2518(4)), of any 

foreign country or instrumentality 

designated under section 301(b) of that 

Act (19 U.S.C. 2511(b)) (see subpart 

25.4). 

(d) Waiver. (1) The President may 

waive the requirement of subsection 

25.703–2(a) on a case-by-case basis if 

the President determines and certifies in 

writing to the appropriate congressional 

committees (Committee on Armed 

Services of the Senate, Committee on 

Finance of the Senate, Committee on 

Banking, Housing, and Urban Affairs of 

the Senate, Committee on Foreign 

Relations of the Senate, Committee on 

Armed Services of the House of 

Representatives, Committee on Ways 

and Means of the House of 

Representatives, Committee on 

Financial Services of the House of 

Representatives, and Committee on 

Foreign Affairs of the House of 

Representatives) that it is in the national 

interest to do so. 

(2) An agency or contractor seeking a 

waiver of the requirement shall submit 

the request through the Office of Federal 

Procurement Policy (OFPP), allowing 

sufficient time for review and approval. 

Upon receipt of the waiver request, 

OFPP shall consult with the President’s 

National Security Council, the Office of 

Terrorism and Financial Intelligence in 

the Department of the Treasury, and the 

Office of Terrorism Finance and 

Economic Sanctions Policy, Bureau of 

Economic, Energy, and Business Affairs 

in the State Department, allowing 

sufficient time for review and approval. 

(3) In general, all waiver requests 

should include the following 

information: 

(i) Agency name, complete mailing 

address, and point of contact name, 

telephone number, and e-mail address. 

(ii) Offeror’s name, complete mailing 

address, and point of contact name, 

telephone number, and e-mail address. 

(iii) Description/nature of product or 

service. 

(iv) The total cost and length of the 

contract. 

(v) Justification, with market research 

demonstrating that no other offeror can 

provide the product or service and 

stating why the product or service must 

be procured from this offeror, as well as 

why it is in the national interest for the 

President to waive the prohibition on 

contracting with this offeror that 

conducts activities for which sanctions 

may be imposed under section 5 of the 

Iran Sanctions Act of 1996. 

(vi) Documentation regarding the 

offeror’s past performance and integrity 

(see the Past Performance Information 

Retrieval System (including the Federal 

Awardee Performance Information and 

Integrity System at http:// 

www.ppirs.gov) and any other relevant 

information). 

(vii) Information regarding the 

offeror’s relationship or connection with 

other firms that conduct activities for 

which sanctions may be imposed under 

section 5 of the Iran Sanctions Act of 

1996. 

(viii) The activities in which the 

offeror is engaged for which sanctions 

may be imposed under section 5 of the 

Iran Sanctions Act of 1996. 

25.703–3 Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 2010, 

section 106. 

The head of an executive agency may 

not enter into or extend a contract for 

the procurement of goods or services 

with a person that exports certain 

sensitive technology to Iran, as 

determined by the President and listed 

on the Excluded Parties List System at 

https://www.epls.gov/. 

■ 6. Amend section 25.1103 by adding 

paragraph (e) to read as follows: 

25.1103 Other provisions and clauses. 

* * * * * 

(e) The contracting officer shall 

include in each solicitation for the 

acquisition of products or services the 

provision at 52.225–25, Prohibition on 

Engaging in Sanctioned Activities 

Relating to Iran—Certification. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 7. Amend section 52.204–8 by— 

■ a. Revising the date of the clause; 

■ b. Adding a sentence to the end of 

paragraph (c)(1)(xviii); and 

■ c. Redesignating paragraph (c)(1)(xix) 

as paragraph (c)(1)(xx), and adding a 

new paragraph (c)(1)(xix). 

The revised and added text reads as 

follows: 

52.204–8 Annual Representations and 

Certifications. 

* * * * * 

ANNUAL REPRESENTATIONS AND 

CERTIFICATIONS (SEP 2010) 

* * * * * 


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(c)(1) * * * 

(xviii) * * * This provision applies to all 

solicitations. 

(xix) 52.225–25, Prohibition on Engaging in 

Sanctioned Activities Relating to Iran— 

Certification. This provision applies to all 

solicitations. 

* * * * * 

■ 8. Amend section 52.212–3 by— 

■ a. Revising the date of the clause; 

■ b. Removing from the introductory 

text ‘‘through (m) of’’ and adding 

‘‘through (o) of’’ in its place; 

■ c. Removing from the first 

undesignated paragraph of (b)(2) 

‘‘through (n) of’’ and adding ‘‘through (o) 

of’’ in its place; and 

■ d. Adding paragraph (o). 

The revised and added text reads as 

follows: 

52.212–3 Offeror Representations and 

Certifications—Commercial Items. 

* * * * * 

OFFEROR REPRESENTATIONS AND 

CERTIFICATIONS—COMMERCIAL 

ITEMS (SEP 2010) 

* * * * * 

(o) Sanctioned activities relating to Iran. (1) 

Unless a waiver is granted or an exception 

applies as provided in paragraph (o)(2) of this 

provision, by submission of its offer, the 

offeror certifies that the offeror, or any person 

owned or controlled by the offeror, does not 

engage in any activities for which sanctions 

may be imposed under section 5 of the Iran 

Sanctions Act of 1996. 

(2) The certification requirement of 

paragraph (o)(1) of this provision does not 

apply if— 

(i) This solicitation includes a trade 

agreements certification (e.g., 52.212–3(g) or 

a comparable agency provision); and 

(ii) The offeror has certified that all the 

offered products to be supplied are 

designated country end products. 

* * * * * 

■ 9. Add section 52.225–25 to read as 

follows: 

52.225–25 Prohibition on Engaging in 

Sanctioned Activities Relating to Iran— 

Certification. 

As prescribed at 25.1103(e), insert the 

following provision: 

PROHIBITION ON ENGAGING IN 

SANCTIONED ACTIVITIES RELATING 

TO IRAN—CERTIFICATION (SEP 

2010) 

(a) Definition. 

Person— 

(1) Means— 

(i) A natural person; 

(ii) A corporation, business association, 

partnership, society, trust, financial 

institution, insurer, underwriter, guarantor, 

and any other business organization, any 

other nongovernmental entity, organization, 

or group, and any governmental entity 

operating as a business enterprise; and 

(iii) Any successor to any entity described 

in paragraph (1)(ii) of this definition; and 

(2) Does not include a government or 

governmental entity that is not operating as 

a business enterprise. 

(b) Certification. Except as provided in 

paragraph (c) of this provision or if a waiver 

has been granted in accordance with FAR 

25.703–2(d), by submission of its offer, the 

offeror certifies that the offeror, or any person 

owned or controlled by the offeror, does not 

engage in any activities for which sanctions 

may be imposed under section 5 of the Iran 

Sanctions Act of 1996. These sanctioned 

activities are in the areas of development of 

the petroleum resources of Iran, production 

of refined petroleum products in Iran, sale 

and provision of refined petroleum products 

to Iran, and contributing to Iran’s ability to 

acquire or develop certain weapons. 

(c) Exception for trade agreements. The 

certification requirement of paragraph (b) of 

this provision does not apply if— 

(1) This solicitation includes a trade 

agreements certification (e.g., 52.225–4, 

52.225–11 or comparable agency provision); 

and 

(2) The offeror has certified that all the 

offered products to be supplied are 

designated country end products or 

designated country construction material. 

(End of provision) 

[FR Doc. 2010–24165 Filed 9–28–10; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 8, 12, 15, 42, and 49 

[FAC 2005–46; FAR Case 2008–016; Item 

III; Docket 2009–0032, Sequence 1] 

RIN 9000–AL45 

Federal Acquisition Regulation; 

Termination for Default Reporting 

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 (the 

Councils) are issuing a final rule 

amending the Federal Acquisition 

Regulation (FAR) to establish 

procedures for contracting officers to 

provide contractor information, such as 

terminations for cause or default and 

defective cost or pricing data, into the 

Past Performance Information System 

(PPIRS) and Federal Awardee 

Performance and Integrity Information 

System (FAPIIS) module within PPIRS. 

This information will assist the 

contracting officer in making an 

informed source selection and award 

decision. Instructions on access to the 

FAPIIS module and how to input data 

into the FAPIIS module will be 

available at http://www.ppirs.gov/ 

fapiis.html. 

DATES: Effective Date: October 29, 2010. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Jeritta 

Parnell, Procurement Analyst, at (202) 

501–4082. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–46, FAR 

case 2008–016. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Councils have agreed on a final 

rule amending the FAR to revise the 

contractor performance information 

process. This case sets forth 

requirements for contracting officers to 

report defective cost or pricing data and 

terminations for cause or default into 

the FAPIIS module of the PPIRS. 

Evaluation of past performance 

information, especially terminations, 

manages risks associated with timely, 

effective, and cost efficient completion 

of contracts, a key objective of the 

President’s March 4, 2009, 

Memorandum on Government 

Contracting. 

The Councils published in the 

Federal Register at 74 FR 45394 on 

September 2, 2009, a proposed rule with 

request for comments. Four respondents 

submitted fifteen comments. 

B. Discussion of Public Comments 

The comments received were grouped 

under six general topics. A summary of 

these topics and a discussion of the 

comments and the changes made to the 

proposed rule as a result of those 

comments are provided below: 

1. Certification Regarding Responsibility 

Matters 

Comment: One respondent 

recommended deletion of the 

certification on terminations found in 

FAR clause 52.209–5, Certification 

Regarding Responsibility Matters, since 

the information concerning terminations 

will be available to contracting officers 

in PPIRS. The respondent further 

suggested that conforming deletions 

should also be made at FAR 52.204– 

8(c)(1)(v) and in the Online 

Representations and Certifications 

Application (ORCA) Web site. 

Response: The Councils disagree. 

PPIRS is the repository for 


erowe on DSK5CLS3C1PROD with RULES3