[Federal Register Volume 61, Number 145 (Friday, July 26, 1996)]
[Rules and Regulations]
[Pages 39199-39200]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18500]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 3 and 52
[FAC 90-40; FAR Case 96-300; Item III]
RIN 9000-AH11
Federal Acquisition Regulation; Gratuities
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on an interim rule amending
the Federal Acquisition Regulation (FAR) to implement Section 801 of
the National Defense Authorization Act for Fiscal Year 1996 (Public Law
104-106), which amended 10 U.S.C. 2207, generally referred to as the
Gratuities Act, to make it applicable only to contracts exceeding the
simplified acquisition threshold. This regulatory action was not
subject to Office of Management and Budget review under Executive Order
12866, dated September 30, 1993, and is not a major rule under 5 U.S.C.
804.
DATES: Effective Date: July 26, 1996.-
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before September 24, 1996 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVR), 18th & F
Streets, NW., Room 4037, Washington, DC 20405.
Please cite FAC 90-40, FAR case 96-300, in all correspondence
related to this case.
FOR FURTHER INFORMATION CONTACT: Mr. Ralph DeStefano at (202) 501-1758
in reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-40, FAR case 96-300.
SUPPLEMENTARY INFORMATION:
A. Background
Section 801 of the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104-106), added a subsection (b) to 10 U.S.C.
2207, Expenditure of appropriations: limitation. Prior to its
amendment, 10 U.S.C. 2207 prohibited the spending of DoD appropriated
money (other than under a contract for personal services) unless the
Government had an express right to terminate the contract if the
contractor offered or gave a gratuity to a Government employee to
obtain the contract or to receive favorable treatment under the
contract. Subsection (b) of 10 U.S.C. 2207 exempts contracts which do
not exceed the simplified acquisition threshold from this prohibition.-
FAR Subpart 3.2, Contractor Gratuities to Government Personnel,
implements 10 U.S.C. 2207 and applies to all executive agencies except
for that portion concerning exemplary damages, which applies only to
DOD. FAR Subpart 3.2 prescribed the use of FAR clause 52.203-3,
Gratuities, in solicitations and contracts, except those for personal
services and those between military departments or defense agencies and
foreign governments that do not obligate DOD appropriated funds. This
interim rule amends FAR Subpart 3.2 to exempt solicitations and
contracts which do not exceed the simplified acquisition threshold from
the prescribed use of the clause.
B. Regulatory Flexibility Act
This interim rule is not expected 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., because only a
small number of Federal contractors have been subject to action under
the Gratuities clause. An Initial Regulatory Flexibility Analysis has,
therefore, not been performed. Comments from small entities concerning
the affected FAR subpart will be considered in accordance with section
610 of the Act. Such comments must be submitted separately and should
cite 5 U.S.C. 601 et seq. (FAC 90-40, FAR case 96-300), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501 et seq.
[[Page 39200]]
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DOD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
to implement Section 801 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106), which was effective upon
enactment (February 10, 1996). However, pursuant to Public Law 98-577
and FAR 1.501, public comments received in response to this interim
rule will be considered in the formation of the final rule.
List of Subjects in 48 CFR Parts 3 and 52
Government procurement.
Dated: July 16, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 3 and 52 are amended as set forth below:-
1. The authority citation for 48 CFR Parts 3 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST-
2. Section 3.202 is revised to read as follows:
3.202 Contract clause.-
The contracting officer shall insert the clause at 52.203-3,
Gratuities, in solicitations and contracts with a value exceeding the
simplified acquisition threshold, except those for personal services
and those between military departments or defense agencies and foreign
governments that do not obligate any funds appropriated to the
Department of Defense.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. Section 52.203-3 is amended by revising the introductory text to
read as follows:
52.203-3 Gratuities.
As prescribed in 3.202, insert the following clause:
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[FR Doc. 96-18500 Filed 7-25-96; 8:45 am]
BILLING CODE 6820-EP-P
