80_FR_30303 80 FR 30202 - Federal Acquisition Regulation: Contractors Performing Private Security Functions

80 FR 30202 - Federal Acquisition Regulation: Contractors Performing Private Security Functions

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 101 (May 27, 2015)

Page Range30202-30204
FR Document2015-12623

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to remove the distinction between DoD and non-DoD agency areas of operation applicable for the use of FAR clause ``Contractors Performing Private Security Functions Outside the United States'' and provide a definition of ``full cooperation'' within the clause.

Federal Register, Volume 80 Issue 101 (Wednesday, May 27, 2015)
[Federal Register Volume 80, Number 101 (Wednesday, May 27, 2015)]
[Proposed Rules]
[Pages 30202-30204]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12623]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAR Case 2014-018; Docket No. 2014-0018; Sequence No. 1]
RIN 9000-AN07


Federal Acquisition Regulation: Contractors Performing Private 
Security Functions

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to remove the distinction between DoD and 
non-DoD agency areas of operation applicable for the use of FAR clause 
``Contractors Performing Private Security Functions Outside the United 
States'' and provide a definition of ``full cooperation'' within the 
clause.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at one of the addresses shown below on 
or before July 27, 2015 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAR Case 2014-018 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2014-018''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2014-018''. Follow the instructions on the screen. Please include 
your name, company name (if any), and ``FAR Case 2014-018'' on your 
attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405-0001.
    Instructions: Please submit comments only and cite ``FAR Case 2014-
018'' 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: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAR Case 2014-018.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 862 of the National Defense Authorization Act (NDAA) for 
Fiscal Year (FY) 2008 (Pub. L. 110-181) (as amended by other NDAAs, see 
10 U.S.C. 2302 Note), is implemented at FAR section 25.302 and the 
clause at 52.225-26, both entitled ``Contractors Performing Private 
Security Functions Outside the United States,'' in FAC 2005-67, issued 
June 21, 2013. These FAR changes regarding private security contractors 
were effective on July 22, 2013 (see 78 FR 37670) and are applicable to 
distinct operational areas for DoD contracts versus non-DoD contracts.
    Pursuant to section 862, DoD issued DoD Instruction (DoDI) 3020.50, 
``Private Security Contractors (PSCs) Operating in Contingency 
Operations, Humanitarian or Peace Operations, or Other Military 
Operations or Exercises,'' which establishes policy, assigns 
responsibilities, and provides procedures for the regulation of the 
selection, accountability, and conduct of personnel performing private 
security functions under a covered DoD contract. This DoDI was amended 
on August 1, 2011 to expand applicability of DoD's policies regarding 
private security contracts to peace operations or other military 
operations or exercises, when designated by the Combatant Commander.
    Instead of amending FAR 25.302 and 52.225-6 to expand the 
applicability for DoD contracts, this rule proposes to remove the 
distinction between DoD and non-DoD applicable areas of

[[Page 30203]]

operation in the FAR, while DoD moves all DoD policy regarding Defense 
contractors performing private security functions to the Defense 
Federal Acquisition Regulation Supplement (DFARS) at 225.302 and clause 
252.225-7039, both entitled ``Contractors Performing Private Security 
Functions Outside the United States.'' As a result of this effort 
(being accomplished simultaneously by DoD under DFARS case number 2015-
D021), all policies regarding Defense contractors performing private 
security functions would be contained in the DFARS.
    This rule also proposes to add a definition of ``full cooperation'' 
to FAR clause 52.225-26 in order to affirm that the contract clause 
does not foreclose any contractor rights arising in law, the FAR, or 
the terms of the contract when cooperating with any Government-
authorized investigation into incidents reported pursuant to the 
clause. This definition is applicable to both DoD and non-DoD contracts 
for private security functions to be performed outside the United 
States.

II. 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.

III. Regulatory Flexibility Act

    DoD, GSA and NASA do not expect this proposed 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. However, an initial regulatory flexibility analysis (IRFA) has 
been prepared consistent with 5 U.S.C. 603, and is summarized as 
follows:

    The objective of this rule is to make the FAR coverage at FAR 
section 25.302 and 52.225-26 for contractors performing private 
security functions generic by removing the areas of operation 
applicable to DoD, as well as the distinction between DoD versus 
non-DoD agency contracts, while DoD moves all DoD requirements for 
defense contractors performing these functions to the DFARS at 
225.302 and 252.225-7039. The rule also proposes to add definition 
of ``full cooperation'' to FAR clause 52.225-26 in order to affirm 
that the contract clause does not foreclose any contractor rights 
arising in law, the FAR, or the terms of the contract when 
cooperating with any Government-authorized investigation into 
incidents reported pursuant to the clause.
    Based on data available in the Federal Procurement Data System 
(FPDS), DoD awarded 103 contracts in Fiscal Year (FY) 2013 that 
required performance outside of the United States in support of a 
humanitarian or peacekeeping operation, of which only 13 contracts 
(12.6 percent) were awarded to small businesses. DoD awarded 403 
contracts in FY 2013 in support of contingency operations outside of 
the United States, of which 63 contracts (15.6 percent) were awarded 
to small businesses. Therefore, it is estimated that this rule will 
apply to approximately 76 small businesses.
    This rule does not create any new reporting, recordkeeping, or 
other compliance requirements. The rule does not duplicate, overlap, 
or conflict with any other Federal rules. There are no known 
significant alternatives to the rule. The impact of this rule on 
small business is not expected to be significant.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the IRFA may be obtained from the Regulatory Secretariat Division. 
DoD, GSA and NASA invite comments from small business concerns and 
other interested parties on the expected impact of this rule on small 
entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2014-018), 
in correspondence.

IV. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in FAR clause 52.225-26, currently approved under OMB 
Control Number 9000-0184, titled ``Contractors Performing Private 
Security Functions Outside the United States,'' in accordance with the 
Paperwork Reduction Act (44 U.S.C. chapter 35). The impact, however, is 
negligible because the proposed rule merely removes the distinction 
between DoD and non-DoD contract areas of applicability for use of FAR 
clause 52.225-26 for contracts requiring performance of private 
security functions outside the United States.

List of Subjects in 48 CFR Parts 25 and 52

    Government procurement.

    Dated: May 19, 2015.
William Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR parts 
25 and 52, as set forth below:

0
1. The authority citation for 48 CFR parts 25 and 52 continues to read 
as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 25--FOREIGN ACQUISITION

0
2. Amend section 25.302-3 by--
0
a. Removing paragraph (a);
0
b. Redesignating paragraphs (b) through (e) as paragraphs (a) through 
(d), respectively; and
0
c. Revising newly designated paragraph (a).
    The revision reads as follows:


25.302-3  Applicability.

    (a) This section applies to contracts that require performance 
outside the United States--
    (1) In an area of combat operations as designated by the Secretary 
of Defense; or
    (2) In an area of other significant military operations as 
designated by the Secretary of Defense, and only upon agreement of the 
Secretary of Defense and the Secretary of State.
* * * * *
0
3. Amend section 25.302-4 by--
0
a. Revising the first sentence of paragraph (a)(1); and
0
b. Removing from paragraph (a)(2) ``required to cooperate'' and adding 
``required to fully cooperate'' in its place.
    The revision reads as follows:


25.302-4  Policy.

    (a) General. (1) The policy, responsibilities, procedures, 
accountability, training, equipping, and conduct of personnel 
performing private security functions in designated areas are addressed 
at 32 CFR part 159, entitled ``Private Security Contractors Operating 
in Contingency Operations''. * * *
* * * * *
0
4. Amend section 25.302-6 by revising paragraph (a) to read as follows:


25.302-6  Contract clause.

    (a) Use the clause at 52.225-26, Contractors Performing Private 
Security Functions Outside the United States, in

[[Page 30204]]

solicitations and contracts for performance outside the United States 
in an area of--
    (1) Combat operations, as designated by the Secretary of Defense; 
or
    (2) Other significant military operations, as designated by the 
Secretary of Defense and only upon agreement of the Secretary of 
Defense and the Secretary of State.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (b)(45);
0
c. Revising paragraph (e)(1)(xvi);
0
d. In Alternate II:
0
i. Revising the Alternate date;
0
ii. Redesignating paragraphs (e)(1)(ii)(O) and (P) as paragraphs 
(e)(1)(ii)(P) and (Q), respectively; and
0
iii. Adding a new paragraph (e)(1)(ii)(O).
    The revisions and addition read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (Date)

* * * * *
    (b) * * *
    _(45) 52.225-26, Contractors Performing Private Security 
Functions Outside the United States (DATE) (Section 862, as amended, 
of the National Defense Authorization Act for Fiscal Year 2008; 10 
U.S.C. 2302 Note).
* * * * *
    (e)(1) * * *
    (xvi) 52.225-26, Contractors Performing Private Security 
Functions Outside the United States (DATE) (Section 862, as amended, 
of the National Defense Authorization Act for Fiscal Year 2008; 10 
U.S.C. 2302 Note).
* * * * *
    Alternate II (DATE). * * *
* * * * *
    (e)(1) * * *
    (ii) * * *
    (O) 52.225-26, Contractors Performing Private Security Functions 
Outside the United States (DATE) (Section 862, as amended, of the 
National Defense Authorization Act for Fiscal Year 2008; 10 U.S.C. 
2302 Note).
* * * * *
0
6. Amend section 52.213-4 by revising the date of the clause and 
paragraph (a)(2)(viii) to read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items)

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (DATE)

    (a) * * *
    (2) * * *
    (viii) 52.244-6, Subcontracts for Commercial Items (DATE).
* * * * *
0
7. Amend section 52.225-26 by--
0
a. Removing from the introductory text ``25.302-6'' and adding 
``25.302-6,'' in its place.
0
b. Revising the date of the clause;
0
c. Revising the introductory text of paragraph (a);
0
d. Adding to paragraph (a), in alphabetical order, the definitions for 
``Area of Combat operations'', ``Full Cooperation'', and ``Other 
significant military operations'';
0
e. Revising paragraph (b);
0
f. Revising paragraph (c)(2)(i);
0
g. Removing from the introductory text of paragraph (c)(3) 
''Cooperate'' and adding ``Provide full cooperation'' in its place; and
0
h. Revising paragraph (f).
    The revisions and additions read as follows:


52.225-26  Contractors Performing Private Security Functions Outside 
the United States.

* * * * *

Contractors Performing Private Security Functions Outside the United 
States (date)

    (a) Definitions. As used in this clause--
    Area of combat operations means an area of operations designated 
as such by the Secretary of Defense when enhanced coordination of 
contractors performing private security functions working for 
Government agencies is required.
    Full Cooperation. (1) Means disclosure to the Government of the 
information sufficient to identify the nature and extent of the 
incident and the individuals responsible for the conduct. It 
includes providing timely and complete responses to Government 
auditors' and investigators' requests for documents and access to 
employees with information;
    (2) Does not foreclose any Contractor rights arising in law, the 
FAR, or the terms of the contract. It does not require--
    (i) The Contractor to waive its attorney-client privilege or the 
protections afforded by the attorney work product doctrine; or
    (ii) Any officer, director, owner, or employee of the 
Contractor, including a sole proprietor, to waive his or her 
attorney-client privilege or Fifth Amendment rights; and
    (3) Does not restrict the Contractor from--
    (i) Conducting an internal investigation; or
    (ii) Defending a proceeding or dispute arising under the 
contract or related to a potential or disclosed violation.
    Other significant military operations means activities, other 
than combat operations, as part of a contingency operation outside 
the United States that is carried out by United States Armed Forces 
in an uncontrolled or unpredictable high-threat environment where 
personnel performing security functions may be called upon to use 
deadly force.
* * * * *
    (b) Applicability. If this contract is performed both in a 
designated area and in an area that is not designated, the clause 
only applies to performance in the following designated areas:
    (1) Combat operations, as designated by the Secretary of 
Defense; or
    (2) Other significant military operations, as designated by the 
Secretary of Defense, and only upon agreement of the Secretary of 
Defense and the Secretary of State.
    (c) * * *
    (2) * * *
    (i) Qualification, training, screening (including, if 
applicable, thorough background checks), and security requirements 
established by 32 CFR part 159, Private Security Contractors 
Operating in Contingency Operations;
* * * * *
    (f) Subcontracts. The Contractor shall include the substance of 
this clause, including this paragraph (f), in all subcontracts that 
will be performed outside the United States in areas of--
    (1) Combat operations, as designated by the Secretary of 
Defense; or
    (2) Other significant military operations, upon agreement of the 
Secretaries of Defense and State that the clause applies in that 
area.
* * * * *
0
8. Amend section 52.244-6 by revising the date of the clause and 
paragraph (c)(1)(xii) to read as follows:


52.244-6  Subcontracts for Commercial Items.

* * * * *

Subcontracts for Commercial Items (DATE)

* * * * *
    (c)(1) * * *
* * * * *
    (xii) 52.225-26, Contractors Performing Private Security 
Functions Outside the United States (DATE) (Section 862, as amended, 
of the National Defense Authorization Act for Fiscal Year 2008; 10 
U.S.C. 2302 Note).
* * * * *
[FR Doc. 2015-12623 Filed 5-26-15; 8:45 am]
 BILLING CODE 6820-EP-P



                                               30202                 Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Proposed Rules

                                                  • Is not a ‘‘significant regulatory                  letter dated September 3, 2013. The EPA               018’’. Follow the instructions on the
                                               action’’ subject to review by the Office                did not receive a request for                         screen. Please include your name,
                                               of Management and Budget under                          consultation.                                         company name (if any), and ‘‘FAR Case
                                               Executive Order 12866 (58 FR 51735,                                                                           2014–018’’ on your attached document.
                                                                                                       List of Subjects in 40 CFR Part 52
                                               October 4, 1993);                                                                                               • Mail: General Services
                                                  • does not impose an information                       Environmental protection, Air                       Administration, Regulatory Secretariat
                                               collection burden under the provisions                  pollution control, Incorporation by                   Division (MVCB), ATTN: Ms. Flowers,
                                               of the Paperwork Reduction Act (44                      reference, Intergovernmental relations,               1800 F Street NW., 2nd Floor,
                                               U.S.C. 3501 et seq.);                                   Nitrogen dioxide, Ozone, Reporting and                Washington, DC 20405–0001.
                                                  • is certified as not having a                       recordkeeping requirements, and                          Instructions: Please submit comments
                                               significant economic impact on a                        Volatile organic compounds.                           only and cite ‘‘FAR Case 2014–018’’ in
                                               substantial number of small entities                      Authority: 42 U.S.C. 7401 et seq.                   all correspondence related to this case.
                                               under the Regulatory Flexibility Act (5                                                                       All comments received will be posted
                                               U.S.C. 601 et seq.);                                      Dated: May 18, 2015.
                                                                                                                                                             without change to http://
                                                  • does not contain any unfunded                      Dennis J. McLerran,                                   www.regulations.gov, including any
                                               mandate or significantly or uniquely                    Regional Administrator, Region 10.                    personal and/or business confidential
                                               affect small governments, as described                  [FR Doc. 2015–12662 Filed 5–26–15; 8:45 am]           information provided.
                                               in the Unfunded Mandates Reform Act                     BILLING CODE 6560–50–P                                FOR FURTHER INFORMATION CONTACT: Mr.
                                               of 1995 (Pub. L. 104–4);
                                                                                                                                                             Michael O. Jackson, Procurement
                                                  • does not have Federalism
                                                                                                                                                             Analyst, at 202–208–4949 for
                                               implications as specified in Executive                  DEPARTMENT OF DEFENSE                                 clarification of content. For information
                                               Order 13132 (64 FR 43255, August 10,
                                                                                                                                                             pertaining to status or publication
                                               1999);                                                  GENERAL SERVICES
                                                  • is not an economically significant                                                                       schedules, contact the Regulatory
                                                                                                       ADMINISTRATION                                        Secretariat at 202–501–4755. Please cite
                                               regulatory action based on health or
                                               safety risks subject to Executive Order                                                                       FAR Case 2014–018.
                                                                                                       NATIONAL AERONAUTICS AND
                                               13045 (62 FR 19885, April 23, 1997);                                                                          SUPPLEMENTARY INFORMATION:
                                                                                                       SPACE ADMINISTRATION
                                                  • is not a significant regulatory action                                                                   I. Background
                                               subject to Executive Order 13211 (66 FR                 48 CFR Parts 25 and 52
                                               28355, May 22, 2001);                                                                                            Section 862 of the National Defense
                                                  • is not subject to the requirements of              [FAR Case 2014–018; Docket No. 2014–                  Authorization Act (NDAA) for Fiscal
                                               Section 12(d) of the National                           0018; Sequence No. 1]                                 Year (FY) 2008 (Pub. L. 110–181) (as
                                               Technology Transfer and Advancement                     RIN 9000–AN07                                         amended by other NDAAs, see 10 U.S.C.
                                               Act of 1995 (15 U.S.C. 272 note) because                                                                      2302 Note), is implemented at FAR
                                               this action does not involve technical                  Federal Acquisition Regulation:                       section 25.302 and the clause at 52.225–
                                               standards; and                                          Contractors Performing Private                        26, both entitled ‘‘Contractors
                                                  • does not provide the EPA with the                  Security Functions                                    Performing Private Security Functions
                                               discretionary authority to address, as                                                                        Outside the United States,’’ in FAC
                                               appropriate, disproportionate human                     AGENCY:  Department of Defense (DoD),                 2005–67, issued June 21, 2013. These
                                               health or environmental effects, using                  General Services Administration (GSA),                FAR changes regarding private security
                                               practicable and legally permissible                     and National Aeronautics and Space                    contractors were effective on July 22,
                                               methods, under Executive Order 12898                    Administration (NASA).                                2013 (see 78 FR 37670) and are
                                               (59 FR 7629, February 16, 1994).                        ACTION: Proposed rule.                                applicable to distinct operational areas
                                                  In addition, the SIP is not approved                                                                       for DoD contracts versus non-DoD
                                               to apply on any Indian reservation land                 SUMMARY:    DoD, GSA, and NASA are                    contracts.
                                               in Washington except as specifically                    proposing to amend the Federal                           Pursuant to section 862, DoD issued
                                               noted below and is also not approved to                 Acquisition Regulation (FAR) to remove                DoD Instruction (DoDI) 3020.50,
                                               apply in any other area where the EPA                   the distinction between DoD and non-                  ‘‘Private Security Contractors (PSCs)
                                               or an Indian tribe has demonstrated that                DoD agency areas of operation                         Operating in Contingency Operations,
                                               a tribe has jurisdiction. In those areas of             applicable for the use of FAR clause                  Humanitarian or Peace Operations, or
                                               Indian country, the rule does not have                  ‘‘Contractors Performing Private                      Other Military Operations or Exercises,’’
                                               tribal implications as specified by                     Security Functions Outside the United                 which establishes policy, assigns
                                               Executive Order 13175 (65 FR 67249,                     States’’ and provide a definition of ‘‘full           responsibilities, and provides
                                               November 9, 2000), nor will it impose                   cooperation’’ within the clause.                      procedures for the regulation of the
                                               substantial direct costs on tribal                      DATES: Interested parties should submit               selection, accountability, and conduct of
                                               governments or preempt tribal law.                      written comments to the Regulatory                    personnel performing private security
                                               Washington’s SIP is approved to apply                   Secretariat Division at one of the                    functions under a covered DoD contract.
                                               on non-trust land within the exterior                   addresses shown below on or before                    This DoDI was amended on August 1,
                                               boundaries of the Puyallup Indian                       July 27, 2015 to be considered in the                 2011 to expand applicability of DoD’s
                                               Reservation, also known as the 1873                     formation of the final rule.                          policies regarding private security
                                               Survey Area. Under the Puyallup Tribe                   ADDRESSES: Submit comments in                         contracts to peace operations or other
Lhorne on DSK2VPTVN1PROD with PROPOSALS




                                               of Indians Settlement Act of 1989, 25                   response to FAR Case 2014–018 by any                  military operations or exercises, when
                                               U.S.C. 1773, Congress explicitly                        of the following methods:                             designated by the Combatant
                                               provided state and local agencies in                       • Regulations.gov: http://                         Commander.
                                               Washington authority over activities on                 www.regulations.gov. Submit comments                     Instead of amending FAR 25.302 and
                                               non-trust lands within the 1873 Survey                  via the Federal eRulemaking portal by                 52.225–6 to expand the applicability for
                                               Area. Consistent with EPA policy, the                   searching for ‘‘FAR Case 2014–018’’.                  DoD contracts, this rule proposes to
                                               EPA provided a consultation                             Select the link ‘‘Comment Now’’ that                  remove the distinction between DoD
                                               opportunity to the Puyallup Tribe in a                  corresponds with ‘‘FAR Case 2014–                     and non-DoD applicable areas of


                                          VerDate Sep<11>2014   15:31 May 26, 2015   Jkt 235001   PO 00000   Frm 00022   Fmt 4702   Sfmt 4702   E:\FR\FM\27MYP1.SGM   27MYP1


                                                                     Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Proposed Rules                                               30203

                                               operation in the FAR, while DoD moves                   DoD requirements for defense contractors              List of Subjects in 48 CFR Parts 25 and
                                               all DoD policy regarding Defense                        performing these functions to the DFARS at            52
                                               contractors performing private security                 225.302 and 252.225–7039. The rule also
                                                                                                       proposes to add definition of ‘‘full                      Government procurement.
                                               functions to the Defense Federal
                                                                                                       cooperation’’ to FAR clause 52.225–26 in                Dated: May 19, 2015.
                                               Acquisition Regulation Supplement                       order to affirm that the contract clause does
                                               (DFARS) at 225.302 and clause 252.225–                                                                        William Clark,
                                                                                                       not foreclose any contractor rights arising in
                                               7039, both entitled ‘‘Contractors                       law, the FAR, or the terms of the contract            Director, Office of Government-wide
                                               Performing Private Security Functions                   when cooperating with any Government-                 Acquisition Policy, Office of Acquisition
                                               Outside the United States.’’ As a result                authorized investigation into incidents               Policy, Office of Government-wide Policy.
                                               of this effort (being accomplished                      reported pursuant to the clause.                        Therefore, DoD, GSA, and NASA are
                                               simultaneously by DoD under DFARS                          Based on data available in the Federal             proposing to amend 48 CFR parts 25
                                               case number 2015–D021), all policies                    Procurement Data System (FPDS), DoD
                                                                                                                                                             and 52, as set forth below:
                                                                                                       awarded 103 contracts in Fiscal Year (FY)
                                               regarding Defense contractors                                                                                 ■ 1. The authority citation for 48 CFR
                                                                                                       2013 that required performance outside of
                                               performing private security functions                   the United States in support of a                     parts 25 and 52 continues to read as
                                               would be contained in the DFARS.                        humanitarian or peacekeeping operation, of            follows:
                                                  This rule also proposes to add a                     which only 13 contracts (12.6 percent) were
                                               definition of ‘‘full cooperation’’ to FAR                                                                       Authority: 40 U.S.C. 121(c); 10 U.S.C.
                                                                                                       awarded to small businesses. DoD awarded              chapter 137; and 51 U.S.C. 20113.
                                               clause 52.225–26 in order to affirm that                403 contracts in FY 2013 in support of
                                               the contract clause does not foreclose                  contingency operations outside of the United          PART 25—FOREIGN ACQUISITION
                                               any contractor rights arising in law, the               States, of which 63 contracts (15.6 percent)
                                               FAR, or the terms of the contract when                  were awarded to small businesses. Therefore,          ■ 2. Amend section 25.302–3 by—
                                               cooperating with any Government-                        it is estimated that this rule will apply to          ■ a. Removing paragraph (a);
                                                                                                       approximately 76 small businesses.                    ■ b. Redesignating paragraphs (b)
                                               authorized investigation into incidents
                                                                                                          This rule does not create any new                  through (e) as paragraphs (a) through
                                               reported pursuant to the clause. This                   reporting, recordkeeping, or other
                                               definition is applicable to both DoD and                compliance requirements. The rule does not
                                                                                                                                                             (d), respectively; and
                                               non-DoD contracts for private security                                                                        ■ c. Revising newly designated
                                                                                                       duplicate, overlap, or conflict with any other
                                               functions to be performed outside the                   Federal rules. There are no known significant         paragraph (a).
                                               United States.                                          alternatives to the rule. The impact of this            The revision reads as follows:
                                                                                                       rule on small business is not expected to be
                                               II. Executive Orders 12866 and 13563                    significant.                                          25.302–3    Applicability.
                                                  Executive Orders (E.O.s) 12866 and                                                                            (a) This section applies to contracts
                                                                                                         The Regulatory Secretariat has                      that require performance outside the
                                               13563 direct agencies to assess all costs               submitted a copy of the IRFA to the
                                               and benefits of available regulatory                                                                          United States—
                                                                                                       Chief Counsel for Advocacy of the Small                  (1) In an area of combat operations as
                                               alternatives and, if regulation is                      Business Administration. A copy of the
                                               necessary, to select regulatory                                                                               designated by the Secretary of Defense;
                                                                                                       IRFA may be obtained from the                         or
                                               approaches that maximize net benefits                   Regulatory Secretariat Division. DoD,
                                               (including potential economic,                                                                                   (2) In an area of other significant
                                                                                                       GSA and NASA invite comments from                     military operations as designated by the
                                               environmental, public health and safety                 small business concerns and other
                                               effects, distributive impacts, and                                                                            Secretary of Defense, and only upon
                                                                                                       interested parties on the expected                    agreement of the Secretary of Defense
                                               equity). E.O. 13563 emphasizes the                      impact of this rule on small entities.
                                               importance of quantifying both costs                                                                          and the Secretary of State.
                                                                                                         DoD, GSA, and NASA will also                        *      *     *     *     *
                                               and benefits, of reducing costs, of
                                                                                                       consider comments from small entities                 ■ 3. Amend section 25.302–4 by—
                                               harmonizing rules, and of promoting
                                                                                                       concerning the existing regulations in                ■ a. Revising the first sentence of
                                               flexibility. This is not a significant
                                                                                                       subparts affected by the rule in                      paragraph (a)(1); and
                                               regulatory action and, therefore, was not
                                                                                                       accordance with 5 U.S.C. 610. Interested              ■ b. Removing from paragraph (a)(2)
                                               subject to review under Section 6(b) of
                                                                                                       parties must submit such comments                     ‘‘required to cooperate’’ and adding
                                               E.O. 12866, Regulatory Planning and
                                                                                                       separately and should cite 5 U.S.C. 610               ‘‘required to fully cooperate’’ in its
                                               Review, dated September 30, 1993. This
                                                                                                       (FAR Case 2014–018), in                               place.
                                               rule is not a major rule under 5 U.S.C.
                                                                                                       correspondence.                                          The revision reads as follows:
                                               804.
                                                                                                       IV. Paperwork Reduction Act                           25.302–4    Policy.
                                               III. Regulatory Flexibility Act
                                                  DoD, GSA and NASA do not expect                        This rule affects the certification and               (a) General. (1) The policy,
                                               this proposed rule to have a significant                information collection requirements in                responsibilities, procedures,
                                               economic impact on a substantial                        FAR clause 52.225–26, currently                       accountability, training, equipping, and
                                               number of small entities within the                     approved under OMB Control Number                     conduct of personnel performing private
                                               meaning of the Regulatory Flexibility                   9000–0184, titled ‘‘Contractors                       security functions in designated areas
                                               Act, 5 U.S.C. 601, et seq. However, an                  Performing Private Security Functions                 are addressed at 32 CFR part 159,
                                               initial regulatory flexibility analysis                 Outside the United States,’’ in                       entitled ‘‘Private Security Contractors
                                               (IRFA) has been prepared consistent                     accordance with the Paperwork                         Operating in Contingency
                                               with 5 U.S.C. 603, and is summarized as                 Reduction Act (44 U.S.C. chapter 35).                 Operations’’. * * *
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                                               follows:                                                The impact, however, is negligible                    *     *     *     *    *
                                                                                                       because the proposed rule merely                      ■ 4. Amend section 25.302–6 by
                                                 The objective of this rule is to make the             removes the distinction between DoD
                                               FAR coverage at FAR section 25.302 and                                                                        revising paragraph (a) to read as follows:
                                               52.225–26 for contractors performing private
                                                                                                       and non-DoD contract areas of
                                                                                                       applicability for use of FAR clause                   25.302–6    Contract clause.
                                               security functions generic by removing the
                                               areas of operation applicable to DoD, as well           52.225–26 for contracts requiring                       (a) Use the clause at 52.225–26,
                                               as the distinction between DoD versus non-              performance of private security                       Contractors Performing Private Security
                                               DoD agency contracts, while DoD moves all               functions outside the United States.                  Functions Outside the United States, in


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                                               30204                    Federal Register / Vol. 80, No. 101 / Wednesday, May 27, 2015 / Proposed Rules

                                               solicitations and contracts for                         52.213–4 Terms and Conditions—                          Other significant military operations means
                                               performance outside the United States                   Simplified Acquisitions (Other Than                   activities, other than combat operations, as
                                               in an area of—                                          Commercial Items)                                     part of a contingency operation outside the
                                                 (1) Combat operations, as designated                  *      *     *       *       *                        United States that is carried out by United
                                               by the Secretary of Defense; or                                                                               States Armed Forces in an uncontrolled or
                                                                                                       Terms and Conditions—Simplified                       unpredictable high-threat environment where
                                                 (2) Other significant military                        Acquisitions (Other Than Commercial                   personnel performing security functions may
                                               operations, as designated by the                        Items) (DATE)                                         be called upon to use deadly force.
                                               Secretary of Defense and only upon
                                                                                                         (a) * * *                                           *        *       *    *     *
                                               agreement of the Secretary of Defense                     (2) * * *
                                               and the Secretary of State.                                                                                      (b) Applicability. If this contract is
                                                                                                         (viii) 52.244–6, Subcontracts for
                                                                                                                                                             performed both in a designated area and in
                                               *     *     *    *     *                                Commercial Items (DATE).
                                                                                                                                                             an area that is not designated, the clause only
                                                                                                       *      *    *     *    *                              applies to performance in the following
                                               PART 52—SOLICITATION PROVISIONS                         ■ 7. Amend section 52.225–26 by—
                                               AND CONTRACT CLAUSES                                                                                          designated areas:
                                                                                                       ■ a. Removing from the introductory
                                                                                                                                                                (1) Combat operations, as designated by the
                                                                                                       text ‘‘25.302–6’’ and adding ‘‘25.302–6,’’            Secretary of Defense; or
                                               ■ 5. Amend section 52.212–5 by—                         in its place.
                                               ■ a. Revising the date of the clause;                                                                            (2) Other significant military operations, as
                                                                                                       ■ b. Revising the date of the clause;
                                                                                                                                                             designated by the Secretary of Defense, and
                                               ■ b. Revising paragraph (b)(45);                        ■ c. Revising the introductory text of
                                                                                                                                                             only upon agreement of the Secretary of
                                               ■ c. Revising paragraph (e)(1)(xvi);                    paragraph (a);
                                                                                                                                                             Defense and the Secretary of State.
                                               ■ d. In Alternate II:                                   ■ d. Adding to paragraph (a), in
                                                                                                                                                                (c) * * *
                                                                                                       alphabetical order, the definitions for
                                               ■ i. Revising the Alternate date;                                                                                (2) * * *
                                                                                                       ‘‘Area of Combat operations’’, ‘‘Full
                                               ■ ii. Redesignating paragraphs                                                                                   (i) Qualification, training, screening
                                                                                                       Cooperation’’, and ‘‘Other significant
                                               (e)(1)(ii)(O) and (P) as paragraphs                     military operations’’;
                                                                                                                                                             (including, if applicable, thorough
                                               (e)(1)(ii)(P) and (Q), respectively; and                                                                      background checks), and security
                                                                                                       ■ e. Revising paragraph (b);
                                               ■ iii. Adding a new paragraph                           ■ f. Revising paragraph (c)(2)(i);
                                                                                                                                                             requirements established by 32 CFR part 159,
                                               (e)(1)(ii)(O).                                          ■ g. Removing from the introductory                   Private Security Contractors Operating in
                                                                                                       text of paragraph (c)(3) ’’Cooperate’’ and            Contingency Operations;
                                                  The revisions and addition read as
                                               follows:                                                adding ‘‘Provide full cooperation’’ in its            *        *       *    *     *
                                                                                                       place; and                                              (f) Subcontracts. The Contractor shall
                                               52.212–5 Contract Terms and Conditions                  ■ h. Revising paragraph (f).                          include the substance of this clause,
                                               Required To Implement Statutes or                          The revisions and additions read as                including this paragraph (f), in all
                                               Executive Orders—Commercial Items.                      follows:                                              subcontracts that will be performed outside
                                               *      *     *       *      *                                                                                 the United States in areas of—
                                                                                                       52.225–26 Contractors Performing Private                (1) Combat operations, as designated by the
                                               Contract Terms and Conditions                           Security Functions Outside the United
                                               Required To Implement Statutes or                                                                             Secretary of Defense; or
                                                                                                       States.
                                               Executive Orders—Commercial Items                                                                               (2) Other significant military operations,
                                                                                                       *      *     *       *       *                        upon agreement of the Secretaries of Defense
                                               (Date)
                                                                                                       Contractors Performing Private                        and State that the clause applies in that area.
                                               *      *     *       *      *                           Security Functions Outside the United                 *     *    *     *      *
                                                 (b) * * *
                                                                                                       States (date)
                                                 l(45) 52.225–26, Contractors Performing                                                                     ■ 8. Amend section 52.244–6 by
                                               Private Security Functions Outside the                     (a) Definitions. As used in this clause—           revising the date of the clause and
                                               United States (DATE) (Section 862, as                      Area of combat operations means an area            paragraph (c)(1)(xii) to read as follows:
                                               amended, of the National Defense                        of operations designated as such by the
                                               Authorization Act for Fiscal Year 2008;                 Secretary of Defense when enhanced                    52.244–6        Subcontracts for Commercial
                                               10 U.S.C. 2302 Note).                                   coordination of contractors performing                Items.
                                               *      *     *       *      *                           private security functions working for
                                                                                                       Government agencies is required.                      *        *       *    *     *
                                                 (e)(1) * * *
                                                 (xvi) 52.225–26, Contractors Performing                  Full Cooperation. (1) Means disclosure to          Subcontracts for Commercial Items
                                               Private Security Functions Outside the                  the Government of the information sufficient
                                                                                                       to identify the nature and extent of the              (DATE)
                                               United States (DATE) (Section 862, as
                                               amended, of the National Defense                        incident and the individuals responsible for          *        *       *    *     *
                                               Authorization Act for Fiscal Year 2008;                 the conduct. It includes providing timely and             (c)(1) * * *
                                                                                                       complete responses to Government auditors’
                                               10 U.S.C. 2302 Note).                                                                                         *        *       *    *     *
                                                                                                       and investigators’ requests for documents
                                               *      *     *       *      *                           and access to employees with information;               (xii) 52.225–26, Contractors Performing
                                                   Alternate II (DATE). * * *                             (2) Does not foreclose any Contractor rights       Private Security Functions Outside the
                                               *      *     *       *      *                           arising in law, the FAR, or the terms of the          United States (DATE) (Section 862, as
                                                 (e)(1) * * *                                          contract. It does not require—                        amended, of the National Defense
                                                 (ii) * * *                                               (i) The Contractor to waive its attorney-          Authorization Act for Fiscal Year 2008; 10
                                                 (O) 52.225–26, Contractors Performing                 client privilege or the protections afforded by       U.S.C. 2302 Note).
                                               Private Security Functions Outside the                  the attorney work product doctrine; or
                                                                                                                                                             *        *       *    *     *
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                                               United States (DATE) (Section 862, as                      (ii) Any officer, director, owner, or
                                               amended, of the National Defense                        employee of the Contractor, including a sole          [FR Doc. 2015–12623 Filed 5–26–15; 8:45 am]
                                               Authorization Act for Fiscal Year 2008;                 proprietor, to waive his or her attorney-client       BILLING CODE 6820–EP–P
                                               10 U.S.C. 2302 Note).                                   privilege or Fifth Amendment rights; and
                                                                                                          (3) Does not restrict the Contractor from—
                                               *     *    *     *      *                                  (i) Conducting an internal investigation; or
                                               ■ 6. Amend section 52.213–4 by                             (ii) Defending a proceeding or dispute
                                               revising the date of the clause and                     arising under the contract or related to a
                                               paragraph (a)(2)(viii) to read as follows:              potential or disclosed violation.



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Document Created: 2015-12-15 15:35:56
Document Modified: 2015-12-15 15:35:56
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesInterested parties should submit written comments to the
ContactMr. Michael O. Jackson, Procurement Analyst, at 202-208-4949 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAR Case 2014-018.
FR Citation80 FR 30202 
RIN Number9000-AN07
CFR Citation48 CFR 25
48 CFR 52

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