81 FR 73005 - Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 204 (October 21, 2016)

Page Range		73005-73006
FR Document		2016-25317

This rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to consolidate the multiple hotline posters into one poster that delineates multiple reportable offenses.

Federal Register, Volume 81 Issue 204 (Friday, October 21, 2016)

[Federal Register Volume 81, Number 204 (Friday, October 21, 2016)]
[Unknown Section]
[Pages 73005-73006]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-25317]

Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 /
Rules

[[Page 73005]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 203 and 252

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

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

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

ACTION: Final rule.

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

SUMMARY: This rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to consolidate the multiple hotline posters into one
poster that delineates multiple reportable offenses.

DATES: Effective October 21, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571-372-
6106.

SUPPLEMENTARY INFORMATION:

I. Background

DoD published a proposed rule in the Federal Register at 81 FR
28816 on May 10, 2016, to revise DFARS clause 252.203-7004, Display of
Hotline Posters, to reduce the number of fraud, waste, and abuse
hotline posters required to be displayed and to remove the United
States only restriction for use of the poster. One respondent submitted
a public comment in response to the proposed rule.

II. Discussion and Analysis

DoD reviewed the public comments in the development of the final
rule. A discussion of the comments and the changes made to the rule as
a result of the comment is provided, as follows:

A. Summary of Significant Changes From the Proposed Rule

The following two changes from the proposed rule are based on
internal Government comments:
At DFARS 203.1003, paragraph (c) is added to permit
alternative means of notifying contractor personnel of the DoD Hotline
program in lieu of displaying the posters, when performance is outside
the United States and security concerns can be appropriately
demonstrated to the contracting officer. In the DFARS 252.203-7004
clause, a similar statement is also added at paragraph (b)(1)(ii).
The final rule also removes from the DFARS 252.203-7004
clause the statement regarding assistance with translation. The
contractor bears the individual and financial responsibility for
translation and accuracy of translated hotline posters.

B. Analysis of Public Comment

Comment: The respondent supports the proposed rule to display a
consolidated poster, and recommends the DoD Office of the Inspector
General consider publishing several poster variations that combine
these three initiatives and that any one of these posters may be
displayed at the option of the contractor. This will permit contractors
to periodically rotate posters in order to refresh interest and
attention by contractor employees, and also permit contractors to
select posters that more closely match their respective corporate
culture. In addition, the respondent recommended that at least some
posters emphasize the benefits of a culture that does not tolerate
fraud or human trafficking and encourages reporting, rather than just
the negative, punitive aspects of compliance failure.
Response: This comment is outside the scope of this rule and no
change is made to the rule.

III. Executive Orders 12866 and 13563

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

IV. Regulatory Flexibility Act

A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
and is summarized as follows:
The Defense Federal Acquisition Regulation Supplement (DFARS)
clause 252.203-7004, Display of Hotline Posters, required three
separate hotline posters which have now been combined into one poster.
The objective of the rule is to reduce the number of fraud, waste, and
abuse hotline posters required to be displayed and to remove the United
States only restriction for use of the poster.
There were no public comments in response to the initial regulatory
flexibility analysis.
DFARS clause 252.203-7004 is required for use in contracts with an
estimated value greater than $5.5 million, except contracts awarded
using Federal Acquisition Regulations part 12 commercial item
procedures for the acquisition of commercial item. According to data
available in the Federal Procurement Data System, in fiscal year (FY)
2015, DoD awarded 4,180 contracts meeting this criteria to 2,656 unique
vendors, of which 1,598 (approximately 60% percent) were small
businesses. DoD estimates the total number of small businesses affected
by this rule to be approximately 1,920 small businesses (the total for
FY 2015 plus 20 percent to accommodate subcontractor applicability).
There are no reporting or recordkeeping burdens associated with
this rule.
The rule has no significant economic impact on small entities. DoD
did not identify any significant alternatives that would reduce the
impact on small entities and still meet the objectives of the statute.

V. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 203 and 252

Government procurement.

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

Therefore, 48 CFR parts 203 and 252 are amended as follows:

0
1. The authority citation for parts 203 and 252 continues to read as
follows:

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

PART 203--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST

0
2. Amend section 203.1003 by adding paragraph (c) to read as follows:

203.1003 Requirements.

* * * * *
(c) Fraud hotline poster. For contracts performed outside the
United States, when security concerns can be

[[Page 73006]]

appropriately demonstrated, the contracting officer may provide the
contractor the option to publicize the program to contractor personnel
in a manner other than public display of the poster required by
203.1004(b)(2)(ii), such as private employee written instructions and
briefings.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 252.203-7004 by--
0
a. Removing the clause date ``(OCT 2015)'' and adding ``(OCT 2016)'' in
its place;
0
b. Revising paragraph (b);
0
c. Removing paragraph (c);
0
d. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
respectively;
0
e. In newly redesignated paragraph (c)(1), removing ``These DoD hotline
posters'' and adding ``The DoD hotline poster'' in its place and
removing ``or are also'' and adding ``or is also'' in its place;
0
f. In newly redesignated paragraph (c)(2), removing ``posters are'' and
adding ``poster is'' in its place and removing the last sentence;
0
g. In the newly redesignated paragraph (c)(3), removing ``these
required posters'' and adding ``the required poster'' in its place; and
0
h. In newly designated paragraph (d), removing the phrase ``the
substance of'' and removing ``paragraph (e)'' and adding ``paragraph
(d)'' in its place.
The revision reads as follows:

252.203-7004 Display of Hotline Posters.

* * * * *
(b) Display of hotline poster(s). (1)(i) The Contractor shall
display prominently the DoD fraud, waste, and abuse hotline poster
prepared by the DoD Office of the Inspector General, in effect at time
of contract award, in common work areas within business segments
performing work under Department of Defense (DoD) contracts.
(ii) For contracts performed outside the United States, when
security concerns can be appropriately demonstrated, the contracting
officer may provide the contractor the option to publicize the program
to contractor personnel in a manner other than public display of the
poster, such as private employee written instructions and briefings.
(2) If the contract is funded, in whole or in part, by Department
of Homeland Security (DHS) disaster relief funds and the work is to be
performed in the United States, the DHS fraud hotline poster shall be
displayed in addition to the DoD hotline poster. If a display of a DHS
fraud hotline poster is required, the Contractor may obtain such poster
from--
(i) DHS Office of Inspector General/MAIL STOP 0305, Attn: Office of
Investigations--Hotline, 245 Murray Lane SW., Washington, DC 20528-
0305; or
(ii) Via the Internet at https://www.oig.dhs.gov/assets/Hotline/DHS_OIG_Hotline-optimized.jpg.
* * * * *
[FR Doc. 2016-25317 Filed 10-20-16; 8:45 am]
BILLING CODE 5001-06-P

Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Rules 73005

DEPARTMENT OF DEFENSE • The final rule also removes from the displayed and to remove the United
DFARS 252.203–7004 clause the States only restriction for use of the
Defense Acquisition Regulations statement regarding assistance with poster.
System translation. The contractor bears the There were no public comments in
individual and financial responsibility response to the initial regulatory
48 CFR Parts 203 and 252 for translation and accuracy of flexibility analysis.
[Docket DARS–2016–0016] translated hotline posters. DFARS clause 252.203–7004 is
required for use in contracts with an
RIN 0750–AI94 B. Analysis of Public Comment
estimated value greater than $5.5
Comment: The respondent supports million, except contracts awarded using
Defense Federal Acquisition the proposed rule to display a Federal Acquisition Regulations part 12
Regulation Supplement: Display of consolidated poster, and recommends commercial item procedures for the
Hotline Posters (DFARS Case 2016– the DoD Office of the Inspector General acquisition of commercial item.
D018) consider publishing several poster According to data available in the
AGENCY: Defense Acquisition variations that combine these three Federal Procurement Data System, in
Regulations System, Department of initiatives and that any one of these fiscal year (FY) 2015, DoD awarded
Defense (DoD). posters may be displayed at the option 4,180 contracts meeting this criteria to
of the contractor. This will permit 2,656 unique vendors, of which 1,598
ACTION: Final rule.
contractors to periodically rotate posters (approximately 60% percent) were
SUMMARY: This rule amends the Defense in order to refresh interest and attention small businesses. DoD estimates the
Federal Acquisition Regulation by contractor employees, and also total number of small businesses
Supplement (DFARS) to consolidate the permit contractors to select posters that affected by this rule to be approximately
multiple hotline posters into one poster more closely match their respective 1,920 small businesses (the total for FY
that delineates multiple reportable corporate culture. In addition, the 2015 plus 20 percent to accommodate
offenses. respondent recommended that at least subcontractor applicability).
some posters emphasize the benefits of There are no reporting or
DATES: Effective October 21, 2016.
a culture that does not tolerate fraud or recordkeeping burdens associated with
FOR FURTHER INFORMATION CONTACT: Ms. human trafficking and encourages this rule.
Amy Williams, telephone 571–372– reporting, rather than just the negative, The rule has no significant economic
6106. punitive aspects of compliance failure. impact on small entities. DoD did not
SUPPLEMENTARY INFORMATION: Response: This comment is outside identify any significant alternatives that
the scope of this rule and no change is would reduce the impact on small
I. Background made to the rule. entities and still meet the objectives of
DoD published a proposed rule in the the statute.
Federal Register at 81 FR 28816 on May III. Executive Orders 12866 and 13563
10, 2016, to revise DFARS clause Executive Orders (E.O.s) 12866 and V. Paperwork Reduction Act
252.203–7004, Display of Hotline 13563 direct agencies to assess all costs The rule does not contain any
Posters, to reduce the number of fraud, and benefits of available regulatory information collection requirements that
waste, and abuse hotline posters alternatives and, if regulation is require the approval of the Office of
required to be displayed and to remove necessary, to select regulatory Management and Budget under the
the United States only restriction for use approaches that maximize net benefits Paperwork Reduction Act (44 U.S.C.
of the poster. One respondent submitted (including potential economic, chapter 35).
a public comment in response to the environmental, public health and safety
proposed rule. effects, distributive impacts, and List of Subjects in 48 CFR Parts 203 and
equity). E.O. 13563 emphasizes the 252
II. Discussion and Analysis importance of quantifying both costs Government procurement.
DoD reviewed the public comments in and benefits, of reducing costs, of
the development of the final rule. A harmonizing rules, and of promoting Jennifer L. Hawes,
discussion of the comments and the flexibility. This is not a significant Editor, Defense Acquisition Regulations
changes made to the rule as a result of regulatory action and, therefore, was not System.
the comment is provided, as follows: subject to review under section 6(b) of Therefore, 48 CFR parts 203 and 252
A. Summary of Significant Changes E.O. 12866, Regulatory Planning and are amended as follows:
From the Proposed Rule Review, dated September 30, 1993. This ■ 1. The authority citation for parts 203
rule is not a major rule under 5 U.S.C. and 252 continues to read as follows:
The following two changes from the 804.
proposed rule are based on internal Authority: 41 U.S.C. 1303 and 48 CFR
Government comments: IV. Regulatory Flexibility Act chapter 1.
• At DFARS 203.1003, paragraph (c) A final regulatory flexibility analysis PART 203—IMPROPER BUSINESS
is added to permit alternative means of has been prepared consistent with the PRACTICES AND PERSONAL
notifying contractor personnel of the Regulatory Flexibility Act, 5 U.S.C. 601, CONFLICTS OF INTEREST
DoD Hotline program in lieu of et seq., and is summarized as follows:
displaying the posters, when The Defense Federal Acquisition 2. Amend section 203.1003 by adding
sradovich on DSK3GMQ082PROD with RULES4

■
performance is outside the United States Regulation Supplement (DFARS) clause paragraph (c) to read as follows:
and security concerns can be 252.203–7004, Display of Hotline
appropriately demonstrated to the Posters, required three separate hotline 203.1003 Requirements.
contracting officer. In the DFARS posters which have now been combined * * * * *
252.203–7004 clause, a similar into one poster. The objective of the rule (c) Fraud hotline poster. For contracts
statement is also added at paragraph is to reduce the number of fraud, waste, performed outside the United States,
(b)(1)(ii). and abuse hotline posters required to be when security concerns can be

VerDate Sep<11>2014 20:14 Oct 20, 2016 Jkt 214001 PO 00000 Frm 00001 Fmt 4701 Sfmt 4700 E:\FR\FM\21OCR4.SGM 21OCR4

$73006 Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Rules appropriately demonstrated, the ■ f. In newly redesignated paragraph may provide the contractor the option to contracting officer may provide the (c)(2), removing ‘‘posters are’’ and publicize the program to contractor contractor the option to publicize the adding ‘‘poster is’’ in its place and personnel in a manner other than public program to contractor personnel in a removing the last sentence; display of the poster, such as private manner other than public display of the ■ g. In the newly redesignated employee written instructions and poster required by 203.1004(b)(2)(ii), paragraph (c)(3), removing ‘‘these briefings. such as private employee written required posters’’ and adding ‘‘the (2) If the contract is funded, in whole instructions and briefings. required poster’’ in its place; and or in part, by Department of Homeland ■ h. In newly designated paragraph (d), Security (DHS) disaster relief funds and PART 252—SOLICITATION removing the phrase ‘‘the substance of’’ and removing ‘‘paragraph (e)’’ and the work is to be performed in the PROVISIONS AND CONTRACT adding ‘‘paragraph (d)’’ in its place. United States, the DHS fraud hotline CLAUSES The revision reads as follows: poster shall be displayed in addition to ■ 3. Amend section 252.203–7004 by— the DoD hotline poster. If a display of 252.203–7004 Display of Hotline Posters. a DHS fraud hotline poster is required, ■ a. Removing the clause date ‘‘(OCT * * * * * the Contractor may obtain such poster 2015)’’ and adding ‘‘(OCT 2016)’’ in its (b) Display of hotline poster(s). (1)(i) from— place; The Contractor shall display (i) DHS Office of Inspector General/ ■ b. Revising paragraph (b); prominently the DoD fraud, waste, and MAIL STOP 0305, Attn: Office of ■ c. Removing paragraph (c); abuse hotline poster prepared by the Investigations—Hotline, 245 Murray ■ d. Redesignating paragraphs (d) and DoD Office of the Inspector General, in Lane SW., Washington, DC 20528–0305; (e) as paragraphs (c) and (d), effect at time of contract award, in or respectively; common work areas within business ■ e. In newly redesignated paragraph segments performing work under (ii) Via the Internet at https:// (c)(1), removing ‘‘These DoD hotline Department of Defense (DoD) contracts. www.oig.dhs.gov/assets/Hotline/ posters’’ and adding ‘‘The DoD hotline (ii) For contracts performed outside DHS_OIG_Hotline-optimized.jpg. poster’’ in its place and removing ‘‘or the United States, when security * * * * * are also’’ and adding ‘‘or is also’’ in its concerns can be appropriately [FR Doc. 2016–25317 Filed 10–20–16; 8:45 am] place; demonstrated, the contracting officer BILLING CODE 5001–06–P sradovich on DSK3GMQ082PROD with RULES4 VerDate Sep<11>2014 20:14 Oct 20, 2016 Jkt 214001 PO 00000 Frm 00002 Fmt 4701 Sfmt 9990 E:\FR\FM\21OCR4.SGM 21OCR4$

Document Created: 2018-02-13 16:35:58
Document Modified: 2018-02-13 16:35:58

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Unknown Section
Action		Final rule.
Dates		Effective October 21, 2016.
Contact		Ms. Amy Williams, telephone 571-372- 6106.
FR Citation		81 FR 73005
RIN Number		0750-AI94
CFR Citation		48 CFR 203 48 CFR 252

81 FR 73005 - Defense Federal Acquisition Regulation Supplement: Display of Hotline Posters (DFARS Case 2016-D018)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 204 (October 21, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System