Source: https://regulations.justia.com/regulations/fedreg/2016/10/21/2016-25317.html
Timestamp: 2020-08-09 09:38:34
Document Index: 653210182

Matched Legal Cases: ['arts 203', 'art 12', 'arts 203', 'arts 203', 'arts 203', 'ART 203', 'ART 252', 'art 12', 'arts 203']

Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018), 73005-73006 [2016-25317] :: Defense Acquisition Regulations System :: Department Of Defense :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Defense Defense Acquisition Regulations System Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018), 73005-73006 [2016-25317]
Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018), 73005-73006 [2016-25317]
Download as PDF Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Rules • The final rule also removes from the DFARS 252.203–7004 clause the statement regarding assistance with translation. The contractor bears the individual and financial responsibility for translation and accuracy of translated hotline posters. DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 203 and 252 [Docket DARS–2016–0016] RIN 0750–AI94 Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016– D018) Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. AGENCY: This rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to consolidate the multiple hotline posters into one poster that delineates multiple reportable offenses. DATES: Effective October 21, 2016. FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571–372– 6106. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background DoD published a proposed rule in the Federal Register at 81 FR 28816 on May 10, 2016, to revise DFARS clause 252.203–7004, Display of Hotline Posters, to reduce the number of fraud, waste, and abuse hotline posters required to be displayed and to remove the United States only restriction for use of the poster. One respondent submitted a public comment in response to the proposed rule. sradovich on DSK3GMQ082PROD with RULES4 II. Discussion and Analysis DoD reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of the comment is provided, as follows: A. Summary of Significant Changes From the Proposed Rule The following two changes from the proposed rule are based on internal Government comments: • At DFARS 203.1003, paragraph (c) is added to permit alternative means of notifying contractor personnel of the DoD Hotline program in lieu of displaying the posters, when performance is outside the United States and security concerns can be appropriately demonstrated to the contracting officer. In the DFARS 252.203–7004 clause, a similar statement is also added at paragraph (b)(1)(ii). VerDate Sep<11>2014 20:14 Oct 20, 2016 Jkt 214001 B. Analysis of Public Comment Comment: The respondent supports the proposed rule to display a consolidated poster, and recommends the DoD Office of the Inspector General consider publishing several poster variations that combine these three initiatives and that any one of these posters may be displayed at the option of the contractor. This will permit contractors to periodically rotate posters in order to refresh interest and attention by contractor employees, and also permit contractors to select posters that more closely match their respective corporate culture. In addition, the respondent recommended that at least some posters emphasize the benefits of a culture that does not tolerate fraud or human trafficking and encourages reporting, rather than just the negative, punitive aspects of compliance failure. Response: This comment is outside the scope of this rule and no change is made to the rule. III. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. IV. Regulatory Flexibility Act A final regulatory flexibility analysis has been prepared consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., and is summarized as follows: The Defense Federal Acquisition Regulation Supplement (DFARS) clause 252.203–7004, Display of Hotline Posters, required three separate hotline posters which have now been combined into one poster. The objective of the rule is to reduce the number of fraud, waste, and abuse hotline posters required to be PO 00000 Frm 00001 Fmt 4701 Sfmt 4700 73005 displayed and to remove the United States only restriction for use of the poster. There were no public comments in response to the initial regulatory flexibility analysis. DFARS clause 252.203–7004 is required for use in contracts with an estimated value greater than $5.5 million, except contracts awarded using Federal Acquisition Regulations part 12 commercial item procedures for the acquisition of commercial item. According to data available in the Federal Procurement Data System, in fiscal year (FY) 2015, DoD awarded 4,180 contracts meeting this criteria to 2,656 unique vendors, of which 1,598 (approximately 60% percent) were small businesses. DoD estimates the total number of small businesses affected by this rule to be approximately 1,920 small businesses (the total for FY 2015 plus 20 percent to accommodate subcontractor applicability). There are no reporting or recordkeeping burdens associated with this rule. The rule has no significant economic impact on small entities. DoD did not identify any significant alternatives that would reduce the impact on small entities and still meet the objectives of the statute. V. Paperwork Reduction Act The 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). List of Subjects in 48 CFR Parts 203 and 252 Government procurement. Jennifer L. Hawes, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR parts 203 and 252 are amended as follows: ■ 1. The authority citation for parts 203 and 252 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. PART 203—IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF INTEREST 2. Amend section 203.1003 by adding paragraph (c) to read as follows: ■ 203.1003 Requirements. * * * * * (c) Fraud hotline poster. For contracts performed outside the United States, when security concerns can be E:\FR\FM\21OCR4.SGM 21OCR4 73006 Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Rules appropriately demonstrated, the contracting officer may provide the contractor the option to publicize the program to contractor personnel in a manner other than public display of the poster required by 203.1004(b)(2)(ii), such as private employee written instructions and briefings. PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 3. Amend section 252.203–7004 by— a. Removing the clause date ‘‘(OCT 2015)’’ and adding ‘‘(OCT 2016)’’ in its place; ■ b. Revising paragraph (b); ■ c. Removing paragraph (c); ■ d. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d), respectively; ■ e. In newly redesignated paragraph (c)(1), removing ‘‘These DoD hotline posters’’ and adding ‘‘The DoD hotline poster’’ in its place and removing ‘‘or are also’’ and adding ‘‘or is also’’ in its place; ■ sradovich on DSK3GMQ082PROD with RULES4 ■ VerDate Sep<11>2014 20:14 Oct 20, 2016 Jkt 214001 f. In newly redesignated paragraph (c)(2), removing ‘‘posters are’’ and adding ‘‘poster is’’ in its place and removing the last sentence; ■ g. In the newly redesignated paragraph (c)(3), removing ‘‘these required posters’’ and adding ‘‘the required poster’’ in its place; and ■ h. In newly designated paragraph (d), removing the phrase ‘‘the substance of’’ and removing ‘‘paragraph (e)’’ and adding ‘‘paragraph (d)’’ in its place. The revision reads as follows: ■ 252.203–7004 Display of Hotline Posters. * * * * * (b) Display of hotline poster(s). (1)(i) The Contractor shall display prominently the DoD fraud, waste, and abuse hotline poster prepared by the DoD Office of the Inspector General, in effect at time of contract award, in common work areas within business segments performing work under Department of Defense (DoD) contracts. (ii) For contracts performed outside the United States, when security concerns can be appropriately demonstrated, the contracting officer PO 00000 Frm 00002 Fmt 4701 Sfmt 9990 may provide the contractor the option to publicize the program to contractor personnel in a manner other than public display of the poster, such as private employee written instructions and briefings. (2) If the contract is funded, in whole or in part, by Department of Homeland Security (DHS) disaster relief funds and the work is to be performed in the United States, the DHS fraud hotline poster shall be displayed in addition to the DoD hotline poster. If a display of a DHS fraud hotline poster is required, the Contractor may obtain such poster from— (i) DHS Office of Inspector General/ MAIL STOP 0305, Attn: Office of Investigations—Hotline, 245 Murray Lane SW., Washington, DC 20528–0305; or (ii) Via the Internet at https:// www.oig.dhs.gov/assets/Hotline/ DHS_OIG_Hotline-optimized.jpg. * * * * * [FR Doc. 2016–25317 Filed 10–20–16; 8:45 am] BILLING CODE 5001–06–P E:\FR\FM\21OCR4.SGM 21OCR4
[Pages 73005-73006]
[FR Doc No: 2016-25317]
[[Page 73005]]
[Docket DARS-2016-0016]
Defense Federal Acquisition Regulation Supplement: Display of
Hotline Posters (DFARS Case 2016-D018)
SUMMARY: This rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to consolidate the multiple hotline posters into one
poster that delineates multiple reportable offenses.
28816 on May 10, 2016, to revise DFARS clause 252.203-7004, Display of
Hotline Posters, to reduce the number of fraud, waste, and abuse
hotline posters required to be displayed and to remove the United
States only restriction for use of the poster. One respondent submitted
a result of the comment is provided, as follows:
The following two changes from the proposed rule are based on
internal Government comments:
At DFARS 203.1003, paragraph (c) is added to permit
alternative means of notifying contractor personnel of the DoD Hotline
program in lieu of displaying the posters, when performance is outside
the United States and security concerns can be appropriately
demonstrated to the contracting officer. In the DFARS 252.203-7004
clause, a similar statement is also added at paragraph (b)(1)(ii).
The final rule also removes from the DFARS 252.203-7004
clause the statement regarding assistance with translation. The
contractor bears the individual and financial responsibility for
translation and accuracy of translated hotline posters.
Comment: The respondent supports the proposed rule to display a
consolidated poster, and recommends the DoD Office of the Inspector
General consider publishing several poster variations that combine
these three initiatives and that any one of these posters may be
displayed at the option of the contractor. This will permit contractors
to periodically rotate posters in order to refresh interest and
attention by contractor employees, and also permit contractors to
select posters that more closely match their respective corporate
culture. In addition, the respondent recommended that at least some
posters emphasize the benefits of a culture that does not tolerate
fraud or human trafficking and encourages reporting, rather than just
the negative, punitive aspects of compliance failure.
Response: This comment is outside the scope of this rule and no
change is made to the rule.
clause 252.203-7004, Display of Hotline Posters, required three
separate hotline posters which have now been combined into one poster.
The objective of the rule is to reduce the number of fraud, waste, and
abuse hotline posters required to be displayed and to remove the United
States only restriction for use of the poster.
DFARS clause 252.203-7004 is required for use in contracts with an
estimated value greater than $5.5 million, except contracts awarded
using Federal Acquisition Regulations part 12 commercial item
procedures for the acquisition of commercial item. According to data
available in the Federal Procurement Data System, in fiscal year (FY)
2015, DoD awarded 4,180 contracts meeting this criteria to 2,656 unique
vendors, of which 1,598 (approximately 60% percent) were small
businesses. DoD estimates the total number of small businesses affected
by this rule to be approximately 1,920 small businesses (the total for
FY 2015 plus 20 percent to accommodate subcontractor applicability).
The rule has no significant economic impact on small entities. DoD
did not identify any significant alternatives that would reduce the
impact on small entities and still meet the objectives of the statute.
1. The authority citation for parts 203 and 252 continues to read as
203.1003   Requirements.
(c) Fraud hotline poster. For contracts performed outside the
United States, when security concerns can be
[[Page 73006]]
appropriately demonstrated, the contracting officer may provide the
contractor the option to publicize the program to contractor personnel
in a manner other than public display of the poster required by
203.1004(b)(2)(ii), such as private employee written instructions and
3. Amend section 252.203-7004 by--
a. Removing the clause date ``(OCT 2015)'' and adding ``(OCT 2016)'' in
d. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
e. In newly redesignated paragraph (c)(1), removing ``These DoD hotline
posters'' and adding ``The DoD hotline poster'' in its place and
removing ``or are also'' and adding ``or is also'' in its place;
f. In newly redesignated paragraph (c)(2), removing ``posters are'' and
adding ``poster is'' in its place and removing the last sentence;
g. In the newly redesignated paragraph (c)(3), removing ``these
required posters'' and adding ``the required poster'' in its place; and
h. In newly designated paragraph (d), removing the phrase ``the
substance of'' and removing ``paragraph (e)'' and adding ``paragraph
(d)'' in its place.
(b) Display of hotline poster(s). (1)(i) The Contractor shall
display prominently the DoD fraud, waste, and abuse hotline poster
prepared by the DoD Office of the Inspector General, in effect at time
of contract award, in common work areas within business segments
performing work under Department of Defense (DoD) contracts.
(ii) For contracts performed outside the United States, when
security concerns can be appropriately demonstrated, the contracting
officer may provide the contractor the option to publicize the program
to contractor personnel in a manner other than public display of the
poster, such as private employee written instructions and briefings.
(2) If the contract is funded, in whole or in part, by Department
of Homeland Security (DHS) disaster relief funds and the work is to be
performed in the United States, the DHS fraud hotline poster shall be
displayed in addition to the DoD hotline poster. If a display of a DHS
fraud hotline poster is required, the Contractor may obtain such poster
(i) DHS Office of Inspector General/MAIL STOP 0305, Attn: Office of
Investigations--Hotline, 245 Murray Lane SW., Washington, DC 20528-
0305; or