80 FR 75913 - Federal Acquisition Regulation; Retention Periods

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to update the Government contract file retention periods to conform with the retention periods in the National Archives and Records Administration (NARA) General Records Schedule.

[Federal Register Volume 80, Number 233 (Friday, December 4, 2015)]
[Rules and Regulations]
[Pages 75913-75915]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30460]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 4

[FAC 2005-85; FAR Case 2015-009; Item V; Docket No. 2015-0009, Sequence 
No. 1]
RIN 9000-AN12


Federal Acquisition Regulation; Retention Periods

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to update the Government contract 
file retention periods to conform with the retention periods in the 
National Archives and Records Administration (NARA) General Records 
Schedule.

DATES: Effective: January 4, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Curtis E. Glover, Sr., Procurement 
Analyst, at 202-501-1448, for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-85, FAR Case 2015-
009.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA are issuing a final rule to update the 
Government file retention periods identified at FAR 4.805, Government 
contract files, to conform with the retention periods in the revised 
NARA General Records Schedule (GRS) 1.1, Financial Management and 
Reporting Records notice, which was published in the Federal Register 
at 79 FR 54747 on September 12, 2014. The Financial Management and 
Reporting Records can be found at http://www.archives.gov/records-mgmt/grs.html.
    NARA has undertaken a 5-year project to redraft the entire GRS to 
reflect the realities of current Government business practices and make 
it more useful in a world where almost all record keeping is 
electronic. NARA is charged with oversight of how all records of the 
Federal Government are managed and retained for business use and 
historical research. Its research on writing a new schedule for 
Financial Management and Reporting Records (GRS 1.1) was carried out 
under that authority.
    NARA's research has shown that many agencies believe the break 
between procurements over and under the simplified acquisition 
threshold (6 years, 3 months versus 3 years retention) is no longer 
useful to them. NARA polled records management personnel at numerous 
agencies regarding records created in largely electronic acquisition 
systems. It also examined and tallied statistics regarding some 675,000 
boxes of hard-copy records stored in the Federal Records Center system. 
As such, NARA eliminated the distinction between over and under the 
simplified acquisition threshold for purposes of record keeping and 
unified all retention under a single figure of 6 years under GRS 1.1, 
item 010.
    The retention periods for Government contract records at FAR 
section 4.805 is changed to conform to the revised NARA GRS 1.1, as 
follows:
     Language at paragraph (a) regarding agency procedures for 
contract file disposal is removed.
     Language at paragraph (b) regarding retention periods for 
acquisitions conducted prior to July 3, 1995 is removed.
     Language is added at a new paragraph (c) to require 
agencies to request approval from NARA through the agency's records 
officer if a shorter retention is needed.
     In the Table at 4-1:
    [cir] The retention period identified for records related to 
Contract Disputes statute actions is removed; the requirement is 
covered by paragraphs numbered (1) and (8).
    [cir] The retention period for all contracts and related records is 
changed to 6 years after final payment.
    [cir] The retention period for unsolicited proposals not accepted 
by the agency is changed to be in accordance with agency procedures.

II. Publication of This Final Rule for Public Comment is Not Required 
By Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it only changes the retention periods for Government contract 
files. These requirements affect only the internal operating procedures 
of the Government.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This

[[Page 75914]]

rule is not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 does not require 
publication for public comment.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. Chapter 35).

List of Subject in 48 CFR Part 4

    Government procurement.

    Dated: November 20, 2015.
William 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 part 4 as set forth 
below:

PART 4--ADMINISTRATIVE MATTERS

0
1. The authority citation for 48 CFR part 4 continues to read as 
follows:

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


0
2. Revise section 4.805 to read as follows.


4.805  Storage, handling, and contract files.

    (a) Agencies must prescribe procedures for the handling, storing, 
and disposing of contract files, in accordance with the National 
Archives and Records Administration (NARA) General Records Schedule 
1.1, Financial Management and Reporting Records. The Financial 
Management and Reporting Records can be found at http://www.archives.gov/records-mgmt/grs.html. These procedures must take into 
account documents held in all types of media, including microfilm and 
various electronic media. Agencies may change the original medium to 
facilitate storage as long as the requirements of Part 4, law, and 
other regulations are satisfied. The process used to create and store 
records must record and reproduce the original document, including 
signatures and other written and graphic images completely, accurately, 
and clearly. Data transfer, storage, and retrieval procedures must 
protect the original data from alteration. Unless law or other 
regulations require signed originals to be kept, they may be destroyed 
after the responsible agency official verifies that record copies on 
alternate media and copies reproduced from the record copy are 
accurate, complete, and clear representations of the originals. When 
original documents have been converted to alternate media for storage, 
the requirements in Table 4-1 of this section also apply to the record 
copies in the alternate media.
    (b) If administrative records are mixed with program records and 
cannot be economically segregated, the entire file should be kept for 
the period of time approved for the program records. Similarly, if 
documents described in the following table are part of a subject or 
case file that documents activities that are not described in the 
table, they should be treated in the same manner as the files of which 
they are a part.
    (c) An agency that requires a shorter retention period than those 
identified in Table 4-1 shall request approval from NARA through the 
agency's records officer.

                      Table 4-1--Retention Periods
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                 Record                          Retention period
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(1) Contracts (and related records or    6 years after final payment.
 documents, including successful and
 unsuccessful proposals, except see
 paragraph (c)(2) of this section
 regarding contractor payrolls
 submitted under construction
 contracts).
(2) Contractor's payrolls submitted      3 years after contract
 under construction contracts in          completion unless contract
 accordance with Department of Labor      performance is the subject of
 regulations (29 CFR 5.5(a)(3)), with     an enforcement action on that
 related certifications, anti-kickback    date (see paragraph (c)(8) of
 affidavits, and other related records.   this section).
(3) Unsolicited proposals not accepted   Retain in accordance with
 by a department or agency.               agency procedures.
(4) Files for canceled solicitations...  6 years after cancellation.
(5) Other copies of procurement file     When business use ceases.
 records used for administrative
 purposes.
(6) Documents pertaining generally to    Until superseded or obsolete.
 the contractor as described at
 4.801(c)(3).
(7) Data submitted to the Federal        6 years after submittal to
 Procurement Data System (FPDS).          FPDS.
 Electronic data file maintained by
 fiscal year, containing unclassified
 records of all procurements exceeding
 the micro-purchase threshold, and
 information required under 4.603.
(8) Investigations, cases pending or in  Until final clearance or
 litigation (including protests), or      settlement, or, if related to
 similar matters (including enforcement   a document identified in
 actions).                                paragraphs (c)(1) through (7)
                                          of this section, for the
                                          retention period specified for
                                          the related document,
                                          whichever is later.
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[FR Doc. 2015-30460 Filed 12-3-15; 8:45 am]
 BILLING CODE 6820-EP-P