81_FR_3777 81 FR 3763 - Federal Acquisition Regulation: Contractor Employee Internal Confidentiality Agreements

81 FR 3763 - Federal Acquisition Regulation: Contractor Employee Internal Confidentiality Agreements

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 81, Issue 14 (January 22, 2016)

Page Range3763-3767
FR Document2016-01050

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement a section of the Consolidated and Further Continuing Appropriations Act, 2015, that prohibits the use of funds, appropriated or otherwise made available, for a contract with an entity that requires employees or subcontractors to sign an internal confidentiality agreement that restricts such employees or subcontractors from lawfully reporting waste, fraud, or abuse to a designated Government representative authorized to receive such information.

Federal Register, Volume 81 Issue 14 (Friday, January 22, 2016)
[Federal Register Volume 81, Number 14 (Friday, January 22, 2016)]
[Proposed Rules]
[Pages 3763-3767]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01050]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 3, 4, and 52

[FAR Case 2015-012; Docket No. 2015-0012; Sequence No. 1]
RIN 9000-AN04


Federal Acquisition Regulation: Contractor Employee Internal 
Confidentiality Agreements

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

ACTION: Proposed rule.

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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement a section of the Consolidated 
and Further Continuing Appropriations Act, 2015, that prohibits the use 
of funds, appropriated or otherwise made available, for a contract with 
an entity that requires employees or subcontractors to sign an internal 
confidentiality agreement that restricts such employees or 
subcontractors from lawfully reporting waste, fraud, or abuse to a 
designated Government representative authorized to receive such 
information.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat at one of the addresses shown below on or before 
March 22, 2016 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FAR Case 2015-012 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2015-012''. Select the link ``Comment Now'' that corresponds with FAR 
Case 2015-012. Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2015-012'' on 
your attached document(s).
     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 ``FAR Case 2015-
012'' in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided. 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 at 202-501-4755. Please cite FAR Case 2015-012.

SUPPLEMENTARY INFORMATION:

I. Background

    This proposed rule revises the FAR to implement section 743 of 
Division E,

[[Page 3764]]

Title VII, of the Consolidated and Further Continuing Appropriations 
Act, 2015 (Pub. L. 113-235) and successor provisions in subsequent 
appropriations acts (and as extended in continuing resolutions). 
Section 743 prohibits the use of funds appropriated or otherwise made 
available by Division E or any other Act for a contract, grant, or 
cooperative agreement with an entity that requires employees or 
subcontractors of such entity seeking to report waste, fraud, or abuse 
to sign internal confidentiality agreements or statements prohibiting 
or otherwise restricting such employees or subcontractors from lawfully 
reporting such waste, fraud, or abuse to a designated investigative or 
law enforcement representative of a Federal department or agency 
authorized to receive such information.

II. Discussion and Analysis

A. FAR Changes

    This proposed rule implements section 743 by adding a new FAR 
section 3.909, Prohibition on contracting with entities that require 
certain internal confidentiality agreements. The proposed rule is 
written to also cover future successor provisions in subsequent 
appropriations acts and perpetuation of the requirement through 
continuing resolutions. This allows more seamless implementation. If at 
any point an appropriations act does not include a similar prohibition, 
the FAR will be modified accordingly.
    The proposed rule requires that each offeror, in order to be 
eligible for award, represent, by submission of its offer, that it does 
not require employees or subcontractors to sign or comply with such 
internal confidentiality agreements. The representation is in a new 
provision at FAR section 52.203-XX, Prohibition on Contracting with 
Entities that Require Certain Internal Confidentiality Agreements--
Representation, which must be included in all solicitations, except 
solicitations for personal services contracts with an individual, using 
funds subject to the prohibition, except that this requirement is 
implemented for commercial item solicitations by the part 12 provision 
at FAR section 52.212-3, paragraph (q). Contracting officers shall not 
insert this provision in solicitations for personal services contracts 
with an individual if the services are to be performed entirely by the 
individual, rather than by an employee of the contractor or a 
subcontractor.
    The new FAR clause 52.203-YY, Prohibition on Contracting with 
Entities that Require Certain Internal Confidentiality Agreements, 
notifies the contractor of the prohibition on use of funds for the 
contract, if the contractor is in noncompliance with the requirements 
of the clause. The clause also requires that contractors notify 
employees that any such agreements in pre-existing confidentiality 
agreements are no longer in effect. This notice could be accomplished 
through normal business communication channels, such as email. This 
clause must be included in all solicitations and resultant contracts, 
except for personal services contracts with individuals.
    Existing contracts must be modified to include the clause before 
obligating Fiscal Year (FY) 2015 or subsequent FY funds that are 
subject to the same prohibition on confidentiality agreements, except 
for personal services contracts with individuals.
    There are also conforming changes at FAR sections 3.900, 4.1202, 
52.204-8, and 52.212-5.

B. Applicability

    DoD, GSA, and NASA are proposing to apply this rulemaking to all 
solicitations and resultant contracts that are funded with FY 2015 
funds or subsequent FY funds that are subject to the same prohibition 
on confidentiality agreements, including contracts and subcontracts for 
acquisitions in amounts not greater than the simplified acquisition 
threshold, and contracts and subcontracts for the acquisition of 
commercial items, (including commercially available off-the-shelf 
items).
    Because the emphasis of section 743 is to prohibit restrictions on 
the ability of employees and subcontractors to report waste, fraud, or 
abuse to appropriate Government authorities, it is not in the best 
interest of the Federal Government to waive the applicability of 
section 743 to contracts and subcontracts in amounts not greater than 
the simplified acquisition threshold, or for the acquisition of 
commercial items (including commercially available off-the-shelf 
items).
    In making the initial determination to prohibit restrictions on the 
ability of employees and subcontractors to report waste, fraud, or 
abuse to appropriate Government authorities, it is not in the best 
interest of the Federal Government to waive the applicability of 
section 743 to contracts and subcontracts in amounts not greater than 
the simplified acquisition threshold, or for the acquisition of 
commercial items (including commercially available off-the-shelf 
items), since it would exclude a significant number of acquisitions and 
thereby further limit the number of contractor and subcontractor 
employees affected by section 743.
    The FAR Council considered the following factors: (1) The benefits 
of the policy in furthering Administration goals, (2) the extent to 
which the benefits of the policy would be reduced if an exemption is 
provided for acquisitions in amounts not greater than the simplified 
acquisition threshold, or for the acquisition of commercial items 
(including commercially available off-the-shelf items), and (3) the 
burden on contractors if the policy is applied to acquisitions in 
amounts not greater than the simplified acquisition threshold, or for 
the acquisition of commercial items (including commercially available 
off-the-shelf items).
    With respect of the first factor, the Administration is committed 
to implementing policy that ensures reducing waste, fraud, or abuse in 
all Federal acquisitions is achieved. This proposed rule makes certain 
that there are no restrictions that prevent contractors and 
subcontractors from reporting these types of situations to a designated 
Government representative.
    With respect to the second factor (the impact of excluding 
acquisitions in amounts not greater than the simplified acquisition 
threshold, and contracts and subcontracts for the acquisition of 
commercial items, (including commercially available off-the-shelf 
items) on the overall benefits of the underlying policy), the FAR 
Council believes impact on these benefits may inhibit contractor 
employees and subcontractors subject to such internal confidentiality 
agreements from reporting of waste, fraud, or abuse to appropriate 
Government authorities, thus allowing the perpetuation of such waste, 
fraud, or abuse.
    With respect to the third factor, this proposed rule imposes a 
minimal burden on offerors and contractors, requiring only that 
offerors represent by submission of the offer that they do not require 
certain internal confidentiality agreements, and contractors must 
notify employees that the prohibition and restrictions of any internal 
confidentiality agreements covered by the clause are no longer in 
effect. This proposed rule does not contain any information collection 
requirements.
    Public feedback is welcomed on the analysis and preliminary 
determination to cover acquisitions in amounts not greater than the 
simplified acquisition threshold, and contracts and subcontracts for 
the acquisition of

[[Page 3765]]

commercial items, (including commercially available off-the-shelf 
items). After receipt and analysis of public comments, and in 
accordance with 41 U.S.C. 1905, 1906, and 1907, the FAR Council and the 
Administrator for Federal Procurement Policy will determine whether to 
incorporate in the final rule this proposed applicability to all 
solicitations and resultant contracts, including contracts and 
subcontracts for acquisitions in amounts not greater than the 
simplified acquisition threshold, and contracts and subcontracts for 
the acquisition of commercial items, (including commercially available 
off-the-shelf items).

III. Executive Orders 12866 and 13563

    Executive Orders 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). Executive 
Order 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 Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This proposed 
rule is not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
However, an Initial Regulatory Flexibility Analysis (IRFA) has been 
performed and is summarized as follows:

    This action is necessary to implement section 743 of Division E, 
Title VII, of the Consolidated and Further Continuing Appropriations 
Act, 2015 (Pub. L. 113-235) and successor provisions in subsequent 
appropriations acts (and as extended in continuing resolutions). 
Section 743 prohibits the use of funds appropriated or otherwise 
made available by Division E or any other Act for a contract, grant, 
or cooperative agreement with an entity that requires employees or 
subcontractors of such entity seeking to report waste, fraud, or 
abuse to sign internal confidentiality agreements or statements 
prohibiting or otherwise restricting such employees or 
subcontractors from lawfully reporting such waste, fraud, or abuse 
to a designated investigative or law enforcement representative of a 
Federal department or agency authorized to receive such information.
    The objective of the rule is to remove restrictions on the 
ability of employees and subcontractors to report waste, fraud, or 
abuse to the appropriate Government authorities. The legal basis for 
the rule is the above cited statute.
    This rule will apply to all small entities that receive 
Government contracts awarded using funds subject to the restriction 
of section 743, or successor provisions in subsequent appropriations 
acts with the same prohibition (and as extended in continuing 
resolutions). Based on FPDS data for Fiscal Year 2014, this rule may 
affect up to 108,500 small entities per year (75,000 small entities 
receiving new awards, 33,500 modifications). However, it is doubtful 
that most small entities have any such prohibited internal 
confidentiality agreements with their employees and subcontractors.
    The rule has no significant economic impact on small entities. 
DoD, GSA, and NASA did not identify any significant alternatives 
that would reduce the impact on small entities and still meet the 
objectives of the statute.

    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 2015-012), 
in correspondence.

V. Paperwork Reduction Act

    The proposed 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 Parts 3, 4, and 52

    Government procurement.

    Dated: January 11, 2016.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR parts 
3, 4, and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 3, 4, 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 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

0
2. Amend section 3.900 by--
0
a. Removing from the introductory paragraph ``three different'' and 
adding ``various'' in its place;
0
b. Redesignating paragraph (c) as paragraph (d); and
0
c. Adding new paragraph (c) to read as follows:


3.900  Scope of subpart.

* * * * *
    (c) Section 743 of Division E, Title VII, of the Consolidated and 
Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) and 
successor provisions in subsequent appropriations acts (and as extended 
in continuing resolutions), implemented in 3.909, applicable to all 
agencies.
* * * * *
0
3. Add section 3.909 to Subpart 3.9--Whistleblower Protections for 
Contractor Employees to read as follows:


3.909  Prohibition on contracting with entities that require certain 
internal confidentiality agreements.


3.909-1  Prohibition.

    (a) The Government is prohibited from using certain appropriated 
funds for a contract with an entity that requires employees or 
subcontractors of such entity seeking to report waste, fraud, or abuse 
to sign internal confidentiality agreements or statements prohibiting 
or otherwise restricting such employees or subcontractors from lawfully 
reporting such waste, fraud, or abuse to a designated investigative or 
law enforcement representative of a Federal department or agency 
authorized to receive such information. See section 743 of Division E, 
Title VII, of the Consolidated and Further Continuing Appropriations 
Act, 2015 (Pub. L. 113-235) and its successor provisions in subsequent 
appropriations acts (and as extended in continuing resolutions.)
    (b) The prohibition in paragraph (a) of this section does not 
contravene requirements applicable to Standard Form 312 (Classified 
Information Nondisclosure Agreement), Form 4414 (Sensitive 
Compartmented Information Nondisclosure Agreement), or any other form 
issued by a Federal department or agency governing the nondisclosure of 
classified information.


3.909-2  Representation by the offeror.

    (a) In order to be eligible for contract award, an offeror must 
represent that it does not require employees or

[[Page 3766]]

subcontractors of such entity seeking to report waste, fraud, or abuse 
to sign internal confidentiality agreements or statements prohibiting 
or otherwise restricting such employees or subcontractors from lawfully 
reporting such waste, fraud, or abuse to a designated investigative or 
law enforcement representative of a Federal department or agency 
authorized to receive such information. Any offeror that cannot so 
represent is ineligible for award of a contract.
    (b) The contracting officer may rely on an offeror's representation 
unless the contracting officer has reason to question the 
representation.


3.909-3  Solicitation provision and contract clause.

    When using funding subject to the prohibitions in 3.909-1(a) of 
this subpart, the contracting officer shall--
    (a)(1) Include the provision at 52.203-XX, Prohibition on 
Contracting with Entities that Require Certain Internal Confidentiality 
Agreements--Representation, in all solicitations, except as provided in 
paragraph (a)(2) of this section; and
    (2) Do not insert the provision in solicitations for a personal 
services contract with an individual if the services are to be 
performed entirely by the individual, rather than by an employee of the 
contractor or a subcontractor.
    (b)(1) Include the clause at 52.203-YY, Prohibition on Contracting 
with Entities that Require Certain Internal Confidentiality Agreements, 
in all solicitations and resultant contracts, other than personal 
services contracts with individuals.
    (2) Modify existing contracts, other than personal services 
contracts with individuals, to include the clause before obligating FY 
2015 or subsequent FY funds that are subject to the same prohibition on 
confidentiality agreements.

PART 4--ADMINISTRATIVE MATTERS

0
4. Amend section 4.1202, as amended in 80 FR 75905 (December 4, 2015), 
effective February 26, 2016, by redesignating paragraphs (a)(3) through 
(30) as paragraphs (a)(4) through (31), respectively; and adding new 
paragraph (a)(3) to read as follows:


4.1202  Solicitation provision and contract clause.

    (a) * * *
    (3) 52.203-XX, Prohibition on Contracting with Entities that 
Require Certain Internal Confidentiality Agreements--Representation.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Add sections 52.203-XX and 52.203-YY to read as follows:


52.203-XX  Prohibition on Contracting with Entities that Require 
Certain Internal Confidentiality Agreements--Representation.

    As prescribed in 3.909-3(a), insert the following provision:

Prohibition on Contraction With Entities That Require Certain Internal 
Confidentiality Agreements--Representation (Date)

    (a) In accordance with section 743 of Division E, Title VII, of 
the Consolidated and Further Continuing Appropriations Act, 2015 
(Pub. L. 113-235) and its successor provisions in subsequent 
appropriations acts (and as extended in continuing resolutions), 
Government agencies are not permitted to use funds appropriated (or 
otherwise made available) for contracts with an entity that requires 
employees or subcontractors of such entity seeking to report waste, 
fraud, or abuse to sign internal confidentiality agreements or 
statements prohibiting or otherwise restricting such employees or 
subcontractors from lawfully reporting such waste, fraud, or abuse 
to a designated investigative or law enforcement representative of a 
Federal department or agency authorized to receive such information.
    (b) The prohibition in paragraph (a) of this provision does not 
contravene requirements applicable to Standard Form 312, (Classified 
Information Nondisclosure Agreement), Form 4414 (Sensitive 
Compartmented Information Nondisclosure Agreement), or any other 
form issued by a Federal department or agency governing the 
nondisclosure of classified information.
    (c) Representation. By submission of its offer, the Offeror 
represents that it does not require employees or subcontractors of 
such entity seeking to report waste, fraud, or abuse to sign or 
comply with internal confidentiality agreements or statements 
prohibiting or otherwise restricting such employees or 
subcontractors from lawfully reporting such waste, fraud, or abuse 
to a designated investigative or law enforcement representative of a 
Federal department or agency authorized to receive such information.
    (End of provision)


52.203-YY  Prohibition on Contracting with Entities that Require 
Certain Internal Confidentiality Agreements.

    As prescribed in 3.909-3(b), insert the following clause:

Prohibition on Contraction With Entities That Require Certain Internal 
Confidentiality Agreements (Date)

    (a) The Contractor shall not require employees or subcontractors 
of such entity seeking to report waste, fraud, or abuse to sign or 
comply with internal confidentiality agreements or statements 
prohibiting or otherwise restricting such employees or 
subcontractors from lawfully reporting such waste, fraud, or abuse 
to a designated investigative or law enforcement representative of a 
Federal department or agency authorized to receive such information.
    (b) The Contractor shall notify employees that the prohibitions 
and restrictions of any internal confidentiality agreements covered 
by this clause are no longer in effect.
    (c) The prohibition in paragraph (a) of this clause does not 
contravene requirements applicable to Standard Form 312 (Classified 
Information Nondisclosure Agreement), Form 4414 (Sensitive 
Compartmented Information Nondisclosure Agreement), or any other 
form issued by a Federal department or agency governing the 
nondisclosure of classified information.
    (d) In accordance with section 743 of Division E, Title VII, of 
the Consolidated and Further Continuing Appropriations Act, 2015, 
(Pub. L. 113-235), use of funds appropriated (or otherwise made 
available) under that or any other Act may be prohibited, if the 
Government determines that the Contractor is not in compliance with 
the provisions of this clause.
    (e) The contractor shall include the substance of this clause, 
including this paragraph (e), in subcontracts under such contracts.
    (End of clause)
0
6. Amend section 52.204-8, as amended in 80 FR 75906 (December 4, 
2015), effective February 26, 2016, by--
0
a. Revising the date of the provision;
0
b. Redesignating paragraphs (c)(1)(iii) through (xxii) as (c)(1)(iv) 
through (xxiii), respectively; and
0
c. Adding new paragraph (c)(1)(iii).
    The revised and added text reads as follows:


52.204-8  Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (Date)

* * * * *
    (c)(1) * * *
    (iii) 52.203-XX, Prohibition on Contracting with Entities that 
Require Certain Internal Confidentiality Agreements--Representation. 
This provision applies to all solicitations.
* * * * *
0
7. Amend section 52.212-3, as amended at 80 FR 75907 (December 4, 
2015), effective February 26, 2016, by--
0
a. Revising the date of the provision;
0
b. Removing from the introductory paragraph and paragraph (b)(2) 
``through (q)'' and adding ``through (r)'' in its place; and
0
c. Adding paragraph (r).
    The revised and added text reads as follows:


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

* * * * *

Offeror Representations and Certifications--Commercial Items (Date)

* * * * *

[[Page 3767]]

    (r)(1) In accordance with section 743 of Division E, Title VII, 
of the Consolidated and Further Continuing Appropriations Act, 2015 
(Pub. L. 113-235) and its successor provisions in subsequent 
appropriations acts (and as extended in continuing resolutions), 
Government agencies are not permitted to use appropriated (or 
otherwise made available) funds for contracts with an entity that 
requires employees or subcontractors of such entity seeking to 
report waste, fraud, or abuse to sign internal confidentiality 
agreements or statements prohibiting or otherwise restricting such 
employees or subcontractors from lawfully reporting such waste, 
fraud, or abuse to a designated investigative or law enforcement 
representative of a Federal department or agency authorized to 
receive such information.
    (2) The prohibition in paragraph (r)(1) of this provision does 
not contravene requirements applicable to Standard Form 312 
(Classified Information Nondisclosure Agreement), Form 4414 
(Sensitive Compartmented Information Nondisclosure Agreement), or 
any other form issued by a Federal department or agency governing 
the nondisclosure of classified information.
    (3) Representation. By submission of its offer, the Offeror 
represents that it does not require employees or subcontractors of 
such entity seeking to report waste, fraud, or abuse to sign or 
comply with internal confidentiality agreements or statements 
prohibiting or otherwise restricting such employees or 
subcontractors from lawfully reporting such waste, fraud, or abuse 
to a designated investigative or law enforcement representative of a 
Federal department or agency authorized to receive such information.

(End of provision)

0
8. Amend section 52.212-5, as amended at 80 FR 75907 (December 4, 
2015), effective February 26, 2016, by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (a)(1) through (3) as paragraphs (a)(2) 
through (4), respectively; and
0
c. Adding new paragraph (a)(1).
    The revised and added text reads as follows:


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

* * * * *

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

    (a) * * *
    (1) 52.203-YY, Prohibition on Contracting with Entities that 
Require Certain Internal Confidentiality Agreements (DATE) (section 
743 of Division E, Title VII, of the Consolidated and Further 
Continuing Appropriations Act, 2015 (Pub. L. 113-235) and its 
successor provisions in subsequent appropriations acts (and as 
extended in continuing resolutions)).
* * * * *
[FR Doc. 2016-01050 Filed 1-21-16; 8:45 am]
 BILLING CODE 6820-EP-P



                                                                        Federal Register / Vol. 81, No. 14 / Friday, January 22, 2016 / Proposed Rules                                           3763

                                               causes as it considers to be ‘‘in the                     We will publish an appropriate                       ACTION:   Proposed rule.
                                               national public interest and                            amendment to 39 CFR part 551 to reflect
                                               appropriate.’’ See 39 U.S.C. 416(b). On                 these changes if the proposal is adopted.              SUMMARY:    DoD, GSA, and NASA are
                                               June 12, 2001, the Postal Service                                                                              proposing to amend the Federal
                                                                                                       List of Subjects in 39 CFR Part 551                    Acquisition Regulation (FAR) to
                                               published a final rule establishing the
                                               regulations in 39 CFR part 551 for the                    Administrative practice and                          implement a section of the Consolidated
                                               discretionary Semipostal Stamp                          procedure.                                             and Further Continuing Appropriations
                                               Program (66 FR 31826). Minor revisions                    In accordance with 39 U.S.C.                         Act, 2015, that prohibits the use of
                                               were made to these regulations to                       416(e)(2), the Postal Service invites                  funds, appropriated or otherwise made
                                               implement Public Law 107–67, 115 Stat.                  public comment on the following                        available, for a contract with an entity
                                               514 (2001), and to reflect minor                        proposed amendments to the Code of                     that requires employees or
                                                                                                       Federal Regulations. For the reasons                   subcontractors to sign an internal
                                               organizational changes in the Postal
                                                                                                       stated in the preamble, the Postal                     confidentiality agreement that restricts
                                               Service (67 FR 5215 (February 5, 2002)).
                                                                                                       Service proposes to revise 39 CFR part                 such employees or subcontractors from
                                               On February 19, 2004, the Postal Service
                                                                                                       551 as follows:                                        lawfully reporting waste, fraud, or abuse
                                               published a final rule clarifying the
                                                                                                                                                              to a designated Government
                                               cost-offset policy for semipostal stamps
                                                                                                       PART 551—SEMIPOSTAL STAMP                              representative authorized to receive
                                               (69 FR 7688), and on February 9, 2005,
                                                                                                       PROGRAM                                                such information.
                                               the Postal Service also published an
                                                                                                                                                              DATES: Interested parties should submit
                                               additional minor clarifying revision to                 ■ 1. The authority citation for 39 CFR
                                               these cost-offset regulations (70 FR                                                                           written comments to the Regulatory
                                                                                                       part 551 continues to read as follows:                 Secretariat at one of the addresses
                                               6764).
                                                                                                         Authority: 39 U.S.C. 101, 201, 203, 401,             shown below on or before March 22,
                                                  The Postal Service now proposes to                   403, 404, 410, 414, 416.                               2016 to be considered in the formation
                                               revise paragraphs (a) and (b) of 39 CFR
                                                                                                       ■ 2. In § 551.5, revise paragraphs (a) and             of the final rule.
                                               551.5. A brief description of each
                                               proposed change follows.                                (b) to read as follows:                                ADDRESSES: Submit comments in
                                                  The proposed revision of § 551.5(a)                                                                         response to FAR Case 2015–012 by any
                                                                                                       § 551.5    Frequency and other limitations.            of the following methods:
                                               would remove certain restrictions on the                   (a) The Postal Service is authorized to                • Regulations.gov: http://
                                               commencement date of the                                issue semipostal stamps for a 10-year                  www.regulations.gov. Submit comments
                                               discretionary Semipostal Stamp                          period beginning on the date on which                  via the Federal eRulemaking portal by
                                               Program. Under current regulations, the                 semipostal stamps are first sold to the                searching for ‘‘FAR Case 2015–012’’.
                                               10-year period for the discretionary                    public under 39 U.S.C. 416. The Office                 Select the link ‘‘Comment Now’’ that
                                               semipostal stamp program commences                      of Stamp Services will determine the                   corresponds with FAR Case 2015–012.
                                               on a date determined by the Office of                   date of commencement of the 10-year                    Follow the instructions provided on the
                                               Stamp Services, but that date must be                   period.                                                screen. Please include your name,
                                               after the sales period of the Breast                       (b) The Postal Service will offer only              company name (if any), and ‘‘FAR Case
                                               Cancer Research Stamp (BCRS) is                         one semipostal stamp pursuant to the                   2015–012’’ on your attached
                                               concluded. Most recently, Public Law                    discretionary semipostal stamp program                 document(s).
                                               114–99 (December 11, 2015) extended                     under 39 U.S.C. 416 for sale at any given                 • Mail: General Services
                                               that sales period to December 31, 2019.                 time during the 10-year period.                        Administration, Regulatory Secretariat
                                                  The proposed revision of § 551.5(a)                                                                         (MVCB), ATTN: Ms. Flowers, 1800 F
                                                                                                       *      *    *     *    *
                                               would specify that the 10-year period                                                                          Street NW., 2nd Floor, Washington, DC
                                               will commence on a date determined by                   Stanley F. Mires,                                      20405–0001.
                                               the Office of Stamp Services, but this                  Attorney, Federal Compliance.                             Instructions: Please submit comments
                                               date need not be after the BCRS sale                    [FR Doc. 2016–01070 Filed 1–21–16; 8:45 am]            only and cite ‘‘FAR Case 2015–012’’ in
                                               period concludes.                                       BILLING CODE 7710–12–P                                 all correspondence related to this case.
                                                  The proposed revision of § 551.5(b)                                                                         All comments received will be posted
                                               would clarify that although only one                                                                           without change to http://
                                               semipostal stamp under the                              DEPARTMENT OF DEFENSE                                  www.regulations.gov, including any
                                               discretionary Semipostal Stamp                                                                                 personal and/or business confidential
                                               Program under 39 U.S.C. 416 (a                          GENERAL SERVICES                                       information provided. To confirm
                                               ‘‘discretionary program semipostal                      ADMINISTRATION                                         receipt of your comment(s), please
                                               stamp’’) will be offered for sale at any                                                                       check www.regulations.gov,
                                               one time, other semipostal stamps                       NATIONAL AERONAUTICS AND                               approximately two to three days after
                                               required to be issued by Congress (such                 SPACE ADMINISTRATION                                   submission to verify posting (except
                                               as the BCRS) may be on sale when a                                                                             allow 30 days for posting of comments
                                               discretionary program semipostal stamp                  48 CFR Parts 3, 4, and 52                              submitted by mail).
                                               is on sale. Current regulations state that              [FAR Case 2015–012; Docket No. 2015–                   FOR FURTHER INFORMATION CONTACT: Ms.
                                               the Postal Service will offer only one                  0012; Sequence No. 1]                                  Cecelia L. Davis, Procurement Analyst,
                                               semipostal stamp for sale at any given                                                                         at 202–219–0202 for clarification of
                                               time during the 10-year period (not                     RIN 9000–AN04                                          content. For information pertaining to
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                                               specifying whether it is a discretionary                                                                       status or publication schedules, contact
                                                                                                       Federal Acquisition Regulation:
                                               program semipostal stamp or a                                                                                  the Regulatory Secretariat at 202–501–
                                                                                                       Contractor Employee Internal
                                               semipostal stamp required by Congress).                                                                        4755. Please cite FAR Case 2015–012.
                                                                                                       Confidentiality Agreements
                                                  The proposed revision of § 551.5(b)                                                                         SUPPLEMENTARY INFORMATION:
                                               would clarify that the one-at-a-time                    AGENCY: Department of Defense (DoD),
                                               limitation on the sale of semipostal                    General Services Administration (GSA),                 I. Background
                                               stamps applies only to discretionary                    and National Aeronautics and Space                        This proposed rule revises the FAR to
                                               program semipostal stamps.                              Administration (NASA).                                 implement section 743 of Division E,


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                                               3764                     Federal Register / Vol. 81, No. 14 / Friday, January 22, 2016 / Proposed Rules

                                               Title VII, of the Consolidated and                         The new FAR clause 52.203–YY,                       (including commercially available off-
                                               Further Continuing Appropriations Act,                  Prohibition on Contracting with Entities               the-shelf items), since it would exclude
                                               2015 (Pub. L. 113–235) and successor                    that Require Certain Internal                          a significant number of acquisitions and
                                               provisions in subsequent appropriations                 Confidentiality Agreements, notifies the               thereby further limit the number of
                                               acts (and as extended in continuing                     contractor of the prohibition on use of                contractor and subcontractor employees
                                               resolutions). Section 743 prohibits the                 funds for the contract, if the contractor              affected by section 743.
                                               use of funds appropriated or otherwise                  is in noncompliance with the                              The FAR Council considered the
                                               made available by Division E or any                     requirements of the clause. The clause                 following factors: (1) The benefits of the
                                               other Act for a contract, grant, or                     also requires that contractors notify                  policy in furthering Administration
                                               cooperative agreement with an entity                    employees that any such agreements in                  goals, (2) the extent to which the
                                               that requires employees or                              pre-existing confidentiality agreements                benefits of the policy would be reduced
                                               subcontractors of such entity seeking to                are no longer in effect. This notice could             if an exemption is provided for
                                               report waste, fraud, or abuse to sign                   be accomplished through normal                         acquisitions in amounts not greater than
                                               internal confidentiality agreements or                  business communication channels, such                  the simplified acquisition threshold, or
                                               statements prohibiting or otherwise                     as email. This clause must be included                 for the acquisition of commercial items
                                               restricting such employees or                           in all solicitations and resultant                     (including commercially available off-
                                               subcontractors from lawfully reporting                  contracts, except for personal services                the-shelf items), and (3) the burden on
                                               such waste, fraud, or abuse to a                        contracts with individuals.                            contractors if the policy is applied to
                                               designated investigative or law                            Existing contracts must be modified to              acquisitions in amounts not greater than
                                               enforcement representative of a Federal                 include the clause before obligating                   the simplified acquisition threshold, or
                                               department or agency authorized to                      Fiscal Year (FY) 2015 or subsequent FY                 for the acquisition of commercial items
                                               receive such information.                               funds that are subject to the same                     (including commercially available off-
                                                                                                       prohibition on confidentiality                         the-shelf items).
                                               II. Discussion and Analysis                             agreements, except for personal services                  With respect of the first factor, the
                                                                                                       contracts with individuals.                            Administration is committed to
                                               A. FAR Changes                                             There are also conforming changes at                implementing policy that ensures
                                                 This proposed rule implements                         FAR sections 3.900, 4.1202, 52.204–8,                  reducing waste, fraud, or abuse in all
                                               section 743 by adding a new FAR                         and 52.212–5.                                          Federal acquisitions is achieved. This
                                               section 3.909, Prohibition on                                                                                  proposed rule makes certain that there
                                                                                                       B. Applicability
                                               contracting with entities that require                                                                         are no restrictions that prevent
                                                                                                          DoD, GSA, and NASA are proposing                    contractors and subcontractors from
                                               certain internal confidentiality
                                                                                                       to apply this rulemaking to all                        reporting these types of situations to a
                                               agreements. The proposed rule is
                                                                                                       solicitations and resultant contracts that             designated Government representative.
                                               written to also cover future successor
                                                                                                       are funded with FY 2015 funds or                          With respect to the second factor (the
                                               provisions in subsequent appropriations
                                                                                                       subsequent FY funds that are subject to                impact of excluding acquisitions in
                                               acts and perpetuation of the
                                                                                                       the same prohibition on confidentiality                amounts not greater than the simplified
                                               requirement through continuing
                                                                                                       agreements, including contracts and                    acquisition threshold, and contracts and
                                               resolutions. This allows more seamless
                                                                                                       subcontracts for acquisitions in amounts               subcontracts for the acquisition of
                                               implementation. If at any point an
                                                                                                       not greater than the simplified                        commercial items, (including
                                               appropriations act does not include a
                                                                                                       acquisition threshold, and contracts and               commercially available off-the-shelf
                                               similar prohibition, the FAR will be
                                                                                                       subcontracts for the acquisition of                    items) on the overall benefits of the
                                               modified accordingly.
                                                                                                       commercial items, (including                           underlying policy), the FAR Council
                                                 The proposed rule requires that each                  commercially available off-the-shelf                   believes impact on these benefits may
                                               offeror, in order to be eligible for award,             items).                                                inhibit contractor employees and
                                               represent, by submission of its offer,                     Because the emphasis of section 743                 subcontractors subject to such internal
                                               that it does not require employees or                   is to prohibit restrictions on the ability             confidentiality agreements from
                                               subcontractors to sign or comply with                   of employees and subcontractors to                     reporting of waste, fraud, or abuse to
                                               such internal confidentiality                           report waste, fraud, or abuse to                       appropriate Government authorities,
                                               agreements. The representation is in a                  appropriate Government authorities, it                 thus allowing the perpetuation of such
                                               new provision at FAR section 52.203–                    is not in the best interest of the Federal             waste, fraud, or abuse.
                                               XX, Prohibition on Contracting with                     Government to waive the applicability                     With respect to the third factor, this
                                               Entities that Require Certain Internal                  of section 743 to contracts and                        proposed rule imposes a minimal
                                               Confidentiality Agreements—                             subcontracts in amounts not greater                    burden on offerors and contractors,
                                               Representation, which must be included                  than the simplified acquisition                        requiring only that offerors represent by
                                               in all solicitations, except solicitations              threshold, or for the acquisition of                   submission of the offer that they do not
                                               for personal services contracts with an                 commercial items (including                            require certain internal confidentiality
                                               individual, using funds subject to the                  commercially available off-the-shelf                   agreements, and contractors must notify
                                               prohibition, except that this                           items).                                                employees that the prohibition and
                                               requirement is implemented for                             In making the initial determination to              restrictions of any internal
                                               commercial item solicitations by the                    prohibit restrictions on the ability of                confidentiality agreements covered by
                                               part 12 provision at FAR section                        employees and subcontractors to report                 the clause are no longer in effect. This
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                                               52.212–3, paragraph (q). Contracting                    waste, fraud, or abuse to appropriate                  proposed rule does not contain any
                                               officers shall not insert this provision in             Government authorities, it is not in the               information collection requirements.
                                               solicitations for personal services                     best interest of the Federal Government                   Public feedback is welcomed on the
                                               contracts with an individual if the                     to waive the applicability of section 743              analysis and preliminary determination
                                               services are to be performed entirely by                to contracts and subcontracts in                       to cover acquisitions in amounts not
                                               the individual, rather than by an                       amounts not greater than the simplified                greater than the simplified acquisition
                                               employee of the contractor or a                         acquisition threshold, or for the                      threshold, and contracts and
                                               subcontractor.                                          acquisition of commercial items                        subcontracts for the acquisition of


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                                                                        Federal Register / Vol. 81, No. 14 / Friday, January 22, 2016 / Proposed Rules                                               3765

                                               commercial items, (including                               The objective of the rule is to remove              PART 3—IMPROPER BUSINESS
                                               commercially available off-the-shelf                    restrictions on the ability of employees and           PRACTICES AND PERSONAL
                                               items). After receipt and analysis of                   subcontractors to report waste, fraud, or              CONFLICTS OF INTEREST
                                               public comments, and in accordance                      abuse to the appropriate Government
                                                                                                       authorities. The legal basis for the rule is the       ■  2. Amend section 3.900 by—
                                               with 41 U.S.C. 1905, 1906, and 1907,                    above cited statute.
                                               the FAR Council and the Administrator                                                                          ■  a. Removing from the introductory
                                                                                                          This rule will apply to all small entities          paragraph ‘‘three different’’ and adding
                                               for Federal Procurement Policy will                     that receive Government contracts awarded
                                               determine whether to incorporate in the                                                                        ‘‘various’’ in its place;
                                                                                                       using funds subject to the restriction of
                                                                                                                                                              ■ b. Redesignating paragraph (c) as
                                               final rule this proposed applicability to               section 743, or successor provisions in
                                               all solicitations and resultant contracts,              subsequent appropriations acts with the same           paragraph (d); and
                                                                                                       prohibition (and as extended in continuing             ■ c. Adding new paragraph (c) to read
                                               including contracts and subcontracts for
                                               acquisitions in amounts not greater than                resolutions). Based on FPDS data for Fiscal            as follows:
                                               the simplified acquisition threshold,                   Year 2014, this rule may affect up to 108,500
                                                                                                                                                              3.900   Scope of subpart.
                                               and contracts and subcontracts for the                  small entities per year (75,000 small entities
                                                                                                       receiving new awards, 33,500 modifications).           *     *     *     *    *
                                               acquisition of commercial items,                        However, it is doubtful that most small                  (c) Section 743 of Division E, Title
                                               (including commercially available off-                  entities have any such prohibited internal             VII, of the Consolidated and Further
                                               the-shelf items).                                       confidentiality agreements with their                  Continuing Appropriations Act, 2015
                                               III. Executive Orders 12866 and 13563                   employees and subcontractors.                          (Pub. L. 113–235) and successor
                                                                                                          The rule has no significant economic                provisions in subsequent appropriations
                                                  Executive Orders 12866 and 13563                     impact on small entities. DoD, GSA, and
                                               direct agencies to assess all costs and                                                                        acts (and as extended in continuing
                                                                                                       NASA did not identify any significant
                                               benefits of available regulatory                        alternatives that would reduce the impact on
                                                                                                                                                              resolutions), implemented in 3.909,
                                               alternatives and, if regulation is                      small entities and still meet the objectives of        applicable to all agencies.
                                               necessary, to select regulatory                         the statute.                                           *     *     *     *    *
                                               approaches that maximize net benefits                                                                          ■ 3. Add section 3.909 to Subpart 3.9—
                                                                                                         The Regulatory Secretariat has
                                               (including potential economic,                          submitted a copy of the IRFA to the                    Whistleblower Protections for
                                               environmental, public health and safety                 Chief Counsel for Advocacy of the Small                Contractor Employees to read as
                                               effects, distributive impacts, and                      Business Administration. A copy of the                 follows:
                                               equity). Executive Order 13563                          IRFA may be obtained from the                          3.909 Prohibition on contracting with
                                               emphasizes the importance of                            Regulatory Secretariat. DoD, GSA, and                  entities that require certain internal
                                               quantifying both costs and benefits, of                 NASA invite comments from small                        confidentiality agreements.
                                               reducing costs, of harmonizing rules,                   business concerns and other interested
                                               and of promoting flexibility. This is a                 parties on the expected impact of this                 3.909–1    Prohibition.
                                               significant regulatory action and,                      rule on small entities.                                   (a) The Government is prohibited
                                               therefore, was subject to review under                    DoD, GSA, and NASA will also                         from using certain appropriated funds
                                               section 6(b) of Executive Order 12866,                  consider comments from small entities                  for a contract with an entity that
                                               Regulatory Planning and Review, dated                   concerning the existing regulations in                 requires employees or subcontractors of
                                               September 30, 1993. This proposed rule                  subparts affected by the rule in                       such entity seeking to report waste,
                                               is not a major rule under 5 U.S.C. 804.                 accordance with 5 U.S.C. 610. Interested               fraud, or abuse to sign internal
                                                                                                       parties must submit such comments                      confidentiality agreements or statements
                                               IV. Regulatory Flexibility Act
                                                                                                       separately and should cite 5 U.S.C. 610                prohibiting or otherwise restricting such
                                                  DoD, GSA, and NASA do not expect                     (FAR Case 2015–012), in                                employees or subcontractors from
                                               this rule to have a significant economic                correspondence.                                        lawfully reporting such waste, fraud, or
                                               impact on a substantial number of small                                                                        abuse to a designated investigative or
                                               entities within the meaning of the                      V. Paperwork Reduction Act                             law enforcement representative of a
                                               Regulatory Flexibility Act, 5 U.S.C. 601,                 The proposed rule does not contain                   Federal department or agency
                                               et seq. However, an Initial Regulatory                  any information collection requirements                authorized to receive such information.
                                               Flexibility Analysis (IRFA) has been                    that require the approval of the Office of             See section 743 of Division E, Title VII,
                                               performed and is summarized as                          Management and Budget under the                        of the Consolidated and Further
                                               follows:                                                Paperwork Reduction Act (44 U.S.C.                     Continuing Appropriations Act, 2015
                                                  This action is necessary to implement                chapter 35).                                           (Pub. L. 113–235) and its successor
                                               section 743 of Division E, Title VII, of the                                                                   provisions in subsequent appropriations
                                               Consolidated and Further Continuing                     List of Subject in 48 CFR Parts 3, 4, and
                                                                                                                                                              acts (and as extended in continuing
                                               Appropriations Act, 2015 (Pub. L. 113–235)              52
                                                                                                                                                              resolutions.)
                                               and successor provisions in subsequent                    Government procurement.                                 (b) The prohibition in paragraph (a) of
                                               appropriations acts (and as extended in
                                               continuing resolutions). Section 743                      Dated: January 11, 2016.                             this section does not contravene
                                               prohibits the use of funds appropriated or              William F. Clark,                                      requirements applicable to Standard
                                               otherwise made available by Division E or               Director, Office of Government-wide                    Form 312 (Classified Information
                                               any other Act for a contract, grant, or                 Acquisition Policy, Office of Acquisition              Nondisclosure Agreement), Form 4414
                                               cooperative agreement with an entity that               Policy, Office of Government-wide Policy.              (Sensitive Compartmented Information
                                               requires employees or subcontractors of such                                                                   Nondisclosure Agreement), or any other
                                                                                                         Therefore, DoD, GSA, and NASA are
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                                               entity seeking to report waste, fraud, or abuse                                                                form issued by a Federal department or
                                               to sign internal confidentiality agreements or          proposing to amend 48 CFR parts 3, 4,
                                                                                                       and 52 as set forth below:                             agency governing the nondisclosure of
                                               statements prohibiting or otherwise
                                               restricting such employees or subcontractors                                                                   classified information.
                                                                                                       ■ 1. The authority citation for 48 CFR
                                               from lawfully reporting such waste, fraud, or           parts 3, 4, and 52 continues to read as                3.909–2    Representation by the offeror.
                                               abuse to a designated investigative or law
                                               enforcement representative of a Federal
                                                                                                       follows:                                                 (a) In order to be eligible for contract
                                               department or agency authorized to receive                Authority: 40 U.S.C. 121(c); 10 U.S.C.               award, an offeror must represent that it
                                               such information.                                       chapter 137; and 51 U.S.C. 20113.                      does not require employees or


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                                               3766                     Federal Register / Vol. 81, No. 14 / Friday, January 22, 2016 / Proposed Rules

                                               subcontractors of such entity seeking to                PART 52—SOLICITATION PROVISIONS                        waste, fraud, or abuse to a designated
                                               report waste, fraud, or abuse to sign                   AND CONTRACT CLAUSES                                   investigative or law enforcement
                                               internal confidentiality agreements or                                                                         representative of a Federal department or
                                                                                                       ■ 5. Add sections 52.203–XX and                        agency authorized to receive such
                                               statements prohibiting or otherwise                                                                            information.
                                               restricting such employees or                           52.203–YY to read as follows:
                                                                                                                                                                 (b) The Contractor shall notify employees
                                               subcontractors from lawfully reporting                  52.203–XX Prohibition on Contracting with              that the prohibitions and restrictions of any
                                               such waste, fraud, or abuse to a                        Entities that Require Certain Internal                 internal confidentiality agreements covered
                                               designated investigative or law                         Confidentiality Agreements—                            by this clause are no longer in effect.
                                               enforcement representative of a Federal                 Representation.                                           (c) The prohibition in paragraph (a) of this
                                               department or agency authorized to                        As prescribed in 3.909–3(a), insert the              clause does not contravene requirements
                                                                                                                                                              applicable to Standard Form 312 (Classified
                                               receive such information. Any offeror                   following provision:                                   Information Nondisclosure Agreement), Form
                                               that cannot so represent is ineligible for              Prohibition on Contraction With Entities               4414 (Sensitive Compartmented Information
                                               award of a contract.                                    That Require Certain Internal                          Nondisclosure Agreement), or any other form
                                                 (b) The contracting officer may rely on               Confidentiality Agreements—Representation              issued by a Federal department or agency
                                               an offeror’s representation unless the                  (Date)                                                 governing the nondisclosure of classified
                                               contracting officer has reason to                          (a) In accordance with section 743 of
                                                                                                                                                              information.
                                               question the representation.                                                                                      (d) In accordance with section 743 of
                                                                                                       Division E, Title VII, of the Consolidated and
                                                                                                                                                              Division E, Title VII, of the Consolidated and
                                                                                                       Further Continuing Appropriations Act, 2015
                                               3.909–3 Solicitation provision and                                                                             Further Continuing Appropriations Act,
                                                                                                       (Pub. L. 113–235) and its successor
                                               contract clause.                                                                                               2015, (Pub. L. 113–235), use of funds
                                                                                                       provisions in subsequent appropriations acts           appropriated (or otherwise made available)
                                                 When using funding subject to the                     (and as extended in continuing resolutions),
                                               prohibitions in 3.909–1(a) of this                                                                             under that or any other Act may be
                                                                                                       Government agencies are not permitted to               prohibited, if the Government determines
                                               subpart, the contracting officer shall—                 use funds appropriated (or otherwise made              that the Contractor is not in compliance with
                                                 (a)(1) Include the provision at 52.203–               available) for contracts with an entity that           the provisions of this clause.
                                               XX, Prohibition on Contracting with                     requires employees or subcontractors of such              (e) The contractor shall include the
                                               Entities that Require Certain Internal                  entity seeking to report waste, fraud, or abuse        substance of this clause, including this
                                               Confidentiality Agreements—                             to sign internal confidentiality agreements or         paragraph (e), in subcontracts under such
                                                                                                       statements prohibiting or otherwise                    contracts.
                                               Representation, in all solicitations,                   restricting such employees or subcontractors
                                               except as provided in paragraph (a)(2) of                                                                         (End of clause)
                                                                                                       from lawfully reporting such waste, fraud, or          ■ 6. Amend section 52.204–8, as
                                               this section; and                                       abuse to a designated investigative or law
                                                 (2) Do not insert the provision in                    enforcement representative of a Federal
                                                                                                                                                              amended in 80 FR 75906 (December 4,
                                               solicitations for a personal services                   department or agency authorized to receive             2015), effective February 26, 2016, by—
                                               contract with an individual if the                      such information.                                      ■ a. Revising the date of the provision;
                                                                                                          (b) The prohibition in paragraph (a) of this        ■ b. Redesignating paragraphs (c)(1)(iii)
                                               services are to be performed entirely by
                                               the individual, rather than by an                       provision does not contravene requirements             through (xxii) as (c)(1)(iv) through
                                               employee of the contractor or a                         applicable to Standard Form 312, (Classified           (xxiii), respectively; and
                                                                                                       Information Nondisclosure Agreement), Form             ■ c. Adding new paragraph (c)(1)(iii).
                                               subcontractor.                                          4414 (Sensitive Compartmented Information                The revised and added text reads as
                                                 (b)(1) Include the clause at 52.203–                  Nondisclosure Agreement), or any other form            follows:
                                               YY, Prohibition on Contracting with                     issued by a Federal department or agency
                                               Entities that Require Certain Internal                  governing the nondisclosure of classified              52.204–8 Annual Representations and
                                               Confidentiality Agreements, in all                      information.                                           Certifications.
                                               solicitations and resultant contracts,                     (c) Representation. By submission of its            *       *    *     *     *
                                               other than personal services contracts                  offer, the Offeror represents that it does not
                                                                                                       require employees or subcontractors of such            Annual Representations and Certifications
                                               with individuals.                                                                                              (Date)
                                                 (2) Modify existing contracts, other                  entity seeking to report waste, fraud, or abuse
                                                                                                       to sign or comply with internal                        *       *    *     *     *
                                               than personal services contracts with
                                                                                                       confidentiality agreements or statements                 (c)(1) * * *
                                               individuals, to include the clause before               prohibiting or otherwise restricting such                (iii) 52.203–XX, Prohibition on Contracting
                                               obligating FY 2015 or subsequent FY                     employees or subcontractors from lawfully              with Entities that Require Certain Internal
                                               funds that are subject to the same                      reporting such waste, fraud, or abuse to a             Confidentiality Agreements—Representation.
                                               prohibition on confidentiality                          designated investigative or law enforcement            This provision applies to all solicitations.
                                               agreements.                                             representative of a Federal department or              *      *    *     *    *
                                                                                                       agency authorized to receive such                      ■ 7. Amend section 52.212–3, as
                                               PART 4—ADMINISTRATIVE MATTERS                           information.
                                                                                                                                                              amended at 80 FR 75907 (December 4,
                                                                                                          (End of provision)
                                               ■ 4. Amend section 4.1202, as amended                                                                          2015), effective February 26, 2016, by—
                                               in 80 FR 75905 (December 4, 2015),                      52.203–YY Prohibition on Contracting with              ■ a. Revising the date of the provision;
                                               effective February 26, 2016, by                         Entities that Require Certain Internal                 ■ b. Removing from the introductory
                                               redesignating paragraphs (a)(3) through                 Confidentiality Agreements.                            paragraph and paragraph (b)(2) ‘‘through
                                               (30) as paragraphs (a)(4) through (31),                   As prescribed in 3.909–3(b), insert the              (q)’’ and adding ‘‘through (r)’’ in its
                                               respectively; and adding new paragraph                  following clause:                                      place; and
                                               (a)(3) to read as follows:                                                                                     ■ c. Adding paragraph (r).
                                                                                                       Prohibition on Contraction With Entities                 The revised and added text reads as
                                                                                                       That Require Certain Internal
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                                               4.1202 Solicitation provision and contract                                                                     follows:
                                               clause.                                                 Confidentiality Agreements (Date)
                                                                                                         (a) The Contractor shall not require                 52.212–3 Offeror Representations and
                                                 (a) * * *
                                                                                                       employees or subcontractors of such entity             Certifications—Commercial Items.
                                                 (3) 52.203–XX, Prohibition on
                                                                                                       seeking to report waste, fraud, or abuse to            *       *    *     *     *
                                               Contracting with Entities that Require
                                                                                                       sign or comply with internal confidentiality
                                               Certain Internal Confidentiality                        agreements or statements prohibiting or                Offeror Representations and Certifications—
                                               Agreements—Representation.                              otherwise restricting such employees or                Commercial Items (Date)
                                               *     *    *     *    *                                 subcontractors from lawfully reporting such            *       *    *     *     *


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                                                                        Federal Register / Vol. 81, No. 14 / Friday, January 22, 2016 / Proposed Rules                                           3767

                                                 (r)(1) In accordance with section 743 of              DEPARTMENT OF THE INTERIOR                             at http://www.regulations.gov at Docket
                                               Division E, Title VII, of the Consolidated and                                                                 No. FWS–R1–ES–2015–0125; from the
                                               Further Continuing Appropriations Act, 2015             Fish and Wildlife Service                              Pacific Islands Fish and Wildlife
                                               (Pub. L. 113–235) and its successor
                                               provisions in subsequent appropriations acts
                                                                                                                                                              Office’s Web site (http://www.fws.gov/
                                               (and as extended in continuing resolutions),
                                                                                                       50 CFR Part 17                                         pacificislands); or by contacting the
                                               Government agencies are not permitted to                [Docket No. FWS–R1–ES–2015–0125;                       Pacific Islands Fish and Wildlife Office
                                               use appropriated (or otherwise made                     4500030113]                                            directly (see FOR FURTHER INFORMATION
                                               available) funds for contracts with an entity                                                                  CONTACT).
                                               that requires employees or subcontractors of            RIN 1018–BB07                                             Comment Submission: You may
                                               such entity seeking to report waste, fraud, or                                                                 submit comments by one of the
                                               abuse to sign internal confidentiality                  Endangered and Threatened Wildlife
                                                                                                                                                              following methods:
                                               agreements or statements prohibiting or                 and Plants; Endangered Status for 49
                                               otherwise restricting such employees or                                                                           (1) Electronically: Go to the Federal
                                                                                                       Species From the Hawaiian Islands
                                               subcontractors from lawfully reporting such                                                                    eRulemaking Portal: http://
                                               waste, fraud, or abuse to a designated                  AGENCY:   Fish and Wildlife Service,                   www.regulations.gov. In the Search box,
                                               investigative or law enforcement                        Interior.                                              enter FWS–R1–ES–2015–0125, which is
                                               representative of a Federal department or               ACTION: Proposed rule; reopening of                    the docket number for this action. You
                                               agency authorized to receive such                                                                              may submit a comment by clicking on
                                               information.
                                                                                                       comment period, and announcement of
                                                                                                       public information meeting and hearing.                ‘‘Comment Now!’’
                                                 (2) The prohibition in paragraph (r)(1) of
                                               this provision does not contravene
                                                                                                                                                                 (2) By hard copy: Submit comments
                                               requirements applicable to Standard Form                SUMMARY:    We, the U.S. Fish and                      on the proposed listing rule by U.S. mail
                                               312 (Classified Information Nondisclosure               Wildlife Service (Service), announce the               or hand-delivery to: Public Comments
                                               Agreement), Form 4414 (Sensitive                        reopening of the comment period on our                 Processing, Attn: FWS–R1–ES–2015–
                                               Compartmented Information Nondisclosure                 September 30, 2015, proposed rule to                   0125; Division of Policy, Performance,
                                               Agreement), or any other form issued by a               list 49 species from the Hawaiian                      and Management Programs; U.S. Fish
                                               Federal department or agency governing the              Islands, including the Hawaiian distinct               and Wildlife Service, MS: BPHC; 5275
                                               nondisclosure of classified information.                population segment of the band-rumped                  Leesburg Pike; Falls Church, VA 22041–
                                                 (3) Representation. By submission of its
                                               offer, the Offeror represents that it does not
                                                                                                       storm-petrel (Oceanodroma castro), the                 3803.
                                               require employees or subcontractors of such             orangeblack Hawaiian damselfly                            (3) At the public hearing: Interested
                                               entity seeking to report waste, fraud, or abuse         (Megalagrion xanthomelas), the                         parties may provide oral or written
                                               to sign or comply with internal                         anchialine pool shrimp (Procaris                       comments at the public hearing.
                                               confidentiality agreements or statements                hawaiana), seven yellow-faced bees                        We request that you provide
                                               prohibiting or otherwise restricting such               (Hylaeus anthracinus, H. assimulans, H.                comments only by the methods
                                               employees or subcontractors from lawfully               facilis, H. hilaris, H. kuakea, H.                     described above. We will post all
                                               reporting such waste, fraud, or abuse to a
                                                                                                       longiceps, and H. mana), and 39                        comments on http://
                                               designated investigative or law enforcement
                                               representative of a Federal department or               endemic plant species, as endangered                   www.regulations.gov. This generally
                                               agency authorized to receive such                       species under the Endangered Species                   means that we will post any personal
                                               information.                                            Act of 1973, as amended (Act). We now                  information you provide us (see the
                                               (End of provision)                                      reopen the public comment period on                    PUBLIC COMMENTS section, below, for
                                                                                                       the proposed rule for an additional 30                 more information).
                                               ■ 8. Amend section 52.212–5, as
                                                                                                       days and announce a public information                    Public Information Meeting and
                                               amended at 80 FR 75907 (December 4,
                                                                                                       meeting and public hearing on the                      Public Hearing: The public information
                                               2015), effective February 26, 2016, by—
                                               ■ a. Revising the date of the clause;
                                                                                                       proposed rule. We are reopening the                    meeting and public hearing will be held
                                               ■ b. Redesignating paragraphs (a)(1)                    public comment period and holding a                    at Aunty Sally Kaleohano’s Luau Hale,
                                               through (3) as paragraphs (a)(2) through                public hearing to allow all interested                 799 Piilani Street, Hilo, HI 96720.
                                               (4), respectively; and                                  parties an additional opportunity to                   FOR FURTHER INFORMATION CONTACT:
                                               ■ c. Adding new paragraph (a)(1).                       comment on the proposed rule.                          Mary Abrams, Field Supervisor, Pacific
                                                 The revised and added text reads as                   DATES: Written Comments: We will                       Islands Fish and Wildlife Office, 300
                                               follows:                                                consider comments received or                          Ala Moana Boulevard, Honolulu, HI
                                                                                                       postmarked on or before February 22,                   96850; by telephone at 808–792–9400;
                                               52.212–5 Contract Terms and Conditions
                                                                                                       2016 or at the public hearing. Please                  or by facsimile at 808–792–9581.
                                               Required To Implement Statutes or
                                               Executive Orders—Commercial Items.                      note comments submitted electronically                 Persons who use a telecommunications
                                                                                                       using the Federal eRulemaking Portal                   device for the deaf (TDD) may call the
                                               *      *     *       *      *                           (see ADDRESSES, below) must be                         Federal Information Relay Service
                                               Contract Terms and Conditions Required To               received by 11:59 p.m. Eastern Time on                 (FIRS) at 800–877–8339.
                                               Implement Statutes or Executive Orders—                 the closing date. Any comments that we                 SUPPLEMENTARY INFORMATION:
                                               Commercial Items (Date)                                 receive after the closing date may not be
                                                 (a) * * *                                             considered in the final decision on these              Public Comments
                                                 (1) 52.203–YY, Prohibition on Contracting             actions.                                                  On September 30, 2015, we published
                                               with Entities that Require Certain Internal                Public Information Meeting and                      in the Federal Register a proposed rule
                                               Confidentiality Agreements (DATE) (section              Public Hearing: We will hold a public
                                               743 of Division E, Title VII, of the                                                                           to list 49 species from the Hawaiian
wgreen on DSK2VPTVN1PROD with PROPOSALS




                                               Consolidated and Further Continuing
                                                                                                       information meeting, followed by a                     Islands as endangered species (80 FR
                                               Appropriations Act, 2015 (Pub. L. 113–235)              public hearing, on Tuesday, February 9,                58820). We accepted public comments
                                               and its successor provisions in subsequent              2016. The public information meeting                   on the proposed rule for 60 days, ending
                                               appropriations acts (and as extended in                 will be held from 5:00 p.m. to 6:00 p.m.,              November 30, 2015. During the
                                               continuing resolutions)).                               and the public hearing will be held from               comment period, we received a request
                                               *      *     *       *      *                           6:00 p.m. to 8:00 p.m.                                 to hold a public hearing and to extend
                                               [FR Doc. 2016–01050 Filed 1–21–16; 8:45 am]             ADDRESSES: Document Availability: You                  the public comment period on the
                                               BILLING CODE 6820–EP–P                                  may obtain copies of the proposed rule                 proposed rule. In order to ensure that


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Document Created: 2016-01-22 01:16:57
Document Modified: 2016-01-22 01:16:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesInterested parties should submit written comments to the
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 at 202-501-4755. Please cite FAR Case 2015-012.
FR Citation81 FR 3763 
RIN Number9000-AN04
CFR Citation48 CFR 3
48 CFR 4
48 CFR 52

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