[Federal Register Volume 60, Number 140 (Friday, July 21, 1995)]
[Rules and Regulations]
[Page 37773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17934]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 3, 49, and 52

[FAC 90-30; FAR Case 94-802; Item I]
RIN 9000-AG15


Federal Acquisition Regulation; Officials Not to Benefit (Ethics)

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

ACTION: Final rule.

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SUMMARY: This final rule is issued pursuant to the Federal Acquisition 
Streamlining Act of 1994, Public Law 103-355 (the Act). The Federal 
Acquisition Regulatory Council is amending the Federal Acquisition 
Regulation (FAR) as a result of changes to 41 U.S.C. 22 by Section 6004 
of the Act. This regulatory action was subject to Office of Management 
and Budget review under Executive Order 12866, dated September 30, 
1993.

EFFECTIVE DATE: September 19, 1995.

FOR FURTHER INFORMATION CONTACT:
Mr. Julius Rothlein, Ethics Team Leader, at (703) 697-4349 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 90-30, FAR case 94-802.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Federal Acquisition Streamlining Act (FASA) of 1994, Pub. L. 
103-355, provides authorities that streamline the acquisition process 
and minimize burdensome Government-unique requirements. Major changes 
in the acquisition process as a result of Federal Acquisition 
Streamlining Act implementation include changes in the areas of 
Commercial Item Acquisition, Simplified Acquisition Procedures, the 
Truth in Negotiations Act, and introduction of the Federal Acquisition 
Computer Network (FACNET).
    FAR Case 94-802 originated because Section 6004 of Public Law 103-
355 amended 41 U.S.C. 22 by repealing the requirement that ``every 
contract or agreement'' shall express the condition that certain 
officials shall not benefit from the award of that contract or 
agreement. The Government has expressed that condition in the form of 
FAR clause 52.203-1. Since there is no longer a statutory requirement 
to include such a clause in Government contracts, the clause has been 
deleted. In addition, in response to a public comment, the statements 
of policy found at FAR 3.102 through 3.102-2 have been deleted. The 
criminal provisions found at 18 U.S.C. 431 and 432 remain in effect.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because the underlying policy, that certain officials 
shall not benefit from the award of Government contracts, has not 
changed.

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.

D. Public Comments

    Two substantive comments were received from six commenters in 
response to the proposed rule published in the Federal Register on 
December 1, 1994 (59 FR 61738). The Federal Acquisition Streamlining 
Act Implementation Team fully considered these comments. The team's 
analysis and disposition of the comments may be obtained from the FAR 
Secretariat.

List of Subjects in 48 CFR Parts 3, 49, and 52

    Government procurement.

    Dated: July 17, 1995.
Capt. Barry L. Cohen, SC, USN,
Project Manager for the Implementation of the Federal Acquisition 
Streamlining Act of 1994.
    Therefore, 48 CFR Parts 3, 49, and 52 are amended as set forth 
below:

PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
INTEREST

    1. The authority citation for 48 CFR Parts 3, 49, 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).


3.102 through 3.102-2  [Removed]

    2. Section 3.102 is removed and reserved and sections 3.102-1 
through 3.102-2 are removed.

PART 49--TERMINATION OF CONTRACTS


49.603-1, 49.603-2, 49.603-3, and 49.603-4  [Amended]

    3. Sections 49.603-1(b)(7)(iii), 49.603-2(b)(8)(iii), 49.603-
3(b)(7)(iii), and 49.603-4(b)(4)(ii) are amended by revising the phrase 
``employment of aliens, and ``officials not to benefit.'' to read ``and 
employment of aliens.''

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.203-1  [Reserved]

    4. Section 52.203-1 is removed and reserved.
[FR Doc. 95-17934 Filed 7-20-95; 8:45 am]
BILLING CODE 6820-EP-M