81_FR_28906 81 FR 28816 - Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018)

81 FR 28816 - Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 90 (May 10, 2016)

Page Range28816-28817
FR Document2016-10829

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to consolidate the multiple hotline posters into one poster that delineates multiple reportable offenses.

Federal Register, Volume 81 Issue 90 (Tuesday, May 10, 2016)
[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Proposed Rules]
[Pages 28816-28817]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10829]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2016-0016]
RIN 0750-AI94


Defense Federal Acquisition Regulation Supplement: Display of 
Hotline Posters (DFARS Case 2016-D018)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to consolidate the multiple hotline 
posters into one poster that delineates multiple reportable offenses.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before July 11, 2016, to be considered in 
the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2016-D018, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2016-D018'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2016-D018.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2016-D018'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2016-D018 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Mr. 
Christopher Stiller, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense 
Pentagon, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal 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: Mr. Christopher Stiller, telephone 
571-372-6176.

SUPPLEMENTARY INFORMATION:

I. Background

    This rule proposes to revise the DFARS to update DFARS clause 
252.203-7004, Display of Hotline Posters. This clause currently 
requires the display of a DoD fraud hotline poster, a separate 
combating trafficking in persons poster, and a whistleblower protection 
poster. DoD has consolidated the posters into one poster to reduce the 
number of posters required to be displayed and proposes updating the 
clause accordingly. This rule also removes the United States-only 
restriction for use of the DoD poster, because the human trafficking 
poster requires display outside the United States, even though the 
fraud hotline poster did not. Additionally, if the contract is funded, 
in whole or in part, by the Department of Homeland Security (DHS) 
disaster relief funds and the work is to be performed in the United 
States, the DHS fraud hotline poster must also be displayed. The clause 
also is amended to provide contact information for obtaining the DHS 
poster.

II. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

III. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
However, an initial regulatory flexibility analysis has been performed 
and is summarized as follows:

[[Page 28817]]

    The Defense Federal Acquisition Regulation Supplement (DFARS) 
clause 252.203-7004, Display of Hotline Posters, currently requires, in 
certain circumstance, the display of a DoD fraud hotline poster, a DoD 
Combatting Trafficking in Persons hotline poster, and a Department of 
Homeland Security (DHS) fraud hotline poster. The DoD Inspector General 
has consolidated the DoD hotline posters; therefore, only a one DoD 
poster is required.
    DoD is proposing to amend the clause to clarify that only one DoD 
poster is required and to remove the United States-only applicability 
for the DoD fraud hotline poster. The rule also proposes to add contact 
information for obtaining the DHS hotline poster.
    The clause is required for use in contracts with an estimated value 
greater than $5.5 million, except contracts awarded using Federal 
Acquisition Regulations part 12 commercial item procedures for the 
acquisition of commercial item. According to data available in the 
Federal Procurement Data System, in fiscal year (FY) 2015, DoD awarded 
4,180 contracts meeting this criteria to 2,656 unique vendors, of which 
1,598 (approximately 60% percent) were small businesses. DoD estimates 
the total number of small businesses affected by this rule to be 
approximately 1,920 small businesses (the total for FY 2015 plus 20 
percent to accommodate subcontractor applicability).
    This proposed rule does not add any new reporting, recordkeeping, 
or compliance requirements.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known alternatives to accomplish the objectives of the 
proposed rule. The impact of this rule on small business is expected to 
be insignificant.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C 610 (DFARS Case 2016-D018), in 
correspondence.

IV. Paperwork Reduction Act

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

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 252 is proposed to be amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for part 252 continues to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

0
2. Amend section 252.203-7004 by--
0
a. Removing the clause date ``(OCT 2015)'' and adding ``(DATE)'' in its 
place;
0
b. Revising paragraph (b);
0
c. Removing paragraph (c);
0
d. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d), 
respectively;
0
e. In newly redesignated paragraph (c)(1), removing ``These DoD hotline 
posters'' and adding ``The DoD hotline poster'' in its place;
0
f. In newly redesignated paragraph (c)(2), removing ``posters are'' and 
adding ``poster is'' in its place and removing ``(d)(1)'' and adding '' 
(c)(1)'' in its place; and
0
g. In newly designated paragraph (d), removing ``(e)'' and adding 
``(d)'' in its place.
    The revision reads as follows:


252.203-7004  Display of Hotline Posters.

* * * * *
    (b) Display of hotline poster(s). (1) The Contractor shall display 
prominently the DoD fraud, waste, and abuse hotline poster, in effect 
at time of contract award prepared by the DoD Office of the Inspector 
General, in common work areas within business segments performing work 
under DoD contracts.
    (2) If the contract is funded, in whole or in part, by Department 
of Homeland Security (DHS) disaster relief funds and the work is to be 
performed in the United States the DHS fraud hotline poster shall be 
displayed in addition to the DoD hotline poster. If a display of a DHS 
fraud hotline poster is required, the Contractor may obtain such poster 
from: DHS Office of Inspector General/MAIL STOP 0305, Attn: Office of 
Investigations--Hotline, 245 Murray Lane SW., Washington, DC 20528-
0305, or also available via the internet at https://www.oig.dhs.gov/assets/Hotline/DHS_OIG_Hotline-optimized.jpg.
* * * * *
[FR Doc. 2016-10829 Filed 5-9-16; 8:45 am]
 BILLING CODE 5001-06-P



                                               28816                    Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Proposed Rules

                                               ■  g. In newly redesignated paragraph                   was developed exclusively at private                  approximately two to three days after
                                               (g)(1) introductory text, removing                      expense.                                              submission to verify posting (except
                                               ‘‘(h)(3)’’ and adding ‘‘(g)(3)’’ in its place;          *    *    *    *    *                                 allow 30 days for posting of comments
                                               and                                                     [FR Doc. 2016–10827 Filed 5–9–16; 8:45 am]            submitted by mail).
                                               ■ h. In newly redesignated paragraph                    BILLING CODE 5001–06–P                                FOR FURTHER INFORMATION CONTACT: Mr.
                                               (g)(3), removing ‘‘(h)(1)’’ and adding                                                                        Christopher Stiller, telephone 571–372–
                                               ‘‘(g)(1)’’ in its place.                                                                                      6176.
                                               ■ 5. Amend section 252.227–7037 by—                     DEPARTMENT OF DEFENSE                                 SUPPLEMENTARY INFORMATION:
                                               ■ a. Removing the clause date ‘‘(JUN
                                                                                                       Defense Acquisition Regulations                       I. Background
                                               2013)’’ and adding ‘‘(DATE)’’ in its
                                               place; and                                              System                                                   This rule proposes to revise the
                                               ■ b. Revising paragraphs (b)(1) and (2).                                                                      DFARS to update DFARS clause
                                                  The revision reads as follows:                       48 CFR Part 252                                       252.203–7004, Display of Hotline
                                                                                                       [Docket DARS–2016–0016]                               Posters. This clause currently requires
                                               252.227–7037 Validation of restrictive                                                                        the display of a DoD fraud hotline
                                               markings on technical data.                             RIN 0750–AI94                                         poster, a separate combating trafficking
                                                  (b) * * *                                                                                                  in persons poster, and a whistleblower
                                                                                                       Defense Federal Acquisition                           protection poster. DoD has consolidated
                                                  (1) Commercial items. (i) Except as
                                                                                                       Regulation Supplement: Display of                     the posters into one poster to reduce the
                                               provided in paragraph (b)(2) of this
                                                                                                       Hotline Posters (DFARS Case 2016–                     number of posters required to be
                                               clause, the Contracting Officer will
                                                                                                       D018)                                                 displayed and proposes updating the
                                               presume that the Contractor’s or a
                                               subcontractor’s asserted use or release                 AGENCY:  Defense Acquisition                          clause accordingly. This rule also
                                               restrictions with respect to a                          Regulations System, Department of                     removes the United States-only
                                               commercial item is justified on the basis               Defense (DoD).                                        restriction for use of the DoD poster,
                                               that the item was developed exclusively                 ACTION: Proposed rule.
                                                                                                                                                             because the human trafficking poster
                                               at private expense.                                                                                           requires display outside the United
                                                  (ii) The Contracting Officer will not                SUMMARY:   DoD is proposing to amend                  States, even though the fraud hotline
                                               challenge such assertions unless the                    the Defense Federal Acquisition                       poster did not. Additionally, if the
                                               Contracting Officer has information that                Regulation Supplement (DFARS) to                      contract is funded, in whole or in part,
                                               demonstrates that the commercial item                   consolidate the multiple hotline posters              by the Department of Homeland
                                               was not developed exclusively at                        into one poster that delineates multiple              Security (DHS) disaster relief funds and
                                               private expense.                                        reportable offenses.                                  the work is to be performed in the
                                                  (2) Major weapon systems. In the case                DATES: Comments on the proposed rule                  United States, the DHS fraud hotline
                                               of a challenge to a use or release                      should be submitted in writing to the                 poster must also be displayed. The
                                               restriction that is asserted with respect               address shown below on or before July                 clause also is amended to provide
                                               to data of the Contractor or a                          11, 2016, to be considered in the                     contact information for obtaining the
                                               subcontractor for a major weapon                        formation of a final rule.                            DHS poster.
                                               system or a subsystem or component                      ADDRESSES: Submit comments                            II. Executive Orders 12866 and 13563
                                               thereof on the basis that the major                     identified by DFARS Case 2016–D018,                      Executive Orders (E.O.s) 12866 and
                                               weapon system, subsystem, or                            using any of the following methods:                   13563 direct agencies to assess all costs
                                               component was developed exclusively                        Æ Regulations.gov: http://                         and benefits of available regulatory
                                               at private expense—                                     www.regulations.gov. Submit comments                  alternatives and, if regulation is
                                                  (i) The presumption in paragraph                     via the Federal eRulemaking portal by                 necessary, to select regulatory
                                               (b)(1) of this clause applies to—                       entering ‘‘DFARS Case 2016–D018’’                     approaches that maximize net benefits
                                                  (A) A commercial subsystem or                        under the heading ‘‘Enter keyword or                  (including potential economic,
                                               component of a major weapon system,                     ID’’ and selecting ‘‘Search.’’ Select the             environmental, public health and safety
                                               if the major weapon system was                          link ‘‘Submit a Comment’’ that                        effects, distributive impacts, and
                                               acquired as a commercial item in                        corresponds with ‘‘DFARS Case 2016–                   equity). E.O. 13563 emphasizes the
                                               accordance with DFARS subpart 234.70                    D018.’’ Follow the instructions provided              importance of quantifying both costs
                                               (10 U.S.C. 2379(a));                                    at the ‘‘Submit a Comment’’ screen.                   and benefits, of reducing costs, of
                                                  (B) A component of a subsystem, if                   Please include your name, company                     harmonizing rules, and of promoting
                                               the subsystem was acquired as a                         name (if any), and ‘‘DFARS Case 2016–                 flexibility. This is not a significant
                                               commercial item in accordance with                      D018’’ on your attached document.                     regulatory action and, therefore, was not
                                               DFARS subpart 234.70 (10 U.S.C.                            Æ Email: osd.dfars@mail.mil. Include               subject to review under section 6(b) of
                                               2379(b)); and                                           DFARS Case 2016–D018 in the subject                   E.O. 12866, Regulatory Planning and
                                                  (C) Any other component, if the                      line of the message.                                  Review, dated September 30, 1993. This
                                               component is a commercially available                      Æ Fax: 571–372–6094.                               rule is not a major rule under 5 U.S.C.
                                               off-the-shelf item or a commercially                       Æ Mail: Defense Acquisition                        804.
                                               available off-the-shelf item with                       Regulations System, Attn: Mr.
                                               modifications of a type customarily                     Christopher Stiller, OUSD(AT&L)DPAP/                  III. Regulatory Flexibility Act
                                               available in the commercial marketplace                 DARS, Room 3B941, 3060 Defense                           DoD does not expect this proposed
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                                               or minor modifications made to meet                     Pentagon, Washington, DC 20301–3060.                  rule to have a significant economic
                                               Federal Government requirements; and                       Comments received generally will be                impact on a substantial number of small
                                                  (ii) In all other cases, the challenge to            posted without change to http://                      entities within the meaning of the
                                               the use or release restriction will be                  www.regulations.gov, including any                    Regulatory Flexibility Act, 5 U.S.C. 601,
                                               sustained unless information provided                   personal information provided. To                     et seq. However, an initial regulatory
                                               by the Contractor or a subcontractor                    confirm receipt of your comment(s),                   flexibility analysis has been performed
                                               demonstrates that the item or process                   please check www.regulations.gov,                     and is summarized as follows:


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                                                                        Federal Register / Vol. 81, No. 90 / Tuesday, May 10, 2016 / Proposed Rules                                                  28817

                                                  The Defense Federal Acquisition                      proposed rule. The impact of this rule                ■ e. In newly redesignated paragraph
                                               Regulation Supplement (DFARS) clause                    on small business is expected to be                   (c)(1), removing ‘‘These DoD hotline
                                               252.203–7004, Display of Hotline                        insignificant.                                        posters’’ and adding ‘‘The DoD hotline
                                               Posters, currently requires, in certain                   DoD will also consider comments                     poster’’ in its place;
                                               circumstance, the display of a DoD                      from small entities concerning the                    ■ f. In newly redesignated paragraph
                                               fraud hotline poster, a DoD Combatting                  existing regulations in subparts affected             (c)(2), removing ‘‘posters are’’ and
                                               Trafficking in Persons hotline poster,                  by this rule in accordance with 5 U.S.C.              adding ‘‘poster is’’ in its place and
                                               and a Department of Homeland Security                   610. Interested parties must submit such              removing ‘‘(d)(1)’’ and adding ’’ (c)(1)’’
                                               (DHS) fraud hotline poster. The DoD                     comments separately and should cite 5                 in its place; and
                                               Inspector General has consolidated the                  U.S.C 610 (DFARS Case 2016–D018), in
                                                                                                                                                             ■ g. In newly designated paragraph (d),
                                               DoD hotline posters; therefore, only a                  correspondence.
                                                                                                                                                             removing ‘‘(e)’’ and adding ‘‘(d)’’ in its
                                               one DoD poster is required.                             IV. Paperwork Reduction Act                           place.
                                                  DoD is proposing to amend the clause
                                                                                                         The rule does not contain any                          The revision reads as follows:
                                               to clarify that only one DoD poster is
                                               required and to remove the United                       information collection requirements that              252.203–7004      Display of Hotline Posters.
                                               States-only applicability for the DoD                   require the approval of the Office of
                                                                                                       Management and Budget under the                       *      *      *    *      *
                                               fraud hotline poster. The rule also
                                                                                                       Paperwork Reduction Act (44 U.S.C.                       (b) Display of hotline poster(s). (1)
                                               proposes to add contact information for
                                                                                                       chapter 35).                                          The Contractor shall display
                                               obtaining the DHS hotline poster.
                                                                                                                                                             prominently the DoD fraud, waste, and
                                                  The clause is required for use in                    List of Subjects in 48 CFR Part 252                   abuse hotline poster, in effect at time of
                                               contracts with an estimated value
                                                                                                         Government procurement.                             contract award prepared by the DoD
                                               greater than $5.5 million, except
                                                                                                                                                             Office of the Inspector General, in
                                               contracts awarded using Federal                         Jennifer L. Hawes,
                                                                                                                                                             common work areas within business
                                               Acquisition Regulations part 12                         Editor, Defense Acquisition Regulations
                                                                                                                                                             segments performing work under DoD
                                               commercial item procedures for the                      System.
                                                                                                                                                             contracts.
                                               acquisition of commercial item.                           Therefore, 48 CFR part 252 is
                                               According to data available in the                                                                               (2) If the contract is funded, in whole
                                                                                                       proposed to be amended as follows:
                                               Federal Procurement Data System, in                                                                           or in part, by Department of Homeland
                                               fiscal year (FY) 2015, DoD awarded                      PART 252—SOLICITATION                                 Security (DHS) disaster relief funds and
                                               4,180 contracts meeting this criteria to                PROVISIONS AND CONTRACT                               the work is to be performed in the
                                               2,656 unique vendors, of which 1,598                    CLAUSES                                               United States the DHS fraud hotline
                                               (approximately 60% percent) were                                                                              poster shall be displayed in addition to
                                               small businesses. DoD estimates the                     ■ 1. The authority citation for part 252              the DoD hotline poster. If a display of
                                               total number of small businesses                        continues to read as follows:                         a DHS fraud hotline poster is required,
                                               affected by this rule to be approximately                 Authority: 41 U.S.C. 1303 and 48 CFR                the Contractor may obtain such poster
                                               1,920 small businesses (the total for FY                chapter 1.                                            from: DHS Office of Inspector General/
                                               2015 plus 20 percent to accommodate                                                                           MAIL STOP 0305, Attn: Office of
                                                                                                       ■ 2. Amend section 252.203–7004 by—
                                               subcontractor applicability).                           ■ a. Removing the clause date ‘‘(OCT                  Investigations—Hotline, 245 Murray
                                                  This proposed rule does not add any                  2015)’’ and adding ‘‘(DATE)’’ in its                  Lane SW., Washington, DC 20528–0305,
                                               new reporting, recordkeeping, or                        place;                                                or also available via the internet at
                                               compliance requirements.                                ■ b. Revising paragraph (b);
                                                                                                                                                             https://www.oig.dhs.gov/assets/Hotline/
                                                  The rule does not duplicate, overlap,                ■ c. Removing paragraph (c);                          DHS_OIG_Hotline-optimized.jpg.
                                               or conflict with any other Federal rules.               ■ d. Redesignating paragraphs (d) and                 *      *      *    *      *
                                                  There are no known alternatives to                   (e) as paragraphs (c) and (d),                        [FR Doc. 2016–10829 Filed 5–9–16; 8:45 am]
                                               accomplish the objectives of the                        respectively;                                         BILLING CODE 5001–06–P
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Document Created: 2016-05-10 05:18:37
Document Modified: 2016-05-10 05:18:37
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments on the proposed rule should be submitted in writing to
ContactMr. Christopher Stiller, telephone 571-372-6176.
FR Citation81 FR 28816 
RIN Number0750-AI94

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