80_FR_76136 80 FR 75903 - Federal Acquisition Regulation: Prohibition on Contracting With Corporations With Delinquent Taxes or a Felony Conviction

80 FR 75903 - Federal Acquisition Regulation: Prohibition on Contracting With Corporations With Delinquent Taxes or a Felony Conviction

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 233 (December 4, 2015)

Page Range75903-75907
FR Document2015-30456

DoD, GSA, and NASA are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to implement sections of the Consolidated and Further Continuing Appropriations Act, 2015, to prohibit the Federal Government from entering into a contract with any corporation having a delinquent Federal tax liability or a felony conviction under any Federal law, unless the agency has considered suspension or debarment of the corporation and has made a determination that this further action is not necessary to protect the interests of the Government.

Federal Register, Volume 80 Issue 233 (Friday, December 4, 2015)
[Federal Register Volume 80, Number 233 (Friday, December 4, 2015)]
[Rules and Regulations]
[Pages 75903-75907]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30456]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 1, 4, 9, 12, and 52

[FAC 2005-85; FAR Case 2015-011; Item No. I; Docket No. 2015-0011; 
Sequence No. 1]
RIN 9000-AN05


Federal Acquisition Regulation: Prohibition on Contracting With 
Corporations With Delinquent Taxes or a Felony Conviction

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

ACTION: Interim rule.

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

SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the 
Federal Acquisition Regulation (FAR) to implement sections of the 
Consolidated and Further Continuing Appropriations Act, 2015, to 
prohibit the Federal Government from entering into a contract with any 
corporation having a delinquent Federal tax liability or a felony 
conviction under any Federal law, unless the agency has considered 
suspension or debarment of the corporation and has made a determination 
that this further action is not necessary to protect the interests of 
the Government.

DATES: Effective date: February 26, 2016.
    Comment date: Interested parties should submit written comments to 
the Regulatory Secretariat on or before February 2, 2016 to be 
considered in the formation of the final rule.

ADDRESSES: Submit comments identified by FAC 2005-85, FAR Case 2015-
011, by any of the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2015-011''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2015-011''. Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2015-011'' on 
your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, 
Washington, DC 20405-0001.
    Instructions: Please submit comments only and cite FAC 2005-85, FAR 
Case 2015-011, Prohibition on Contracting with Corporation with 
Delinquent Taxes or a Felony Conviction, in all correspondence related 
to this case. Comments received generally will be posted without change 
to http://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, at 202-219-0202 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAC 2005-85, FAR Case 
2015-011.

SUPPLEMENTARY INFORMATION:

I. Background

    This interim rule amends the FAR to implement sections 744 and 745 
of Division E of the Consolidated and Further Continuing Appropriations 
Act, 2015 (Pub. L. 113-235) and section 523 of Division B of the same 
act.

A. Representation

    This rule requires that all offerors responding to Federal 
solicitations make a representation regarding whether the offeror is a 
corporation with a delinquent tax liability or a felony conviction 
under Federal law, as required by sections 744 and 745 of Division E of 
the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. 
L. 113-235) (and similar provisions in subsequent appropriations acts).

[[Page 75904]]

    When an offeror provides an affirmative response in paragraph 
(b)(1) or (2) to the representation, the contracting officer is 
required to request additional information from the offeror and notify 
the agency official responsible for initiating debarment or suspension 
action. The contracting officer shall not make an award to the 
corporation unless an agency suspending or debarring official has 
considered suspension or debarment of the corporation and determined 
that this further action is not necessary to protect the interests of 
the Government.

B. Certification

    This rule also adds a certification requirement regarding tax 
matters, in solicitations for which the resultant contract (including 
options) may have a value greater than $5,000,000, and that will use 
funds made available by Division B of the Consolidated and Further 
Continuing Appropriations Act, 2015 (Pub. L. 113-235) (and similar 
provisions in subsequent appropriations acts).
    Agencies funded by these acts include the Department of Commerce, 
the Department of Justice, NASA, as well as some smaller agencies.
    If the certification regarding tax matters is applicable, then the 
contracting officer shall not award any contract in an amount greater 
than $5,000,000, unless the offeror affirmatively certified in its 
offer to all the required certifications regarding tax matters in FAR 
Clause 52.209-12(b).
    This certification will not be included in the annual 
representations and certifications, because it has very limited 
application. In accordance with 41 U.S.C. 1304, the certification 
included in this regulation is specifically required by statute, and 
therefore its inclusion in the FAR does not require the written 
approval of the Administrator for Federal Procurement Policy.

C. Applicability to Commercial Items (Including Commercially Available 
Off-the-Shelf (COTS) Items) and Acquisitions Not Greater Than the 
Simplified Acquisition Threshold

    This interim rule implements sections 744 and 745 of Division E, 
Title VII, and section 523 of Division B, Title V, of the Consolidated 
and Further Continuing Appropriations Act, 2015. Sections 744 and 745 
of Division E prohibit any Federal agency from using funds appropriated 
or otherwise made available by the Act or any other act to enter into a 
contract with a corporation that has delinquent unpaid taxes or has 
been convicted of a felony criminal violation under any Federal law 
within the past 24 months, unless the Federal agency has considered 
suspension or debarment of the corporation and has made a determination 
that this further action is not necessary to protect the interests of 
the government. Section 523 of Division B, which affects Commerce, 
Justice, NASA, and some smaller agencies, requires certification with 
regard to violations of certain tax matters.
    The FAR Council and the Administrator for Federal Procurement 
Policy have determined that it is not in the best interest of the 
United States to exempt contracts for the acquisition of commercial 
items (including commercially available off-the-shelf items) or 
acquisitions in amounts not greater than the simplified acquisition 
threshold (other than the certification requirement), because it 
imposes a minimal burden (just a representation or, in limited 
instances, a certification), in contrast to the benefit of avoiding 
awarding contracts to corporations that have delinquent unpaid taxes, 
or felony convictions for violations of Federal Law, or to prospective 
contractors with other violations relating to Federal tax matters. Tax 
liability is a serious matter and Congressional hearings (e.g., the 
Permanent Subcommittee on Investigations, Committee on Homeland 
Security and Governmental Affairs, U.S. Senate, held a hearing on May 
24, 2011, entitled, ``Stimulus Contractors Who Cheat On Their Taxes: 
What Happened?,'' and the Subcommittee on Government Management, 
Organization, and Procurement, Committee on Oversight and Government 
Reform, House of Representatives held a hearing on April 19, 2007, also 
concerning Federal contractors who abuse the Federal tax system) have 
been held to identify ways to ensure that funds are not spent with 
contractors with tax delinquencies. It is in the interest of the United 
States to only award contracts to entities that are responsible and 
law-abiding.
    This determination is consistent with the current coverage in 
paragraph (h)(4) of the FAR clause at 52.212-3, Offeror Representations 
and Certifications--Commercial Items, which requires offerors to 
represent whether they have, within a three-year period preceding their 
offer, been notified of any delinquent Federal taxes in an amount that 
exceeds $3,500 for which the liability remains unsatisfied.

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 a significant regulatory action and, therefore, was 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

    Although DoD, GSA, and NASA do not expect that this change will 
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., an Initial Regulatory Flexibility Analysis (IRFA) has 
been prepared and is summarized as follows:

    This action is necessary to implement sections 744 and 745 of 
Division E of the Consolidated and Continuing Further Appropriations 
Act, 2015 (Pub. L. 113-235) (and similar provisions in subsequent 
appropriations acts), to prohibit using any of the funds made 
available under that or any other act to enter a contract with any 
corporation with any delinquent Federal tax liability or a felony 
conviction, unless an agency has considered suspension or debarment 
of the corporation and has made a determination that this further 
action is not necessary to protect the interests of the Government.
    The rule also implements section 523 of Division B of the 
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. 
L. 113-235) (and similar provisions in subsequent appropriations 
acts). This section prohibits the award of any contract in an amount 
greater than $5,000,000, using funds appropriated under Division B 
of the Consolidated and Continuing Further Appropriations Act, 2015, 
unless the offeror affirmatively certifies that it has filed all 
Federal tax returns required during the three years preceding the 
certification; has not been convicted of a criminal offense under 
the Internal Revenue Code of 1986; and has not, more than 90 days 
prior to certification, been notified of any unpaid Federal tax 
assessment for which the liability remains unsatisfied, unless the 
assessment is the subject of an installment agreement or offer in 
compromise that has been approved by the Internal Revenue Service 
and is not in default, or the assessment is the subject of a non-
frivolous administrative or judicial proceeding.
    The objective of the interim rule is to prohibit award to 
entities that are delinquent in the payment of Federal taxes or have 
been convicted of a felony under Federal law. The

[[Page 75905]]

legal basis for the rule is the above cited statutes.
    Based on current data with regard to active registrants in the 
System for Award Management (SAM), the rule will apply to 
approximately 65,000 small business concerns, which are required to 
complete the annual representations and certifications at least once 
per year in order to keep their registration in SAM current.
    The information collection requirement imposed by this rule is 
minimal--it is a brief representation, and in some cases also a 
certification. Each representation is estimated to require an 
average of six minutes to complete.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    DoD, GSA, and NASA were unable to identify any significant 
alternatives that would reduce the impact on small businesses and 
still meet the objectives of the statute. However, other than the 
potential for not receiving award if the small entity is delinquent 
in payment of Federal taxes or has been convicted of a felony, there 
is no significant economic impact on small entities because the 
information collection burden imposed by the rule is minimal.

    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. 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 2015-011), 
in correspondence.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The 
rule contains information collection requirements. The Office of 
Management and Budget (OMB) has cleared this information collection 
requirement under OMB Control Number 9000-0193, titled: Prohibition on 
Contracting with Corporations with Delinquent Taxes or a Felony 
Conviction.

A. Public Reporting Burden

    The public reporting burden for this collection of information is 
estimated to average .1 hours per response, including the time for 
reviewing instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
1. 52.209-11 Representation
    The annual reporting burden for 52.209-11 is estimated as follows:
    Respondents: 352,000.
    Responses per respondent: Approximately 1.01.
    Total annual responses: 355,520.
    Preparation hours per response: .1 hours.
    Total response Burden Hours: 35,552.
2. 52.209-12 Certification
    The annual reporting burden for 52.209-12 is estimated as follows:
    Respondents: 440.
    Responses per respondent: 3.
    Total annual responses: 1,320.
    Preparation hours per response: .1 hours.
    Total response Burden Hours: 132.
3. Total
    The average annual reporting burden is estimated as follows:
    Total annual responses: 356,840.
    Preparation hours per response: .1 hours.
    Total response Burden Hours: 35,684.

B. Request for Comments Regarding Paperwork Burden

    Submit comments, including suggestions for reducing this burden, 
not later than February 2, 2016 to: FAR Desk Officer, OMB, Room 10102, 
NEOB, Washington, DC 20503, and a copy to the General Services 
Administration, Regulatory Secretariat Division (MVCB), ATTN: Ms. 
Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405-0001.
    Public comments are particularly invited on: Whether this 
collection of information is necessary for the proper performance of 
functions of the FAR, and 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.
    Requesters may obtain a copy of the supporting statement from the 
General Services Administration, Regulatory Secretariat Divison (MVCB), 
ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405-
0001. Please cite OMB Control Number 9000-0193, Prohibition on 
Contracting with Corporations with Delinquent Taxes or a Felony 
Conviction, in all correspondence.

V. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because these appropriations act restrictions apply to all 
funds appropriated under the respective acts, and it is important to 
provide immediate direction to contracting officers, so that they do 
not inadvertently violate the conditions placed upon the expenditure of 
the funds. The effective date is set as February 26, 2016, to allow the 
Government to conform its procurement databases. However, pursuant to 
41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and NASA will consider 
public comments received in response to this interim rule in the 
formation of the final rule.

List of Subjects in 48 CFR Parts 1, 4, 9, 12, and 52

    Government procurement.

    Dated: November 20, 2015.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA and NASA amend 48 CFR parts 1, 4, 9, 12, and 52 
as set forth below:

0
1. The authority citation for 48 CFR parts 1, 4, 9, 12, 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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM


1.106  [Amended]

0
2. Amend section 1.106 in the table following the introductory text by 
adding, in sequence, FAR segments ``52.209-11'' and ``52.209-12'' and 
their corresponding OMB Control number ``9000-0193''.

PART 4--ADMINISTRATIVE MATTERS

0
3. Amend section 4.1202 by redesignating paragraphs (a)(8) through (29) 
as paragraphs (a)(9) through (30), respectively; and adding a new 
paragraph (a)(8) to read as follows:


4.1202  Solicitation provision and contract clause.

    (a) * * *

[[Page 75906]]

    (8) 52.209-11, Representation by Corporations Regarding Delinquent 
Tax Liability or a Felony Conviction under any Federal Law.
* * * * *

PART 9--CONTRACTOR QUALIFICATIONS

0
4. Amend section 9.104-5 by revising the section heading and paragraph 
(b) and adding paragraphs (c) and (d) to read as follows:


9.104-5  Representation and certifications regarding responsibility 
matters.

* * * * *
    (b) The provision at 52.209-11, Representation by Corporations 
Regarding Delinquent Tax Liability or a Felony Conviction under any 
Federal Law, implements sections 744 and 745 of Division E of the 
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 
113-235) (and similar provisions in subsequent appropriations acts). 
When an offeror provides an affirmative response in paragraph (b)(1) or 
(2) of the provision at 52.209-11 or paragraph (q)(2)(i) or (ii) of 
provision 52.212-3, the contracting officer shall--
    (1) Promptly, upon receipt of offers, request such additional 
information from the offeror as the offeror deems necessary in order to 
demonstrate the offeror's responsibility to the contracting officer 
(but see 9.405);
    (2) Notify, in accordance with agency procedures (see 9.406-3(a) 
and 9.407-3(a)), the agency official responsible for initiating 
debarment or suspension action; and
    (3) Not award to the corporation unless an agency suspending or 
debarring official has considered suspension or debarment of the 
corporation and made a determination that suspension or debarment is 
not necessary to protect the interests of the Government.
    (c) If the provision at 52.209-12, Certification Regarding Tax 
Matters, is applicable (see 9.104-7(e)), then the contracting officer 
shall not award any contract in an amount greater than $5,000,000, 
unless the offeror affirmatively certified in its offer, as required by 
paragraph (b)(1), (2), and (3) of the provision.
    (d) Offerors who do not furnish the representation or 
certifications or such information as may be requested by the 
contracting officer shall be given an opportunity to remedy the 
deficiency. Failure to furnish the representation or certifications or 
such information may render the offeror nonresponsible.

0
5. Amend section 9.104-7 by adding paragraphs (d) and (e) to read as 
follows:


9.104-7  Solicitation provisions and contract clauses.

* * * * *
    (d) The contracting officer shall insert the provision 52.209-11, 
Representation by Corporations Regarding Delinquent Tax Liability or a 
Felony Conviction under any Federal Law, in all solicitations.
    (e) For agencies receiving funds subject to section 523 of Division 
B of the Consolidated and Further Continuing Appropriations Act, 2015 
(Pub. L. 113-235) and similar provisions in subsequent appropriations 
acts, the contracting officer shall insert the provision 52.209-12, 
Certification Regarding Tax Matters, in solicitations for which the 
resultant contract (including options) may have a value greater than 
$5,000,000. Division B of the Consolidated and Continuing Further 
Appropriations Act, 2015 appropriates funds for the following agencies: 
The Department of Commerce, the Department of Justice, the National 
Aeronautics and Space Administration, the Office of Science and 
Technology Policy, the National Science Foundation, the Commission on 
Civil Rights, the Equal Employment Opportunity Commission, the U.S. 
International Trade Commission, the Legal Services Corporation, the 
Marine Mammal Commission, the Office of the United States Trade 
Representative, and the State Justice Institute.

PART 12--ACQUISITION OF COMMERCIAL ITEMS

0
6. Amend section 12.301 by redesignating paragraphs (d)(4) through (6) 
as paragraphs (d)(5) through (7), respectively, and adding a new 
paragraph (d)(4) to read as follows:


12.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

* * * * *
    (d) * * *
    (4) Insert the provision at 52.209-12, Certification Regarding Tax 
Matters, as prescribed at 9.104-7(e).
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
7. Amend section 52.204-8 by--
0
a. Revising the date of the provision;
0
b. Redesignating paragraphs (c)(1)(vii) through (xxi) as (c)(1)(viii) 
through (xxii), respectively; and
0
c. Adding a new paragraph (c)(1)(vii).
    The revision and addition read as follows:


52.204-8  Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (Feb 2016)

* * * * *
    (c)(1) * * *
    (vii) 52.209-11, Representation by Corporations Regarding 
Delinquent Tax Liability or a Felony Conviction under any Federal 
Law. This provision applies to all solicitations.
* * * * *

0
8. Add sections 52.209-11 and 52.209-12 to read as follows:


52.209-11  Representation by Corporations Regarding Delinquent Tax 
Liability or a Felony Conviction under any Federal Law.

    As prescribed in 9.104-7(d), insert the following provision:

Representation by Corporations Regarding Delinquent Tax Liability or a 
Felony Conviction under any Federal Law (Feb 2016)

    (a) As required by sections 744 and 745 of Division E of the 
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. 
L. 113-235), and similar provisions, if contained in subsequent 
appropriations acts, the Government will not enter into a contract 
with any corporation that--
    (1) Has any unpaid Federal tax liability that has been assessed, 
for which all judicial and administrative remedies have been 
exhausted or have lapsed, and that is not being paid in a timely 
manner pursuant to an agreement with the authority responsible for 
collecting the tax liability, where the awarding agency is aware of 
the unpaid tax liability, unless an agency has considered suspension 
or debarment of the corporation and made a determination that 
suspension or debarment is not necessary to protect the interests of 
the Government; or
    (2) Was convicted of a felony criminal violation under any 
Federal law within the preceding 24 months, where the awarding 
agency is aware of the conviction, unless an agency has considered 
suspension or debarment of the corporation and made a determination 
that this action is not necessary to protect the interests of the 
Government.
    (b) The Offeror represents that--
    (1) It is [ ] is not [ ] a corporation that has any unpaid 
Federal tax liability that has been assessed, for which all judicial 
and administrative remedies have been exhausted or have lapsed, and 
that is not being paid in a timely manner pursuant to an agreement 
with the authority responsible for collecting the tax liability; and
    (2) It is [ ] is not [ ] a corporation that was convicted of a 
felony criminal violation under a Federal law within the preceding 
24 months.


(End of provision)


52.209-12  Certification Regarding Tax Matters.

    As prescribed in 9.104-7(e), insert the following provision:

[[Page 75907]]

Certification Regarding Tax Matters (Feb 2016)

    (a) This provision implements section 523 of Division B of the 
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. 
L. 113-235), and similar provisions, if contained in subsequent 
appropriations acts.
    (b) If the Offeror is proposing a total contract price that will 
exceed $5,000,000 (including options), the Offeror shall certify 
that, to the best of its knowledge and belief, it--
    (1) Has [ ] filed all Federal tax returns required during the 
three years preceding the certification;
    (2) Has not [ ] been convicted of a criminal offense under the 
Internal Revenue Code of 1986; and
    (3) Has not [ ], more than 90 days prior to certification, been 
notified of any unpaid Federal tax assessment for which the 
liability remains unsatisfied, unless the assessment is the subject 
of an installment agreement or offer in compromise that has been 
approved by the Internal Revenue Service and is not in default, or 
the assessment is the subject of a non-frivolous administrative or 
judicial proceeding.


(End of provision)


0
9. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Removing from the introductory text and the first undesignated 
paragraph in paragraph (b)(2) ``through p'' and adding ``though q'' in 
their places, respectively; and
0
c. Adding paragraph (q).
    The revision and addition read as follows:


52.212-3  Offeror Representations and Certifications--Commercial Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (Feb 2016)

* * * * *
    (q) Representation by Corporations Regarding Delinquent Tax 
Liability or a Felony Conviction under any Federal Law. (1) As 
required by sections 744 and 745 of Division E of the Consolidated 
and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235), 
and similar provisions, if contained in subsequent appropriations 
acts, The Government will not enter into a contract with any 
corporation that--
    (i) Has any unpaid Federal tax liability that has been assessed, 
for which all judicial and administrative remedies have been 
exhausted or have lapsed, and that is not being paid in a timely 
manner pursuant to an agreement with the authority responsible for 
collecting the tax liability, where the awarding agency is aware of 
the unpaid tax liability, unless an agency has considered suspension 
or debarment of the corporation and made a determination that 
suspension or debarment is not necessary to protect the interests of 
the Government; or
    (ii) Was convicted of a felony criminal violation under any 
Federal law within the preceding 24 months, where the awarding 
agency is aware of the conviction, unless an agency has considered 
suspension or debarment of the corporation and made a determination 
that this action is not necessary to protect the interests of the 
Government.
    (2) The Offeror represents that--
    (i) It is [ ] is not [ ] a corporation that has any unpaid 
Federal tax liability that has been assessed, for which all judicial 
and administrative remedies have been exhausted or have lapsed, and 
that is not being paid in a timely manner pursuant to an agreement 
with the authority responsible for collecting the tax liability; and
    (ii) It is [ ] is not [ ] a corporation that was convicted of a 
felony criminal violation under a Federal law within the preceding 
24 months.


(End of provision)

[FR Doc. 2015-30456 Filed 12-3-15; 8:45 am]
BILLING CODE 6820-EP-P



                                                              Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                      75903

                                            Item V—Retention Periods (FAR Case                      effective February 26, 2016, and item V               ADDRESSES:   Submit comments
                                            2015–009)                                               which is effective January 4, 2016.                   identified by FAC 2005–85, FAR Case
                                               This final rule amends the FAR by                      Dated: November 23, 2015.                           2015–011, by any of the following
                                            updating the Government file retention                  Claire M. Grady,
                                                                                                                                                          methods:
                                            periods to conform with the retention                                                                            • Regulations.gov: http://
                                                                                                    Director, Defense Procurement and
                                            periods in the National Archives and                    Acquisition Policy.
                                                                                                                                                          www.regulations.gov. Submit comments
                                            Records Administration (NARA)                                                                                 via the Federal eRulemaking portal by
                                                                                                      Dated: November 24, 2015.
                                            General Records Schedule (GRS).                                                                               searching for ‘‘FAR Case 2015–011’’.
                                                                                                    Jeffrey A. Koses,                                     Select the link ‘‘Comment Now’’ that
                                            Language is also added to instruct                      Senior Procurement Executive/Deputy CAO,
                                            agencies that require a shorter retention                                                                     corresponds with ‘‘FAR Case 2015–
                                                                                                    Office of Acquisition Policy, U.S. General            011’’. Follow the instructions provided
                                            period for certain records to request                   Services Administration.
                                            approval from NARA through the                                                                                on the screen. Please include your
                                                                                                      Dated: November 20, 2015.                           name, company name (if any), and
                                            agency’s record officer. This rule change               William P. McNally,
                                            does not place any new requirements on                                                                        ‘‘FAR Case 2015–011’’ on your attached
                                                                                                    Assistant Administrator, Office of                    document.
                                            small entities; the only change is the
                                            timeframe for retention by the
                                                                                                    Procurement, National Aeronautics and                    • Mail: General Services
                                                                                                    Space Administration.                                 Administration, Regulatory Secretariat
                                            Government of Government records.                       [FR Doc. 2015–30455 Filed 12–3–15; 8:45 am]           (MVCB), ATTN: Ms. Flowers, 1800 F
                                            Item VI—Establishing a Minimum                          BILLING CODE 6820–EP–P                                Street NW., 2nd Floor, Washington, DC
                                            Wage for Contractors (FAR Case 2015–                                                                          20405–0001.
                                            003)                                                                                                             Instructions: Please submit comments
                                                                                                    DEPARTMENT OF DEFENSE                                 only and cite FAC 2005–85, FAR Case
                                               DoD, GSA, and NASA are issuing a
                                            final rule adopting the interim rule                    GENERAL SERVICES                                      2015–011, Prohibition on Contracting
                                            published December 15, 2014, with                       ADMINISTRATION                                        with Corporation with Delinquent Taxes
                                            change. The interim rule amended the                                                                          or a Felony Conviction, in all
                                            FAR to implement Executive Order                        NATIONAL AERONAUTICS AND                              correspondence related to this case.
                                            13658 and a Department of Labor final                   SPACE ADMINISTRATION                                  Comments received generally will be
                                            rule issued on October 7, 2014, both                                                                          posted without change to http://
                                            entitled ‘‘Establishing a Minimum Wage                  48 CFR Parts 1, 4, 9, 12, and 52                      regulations.gov, including any personal
                                            for Contractors,’’ which established a                                                                        and/or business confidential
                                            new minimum wage for covered service                    [FAC 2005–85; FAR Case 2015–011; Item                 information provided. To confirm
                                            and construction contracts of $10.10 per                No. I; Docket No. 2015–0011; Sequence No.             receipt of your comment(s), please
                                            hour, as of January 1, 2015. The                        1]                                                    check www.regulations.gov,
                                            Executive Order minimum wage will be                                                                          approximately two to three Days after
                                                                                                    RIN 9000–AN05
                                            adjusted annually, by the Department of                                                                       submission to verify posting (except
                                            Labor. Contracting officers will include                Federal Acquisition Regulation:                       allow 30 days for posting of comments
                                            a clause in covered contracts and will                  Prohibition on Contracting With                       submitted by mail).
                                            adjust contract prices for the annual                   Corporations With Delinquent Taxes or                 FOR FURTHER INFORMATION CONTACT: Ms.
                                            adjustments in the Executive Order                      a Felony Conviction                                   Cecelia L. Davis, Procurement Analyst,
                                            minimum wage. Contractors shall                                                                               at 202–219–0202 for clarification of
                                            consider any subcontractor request,                     AGENCIES:  Department of Defense (DoD),               content. For information pertaining to
                                            including requests by small businesses                  General Services Administration (GSA),                status or publication schedules, contact
                                            subcontractors, for a subcontract price                 and National Aeronautics and Space                    the Regulatory Secretariat Division at
                                            adjustment due to the annual                            Administration (NASA).                                202–501–4755. Please cite FAC 2005–
                                            adjustment in the Executive Order                       ACTION: Interim rule.                                 85, FAR Case 2015–011.
                                            minimum wage.                                                                                                 SUPPLEMENTARY INFORMATION:
                                               There is no significant impact on                    SUMMARY:  DoD, GSA, and NASA are
                                            small entities imposed by the FAR rule.                 issuing an interim rule amending the                  I. Background
                                                                                                    Federal Acquisition Regulation (FAR) to                 This interim rule amends the FAR to
                                            Item VII—Technical Amendment
                                                                                                    implement sections of the Consolidated                implement sections 744 and 745 of
                                               Editorial change is made at FAR                      and Further Continuing Appropriations                 Division E of the Consolidated and
                                            1.106.                                                  Act, 2015, to prohibit the Federal                    Further Continuing Appropriations Act,
                                              Dated: November 20, 2015.                             Government from entering into a                       2015 (Pub. L. 113–235) and section 523
                                            William Clark,                                          contract with any corporation having a                of Division B of the same act.
                                            Director, Office of Government-wide                     delinquent Federal tax liability or a
                                            Acquisition Policy, Office of Acquisition               felony conviction under any Federal                   A. Representation
                                            Policy, Office of Government-wide Policy.               law, unless the agency has considered                    This rule requires that all offerors
                                              Federal Acquisition Circular (FAC)                    suspension or debarment of the                        responding to Federal solicitations make
                                            2005–85 is issued under the authority of                corporation and has made a                            a representation regarding whether the
                                            the Secretary of Defense, the                           determination that this further action is             offeror is a corporation with a
                                            Administrator of General Services, and                  not necessary to protect the interests of             delinquent tax liability or a felony
                                                                                                    the Government.
wgreen on DSK2VPTVN1PROD with RULES2




                                            the Administrator for the National                                                                            conviction under Federal law, as
                                            Aeronautics and Space Administration.                   DATES: Effective date: February 26, 2016.             required by sections 744 and 745 of
                                              Unless otherwise specified, all                          Comment date: Interested parties                   Division E of the Consolidated and
                                            Federal Acquisition Regulation (FAR)                    should submit written comments to the                 Further Continuing Appropriations Act,
                                            and other directive material contained                  Regulatory Secretariat on or before                   2015 (Pub. L. 113–235) (and similar
                                            in FAC 2005–85 is effective December 4,                 February 2, 2016 to be considered in the              provisions in subsequent appropriations
                                            2015 except for item I and III which are                formation of the final rule.                          acts).


                                       VerDate Sep<11>2014   15:22 Dec 03, 2015   Jkt 238001   PO 00000   Frm 00003   Fmt 4701   Sfmt 4700   E:\FR\FM\04DER2.SGM   04DER2


                                            75904             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations

                                               When an offeror provides an                          violation under any Federal law within                alternatives and, if regulation is
                                            affirmative response in paragraph (b)(1)                the past 24 months, unless the Federal                necessary, to select regulatory
                                            or (2) to the representation, the                       agency has considered suspension or                   approaches that maximize net benefits
                                            contracting officer is required to request              debarment of the corporation and has                  (including potential economic,
                                            additional information from the offeror                 made a determination that this further                environmental, public health and safety
                                            and notify the agency official                          action is not necessary to protect the                effects, distributive impacts, and
                                            responsible for initiating debarment or                 interests of the government. Section 523              equity). E.O. 13563 emphasizes the
                                            suspension action. The contracting                      of Division B, which affects Commerce,                importance of quantifying both costs
                                            officer shall not make an award to the                  Justice, NASA, and some smaller                       and benefits, of reducing costs, of
                                            corporation unless an agency                            agencies, requires certification with                 harmonizing rules, and of promoting
                                            suspending or debarring official has                    regard to violations of certain tax                   flexibility. This is a significant
                                            considered suspension or debarment of                   matters.                                              regulatory action and, therefore, was
                                            the corporation and determined that this                   The FAR Council and the                            subject to review under section 6(b) of
                                            further action is not necessary to protect              Administrator for Federal Procurement                 E.O. 12866, Regulatory Planning and
                                            the interests of the Government.                        Policy have determined that it is not in              Review, dated September 30, 1993. This
                                                                                                    the best interest of the United States to             rule is not a major rule under 5 U.S.C.
                                            B. Certification                                        exempt contracts for the acquisition of               804.
                                               This rule also adds a certification                  commercial items (including
                                            requirement regarding tax matters, in                   commercially available off-the-shelf                  III. Regulatory Flexibility Act
                                            solicitations for which the resultant                   items) or acquisitions in amounts not
                                            contract (including options) may have a                                                                          Although DoD, GSA, and NASA do
                                                                                                    greater than the simplified acquisition
                                            value greater than $5,000,000, and that                                                                       not expect that this change will have a
                                                                                                    threshold (other than the certification
                                            will use funds made available by                                                                              significant economic impact on a
                                                                                                    requirement), because it imposes a
                                            Division B of the Consolidated and                                                                            substantial number of small entities
                                                                                                    minimal burden (just a representation
                                            Further Continuing Appropriations Act,                                                                        within the meaning of the Regulatory
                                                                                                    or, in limited instances, a certification),
                                            2015 (Pub. L. 113–235) (and similar                                                                           Flexibility Act 5 U.S.C. 601, et seq., an
                                                                                                    in contrast to the benefit of avoiding
                                            provisions in subsequent appropriations                                                                       Initial Regulatory Flexibility Analysis
                                                                                                    awarding contracts to corporations that
                                            acts).                                                                                                        (IRFA) has been prepared and is
                                                                                                    have delinquent unpaid taxes, or felony
                                               Agencies funded by these acts include                                                                      summarized as follows:
                                                                                                    convictions for violations of Federal
                                            the Department of Commerce, the                         Law, or to prospective contractors with                  This action is necessary to implement
                                            Department of Justice, NASA, as well as                 other violations relating to Federal tax              sections 744 and 745 of Division E of the
                                            some smaller agencies.                                  matters. Tax liability is a serious matter            Consolidated and Continuing Further
                                               If the certification regarding tax                                                                         Appropriations Act, 2015 (Pub. L. 113–235)
                                                                                                    and Congressional hearings (e.g., the
                                            matters is applicable, then the                                                                               (and similar provisions in subsequent
                                                                                                    Permanent Subcommittee on                             appropriations acts), to prohibit using any of
                                            contracting officer shall not award any                 Investigations, Committee on Homeland                 the funds made available under that or any
                                            contract in an amount greater than                      Security and Governmental Affairs, U.S.               other act to enter a contract with any
                                            $5,000,000, unless the offeror                          Senate, held a hearing on May 24, 2011,               corporation with any delinquent Federal tax
                                            affirmatively certified in its offer to all             entitled, ‘‘Stimulus Contractors Who                  liability or a felony conviction, unless an
                                            the required certifications regarding tax               Cheat On Their Taxes: What                            agency has considered suspension or
                                            matters in FAR Clause 52.209–12(b).                     Happened?,’’ and the Subcommittee on                  debarment of the corporation and has made
                                               This certification will not be included              Government Management, Organization,                  a determination that this further action is not
                                            in the annual representations and                       and Procurement, Committee on                         necessary to protect the interests of the
                                            certifications, because it has very                                                                           Government.
                                                                                                    Oversight and Government Reform,
                                            limited application. In accordance with                                                                          The rule also implements section 523 of
                                                                                                    House of Representatives held a hearing               Division B of the Consolidated and Further
                                            41 U.S.C. 1304, the certification                       on April 19, 2007, also concerning                    Continuing Appropriations Act, 2015 (Pub. L.
                                            included in this regulation is                          Federal contractors who abuse the                     113–235) (and similar provisions in
                                            specifically required by statute, and                   Federal tax system) have been held to                 subsequent appropriations acts). This section
                                            therefore its inclusion in the FAR does                 identify ways to ensure that funds are                prohibits the award of any contract in an
                                            not require the written approval of the                 not spent with contractors with tax                   amount greater than $5,000,000, using funds
                                            Administrator for Federal Procurement                   delinquencies. It is in the interest of the           appropriated under Division B of the
                                            Policy.                                                 United States to only award contracts to              Consolidated and Continuing Further
                                                                                                    entities that are responsible and law-                Appropriations Act, 2015, unless the offeror
                                            C. Applicability to Commercial Items                                                                          affirmatively certifies that it has filed all
                                            (Including Commercially Available Off-                  abiding.                                              Federal tax returns required during the three
                                                                                                       This determination is consistent with              years preceding the certification; has not
                                            the-Shelf (COTS) Items) and
                                                                                                    the current coverage in paragraph (h)(4)              been convicted of a criminal offense under
                                            Acquisitions Not Greater Than the
                                                                                                    of the FAR clause at 52.212–3, Offeror                the Internal Revenue Code of 1986; and has
                                            Simplified Acquisition Threshold
                                                                                                    Representations and Certifications—                   not, more than 90 days prior to certification,
                                               This interim rule implements sections                Commercial Items, which requires                      been notified of any unpaid Federal tax
                                            744 and 745 of Division E, Title VII, and               offerors to represent whether they have,              assessment for which the liability remains
                                            section 523 of Division B, Title V, of the              within a three-year period preceding                  unsatisfied, unless the assessment is the
                                            Consolidated and Further Continuing                     their offer, been notified of any                     subject of an installment agreement or offer
                                            Appropriations Act, 2015. Sections 744                  delinquent Federal taxes in an amount                 in compromise that has been approved by the
                                                                                                                                                          Internal Revenue Service and is not in
wgreen on DSK2VPTVN1PROD with RULES2




                                            and 745 of Division E prohibit any                      that exceeds $3,500 for which the
                                            Federal agency from using funds                                                                               default, or the assessment is the subject of a
                                                                                                    liability remains unsatisfied.                        non-frivolous administrative or judicial
                                            appropriated or otherwise made                                                                                proceeding.
                                            available by the Act or any other act to                II. Executive Orders 12866 and 13563
                                                                                                                                                             The objective of the interim rule is to
                                            enter into a contract with a corporation                   Executive Orders (E.O.s) 12866 and                 prohibit award to entities that are delinquent
                                            that has delinquent unpaid taxes or has                 13563 direct agencies to assess all costs             in the payment of Federal taxes or have been
                                            been convicted of a felony criminal                     and benefits of available regulatory                  convicted of a felony under Federal law. The



                                       VerDate Sep<11>2014   15:22 Dec 03, 2015   Jkt 238001   PO 00000   Frm 00004   Fmt 4701   Sfmt 4700   E:\FR\FM\04DER2.SGM   04DER2


                                                              Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                           75905

                                            legal basis for the rule is the above cited             1. 52.209–11       Representation                     V. Determination To Issue an Interim
                                            statutes.                                                                                                     Rule
                                              Based on current data with regard to active             The annual reporting burden for
                                            registrants in the System for Award                     52.209–11 is estimated as follows:                       A determination has been made under
                                            Management (SAM), the rule will apply to                  Respondents: 352,000.                               the authority of the Secretary of Defense
                                            approximately 65,000 small business                       Responses per respondent:                           (DoD), the Administrator of General
                                            concerns, which are required to complete the            Approximately 1.01.                                   Services (GSA), and the Administrator
                                            annual representations and certifications at              Total annual responses: 355,520.                    of the National Aeronautics and Space
                                            least once per year in order to keep their                Preparation hours per response: .1                  Administration (NASA) that urgent and
                                            registration in SAM current.                                                                                  compelling reasons exist to promulgate
                                                                                                    hours.
                                              The information collection requirement
                                                                                                      Total response Burden Hours: 35,552.                this interim rule without prior
                                            imposed by this rule is minimal—it is a brief
                                            representation, and in some cases also a                                                                      opportunity for public comment. This
                                                                                                    2. 52.209–12       Certification                      action is necessary because these
                                            certification. Each representation is estimated
                                            to require an average of six minutes to                   The annual reporting burden for                     appropriations act restrictions apply to
                                            complete.                                               52.209–12 is estimated as follows:                    all funds appropriated under the
                                              The rule does not duplicate, overlap, or                Respondents: 440.                                   respective acts, and it is important to
                                            conflict with any other Federal rules.                    Responses per respondent: 3.                        provide immediate direction to
                                              DoD, GSA, and NASA were unable to                       Total annual responses: 1,320.                      contracting officers, so that they do not
                                            identify any significant alternatives that                Preparation hours per response: .1                  inadvertently violate the conditions
                                            would reduce the impact on small businesses
                                                                                                    hours.                                                placed upon the expenditure of the
                                            and still meet the objectives of the statute.
                                            However, other than the potential for not                 Total response Burden Hours: 132.                   funds. The effective date is set as
                                            receiving award if the small entity is                                                                        February 26, 2016, to allow the
                                                                                                    3. Total                                              Government to conform its procurement
                                            delinquent in payment of Federal taxes or
                                            has been convicted of a felony, there is no                The average annual reporting burden                databases. However, pursuant to 41
                                            significant economic impact on small entities           is estimated as follows:                              U.S.C. 1707 and FAR 1.501–3(b), DoD,
                                            because the information collection burden                  Total annual responses: 356,840.                   GSA, and NASA will consider public
                                            imposed by the rule is minimal.                            Preparation hours per response: .1                 comments received in response to this
                                              The Regulatory Secretariat has                        hours.                                                interim rule in the formation of the final
                                            submitted a copy of the IRFA to the                        Total response Burden Hours: 35,684.               rule.
                                            Chief Counsel for Advocacy of the Small                 B. Request for Comments Regarding                     List of Subjects in 48 CFR Parts 1, 4, 9,
                                            Business Administration. A copy of the                  Paperwork Burden                                      12, and 52
                                            IRFA may be obtained from the
                                            Regulatory Secretariat. DoD, GSA, and                     Submit comments, including                            Government procurement.
                                            NASA invite comments from small                         suggestions for reducing this burden,                   Dated: November 20, 2015.
                                            business concerns and other interested                  not later than February 2, 2016 to: FAR               William F. Clark,
                                            parties on the expected impact of this                  Desk Officer, OMB, Room 10102, NEOB,
                                                                                                                                                          Director, Office of Government-wide
                                            rule on small entities.                                 Washington, DC 20503, and a copy to                   Acquisition Policy, Office of Acquisition
                                              DoD, GSA, and NASA will also                          the General Services Administration,                  Policy, Office of Government-wide Policy.
                                            consider comments from small entities                   Regulatory Secretariat Division (MVCB),
                                                                                                    ATTN: Ms. Flowers, 1800 F Street NW.,                   Therefore, DoD, GSA and NASA
                                            concerning the existing regulations in                                                                        amend 48 CFR parts 1, 4, 9, 12, and 52
                                            subparts affected by the rule in                        2nd Floor, Washington, DC 20405–0001.
                                                                                                      Public comments are particularly                    as set forth below:
                                            accordance with 5 U.S.C. 610. Interested
                                                                                                    invited on: Whether this collection of                ■ 1. The authority citation for 48 CFR
                                            parties must submit such comments
                                            separately and should cite 5 U.S.C. 610                 information is necessary for the proper               parts 1, 4, 9, 12, and 52 continues to
                                            (FAR Case 2015–011), in                                 performance of functions of the FAR,                  read as follows:
                                            correspondence.                                         and will have practical utility; whether                Authority: 40 U.S.C. 121(c); 10 U.S.C.
                                                                                                    our estimate of the public burden of this             chapter 137; and 51 U.S.C. 20113.
                                            IV. Paperwork Reduction Act                             collection of information is accurate,
                                              The Paperwork Reduction Act (44                       and based on valid assumptions and                    PART 1—FEDERAL ACQUISITION
                                            U.S.C. Chapter 35) applies. The rule                    methodology; ways to enhance the                      REGULATIONS SYSTEM
                                            contains information collection                         quality, utility, and clarity of the                  1.106    [Amended]
                                            requirements. The Office of                             information to be collected; and ways in
                                            Management and Budget (OMB) has                         which we can minimize the burden of                   ■  2. Amend section 1.106 in the table
                                            cleared this information collection                     the collection of information on those                following the introductory text by
                                            requirement under OMB Control                           who are to respond, through the use of                adding, in sequence, FAR segments
                                            Number 9000–0193, titled: Prohibition                   appropriate technological collection                  ‘‘52.209–11’’ and ‘‘52.209–12’’ and their
                                            on Contracting with Corporations with                   techniques or other forms of information              corresponding OMB Control number
                                            Delinquent Taxes or a Felony                            technology.                                           ‘‘9000–0193’’.
                                            Conviction.                                               Requesters may obtain a copy of the
                                                                                                    supporting statement from the General                 PART 4—ADMINISTRATIVE MATTERS
                                            A. Public Reporting Burden                              Services Administration, Regulatory                   ■ 3. Amend section 4.1202 by
                                              The public reporting burden for this                  Secretariat Divison (MVCB), ATTN: Ms.                 redesignating paragraphs (a)(8) through
wgreen on DSK2VPTVN1PROD with RULES2




                                            collection of information is estimated to               Flowers, 1800 F Street NW., 2nd Floor,                (29) as paragraphs (a)(9) through (30),
                                            average .1 hours per response, including                Washington, DC 20405–0001. Please cite                respectively; and adding a new
                                            the time for reviewing instructions,                    OMB Control Number 9000–0193,                         paragraph (a)(8) to read as follows:
                                            searching existing data sources,                        Prohibition on Contracting with
                                            gathering and maintaining the data                      Corporations with Delinquent Taxes or                 4.1202 Solicitation provision and contract
                                            needed, and completing and reviewing                    a Felony Conviction, in all                           clause.
                                            the collection of information.                          correspondence.                                           (a) * * *


                                       VerDate Sep<11>2014   15:22 Dec 03, 2015   Jkt 238001   PO 00000   Frm 00005   Fmt 4701   Sfmt 4700   E:\FR\FM\04DER2.SGM   04DER2


                                            75906             Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations

                                              (8) 52.209–11, Representation by                      9.104–7 Solicitation provisions and                   52.204–8 Annual Representations and
                                            Corporations Regarding Delinquent Tax                   contract clauses.                                     Certifications.
                                            Liability or a Felony Conviction under                  *      *     *    *     *                             *        *   *      *      *
                                            any Federal Law.                                           (d) The contracting officer shall insert           Annual Representations and Certifications
                                            *     *     *     *    *                                the provision 52.209–11, Representation               (Feb 2016)
                                                                                                    by Corporations Regarding Delinquent                  *        *   *      *      *
                                            PART 9—CONTRACTOR                                       Tax Liability or a Felony Conviction                    (c)(1) * * *
                                            QUALIFICATIONS                                          under any Federal Law, in all                           (vii) 52.209–11, Representation by
                                                                                                    solicitations.                                        Corporations Regarding Delinquent Tax
                                            ■ 4. Amend section 9.104–5 by revising                                                                        Liability or a Felony Conviction under any
                                                                                                       (e) For agencies receiving funds
                                            the section heading and paragraph (b)                                                                         Federal Law. This provision applies to all
                                                                                                    subject to section 523 of Division B of
                                            and adding paragraphs (c) and (d) to                                                                          solicitations.
                                                                                                    the Consolidated and Further
                                            read as follows:                                                                                              *     *    *    *     *
                                                                                                    Continuing Appropriations Act, 2015
                                            9.104–5 Representation and certifications               (Pub. L. 113–235) and similar provisions              ■ 8. Add sections 52.209–11 and
                                            regarding responsibility matters.                       in subsequent appropriations acts, the                52.209–12 to read as follows:
                                            *      *      *    *     *                              contracting officer shall insert the                  52.209–11 Representation by Corporations
                                               (b) The provision at 52.209–11,                      provision 52.209–12, Certification                    Regarding Delinquent Tax Liability or a
                                            Representation by Corporations                          Regarding Tax Matters, in solicitations               Felony Conviction under any Federal Law.
                                            Regarding Delinquent Tax Liability or a                 for which the resultant contract                        As prescribed in 9.104–7(d), insert the
                                            Felony Conviction under any Federal                     (including options) may have a value                  following provision:
                                            Law, implements sections 744 and 745                    greater than $5,000,000. Division B of
                                                                                                    the Consolidated and Continuing                       Representation by Corporations Regarding
                                            of Division E of the Consolidated and                                                                         Delinquent Tax Liability or a Felony
                                            Further Continuing Appropriations Act,                  Further Appropriations Act, 2015
                                                                                                                                                          Conviction under any Federal Law (Feb
                                            2015 (Pub. L. 113–235) (and similar                     appropriates funds for the following                  2016)
                                            provisions in subsequent appropriations                 agencies: The Department of Commerce,
                                                                                                                                                             (a) As required by sections 744 and 745 of
                                            acts). When an offeror provides an                      the Department of Justice, the National               Division E of the Consolidated and Further
                                            affirmative response in paragraph (b)(1)                Aeronautics and Space Administration,                 Continuing Appropriations Act, 2015 (Pub. L.
                                            or (2) of the provision at 52.209–11 or                 the Office of Science and Technology                  113–235), and similar provisions, if
                                            paragraph (q)(2)(i) or (ii) of provision                Policy, the National Science                          contained in subsequent appropriations acts,
                                            52.212–3, the contracting officer shall—                Foundation, the Commission on Civil                   the Government will not enter into a contract
                                               (1) Promptly, upon receipt of offers,                Rights, the Equal Employment                          with any corporation that—
                                            request such additional information                     Opportunity Commission, the U.S.                         (1) Has any unpaid Federal tax liability
                                                                                                                                                          that has been assessed, for which all judicial
                                            from the offeror as the offeror deems                   International Trade Commission, the
                                                                                                                                                          and administrative remedies have been
                                            necessary in order to demonstrate the                   Legal Services Corporation, the Marine                exhausted or have lapsed, and that is not
                                            offeror’s responsibility to the                         Mammal Commission, the Office of the                  being paid in a timely manner pursuant to an
                                            contracting officer (but see 9.405);                    United States Trade Representative, and               agreement with the authority responsible for
                                               (2) Notify, in accordance with agency                the State Justice Institute.                          collecting the tax liability, where the
                                            procedures (see 9.406–3(a) and 9.407–                                                                         awarding agency is aware of the unpaid tax
                                            3(a)), the agency official responsible for              PART 12—ACQUISITION OF                                liability, unless an agency has considered
                                            initiating debarment or suspension                      COMMERCIAL ITEMS                                      suspension or debarment of the corporation
                                                                                                                                                          and made a determination that suspension or
                                            action; and                                                                                                   debarment is not necessary to protect the
                                               (3) Not award to the corporation                     ■ 6. Amend section 12.301 by
                                                                                                                                                          interests of the Government; or
                                            unless an agency suspending or                          redesignating paragraphs (d)(4) through                  (2) Was convicted of a felony criminal
                                            debarring official has considered                       (6) as paragraphs (d)(5) through (7),                 violation under any Federal law within the
                                            suspension or debarment of the                          respectively, and adding a new                        preceding 24 months, where the awarding
                                            corporation and made a determination                    paragraph (d)(4) to read as follows:                  agency is aware of the conviction, unless an
                                            that suspension or debarment is not                                                                           agency has considered suspension or
                                                                                                    12.301 Solicitation provisions and                    debarment of the corporation and made a
                                            necessary to protect the interests of the               contract clauses for the acquisition of               determination that this action is not
                                            Government.                                             commercial items.                                     necessary to protect the interests of the
                                               (c) If the provision at 52.209–12,                   *     *     *     *    *                              Government.
                                            Certification Regarding Tax Matters, is                                                                          (b) The Offeror represents that—
                                            applicable (see 9.104–7(e)), then the                     (d) * * *
                                                                                                                                                             (1) It is [ ] is not [ ] a corporation that has
                                            contracting officer shall not award any                   (4) Insert the provision at 52.209–12,              any unpaid Federal tax liability that has been
                                            contract in an amount greater than                      Certification Regarding Tax Matters, as               assessed, for which all judicial and
                                            $5,000,000, unless the offeror                          prescribed at 9.104–7(e).                             administrative remedies have been exhausted
                                            affirmatively certified in its offer, as                *     *     *     *    *                              or have lapsed, and that is not being paid in
                                            required by paragraph (b)(1), (2), and (3)                                                                    a timely manner pursuant to an agreement
                                                                                                    PART 52—SOLICITATION PROVISIONS                       with the authority responsible for collecting
                                            of the provision.                                                                                             the tax liability; and
                                               (d) Offerors who do not furnish the                  AND CONTRACT CLAUSES
                                                                                                                                                             (2) It is [ ] is not [ ] a corporation that was
                                            representation or certifications or such                                                                      convicted of a felony criminal violation
                                            information as may be requested by the                  ■ 7. Amend section 52.204–8 by—
                                                                                                                                                          under a Federal law within the preceding 24
                                            contracting officer shall be given an                   ■ a. Revising the date of the provision;
wgreen on DSK2VPTVN1PROD with RULES2




                                                                                                                                                          months.
                                            opportunity to remedy the deficiency.                   ■ b. Redesignating paragraphs (c)(1)(vii)
                                                                                                    through (xxi) as (c)(1)(viii) through                 (End of provision)
                                            Failure to furnish the representation or
                                            certifications or such information may                  (xxii), respectively; and                             52.209–12    Certification Regarding Tax
                                            render the offeror nonresponsible.                      ■ c. Adding a new paragraph (c)(1)(vii).              Matters.
                                            ■ 5. Amend section 9.104–7 by adding                      The revision and addition read as                     As prescribed in 9.104–7(e), insert the
                                            paragraphs (d) and (e) to read as follows:              follows:                                              following provision:


                                       VerDate Sep<11>2014   15:22 Dec 03, 2015   Jkt 238001   PO 00000   Frm 00006   Fmt 4701   Sfmt 4700   E:\FR\FM\04DER2.SGM   04DER2


                                                              Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations                                          75907

                                            Certification Regarding Tax Matters (Feb                agency has considered suspension or                   I. Background
                                            2016)                                                   debarment of the corporation and made a
                                                                                                    determination that this action is not                    DoD, GSA, and NASA published an
                                               (a) This provision implements section 523                                                                  interim rule in the Federal Register at
                                            of Division B of the Consolidated and Further           necessary to protect the interests of the
                                            Continuing Appropriations Act, 2015 (Pub. L.            Government.                                           80 FR 19504 on April 10, 2015, to
                                            113–235), and similar provisions, if                       (2) The Offeror represents that—                   implement E.O. 13672, entitled,
                                            contained in subsequent appropriations acts.               (i) It is [ ] is not [ ] a corporation that has    ‘‘Further Amendments to Executive
                                               (b) If the Offeror is proposing a total              any unpaid Federal tax liability that has been        Order 11478, Equal Employment
                                            contract price that will exceed $5,000,000              assessed, for which all judicial and                  Opportunity in the Federal Government,
                                            (including options), the Offeror shall certify          administrative remedies have been exhausted           and Executive Order 11246, Equal
                                            that, to the best of its knowledge and belief,          or have lapsed, and that is not being paid in
                                                                                                                                                          Employment Opportunity,’’ and a final
                                            it—                                                     a timely manner pursuant to an agreement
                                                                                                    with the authority responsible for collecting         rule issued by the Department of Labor
                                               (1) Has [ ] filed all Federal tax returns
                                            required during the three years preceding the           the tax liability; and                                at 41 CFR part 60. One public comment
                                            certification;                                             (ii) It is [ ] is not [ ] a corporation that was   was submitted on the interim rule.
                                               (2) Has not [ ] been convicted of a criminal         convicted of a felony criminal violation
                                                                                                                                                          II. Discussion and Analysis
                                            offense under the Internal Revenue Code of              under a Federal law within the preceding 24
                                            1986; and                                               months.                                                  The Civilian Agency Acquisition
                                               (3) Has not [ ], more than 90 days prior to                                                                Council and the Defense Acquisition
                                            certification, been notified of any unpaid              (End of provision)                                    Regulations Council (the Councils)
                                            Federal tax assessment for which the liability          [FR Doc. 2015–30456 Filed 12–3–15; 8:45 am]           reviewed the public comment in the
                                            remains unsatisfied, unless the assessment is           BILLING CODE 6820–EP–P                                development of the final rule. The
                                            the subject of an installment agreement or
                                                                                                                                                          respondent had pointed to an error in a
                                            offer in compromise that has been approved
                                            by the Internal Revenue Service and is not in                                                                 clause number in the interim rule
                                                                                                    DEPARTMENT OF DEFENSE                                 publication. The error in FAR 52.213–4
                                            default, or the assessment is the subject of a
                                            non-frivolous administrative or judicial                                                                      was corrected in a Technical
                                                                                                    GENERAL SERVICES
                                            proceeding.                                                                                                   Amendment to Federal Acquisition
                                                                                                    ADMINISTRATION
                                                                                                                                                          Circular 2005–82 published in the
                                            (End of provision)                                                                                            Federal Register at 80 FR 26427 on May
                                            ■ 9. Amend section 52.212–3 by—
                                                                                                    NATIONAL AERONAUTICS AND
                                                                                                                                                          7, 2015; therefore no further change to
                                            ■ a. Revising the date of the provision;                SPACE ADMINISTRATION
                                                                                                                                                          the interim rule is required.
                                            ■ b. Removing from the introductory
                                            text and the first undesignated                         48 CFR Parts 1, 22, and 52                            III. Executive Orders 12866 and 13563
                                            paragraph in paragraph (b)(2) ‘‘through                                                                          Executive Orders (E.O.s) 12866 and
                                            p’’ and adding ‘‘though q’’ in their                    [FAC 2005–85; FAR Case 2015–013; Item
                                                                                                    II; Docket No. 2015–0013, Sequence No. 1]
                                                                                                                                                          13563 direct agencies to assess all costs
                                            places, respectively; and                                                                                     and benefits of available regulatory
                                            ■ c. Adding paragraph (q).                                                                                    alternatives and, if regulation is
                                                                                                    RIN 9000–AN01
                                              The revision and addition read as                                                                           necessary, to select regulatory
                                            follows:                                                Federal Acquisition Regulation;                       approaches that maximize net benefits
                                            52.212–3 Offeror Representations and                    Further Amendments to Equal                           (including potential economic,
                                            Certifications—Commercial Items.                        Employment Opportunity                                environmental, public health and safety
                                            *      *     *       *      *                                                                                 effects, distributive impacts, and
                                                                                                    AGENCY:  Department of Defense (DoD),                 equity). E.O. 13563 emphasizes the
                                            Offeror Representations and Certifications—             General Services Administration (GSA),                importance of quantifying both costs
                                            Commercial Items (Feb 2016)                             and National Aeronautics and Space                    and benefits, of reducing costs, of
                                            *      *     *       *      *                           Administration (NASA).                                harmonizing rules, and of promoting
                                               (q) Representation by Corporations                   ACTION: Final rule.                                   flexibility. This is not a significant
                                            Regarding Delinquent Tax Liability or a                                                                       regulatory action and, therefore, was not
                                            Felony Conviction under any Federal Law. (1)            SUMMARY:   DoD, GSA, and NASA have                    subject to review under Section 6(b) of
                                            As required by sections 744 and 745 of                  adopted as final, without change, an
                                            Division E of the Consolidated and Further                                                                    E.O. 12866, Regulatory Planning and
                                                                                                    interim rule amending the Federal                     Review, dated September 30, 1993. This
                                            Continuing Appropriations Act, 2015 (Pub. L.            Acquisition Regulation (FAR) to
                                            113–235), and similar provisions, if                                                                          rule is not a major rule under 5 U.S.C.
                                                                                                    implement Executive Order (E.O.)                      804.
                                            contained in subsequent appropriations acts,
                                            The Government will not enter into a
                                                                                                    13672, entitled, ‘‘Further Amendments
                                            contract with any corporation that—                     to Executive Order 11478, Equal                       IV. Regulatory Flexibility Act
                                               (i) Has any unpaid Federal tax liability that        Employment Opportunity in the Federal                   DoD, GSA, and NASA have prepared
                                            has been assessed, for which all judicial and           Government, and Executive Order                       a Final Regulatory Flexibility Analysis
                                            administrative remedies have been exhausted             11246, Equal Employment                               (FRFA) consistent with the Regulatory
                                            or have lapsed, and that is not being paid in           Opportunity,’’ and a final rule issued by             Flexibility Act, 5 U.S.C. 604, et seq. The
                                            a timely manner pursuant to an agreement                the Department of Labor (DOL).
                                            with the authority responsible for collecting
                                                                                                                                                          FRFA is summarized as follows:
                                                                                                    DATES: Effective: December 4, 2015.
                                            the tax liability, where the awarding agency                                                                     This rule is necessary to implement
                                            is aware of the unpaid tax liability, unless an         FOR FURTHER INFORMATION CONTACT: Mr.                  Executive Order (E.O.) 13672, ‘‘Further
                                            agency has considered suspension or                     Edward Loeb, Procurement Analyst, at                  Amendments to Executive Order 11478,
                                            debarment of the corporation and made a                 202–501–0650 for clarification of                     Equal Employment Opportunity in the
wgreen on DSK2VPTVN1PROD with RULES2




                                            determination that suspension or debarment              content. For information pertaining to                Federal Government, and Executive Order
                                            is not necessary to protect the interests of the        status or publication schedules, contact              11246, Equal Employment Opportunity,’’ and
                                            Government; or                                          the Regulatory Secretariat at 202–501–                a final rule issued by the DOL at 41 CFR part
                                               (ii) Was convicted of a felony criminal                                                                    60, which published in the Federal Register
                                            violation under any Federal law within the
                                                                                                    4755. Please cite FAC 2005–85, FAR                    at 79 FR 72985 on December 09, 2014.
                                            preceding 24 months, where the awarding                 Case 2015–013.                                           The interim rule, published on April 10,
                                            agency is aware of the conviction, unless an            SUPPLEMENTARY INFORMATION:                            2015, provides for a uniform policy to



                                       VerDate Sep<11>2014   15:22 Dec 03, 2015   Jkt 238001   PO 00000   Frm 00007   Fmt 4701   Sfmt 4700   E:\FR\FM\04DER2.SGM   04DER2



Document Created: 2015-12-14 13:52:31
Document Modified: 2015-12-14 13:52:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim rule.
ContactMs. Cecelia L. Davis, Procurement Analyst, at 202-219-0202 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-85, FAR Case 2015-011.
FR Citation80 FR 75903 
RIN Number9000-AN05
CFR Citation48 CFR 12
48 CFR 1
48 CFR 4
48 CFR 52
48 CFR 9

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR