80 FR 66533 - Submission for OMB Review; Identification of Predecessors

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 209 (October 29, 2015)

Under the provisions of the Paperwork Reduction Act, the Regulatory Secretariat Division will be submitting to the Office of Management and Budget (OMB) a request to review and approve a new information collection requirement concerning Identification of Predecessors. A notice was published in the Federal Register at 79 FR 71975, on December 4, 2014. Two comments were received.

[Federal Register Volume 80, Number 209 (Thursday, October 29, 2015)]
[Notices]
[Pages 66533-66534]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-27554]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[OMB Control No. 9000-0189; Docket No. 2015-0055; Sequence 52]


Submission for OMB Review; Identification of Predecessors

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

ACTION: Notice of request for public comments regarding a new OMB 
clearance.

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SUMMARY: Under the provisions of the Paperwork Reduction Act, the 
Regulatory Secretariat Division will be submitting to the Office of 
Management and Budget (OMB) a request to review and approve a new 
information collection requirement concerning Identification of 
Predecessors. A notice was published in the Federal Register at 79 FR 
71975, on December 4, 2014. Two comments were received.

DATES: Submit comments on or before November 30, 2015.

ADDRESSES: Submit comments regarding this burden estimate or any other 
aspect of this collection of information, including suggestions for 
reducing this burden to: Office of Information and Regulatory Affairs 
of OMB, Attention: Desk Officer for GSA, Room 10236, NEOB, Washington, 
DC 20503. Additionally submit a copy to GSA by any of the following 
methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for OMB 
control number 9000-0189, Identification of Predecessors. Select the 
link ``Submit a Comment'' that corresponds with ``9000-0189; 
Identification of Predecessors.'' Follow the instructions provided at 
the ``Submit a Comment'' screen. Please include your name, company name 
(if any), and ``9000-0189; Identification of Predecessors'' on your 
attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), 1800 F Street NW., Washington, DC 20405. 
ATTN: Ms. Flowers/IC 9000-0189, Identification of Predecessors.
    Instructions: Please submit comments only and cite Information 
Collection 9000-0189, in all correspondence related to this case. 
Comments received generally will be posted without change to http://www.regulations.gov, including any personal and/or business 
confidential information provided. To confirm receipt of your 
comment(s), please check www.regulations.gov, approximately two to 
three days after submission to verify posting (except allow 30 days for 
posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement 
Analyst, Federal Acquisition Policy Division, at 202-219-0202 or email 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Purpose

    This final rule implements section 852 of the National Defense 
Authorization Act for Fiscal Year 2013 to include in the Federal 
Awardee Performance and Integrity Information System (FAPIIS), to the 
extent practicable, identification of any immediate owner or 
subsidiary, and all predecessors of an offeror that held a Federal 
contract or grant within the last three years. The objective is to 
provide a more comprehensive understanding of the performance and 
integrity of the corporation before awarding a Federal contract.

B. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the comments in the 
development of the final rule. A discussion of the comments is provided 
as follows:

A. Summary of Significant Changes in Response to Public Comments

    There were no changes made in the final rule in response to the 
public comments received.

B. Analysis of Public Comments

    Comment: One respondent commented that it would be helpful if the 
relevant FAR provisions and FAR clause 52.204-WW clarified whether the 
three year ``lookback'' period starts on the effective date of when the 
predecessor merged or was acquired by the successor or the date the 
contracts of the predecessor were novated from the predecessor to the 
successor.
    Response: The ``lookback'' period starts on the date the offeror 
signs the representation. If, within the three years prior to signing 
the representation, there was a merger or acquisition, it shall be 
reported. The date of novation is not relevant for purposes of this 
rule. Comment: One respondent supported the statute because it requires 
that information be provided to the contracting officers to aid in 
making responsibility determinations, and supported the position that 
the ``further the distance between entities, the less relevant the 
information is likely to be for establishing responsibility of the 
offeror.''
    Response: Noted.
    Comment: One respondent commented that the proposed rule's 
requirement to report data on all predecessors of the offeror that 
received a Federal contract or grant within the last three years would 
apply an undue burden on prospective contractors and not achieve the 
Government's stated objective of providing a more comprehensive 
understanding of a potential contractor's performance and integrity. 
The respondent proposed that publicly traded companies subject to SEC 
requirements be exempt from this requirement because it instills a 
burden without benefit to the Government.
    Response: The statute does not allow for this exemption.
    Comment: One respondent commented that large multi-national 
organizations many times reorganize business units in order to 
effectively respond to changing needs of the marketplace. These 
reorganizations can include alternate legal structures. The assets of 
one legal entity may pass through three or four more before landing at 
the new entity. The respondent proposed that where the ultimate owner 
remains the same before

[[Page 66534]]

and after a transaction, the contractor be exempted from providing 
information on predecessor entities. According to the respondent, this 
is consistent with the Government's exclusion of a ``new offices/
divisions of the same company'' from the definition of ``successor.''
    Response: This recommendation does not meet the requirements of the 
statute.
    Comment: One respondent commented that contracting officers and 
their counsel perform a rigorous review and analysis to deal with the 
novation process and feels that there should be no requirement to 
identify prior owners within the FAPIIS because the required 
responsibility determination would have been conducted through 
novation.
    Response: The statute requires collection of information on 
predecessor, regardless of any novation action by the Government.
    Comment: The respondent commented that the reporting of the 
ultimate owners became effective on November 1, 2014, and believe that 
agencies should allow contractors and contracting officers time to 
implement and evaluate the results of this new requirement before 
adding more requirements that may not aid contracting officers in 
responsibility and integrity evaluations.
    Response: The statute does not allow the Government to delay the 
implementation of this Act.
    Comments: The respondent feels that commercially available off-the-
shelf (COTS) items should be excluded from this requirement.
    Response: The Administrator of the Office of Federal Procurement 
Policy has determined that this rule applies to COTS items.

C. Annual Reporting Burden

    Respondents: 413,800.
    Responses per Respondent: 1.
    Total Annual Responses: 413,800.
    Hours per Response: .1.
    Total Burden Hours: 41,380.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the FAR, and whether it will have practical utility; 
whether our estimate of the public burden of this collection of 
information is accurate, and based on valid assumptions and 
methodology; ways to enhance the quality, utility, and clarity of the 
information to be collected; and ways in which we can minimize the 
burden of the collection of information on those who are to respond, 
through the use of appropriate technological collection techniques or 
other forms of information technology.
    Obtaining Copies of Proposals: Requesters may obtain a copy of the 
information collection documents from the General Services 
Administration, Regulatory Secretariat Division (MVCB), 1800 F Street 
NW., Washington, DC 20405, telephone 202-501-4755.
    Please cite OMB Control Number 9000-0189, Identification of 
Predecessors, in all correspondence.

Edward Loeb,
Acting Director, Federal Acquisition Policy Division, Office of 
Government-wide Acquisition Policy, Office of Acquisition Policy, 
Office of Government-wide Policy.
[FR Doc. 2015-27554 Filed 10-28-15; 8:45 am]
 BILLING CODE 6820-1EP-P