Defense Federal Acquisition Regulation Supplement: State Sponsors of Terrorism (DFARS Case 2014-D014), 73488-73490 [2014-28819]
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Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Rules and Regulations
rule is not a major rule under 5 U.S.C.
804.
IV. Regulatory Flexibility Act
The Regulatory Flexibility Act does
not apply to this rule because this final
rule does not constitute a significant
DFARS revision within the meaning of
FAR 1.501–1 and 41 U.S.C. 1707 does
not require publication for public
comment.
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 Part 203
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 203 is
amended as follows:
PART 203—IMPROPER BUSINESS
PRACTICES AND PERSONAL
CONFLICTS OF INTEREST
1. The authority citation for 48 CFR
part 203 continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
Business practices.
*
*
*
*
*
(a) Senior leaders shall not perform
multiple roles in source selection for a
major weapon system or major service
acquisition.
*
*
*
*
*
[FR Doc. 2014–28817 Filed 12–10–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204, 209, 212, 225, and
252
tkelley on DSK3SPTVN1PROD with RULES
RIN 0750–AI34
Defense Federal Acquisition
Regulation Supplement: State
Sponsors of Terrorism (DFARS Case
2014–D014)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
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17:05 Dec 10, 2014
Jkt 235001
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 45666 on
August 5, 2014, to clarify and relocate
coverage relating to state sponsors of
terrorism (as identified by the
Department of State), add an explicit
representation, and conform the
terminology. No respondents submitted
public comments in response to the
proposed rule.
This rule is part of DoD’s
retrospective plan, completed in August
2011, under Executive Order 13563,
‘‘Improving Regulation and Regulatory
Review.’’ DoD’s full plan and updates
can be accessed at: https://
www.regulations.gov/#!docketDetail;
dct=FR+PR+N+O+SR;rpp=10;po=0;D=
DOD-2011-OS-0036.
II. Discussion and Analysis
2. In section 203.170, revise paragraph
(a) to read as follows:
■
203.170
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to clarify and relocate text
relating to state sponsors of terrorism (as
identified by the Department of State),
add an explicit representation, and
conform the terminology.
DATES: Effective December 11, 2014.
FOR FURTHER INFORMATION CONTACT: Ms.
Amy G. Williams, telephone 571–372–
6106.
SUMMARY:
No public comments were received.
The final rule is the same as the
proposed rule, except for minor edits.
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
DoD certifies that this rule will not
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.,
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Fmt 4700
Sfmt 4700
because this rule will only have an
impact on a firm, or a subsidiary of a
firm, in which the government of a
country that is a state sponsor of
terrorism has a significant interest.
The number of domestic entities
significantly impacted by this rule will
be minimal, if any. For the definition of
‘‘small business,’’ the Regulatory
Flexibility Act refers to the Small
Business Act, which in turn allows the
U.S. Small Business Administration
(SBA) Administrator to specify detailed
definitions or standards (5 U.S.C. 601(3)
and 15 U.S.C. 632(a)). The SBA
regulations at 13 CFR 121.105 discuss
who is a small business: ‘‘(a)(1) Except
for small agricultural cooperatives, a
business concern eligible for assistance
from SBA as a small business is a
business entity organized for profit,
with a place of business located in the
United States, and which operates
primarily within the United States or
which makes a significant contribution
to the U.S. economy through payment of
taxes or use of American products,
materials or labor.’’
V. Paperwork Reduction Act
The rule contains 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);
however, these changes to the DFARS
do not impose additional information
collection requirements to the
paperwork burden previously approved
under OMB Control Number 0704–0187,
entitled ‘‘Information Collection in
Support of the DoD Acquisition Process
(Various Miscellaneous Requirements).’’
This final rule removes provision
252.209–7001, Disclosure of Ownership
or Control by the Government of a
Terrorist Country, and replaces it with
provision 252.225–7050, Disclosure of
Ownership or Control by the
Government of a Country that is a State
Sponsor of Terrorism. The burden in
clearance 0704–0187 previously
associated with the provision 252.209–
7001, which is now associated with
provision 252.225–7050, remains
unchanged and is estimated at 1 hour,
because such disclosure occurs rarely, if
ever. 10 U.S.C. prohibits award to a firm
or a subsidiary of a firm if the
government of country that is a state
sponsor of terrorism has a significant
interest in the firm or subsidiary, unless
the Secretary of Defense grants a waiver.
E:\FR\FM\11DER1.SGM
11DER1
Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Rules and Regulations
List of Subjects in 48 CFR Parts 204,
209, 212, 225, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 204, 209, 212,
225, and 252 are proposed to be
amended as follows:
■ 1. The authority citation for parts 204,
209, 212, 225, and 252 continues to read
as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 204—ADMINISTRATIVE
MATTERS
2. Amend section 204.1202 by—
a. Removing paragraph (2)(i);
b. Redesignating paragraphs (2)(ii)
through (x) as (2)(i) though (ix),
respectively; and
■ c. Adding new paragraph (2)(x) to read
as follows:
■
■
■
204.1202
Solicitation provision.
*
*
*
*
*
(2) * * *
(x) 252.225–7050, Disclosure of
Ownership or Control by the
Government of a Country that is a State
Sponsor of Terrorism.
*
*
*
*
*
PART 209—CONTRACTOR
QUALIFICATIONS
3. Amend section 209.104–1, by
revising paragraph (g)(i) to read as
follows:
General standards.
*
*
*
*
(g)(i) Ownership or control by the
government of a country that is a state
sponsor of terrorism. (See 225.771.)
*
*
*
*
*
■ 4. Revise section 209.104–70 to read
as follows:
tkelley on DSK3SPTVN1PROD with RULES
Solicitation provision.
Use the provision at 252.209–7002,
Disclosure of Ownership or Control by
a Foreign Government, in all
solicitations, including those subject to
the procedures in FAR part 13, when
access to proscribed information is
necessary for contract performance. If
the solicitation includes the provision at
FAR 52.204–7, do not separately list the
provision 252.209–7002 in the
solicitation.
■ 5. Amend section 209.405, by revising
paragraph (b)(i) to read as follows:
209.405
*
*
Effect of listing.
*
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*
*
17:05 Dec 10, 2014
Jkt 235001
Restrictions on subcontracting.
(a) The contracting officer shall not
consent to any subcontract with a firm,
or a subsidiary of a firm, that is
identified by the Secretary of Defense in
SAM Exclusions as being owned or
controlled by the government of a
country that is a state sponsor of
terrorism unless the agency head states
in writing the compelling reasons for
the subcontract. (See also 225.771.)
■ 7. Revise section 209.409 to read as
follows:
209.409 Solicitation provision and
contract clause.
Use the clause at 252.209–7004,
Subcontracting with Firms that are
Owned or Controlled by the
Government of a Country that is a State
Sponsor of Terrorism, in solicitations
and contracts with a value of $150,000
or more.
8. Amend section 212.301 by—
a. Removing paragraph (f)(xi);
b. Redesignating paragraphs (f)(xii)
through (xlviii) as (xi) through (xlvii);
and
■ b. Adding a new paragraph (f)(xlviii)
to read as follows:
■
■
■
*
209.104–70
209.405–2
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
■
209.104–1
(b)(i) The Procurement Cause and
Treatment Code ‘‘H’’ annotation in the
Exclusions section of the System for
Award Management (SAM Exclusions)
identifies contractor facilities where no
part of a contract or subcontract may be
performed because of a violation of the
Clean Air Act (42 U.S.C. 7606) or the
Clean Water Act (33 U.S.C. 1368).
*
*
*
*
*
■ 6. Revise section 209.405–2 to read as
follows:
212.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
(f) * * * * *
(xlviii) Use the provision at 252.225–
7050, Disclosure of Ownership or
Control by the Government of a Country
that is a State Sponsor of Terrorism, as
prescribed in 225.771–5, to comply with
10 U.S.C. 2327(b).
*
*
*
*
*
PART 225—FOREIGN ACQUISITION
225.701
[Amended]
9. In section 225.701, remove the
section text.
■ 10. Add sections 225.771, 225.771–0,
225.771–1, 225.771–2, 225.771–3,
225.771–4, and 225.771–5 to subpart
225.7 to read as follows:
■
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73489
225.771 Prohibition on contracting or
subcontracting with a firm that is owned or
controlled by the government of a country
that is a state sponsor of terrorism.
225.771–0
Scope.
This section implements 10 U.S.C.
2327(b).
225.771–1
Definition.
‘‘State sponsor of terrorism,’’ as used
in this section, is defined in the
provision at 252.225–7050, Disclosure
of Ownership or Control by the
Government of a Country that is a State
Sponsor of Terrorism.
225.771–2
Prohibition.
(a) The contracting officer shall not
award a contract of $150,000 or more to
a firm when a foreign government that
is a state sponsor of terrorism owns or
controls, either directly or indirectly, a
significant interest in—
(i) The firm;
(ii) A subsidiary of the firm; or
(iii) Any other firm that owns or
controls the firm.
(b) For restrictions on subcontracting
with a firm, or a subsidiary of a firm,
that is identified by the Secretary of
Defense as being owned or controlled by
the government of a country that is a
state sponsor of terrorism, see 209.405–
2.
225.771–3
Notification.
Any disclosure that the government of
a country that is a state sponsor of
terrorism has a significant interest in an
offeror, a subsidiary of an offeror, or any
other firm that owns or controls an
offeror shall be forwarded through
agency channels to the address at PGI
225.771–3.
225.771–4
Waiver of prohibition.
The prohibition in 225.771–2 may be
waived if the Secretary of Defense
determines that a waiver is not
inconsistent with the national security
objectives of the United States in
accordance with 10 U.S.C. 2327(c).
225.771–5
Solicitation provision.
Use the provision at 252.225–7050,
Disclosure of Ownership or Control by
the Government of a Country that is a
State Sponsor of Terrorism, in
solicitations, including solicitations
using FAR part 12 procedures for the
acquisition of commercial items (other
than commercial satellite services), that
are expected to result in contracts of
$150,000 or more. If the solicitation
includes the provision at FAR 52.204–
7, do not separately list the provision
252.225–7050 in the solicitation.
E:\FR\FM\11DER1.SGM
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73490
Federal Register / Vol. 79, No. 238 / Thursday, December 11, 2014 / Rules and Regulations
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
11. Amend section 252.204–7007 by—
a. Removing the clause date ‘‘(AUG
2014)’’ and adding ‘‘(DEC 2014)’’ in its
place;
■ b. Removing paragraph (d)(1)(i);
■ c. Redesignating paragraphs (d)(1)(ii)
through (v) as (d)(1)(i) through (iv); and
■ d. Adding a new paragraph (d)(1)(v).
The addition reads as follows:
■
■
252.204–7007 Alternate A, Annual
Representations and Certifications.
*
*
*
*
*
(d)(1) * * *
(v) 252.225–7050, Disclosure of
Ownership or Control by the
Government of a Country that is a State
Sponsor of Terrorism. Applies to all
solicitations expected to result in
contracts of $150,000 or more.
*
*
*
*
*
252.209–7001
[Removed and Reserved]
12. Remove and reserve section
252.209–7001.
■
252.209–7002
[Amended]
13. Amend section 252.209–7002
introductory text by removing
‘‘209.104–70(b)’’ and adding ‘‘209.104–
70’’ in its place.
■ 14. Revise section 252.209–7004 to
read as follows:
■
252.209–7004 Subcontracting with Firms
that are Owned or Controlled by the
Government of a Country that is a State
Sponsor of Terrorism.
As prescribed in 209.409, use the
following clause:
tkelley on DSK3SPTVN1PROD with RULES
SUBCONTRACTING WITH FIRMS
THAT ARE OWNED OR CONTROLLED
BY THE GOVERNMENT OF A
COUNTRY THAT IS A STATE
SPONSOR OF TERRORISM (DEC 2014)
(a) Unless the Government determines that
there is a compelling reason to do so, the
Contractor shall not enter into any
subcontract in excess of $30,000 with a firm,
or a subsidiary of a firm, that is identified in
the Exclusions section of the System for
Award Management System (SAM
Exclusions) as being ineligible for the award
of Defense contracts or subcontracts because
it is owned or controlled by the government
of a country that is a state sponsor of
terrorism.
(b) A corporate officer or a designee of the
Contractor shall notify the Contracting
Officer, in writing, before entering into a
subcontract with a party that is identified, in
SAM Exclusions, as being ineligible for the
award of Defense contracts or subcontracts
because it is owned or controlled by the
government of a country that is a state
sponsor of terrorism. The notice must
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17:05 Dec 10, 2014
Jkt 235001
include the name of the proposed
subcontractor and the compelling reason(s)
for doing business with the subcontractor
notwithstanding its inclusion in SAM
Exclusions.
(End of clause)
15. Add section 252.225–7050 to read
as follows:
■
252.225–7050 Disclosure of Ownership or
Control by the Government of a Country
that is a State Sponsor of Terrorism.
As prescribed in 225.771–5, use the
following provision:
DISCLOSURE OF OWNERSHIP OR
CONTROL BY THE GOVERNMENT OF
A COUNTRY THAT IS A STATE
SPONSOR OF TERRORISM (DEC 2014)
(a) Definitions. As used in this provision—
Government of a country that is a state
sponsor of terrorism includes the state and
the government of a country that is a state
sponsor of terrorism, as well as any political
subdivision, agency, or instrumentality
thereof.
Significant interest means—
(i) Ownership of or beneficial interest in 5
percent or more of the firm’s or subsidiary’s
securities. Beneficial interest includes
holding 5 percent or more of any class of the
firm’s securities in ‘‘nominee shares,’’ ‘‘street
names,’’ or some other method of holding
securities that does not disclose the
beneficial owner;
(ii) Holding a management position in the
firm, such as a director or officer;
(iii) Ability to control or influence the
election, appointment, or tenure of directors
or officers in the firm;
(iv) Ownership of 10 percent or more of the
assets of a firm such as equipment, buildings,
real estate, or other tangible assets of the
firm; or
(v) Holding 50 percent or more of the
indebtedness of a firm.
State sponsor of terrorism means a country
determined by the Secretary of State, under
section 6(j)(1)(A) of the Export
Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)(A)), to be a country the government
of which has repeatedly provided support for
acts of international terrorism. As of the date
of this provision, state sponsors of terrorism
include: Cuba, Iran, Sudan, and Syria.
(b) Prohibition on award. In accordance
with 10 U.S.C. 2327, unless a waiver is
granted by the Secretary of Defense, no
contract may be awarded to a firm if the
government of a country that is a state
sponsor of terrorism owns or controls a
significant interest in—
(1) The firm;
(2) A subsidiary of the firm; or
(3) Any other firm that owns or controls
the firm.
(c) Representation. Unless the Offeror
submits with its offer the disclosure required
in paragraph (d) of this provision, the Offeror
represents, by submission of its offer, that the
government of a country that is a state
sponsor of terrorism does not own or control
a significant interest in—
(1) The Offeror;
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Frm 00030
Fmt 4700
Sfmt 4700
(2) A subsidiary of the Offeror; or
(3) Any other firm that owns or controls
the Offeror.
(d) Disclosure. (1) The Offeror shall
disclose in an attachment to its offer if the
government of a country that is a state
sponsor of terrorism owns or controls a
significant interest in the Offeror; a
subsidiary of the Offeror; or any other firm
that owns or controls the Offeror.
(2) The disclosure shall include—
(i) Identification of each government
holding a significant interest; and
(ii) A description of the significant interest
held by each government.
(End of provision)
[FR Doc. 2014–28819 Filed 12–10–14; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 204, 212, 225, and 252
RIN 0750–AI32
Defense Federal Acquisition
Regulation Supplement: Foreign
Commercial Satellite Services (DFARS
Case 2014–D010)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD has adopted as final,
with minor editorial changes, an interim
rule that amended the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement a section of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2014 that
prohibits acquisition of commercial
satellite services from certain foreign
entities.
SUMMARY:
Effective December 11, 2014.
Ms.
Amy G. Williams, telephone 571–372–
6106.
DATES:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background
DoD published an interim rule in the
Federal Register at 79 FR 45662 on
August 5, 2014, to implement section
1602 of the NDAA for FY 2014 (Pub. L.
113–66). Section 1602 prohibits award
of a contract for commercial satellite
services to a foreign entity if the
Secretary of Defense reasonably believes
that the foreign entity—
• Is an entity in which the
government of a covered foreign country
has an ownership interest that enables
the government to affect satellite
operations; or
E:\FR\FM\11DER1.SGM
11DER1
]]>Agencies
[Federal Register Volume 79, Number 238 (Thursday, December 11, 2014)]
[Rules and Regulations]
[Pages 73488-73490]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28819]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 204, 209, 212, 225, and 252
RIN 0750-AI34
Defense Federal Acquisition Regulation Supplement: State Sponsors
of Terrorism (DFARS Case 2014-D014)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to clarify and relocate text
relating to state sponsors of terrorism (as identified by the
Department of State), add an explicit representation, and conform the
terminology.
DATES: Effective December 11, 2014.
FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 79 FR
45666 on August 5, 2014, to clarify and relocate coverage relating to
state sponsors of terrorism (as identified by the Department of State),
add an explicit representation, and conform the terminology. No
respondents submitted public comments in response to the proposed rule.
This rule is part of DoD's retrospective plan, completed in August
2011, under Executive Order 13563, ``Improving Regulation and
Regulatory Review.'' DoD's full plan and updates can be accessed at:
https://www.regulations.gov/#!docketDetail;dct=FR+PR+N+O+SR;rpp=10;po=0;D=DOD-2011-OS-0036.
II. Discussion and Analysis
No public comments were received. The final rule is the same as the
proposed rule, except for minor edits.
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
DoD certifies that this rule will not 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 this
rule will only have an impact on a firm, or a subsidiary of a firm, in
which the government of a country that is a state sponsor of terrorism
has a significant interest.
The number of domestic entities significantly impacted by this rule
will be minimal, if any. For the definition of ``small business,'' the
Regulatory Flexibility Act refers to the Small Business Act, which in
turn allows the U.S. Small Business Administration (SBA) Administrator
to specify detailed definitions or standards (5 U.S.C. 601(3) and 15
U.S.C. 632(a)). The SBA regulations at 13 CFR 121.105 discuss who is a
small business: ``(a)(1) Except for small agricultural cooperatives, a
business concern eligible for assistance from SBA as a small business
is a business entity organized for profit, with a place of business
located in the United States, and which operates primarily within the
United States or which makes a significant contribution to the U.S.
economy through payment of taxes or use of American products, materials
or labor.''
V. Paperwork Reduction Act
The rule contains 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); however, these changes to the
DFARS do not impose additional information collection requirements to
the paperwork burden previously approved under OMB Control Number 0704-
0187, entitled ``Information Collection in Support of the DoD
Acquisition Process (Various Miscellaneous Requirements).'' This final
rule removes provision 252.209-7001, Disclosure of Ownership or Control
by the Government of a Terrorist Country, and replaces it with
provision 252.225-7050, Disclosure of Ownership or Control by the
Government of a Country that is a State Sponsor of Terrorism. The
burden in clearance 0704-0187 previously associated with the provision
252.209-7001, which is now associated with provision 252.225-7050,
remains unchanged and is estimated at 1 hour, because such disclosure
occurs rarely, if ever. 10 U.S.C. prohibits award to a firm or a
subsidiary of a firm if the government of country that is a state
sponsor of terrorism has a significant interest in the firm or
subsidiary, unless the Secretary of Defense grants a waiver.
[[Page 73489]]
List of Subjects in 48 CFR Parts 204, 209, 212, 225, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 204, 209, 212, 225, and 252 are proposed to
be amended as follows:
0
1. The authority citation for parts 204, 209, 212, 225, and 252
continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 204--ADMINISTRATIVE MATTERS
0
2. Amend section 204.1202 by--
0
a. Removing paragraph (2)(i);
0
b. Redesignating paragraphs (2)(ii) through (x) as (2)(i) though (ix),
respectively; and
0
c. Adding new paragraph (2)(x) to read as follows:
204.1202 Solicitation provision.
* * * * *
(2) * * *
(x) 252.225-7050, Disclosure of Ownership or Control by the
Government of a Country that is a State Sponsor of Terrorism.
* * * * *
PART 209--CONTRACTOR QUALIFICATIONS
0
3. Amend section 209.104-1, by revising paragraph (g)(i) to read as
follows:
209.104-1 General standards.
* * * * *
(g)(i) Ownership or control by the government of a country that is
a state sponsor of terrorism. (See 225.771.)
* * * * *
0
4. Revise section 209.104-70 to read as follows:
209.104-70 Solicitation provision.
Use the provision at 252.209-7002, Disclosure of Ownership or
Control by a Foreign Government, in all solicitations, including those
subject to the procedures in FAR part 13, when access to proscribed
information is necessary for contract performance. If the solicitation
includes the provision at FAR 52.204-7, do not separately list the
provision 252.209-7002 in the solicitation.
0
5. Amend section 209.405, by revising paragraph (b)(i) to read as
follows:
209.405 Effect of listing.
* * * * *
(b)(i) The Procurement Cause and Treatment Code ``H'' annotation in
the Exclusions section of the System for Award Management (SAM
Exclusions) identifies contractor facilities where no part of a
contract or subcontract may be performed because of a violation of the
Clean Air Act (42 U.S.C. 7606) or the Clean Water Act (33 U.S.C. 1368).
* * * * *
0
6. Revise section 209.405-2 to read as follows:
209.405-2 Restrictions on subcontracting.
(a) The contracting officer shall not consent to any subcontract
with a firm, or a subsidiary of a firm, that is identified by the
Secretary of Defense in SAM Exclusions as being owned or controlled by
the government of a country that is a state sponsor of terrorism unless
the agency head states in writing the compelling reasons for the
subcontract. (See also 225.771.)
0
7. Revise section 209.409 to read as follows:
209.409 Solicitation provision and contract clause.
Use the clause at 252.209-7004, Subcontracting with Firms that are
Owned or Controlled by the Government of a Country that is a State
Sponsor of Terrorism, in solicitations and contracts with a value of
$150,000 or more.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
8. Amend section 212.301 by--
0
a. Removing paragraph (f)(xi);
0
b. Redesignating paragraphs (f)(xii) through (xlviii) as (xi) through
(xlvii); and
0
b. Adding a new paragraph (f)(xlviii) to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * * * *
(xlviii) Use the provision at 252.225-7050, Disclosure of Ownership
or Control by the Government of a Country that is a State Sponsor of
Terrorism, as prescribed in 225.771-5, to comply with 10 U.S.C.
2327(b).
* * * * *
PART 225--FOREIGN ACQUISITION
225.701 [Amended]
0
9. In section 225.701, remove the section text.
0
10. Add sections 225.771, 225.771-0, 225.771-1, 225.771-2, 225.771-3,
225.771-4, and 225.771-5 to subpart 225.7 to read as follows:
225.771 Prohibition on contracting or subcontracting with a firm that
is owned or controlled by the government of a country that is a state
sponsor of terrorism.
225.771-0 Scope.
This section implements 10 U.S.C. 2327(b).
225.771-1 Definition.
``State sponsor of terrorism,'' as used in this section, is defined
in the provision at 252.225-7050, Disclosure of Ownership or Control by
the Government of a Country that is a State Sponsor of Terrorism.
225.771-2 Prohibition.
(a) The contracting officer shall not award a contract of $150,000
or more to a firm when a foreign government that is a state sponsor of
terrorism owns or controls, either directly or indirectly, a
significant interest in--
(i) The firm;
(ii) A subsidiary of the firm; or
(iii) Any other firm that owns or controls the firm.
(b) For restrictions on subcontracting with a firm, or a subsidiary
of a firm, that is identified by the Secretary of Defense as being
owned or controlled by the government of a country that is a state
sponsor of terrorism, see 209.405-2.
225.771-3 Notification.
Any disclosure that the government of a country that is a state
sponsor of terrorism has a significant interest in an offeror, a
subsidiary of an offeror, or any other firm that owns or controls an
offeror shall be forwarded through agency channels to the address at
PGI 225.771-3.
225.771-4 Waiver of prohibition.
The prohibition in 225.771-2 may be waived if the Secretary of
Defense determines that a waiver is not inconsistent with the national
security objectives of the United States in accordance with 10 U.S.C.
2327(c).
225.771-5 Solicitation provision.
Use the provision at 252.225-7050, Disclosure of Ownership or
Control by the Government of a Country that is a State Sponsor of
Terrorism, in solicitations, including solicitations using FAR part 12
procedures for the acquisition of commercial items (other than
commercial satellite services), that are expected to result in
contracts of $150,000 or more. If the solicitation includes the
provision at FAR 52.204-7, do not separately list the provision
252.225-7050 in the solicitation.
[[Page 73490]]
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
11. Amend section 252.204-7007 by--
0
a. Removing the clause date ``(AUG 2014)'' and adding ``(DEC 2014)'' in
its place;
0
b. Removing paragraph (d)(1)(i);
0
c. Redesignating paragraphs (d)(1)(ii) through (v) as (d)(1)(i) through
(iv); and
0
d. Adding a new paragraph (d)(1)(v).
The addition reads as follows:
252.204-7007 Alternate A, Annual Representations and Certifications.
* * * * *
(d)(1) * * *
(v) 252.225-7050, Disclosure of Ownership or Control by the
Government of a Country that is a State Sponsor of Terrorism. Applies
to all solicitations expected to result in contracts of $150,000 or
more.
* * * * *
252.209-7001 [Removed and Reserved]
0
12. Remove and reserve section 252.209-7001.
252.209-7002 [Amended]
0
13. Amend section 252.209-7002 introductory text by removing ``209.104-
70(b)'' and adding ``209.104-70'' in its place.
0
14. Revise section 252.209-7004 to read as follows:
252.209-7004 Subcontracting with Firms that are Owned or Controlled by
the Government of a Country that is a State Sponsor of Terrorism.
As prescribed in 209.409, use the following clause:
SUBCONTRACTING WITH FIRMS THAT ARE OWNED OR CONTROLLED BY THE
GOVERNMENT OF A COUNTRY THAT IS A STATE SPONSOR OF TERRORISM (DEC 2014)
(a) Unless the Government determines that there is a compelling
reason to do so, the Contractor shall not enter into any subcontract
in excess of $30,000 with a firm, or a subsidiary of a firm, that is
identified in the Exclusions section of the System for Award
Management System (SAM Exclusions) as being ineligible for the award
of Defense contracts or subcontracts because it is owned or
controlled by the government of a country that is a state sponsor of
terrorism.
(b) A corporate officer or a designee of the Contractor shall
notify the Contracting Officer, in writing, before entering into a
subcontract with a party that is identified, in SAM Exclusions, as
being ineligible for the award of Defense contracts or subcontracts
because it is owned or controlled by the government of a country
that is a state sponsor of terrorism. The notice must include the
name of the proposed subcontractor and the compelling reason(s) for
doing business with the subcontractor notwithstanding its inclusion
in SAM Exclusions.
(End of clause)
0
15. Add section 252.225-7050 to read as follows:
252.225-7050 Disclosure of Ownership or Control by the Government of a
Country that is a State Sponsor of Terrorism.
As prescribed in 225.771-5, use the following provision:
DISCLOSURE OF OWNERSHIP OR CONTROL BY THE GOVERNMENT OF A COUNTRY THAT
IS A STATE SPONSOR OF TERRORISM (DEC 2014)
(a) Definitions. As used in this provision--
Government of a country that is a state sponsor of terrorism
includes the state and the government of a country that is a state
sponsor of terrorism, as well as any political subdivision, agency,
or instrumentality thereof.
Significant interest means--
(i) Ownership of or beneficial interest in 5 percent or more of
the firm's or subsidiary's securities. Beneficial interest includes
holding 5 percent or more of any class of the firm's securities in
``nominee shares,'' ``street names,'' or some other method of
holding securities that does not disclose the beneficial owner;
(ii) Holding a management position in the firm, such as a
director or officer;
(iii) Ability to control or influence the election, appointment,
or tenure of directors or officers in the firm;
(iv) Ownership of 10 percent or more of the assets of a firm
such as equipment, buildings, real estate, or other tangible assets
of the firm; or
(v) Holding 50 percent or more of the indebtedness of a firm.
State sponsor of terrorism means a country determined by the
Secretary of State, under section 6(j)(1)(A) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)), to be a
country the government of which has repeatedly provided support for
acts of international terrorism. As of the date of this provision,
state sponsors of terrorism include: Cuba, Iran, Sudan, and Syria.
(b) Prohibition on award. In accordance with 10 U.S.C. 2327,
unless a waiver is granted by the Secretary of Defense, no contract
may be awarded to a firm if the government of a country that is a
state sponsor of terrorism owns or controls a significant interest
in--
(1) The firm;
(2) A subsidiary of the firm; or
(3) Any other firm that owns or controls the firm.
(c) Representation. Unless the Offeror submits with its offer
the disclosure required in paragraph (d) of this provision, the
Offeror represents, by submission of its offer, that the government
of a country that is a state sponsor of terrorism does not own or
control a significant interest in--
(1) The Offeror;
(2) A subsidiary of the Offeror; or
(3) Any other firm that owns or controls the Offeror.
(d) Disclosure. (1) The Offeror shall disclose in an attachment
to its offer if the government of a country that is a state sponsor
of terrorism owns or controls a significant interest in the Offeror;
a subsidiary of the Offeror; or any other firm that owns or controls
the Offeror.
(2) The disclosure shall include--
(i) Identification of each government holding a significant
interest; and
(ii) A description of the significant interest held by each
government.
(End of provision)
[FR Doc. 2014-28819 Filed 12-10-14; 8:45 am]
BILLING CODE 5001-06-P
