Source: https://www.federalregister.gov/documents/2014/07/29/2014-17728/nasa-federal-acquisition-regulation-supplement-nfs-contractor-whistleblower-protections
Timestamp: 2017-08-24 03:32:21
Document Index: 799075615

Matched Legal Cases: ['arts 1803', 'art 3', 'art 1803', 'art 1803', 'arts 1803', 'arts 1803', 'art 1803']

Federal Register :: NASA Federal Acquisition Regulation Supplement (NFS): Contractor Whistleblower Protections
NASA Federal Acquisition Regulation Supplement (NFS): Contractor Whistleblower Protections
A Rule by the National Aeronautics and Space Administration on 07/29/2014
C. Changes to NFS
G. Determination To Issue an Interim Rule
List of Subjects in 48 CFR Parts 1803, 1816, and 1852
https://www.federalregister.gov/d/2014-17728 https://www.federalregister.gov/d/2014-17728
NASA is issuing an interim rule amending the NASA FAR Supplement (NFS) to implement statutory requirements providing whistleblower protections for contractor and subcontractor employees and to address the allowability of legal costs incurred by a contractor related to whistleblower proceedings.
Effective date: July 29, 2014. In accordance with FAR 1.108(d)(3), contracting officers are encouraged to include the changes in this interim rule in major modifications to contracts and orders awarded prior to the effective date of this interim rule.
Comment date: Comments on this interim rule should be submitted in writing to the address shown below on or before September 29, 2014.
Interested parties may submit comments, identified by RIN number 2700-AE08 via the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Comments may also be submitted to Leigh Pomponio via email at leigh.pomponio@NASA.gov. Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To confirm receipt of your comment(s), please check www.regulations.gov, approximately two to three days after submission to verify posting.
Leigh Pomponio, NASA, Office of Procurement, email: leigh.pomponio@NASA.gov or phone: 202-358-0592.
This interim rule revises the NFS to implement a policy providing whistleblower protections for contractor and subcontractor employees. This rule implements 10 U.S.C. 2409 as amended by section 846 of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181) and section 827 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239). Section 846, entitled Protection of Contractor Employees from Reprisal for Disclosure of Certain Information, and Section 827, entitled “Enhancement of Whistleblower Protections for Contractor Employees,” made extensive changes to 10 U.S.C. 2409, entitled “Contractor employees: protection from reprisal or disclosure.” Paragraph (g) of section 827 amended paragraph (k) of 10 U.S.C. 2324, “Allowable costs under defense contracts” which is also applicable to NASA contracts. Paragraph (g) is implemented by this interim rule.
Paragraph 827(i)(3) requires that at the time of any major modification to a contract that was awarded before the effective date, the head of the contracting agency shall make best efforts to include, in the contract, a clause providing for the applicability to the contract of the amendments made by section 827.
Section 846 of the NDAA for FY 2008 and Section 827 of the NDAA for FY 2013 created a standalone statute for NASA that is not dependent on the Federal Acquisition Regulation (FAR) coverage. The NASA contractor whistleblower rule is based on an independent statute that applies only to Title 10 agencies. Section 828, Pilot Program for Enhancement of Contractor Whistleblower Protections, of the NDAA for FY 2013 has been implemented in the FAR; see FAR Case 2013-015, 78 FR 60169, http://www.gpo.gov/​fdsys/​pkg/​FR-2013-09-30/​html/​2013-23703.htm. Section 828 establishes a four-year “pilot program” to provide enhanced whistleblower protections for employees of civilian agency contractors and subcontractors and suspend the use of FAR 3.901 through 3.906.
The FAR also incorporates sections 827(g) and 828(d) of the NDAA for FY 2013 (Pub. L. 112-239); see FAR Case 2013-017, 78 FR 60173, http://www.gpo.gov/​fdsys/​pkg/​FR-2013-09-30/​pdf/​2013-23764.pdf, which address legal costs incurred by a contractor in connection with a proceeding commenced by a contractor employee submitting a complaint under the applicable whistleblower section.
The current FAR addresses this subject at subpart 3.9. This rule will add NASA-unique requirements at Subpart 1803.9 of the NFS, entitled “Whistleblower Protections for Contractor Employees.” The subpart covers the policy, procedures for filing and investigating complaints, remedies, clause prescriptions, and a related clause at NFS 1852.203-71, entitled “Requirement to Inform Employees of Whistleblower Rights”.
This interim rule also adds a prescription at 1816.3 and a clause 1852.216-90, “Allowability of Legal Costs Incurred in Connection with a Whistleblower Proceeding” to implement paragraph (g) of section 827 which addresses treatment of cost incurred in connection with whistleblower proceedings. Due to the effective date of the Act, and because the Act encourage agencies to modify contracts (at the time of any major modification to a contract) that were awarded before the effective date of the Act, it is necessary to create a revised cost principle applicable to any task orders issued against contracts awarded prior to the effective date of this regulation and any contracts modified to implement section 827. Otherwise, FAR clause 52.216-7, Allowable Cost and Payment governs.
The statutory changes to 10 U.S.C. 2409 made by section 846 of the National Defense Authorization Act for Fiscal Year 2008 and section 827 of the National Defense Authorization Act for Start Printed Page 43959Fiscal Year 2013 are implemented in the NFS by adding subpart 1803.9 which heretofore did not exist. This subpart adds NASA-specific whistleblower protections for contractor employees. To fully implement the statutory changes, a prescription and clause is added to create a revised cost principle that covers limited circumstances and a limited time period.
NASA certifies that this interim rule will not 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 neither changes the substance of contract or solicitation procedures or policies nor creates a whistleblower protection for contractor employees. Such protections currently exist, and this case only clarifies contractors' rights and the remedies available to their employees.
This interim rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. Chapter 35).
A determination has been made by the Assistant Administrator for Procurement, pursuant to 41 U.S.C. 1701(d) that urgent and compelling reasons exist to justify promulgating this rule on an interim basis without prior opportunity for public comment. This action is necessary for the following reasons: First, by operation of law, the revised statute became effective on July 1, 2013 (i.e., Congress included language in section 827 specifically addressing the effective date of the changes to 10 U.S.C. 2409). Second, the revisions impose new responsibilities on agencies and create certain new rights for contractor employees. Specifically, as of July 1, 2013:
—There are changes and additions in the list of entities to whom a whistleblower disclosure makes the whistleblower eligible for additional protections against reprisal;
—Agency heads have expanded responsibilities to take specific actions with regard to a NASA Inspector General finding of reprisal against a contractor whistleblower;
—The law requires that the written notice to employees of their whistleblower rights must be provided in the “predominant native language of the workforce”;
—For the first time, contractors must flow down to subcontractors the requirement to provide written notice to subcontractor employees; and
—There is a new exemption for elements of the intelligence community that was not available under previous laws.
Moreover, there is little likelihood that the publication of this interim rule without prior comment will increase burden on contractors. This interim regulation qualifies as an interpretative rule, as it provides basic guidance that agencies and contractors need to comply with the statute. Indeed, this regulation prescribes little beyond that which is set forth clearly in the statutes.
Nevertheless, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), NASA will consider public comments received in response to this interim rule in the formation of the Agency's final rule.
Accordingly, 48 CFR Parts 1803, 1816, and 1852 are amended as follows:
1. The authority citation for 48 CFR parts 1803, 1816, and 1852 are revised to read as follows:
2. Add subpart 1803.9 to read as follows:
1803.901
1803.903
1803.905
1803.907
1803.970
(a) Policy. 10 U.S.C. 2409 prohibits contractors or subcontractors from discharging, demoting, or otherwise discriminating against an employee as a reprisal for disclosing, to any of the entities listed at paragraph (b) of this section, information that the employee Start Printed Page 43960reasonably believes is evidence of gross mismanagement of a NASA contract, a gross waste of NASA funds, an abuse of authority relating to a NASA contract, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a NASA contract (including the competition for or negotiation of a contract). Such reprisal is prohibited even if it is undertaken at the request of an executive branch official, unless the request takes the form of a non-discretionary directive and is within the authority of the executive branch official making the request.
(c) Whenever a contractor fails to comply with an order issued by the head of agency in accordance with 10 U.S.C. 2409, the head of the Agency or designee shall request the Department of Justice to file an action for enforcement Start Printed Page 43961of such order in the United States district court for a district in which the reprisal was found to have occurred. In any action brought under this paragraph, the court may grant appropriate relief, including injunctive relief, compensatory and exemplary damages, and reasonable attorney fees and costs. The person upon whose behalf an order was issued may also file such an action or join in an action filed by the head of the agency.
(d) Any person adversely affected or aggrieved by an order issued by the head of the Agency in accordance with 10 U.S.C. 2409 may obtain judicial review of the order's conformance with the law, and the implementing regulation, in the United States Court of Appeals for a circuit in which the reprisal is alleged in the order to have occurred. No petition seeking such review may be filed more than 60 days after issuance of the order by the head of the agency or designee. Review shall conform to chapter 7 of title 5, Unites States Code. Filing such an appeal shall not act to stay the enforcement of the order by the head of an agency, unless a stay is specifically entered by the court.
3. Section 1816.307-70 is amended by adding paragraph (g) to read as follows:
4. Section 1852.203-71is added to read as follows:
5. Section 1852.216-90 is added to read as follows:
As prescribed in 216.307-70(g), use the following clause:
[FR Doc. 2014-17728 Filed 7-28-14; 8:45 am]