Federal Acquisition Regulation; FAR Case 2005-012, Combating Trafficking in Persons, 2741-2745 [E9-548]
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Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations
There were no significant issues raised by
the public comments in response to the
initial regulatory flexibility analysis.
As of June 2008, seven of the twenty-seven
vendors who have registered products on the
EPEAT Product Registry reported that they
are small businesses. Data are not available
on how many small businesses are reselling
personal computer products to the
Government, but according to the EPA’s
Office of Small Disadvantaged Business
Utilization, at the time of publication of the
interim rule, there were approximately 613
Service Disabled Veteran Owned Small
Businesses (SDVOSBs) selling IT hardware to
the Federal Government. These small
businesses were not manufacturers of IT
hardware, but resold IT hardware
manufactured by other companies to the
Federal Government. Many of the products
these resellers sold could meet the IEEE 1680
Standard, and the manufacturers of these
products had the option of getting these
products EPEAT registered to verify that they
do meet this standard.
Because manufacturers are the parties
responsible for determining if their products
meet the IEEE 1680 Standard or not, there
will be little to no impact on small
businesses selling IT products to the Federal
Government, who are selling EPEATregistered products. In addition, the EPEAT
Product Registry has been designed to
encourage small business manufacturer
participation. There is a sliding scale for the
annual EPEAT registration fee vendors pay to
have their products EPEAT registered based
on the annual revenue of the vendor.
The rule does not duplicate, overlap, or
conflict with any other Federal rules.
The FAR Secretariat has submitted a
copy of the FRFA to the Chief Counsel
for Advocacy of the Small Business
Administration. A copy of the FRFA
may be obtained from the FAR
Secretariat. The Councils will consider
comments from small entities
concerning the affected FAR Parts 11,
23, 39, and 52 in accordance with 5
U.S.C. 610. Interested parties must
submit such comments separately and
should cite 5 U.S.C. 601, et seq. (FAR
case 2006–030), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the changes to the
FAR do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
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List of Subjects in 48 CFR Parts 11, 23,
39, and 52
Government procurement.
Dated: December 24, 2008
Edward Loeb,
Acting Director, Office of Acquisition Policy.
Interim Rule Adopted as Final
Without Change
Accordingly, the interim rule
amending 48 CFR parts 11, 23, 39, and
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52 which was published in the Federal
Register at 72 FR 73215 on December
26, 2007, is adopted as a final rule
without change.
[FR Doc. E9–549 Filed 1–14–09; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 12, 22, and 52
[FAC 2005–30; FAR Case 2005–012; Item
VII; Docket 2006–0020; Sequence 25]
RIN 9000–AK31
Federal Acquisition Regulation; FAR
Case 2005–012, Combating Trafficking
in Persons
AGENCIES: Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) have agreed to adopt as final,
with changes, the second interim rule
published in the Federal Register at 72
FR 46335, August 17, 2007, amending
the Federal Acquisition Regulation
(FAR) to implement 22 U.S.C. 7104(g).
This statute requires that contracts
include a provision that authorizes the
department or agency to terminate the
contract, if the contractor or any
subcontractor engages in trafficking in
persons.
DATES: Effective Date: February 17,
2009.
FOR FURTHER INFORMATION CONTACT: Mr.
Ernest Woodson, Procurement Analyst,
at (202) 501–3775 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at (202) 501–
4755. Please cite FAC 2005–30, FAR
case 2005–012.
SUPPLEMENTARY INFORMATION:
A. Background
The Trafficking Victims Protection
Reauthorization Act (TVPRA) of 2003,
as amended by TVPRA of 2005,
addresses the victimization of countless
men, women, and children in the
United States and abroad. In order to
implement the law, DoD, GSA, and
NASA published a second interim rule
in the Federal Register at 72 FR 46335,
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2741
August 17, 2007 with request for
comments by October 16, 2007. Five
respondents submitted comments on the
second interim rule. Those comments,
summarized as follows, were considered
by the Councils in the formation of this
final rule:
1. Applicability to Commercial Items.
Four comments were received from
three different respondents regarding
the applicability of the rule to
commercial items.
(a) One respondent is concerned that
although the FAR Matrix indicates that
FAR clause 52.222–50 is not applicable
to commercial items, FAR 52.212–5
includes 52.222–50 as a clause that the
contracting officer may mark as being
applicable to commercial items.
Response: The Councils concur with
the respondent’s concern and agrees to
indicate in the FAR clause matrix that
clause 52.222–50 is required.
(b) One respondent believes that by
making the rule applicable to
commercial items, the Councils
misinterpreted the separate Federal
crimes created under Chapter 77 of Title
18, United States Code, as providing the
necessary criminal or civil penalties for
the contract violations to which the
Federal Acquisition Streamlining Act
was meant to apply. The respondent
requests the Councils to reconsider the
applicability to commercial items.
Response: The Councils note that
application of the rule to all contracts
for supplies and services, including
those for commercial items, is
consistent with the broad scope of the
statutory directive and is in compliance
with the Federal Acquisition
Streamlining Act’s (FASA) provision
concerning commercial contracts.
Specifically, the statutory language at 22
U.S.C. 7104(g) contained no exceptions
or limitations with regard to its
application to Federal contracts. While
FASA governs and limits the
applicability of laws to commercial
items, it also provides that if a provision
of law contains criminal or civil
penalties, or if the Federal Acquisition
Regulatory Council determines that it is
not in the best interest of the Federal
Government to exempt commercial item
contracts, then the provision of law will
apply to contracts for commercial items.
(c) Another respondent asked the
Councils to give further consideration to
not applying the rule to commercial
items (subcontracts), indicating that the
application will give rise to unintended
consequences and create an effect
inconsistent with Federal acquisition
goals.
Response: The Councils believe that
the TVPRA of 2003 and 2005 reflects
Congress’s intent to allow for the
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termination of all U.S. contracts when
specified prohibited acts take place.
Although the intent of the Federal
Acquisition Streamlining Act and the
Clinger-Cohen Act is to limit the
applicability of laws to commercial
items and commercially available offthe-shelf (COTS) items, these laws also
provide that if a provision of law
contains criminal or civil penalties, then
commercial items are not to be
exempted. The Councils believe the rule
corresponds to these laws and the
mandate of the TVPRA.
(d) The respondent further
commented that if the rule’s
applicability to commercial items is to
be retained, that it be listed in FAR
52.244–6, Subcontracts for Commercial
Items.
Response: The Councils agree with
the respondent’s comment to add FAR
52.222–50 at 52.244–6(c)(1), requiring
flow-down to subcontracts for
commercial items.
2. Exemption. One respondent
recommended creating a general
exemption from the rule where the
Federal Government affirmatively
contracts for services to support frontline intervention activities domestically
or internationally. The respondent states
that many contractors that are involved
in both the health and international
development arena may directly or
indirectly be involved in front-line
intervention contracts and even
advocacy programs to increase
awareness of these and related
activities.
Response: The Councils note the
respondent’s concern as it relates to
‘‘front-line’’ intervention contracts.
However, the councils are not aware of
any conflict that this rule may present
in relation to those efforts. The terms
used throughout the rule reflect the
terms used in the statute. Actions taken
to help trafficking victims do not violate
the rule. Therefore, the Councils do not
believe that an exemption is necessary
and the final rule remains unchanged.
3. Contractor Employees. Three
comments were received regarding
employees.
(a) One respondent is concerned with
the term ‘‘minimal impact or
involvement in contract performance’’
in the definition of employee. The
respondent believes that in the
acquisition of commercial items
(commercially available off the shelf
supplies), a contractor may not know
which employees had a minimal impact
on contract performance. The
respondent suggests that a commercial
item supplier make a ‘‘good faith
determination’’ regarding the minimal
impact requirement.
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Response: The Councils agree that the
contractor should make a first good faith
determination of the employee’s
involvement. The Councils do not agree
that use of the term ‘‘minimal impact or
involvement in contract performance’’ is
ambiguous. The term narrows the scope
of the definition of employee and leaves
the determination of impact/
involvement to the contractor. The
Councils do not agree that a contractor
cannot determine if an employee had a
‘‘minimal impact or involvement in
contract performance’’ in the acquisition
of commercial items. The contractor is
in the best position to know and
determine what role an employee plays
in the performance of a contract, major
or minor. The contractor is responsible
for work production as well as work
assignments. In the case of a violation
of the clause, the contractor can
determine the employee’s duties under
the contract and associate those duties
with performance under the contract.
(b) One respondent is concerned that
as written, the rule fails to achieve the
contractor-accountability provisions of
the TVPRA of 2005 and requests that the
Councils reinsert the requirements for
contractors to obtain written notification
of understanding of polices and
procedures to combat human trafficking.
Response: As written, the rule
requires the contractor to notify its
employees and take appropriate action
against employees that violate policies
and procedures to combat human
trafficking. The Councils appreciate the
respondent’s concern for ensuring that
contractor employees who engage in
trafficking are appropriately held
accountable. However, the Councils do
not believe that requiring the contractor
to obtain written notification of
employees’ understanding of policies
and procedures to combat human
trafficking will ensure that no violations
occur. In fact, such a requirement may
impose an undue and unnecessary
burden on the contractor and taxpayer.
The requirement for the contractor to
notify its employees of the prohibited
trafficking and other behaviors, as well
as the actions that may be taken for
violations, satisfies the requirements of
22 U.S.C. 7104(g), to hold those engaged
in trafficking accountable.
(c) Two respondents are concerned
that the rule is directed to contractor
employees not the contractor and
requests that the rule be revised to limit
it to the contractor and its employees
during the performance of the contact,
not to employee behavior outside work.
Response: As written, the rule reflects
the statutory language prohibiting
severe forms of trafficking in persons or
the procurement of a commercial sex act
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during the period of performance of the
contract. The Councils believe that
limiting the rule in the manner
suggested by the respondent would
inadequately implement the statute
since employee violations are more
likely to occur after working hours.
Furthermore, contractor employees are
often perceived as representing the
Government, and their actions reflect
upon the Government’s integrity and
ethics. Therefore, to ensure that U.S.
Government contractors do not
contribute to trafficking in persons, the
rule requires the contractor to notify its
employees (as defined in the clause) of
the U.S. zero tolerance policy, and take
action against those employees who
violate the U.S. policy.
4. Scope of Contractor’s Obligation.
One respondent suggested that the text
of the clause at FAR 52.222–50 be
revised to further elaborate on the scope
of the contractor’s obligations regarding
what actions it may take against
employees and subcontractors who
violate the policy.
Response: The Councils do not
believe that further elaboration is
necessary. The clause is clear that
contractors must notify their employees
regarding the policy and the actions that
may be taken for violations. The clause
lists examples of actions that contractors
may take, but does not limit the actions
to only those listed. Furthermore, the
clause already provides contractors with
flexibility as to what actions they may
choose to impose against either
employees or subcontractors in
subparagraph (c)(2) by stating that the
contractor shall take ‘‘appropriate’’
action.
5. Reporting Allegations and
Employment. Three comments were
received regarding the procedures for
reporting allegations and employment
issues.
(a) One respondent objected to the
obligation in the FAR clause 52.222–
50(d)(1), which requires contractors to
notify the contracting officer
immediately when they learn of
allegations that the policy has been
violated. The respondent proposed that
contractors be obligated to notify only
when they have ‘‘adequate evidence’’ of
a violation.
Response: The Councils believes that
it is important for the contracting officer
to learn immediately of alleged
violations of U.S. trafficking policy.
Many such allegations become a subject
of interest quickly, and it is important
in those situations that the contracting
officer be informed. The Councils
further believes that the ‘‘adequate
evidence’’ standard contained in FAR
22.1704(b) properly limits the
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contracting officer’s ability to exercise
the available remedies with respect to
allegations of conduct that violate U.S.
policy.
(b) One respondent is concerned that
the rule does not provide guidance on
how employees found to have engaged
in trafficking will be prevented from
working on another Government
contract. The respondent believes that
some ‘‘stop-gap’’ measure is required
until the Government deals with the
investigations and prosecution issue.
Response: The Councils disagree that
the rule should provide guidance on
how employees found to have engaged
in trafficking are to be prevented from
working on another Government
contract. Providing such guidance
would be outside the scope of the rule.
Each acquisition carries its own unique
and special contract requirements and
terms and conditions for which the
contractor is responsible and liable.
This responsibility and liability
includes the contractor’s hiring of
responsible employees and
subcontractors that meet the
performance requirements, and terms
and conditions specified in the
acquisition. This responsibility may
include the contractor’s responsibility to
conduct appropriate background
investigations prior to hiring its
employees and subcontractors.
(c) Another respondent is concerned
that the rule provides the potential for
wrongful discharge filings and
collective bargaining issues.
Response: A contractor may need to
update the employment contracts it
forms (whether with unions or nonunionized employees) to reflect the antitrafficking statute, which is intended to
have an impact on the behavior of
Government contractor employees.
6. Prescriptive Language
Applicability. One respondent noted
that the prescriptive language at FAR
22.1703 and 22.1704(a) provides that
‘‘Government contracts shall prohibit
contractors, contractor employees,
subcontractors and subcontractor
employees’’ from taking the listed
actions. However, the clause at FAR
52.222–50(b) is limited to ‘‘contractor
and contractor employees.’’ The
prescriptive language and clause
language should be reconciled.
Response: It should be noted that
provisions and clauses are directed to
the offeror or contractor. The term
‘‘contractor and contractor employees’’
refers to the prime contractor only.
When a prime contractor issues a
subcontract, the clause would then be
applicable to the subcontractor using
the term ‘‘contractor and contractor
employees.’’ However, the prescriptive
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language provides all conditions,
requirements, and instructions for using
the provision or clause and is applicable
to both contractors and subcontractors.
The Councils recommends that the final
rule remain unchanged.
7. Administrative Issues. One
respondent recommended several
administrative changes, as follows:
(a) FAR 22.1703 uses the word ‘‘and’’
while FAR 52.222–50(b) uses the word
‘‘or.’’ This should be reconciled;
(b) Move the reference to FAR clause
52.222–50 from FAR 52.212–5(b)(24)(i)
and (ii) to FAR 52.212–5(a) because the
clause applies to all contracts;
(c) FAR 52.212–5(e)(1)(vii) needlessly
cites a reason for listing the flow-down
clause. By incorporating the clause in
paragraph (e), by definition the clause
flows down to subcontractors; and
(d) FAR 52.222–50(e) should be
reworded to remove awkwardness.
Responses:
(a) FAR language at 22.1703(a)(2) has
been changed to read ‘‘or’’ instead of
‘‘and.’’ All other conjunctions are used
correctly throughout the rule.
(b) FAR clause 52.222–50 has been
moved to 52.212–5(a).
(c) FAR language at 52.212–5(e)(1)(vii)
has been revised to remove the reason
for flow-down.
(d) FAR 52.222–50(e) has been revised
to remove awkward wording of
remedies.
8. Clarification of Definitions. Two
respondents recommended further
revisions regarding definitions. One
respondent recommended adding a
definition for ‘‘forced labor’’ as defined
in the criminal statute at 18 U.S.C.
§ 1589, and another recommended more
elaboration to the definitions of ‘‘sex
act’’ and ‘‘employee’’ and offered
suggested language as well.
Response: The Councils concur that a
definition of ‘‘forced labor’’ should be
added. The statute prohibits severe
forms of trafficking in persons and,
separately, forced labor. While forced
labor is a severe form of trafficking in
persons, as defined in 22 U.S.C. 7102,
the Councils agree that defining the
specific term ‘‘forced labor’’ would add
more clarity. Therefore, a definition of
‘‘forced labor’’ has been added to
22.1702 and the clause at 52.222–50.
Because the FAR rule reflects the
definition of ‘‘commercial sex act’’ in
accordance with 22 U.S.C. 7102, the
Councils believe that the statutory
definition of commercial sex acts should
remain as stated in the rule without
further elaboration.
Lastly, a respondent requested
clarifications in the definition of
‘‘employee’’ to more clearly outline
what is meant by ‘‘directly engaged’’
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2743
and ‘‘minimal impact or involvement’’.
The original rule issued on April 19,
2006 (71 FR 20301) used the phrase
‘‘including all direct cost employees’’ in
the definition of ‘‘employee’’, similar to
the language used in FAR 23.503
implementing the Drug-Free Workplace
Act. The Councils subsequently
removed this phrase in the second
interim rule based on public comment
that the phrase caused confusion since
the term ‘‘direct cost’’ appeared to refer
to cost-reimbursement contracts only.
The phrase ‘‘minimal impact or
involvement’’ is also used in the
definition of ‘‘employee’’ under FAR
23.503 and is not further defined. The
Councils are not aware that the lack of
more definitive elaboration has caused
any problems in the implementation of
the drug-free workplace requirements.
Also see the discussion under Paragraph
3.
9. Facilitation of Investigations and
Prosecutions. One respondent suggested
the creation of an anti-trafficking hotline
that would link directly to the
Department of Justice to allow
contractor employees to report
trafficking allegations.
Response: This comment goes beyond
the statutory requirements of the Act,
which requires only that contracts
contain provisions allowing for
termination if the contractor or
subcontractor engages in conduct that
violates U.S. policy on trafficking.
However, the Councils recommend
adding a link to the Department of
State’s Office to Monitor and Combat
Trafficking in Persons’ (DOS G/TIP)
(https://www.state.gov/g/tip) at FAR
22.1703 for further information on
human trafficking and links to other
Government websites.
10. One respondent suggested making
a distinction between trafficking abuses
and the procurement of a commercial
sex act. The respondent further states
that trafficking in persons is a felony
while procurement of a commercial sex
act is not covered by Federal law and is
treated in most states as a misdemeanor,
unless it involves a child. The lack of
distinction in the rule heightens
confusion and becomes difficult to
implement.
Response: The statute requires that
the Government have the authority to
terminate a contract in cases where the
contractor or subcontractor engages in
severe forms of trafficking in persons, or
in cases involving the procurement of a
commercial sex act. The rule seeks to
implement both statutory directives and
remains unchanged.
11. Enforcement Issues Where
Commercial Sex Acts are Legal. One
respondent was concerned that certain
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types of sex acts are legal in several
jurisdictions of the U.S. and in some
foreign countries and urged that careful
attention be given to how the remedies
in this rule intersect with otherwise
lawful conduct.
Response: The Councils recognize the
challenges contractors face in
monitoring employee actions during
non-work hours. However, contractors
and their employees need to understand
that procuring commercial sex acts is an
unacceptable behavior that carries
penalties. The Councils do not believe
that a change in the language to
distinguish enforcement actions for
‘‘unlawful commercial sex acts’’ and
‘‘lawful commercial sex acts’’ is
consistent with the statute and therefore
the final rule remains unchanged.
12. Investigation and Punishment of
Violators. One respondent submitted
two comments regarding the
investigation of trafficking violators.
(a) The respondent recommends
revising the text to include specific
procedures governing the investigation
and punishment of contractors for
violating the rule. The respondent also
questions whether there is a
requirement for the contractor to
investigate if the company learns that an
employee may have been involved in a
commercial sex act.
Response: Violations of the rule
should be handled in the same manner
that the contractor handles other
allegations of employee misconduct.
(b) The respondent also suggests
creating a decision-tree for contracting
officers attempting to apply the rule.
Response: In cases where trafficking is
alleged, the FAR is clear on what
actions the contracting officer may take.
After making a determination in writing
that adequate evidence exists to suspect
any of the violations in paragraph (a) of
FAR 22.1704, the contracting officer
may pursue any of the remedies
specified in paragraph (e) of FAR clause
52.222–50.
13. Public Meeting. One respondent
requested that the Councils seek an
active dialogue with the contractor
community in developing the final rule.
Response: The Councils have solicited
the public several times for comments to
assist with the development of this rule.
Public comments were solicited on
April 16, 2006 and August 17, 2007.
This is a significant regulatory action
and, therefore, was subject to review
under Executive Order 12866,
Regulatory Planning and Review, dated
September 30, 1993. This rule is not a
major rule under 5 U.S.C. 804.
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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 within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because the
impact will be minimal unless the
contractor or its employees or
subcontractors engage in forms of
trafficking in persons, use forced labor,
or procure commercial sex acts that are
illegal within the U.S. Although not
considered significant, additional
impact may be associated with contract
performance in counties/states and
locations outside the U.S. where certain
commercial sex acts are legal. However,
the termination authorities at 22 U.S.C.
7104(g) apply to Government contracts
performed in these areas.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub.
L. 104–13) applies because the final rule
contains information collection
requirements. Accordingly, the
Regulatory Secretariat will forward a
request for approval of a new
information collection requirement to
the Office of Management and Budget
under 44 U.S.C. 3501, et seq. Public
comments concerning this request will
be invited through a subsequent Federal
Register notice.
List of Subjects in 48 CFR Parts 12, 22,
and 52
Government procurement.
Dated: December 24, 2008
Edward Loeb,
Acting Director, Office of Acquisition Policy.
Accordingly, the interim rules
published in the Federal Register at 71
FR 20301, April 19, 2006, and at 72 FR
46335, August 17, 2007, are adopted as
a final rule with the following changes:
■ 1. The authority citation for 48 CFR
parts 22 and 52 continues to read as
follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
PART 22—APPLICATION OF LABOR
LAWS TO GOVERNMENT
ACQUISITIONS
2. Amend section 22.1702 by adding,
in alphabetical order, the definition
‘‘Forced Labor’’ to read as follows:
■
22.1702
Definitions.
*
*
*
*
*
Forced labor means knowingly
providing or obtaining the labor or
services of a person—
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(1) By threats of serious harm to, or
physical restraint against, that person or
another person;
(2) By means of any scheme, plan, or
pattern intended to cause the person to
believe that, if the person did not
perform such labor or services, that
person or another person would suffer
serious harm or physical restraint; or
(3) By means of the abuse or
threatened abuse of law or the legal
process.
*
*
*
*
*
■ 3. Amend section 22.1703 by revising
the introductory paragraph; and by
removing from the end of paragraph
(a)(2) ‘‘and’’ and adding ‘‘or’’ in its
place. The revised text reads as follows:
22.1703
Policy.
The United States Government has
adopted a zero tolerance policy
regarding trafficking in persons.
Additional information about trafficking
in persons may be found at the website
for the Department of State’s Office to
Monitor and Combat Trafficking in
Persons’ at https://www.state.gov/g/tip.
Government contracts shall—
*
*
*
*
*
■ 4. Amend section 22.1704 in
paragraph (b) by adding a new sentence
after the first sentence to read as
follows:
22.1704
Violations and remedies.
*
*
*
*
*
(b) * * * The contracting officer may
take into consideration whether the
contractor had a Trafficking in Persons
awareness program at the time of the
violation as a mitigating factor when
determining the appropriate remedies. *
**
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
5. Amend section 52.212–5 by—
a. Revising the date of the clause;
b. Redesignating paragraphs (a)(1) and
(a)(2) as (a)(2) and (a)(3), respectively;
and adding a new paragraph (a)(1);
■ c. Removing paragraph (b)(25); and
redesignating paragraphs (b)(26) through
(b)(42) as (b)(25) through (b)(41),
respectively; and
■ d. Revising paragraph (e)(1)(viii) to
read 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 (FEB 2009)
(a) * * *
E:\FR\FM\15JAR3.SGM
15JAR3
Federal Register / Vol. 74, No. 10 / Thursday, January 15, 2009 / Rules and Regulations
(2) Requiring the Contractor to terminate a
subcontract;
(1) 52.222–50, Combating Trafficking in
Persons (FEB 2009) (22 U.S.C. 7104(g)).
llAlternate I (Aug 2007) of 52.222–50
(22 U.S.C. 7104(g)).
*
*
*
*
*
*
(e)(1) * * *
(viii) 52.222–50, Combating Trafficking in
Persons (FEB 2009) (22 U.S.C. 7104(g)).
llAlternate I (Aug 2007) of 52.222–50
(22 U.S.C. 7104(g)).
*
*
*
*
*
6. Amend section 52.213–4 by
revising the date of the clause and
paragraph (a)(1)(iv); and removing from
paragraph (a)(2)(vi) ‘‘(DEC 2008)’’ and
adding ‘‘(FEB 2009)’’ in its place to read
as follows:
■
52.213–4 Terms and Conditions—
Simplified Acquisitions (Other Than
Commercial Items).
*
*
*
*
*
TERMS AND CONDITIONS—
SIMPLIFIED ACQUISITIONS (OTHER
THAN COMMERCIAL ITEMS (FEB
2009)
(a) * * *
(1) * * *
(iv) 52.222–50, Combating Trafficking in
Persons (FEB 2009) (22 U.S.C. 7104(g)).
*
*
*
*
*
*
*
*
*
(g) Mitigating Factor. The Contracting
Officer may consider whether the Contractor
had a Trafficking in Persons awareness
program at the time of the violation as a
mitigating factor when determining remedies.
Additional information about Trafficking in
Persons and examples of awareness programs
can be found at the website for the
Department of State’s Office to Monitor and
Combat Trafficking in Persons at https://
www.state.gov/g/tip.
(End of clause)
8. Amend section 52.244–6 by
revising the date of the clause; by
redesignating paragraph (c)(1)(vii) as
paragraph (c)(1)(viii); and adding a new
paragraph (c)(1)(vii) to read as follows:
■
52.244–6
Items.
Subcontracts for Commercial
*
*
*
*
*
SUBCONTRACTS FOR
COMMERCIAL ITEMS (FEB 2009)
*
*
*
*
*
(c)(1) * * *
(vii) 52.222–50, Combating Trafficking in
Persons (FEB 2009) (22 U.S.C. 7104(g)).
*
*
*
*
*
■
7. Amend section 52.222–50 by—
a. Revising the date of the clause;
■ b. Adding, in alphabetical order, the
definition ‘‘Forced Labor’’;
■ c. Removing from the introductory
text of paragraph (e) ‘‘render the
Contractor subject to’’ and adding
‘‘result in’’ in its place; and revising
paragraphs (e)(1) and (e)(2); and
■ d. Adding paragraph (g) to read as
follows:
[FR Doc. E9–548 Filed 1–14–09; 8:45 am]
■
BILLING CODE 6820–EP–S
52.222–50
Persons.
48 CFR Parts 22, 25, and 52
DEPARTMENT OF DEFENSE
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[FAC 2005–30; FAR Case 2007–016; Item
VIII; Docket 2008–0001; Sequence 3]
*
*
*
*
*
COMBATING TRAFFICKING IN
PERSONS (FEB 2009)
RIN 9000–AK89
(a) * * *
sroberts on PROD1PC70 with RULES
*
*
*
*
*
Forced Labor means knowingly providing
or obtaining the labor or services of a
person—
(1) By threats of serious harm to, or
physical restraint against, that person or
another person;
(2) By means of any scheme, plan, or
pattern intended to cause the person to
believe that, if the person did not perform
such labor or services, that person or another
person would suffer serious harm or physical
restraint; or
(3) By means of the abuse or threatened
abuse of law or the legal process.
*
*
*
*
*
(e) * * *
(1) Requiring the Contractor to remove a
Contractor employee or employees from the
performance of the contract;
VerDate Nov<24>2008
18:43 Jan 14, 2009
Jkt 217001
Federal Acquisition Regulation; FAR
Case 2007–016, Trade Agreements—
New Thresholds
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) have agreed on a final rule
amending the Federal Acquisition
Regulation (FAR) to incorporate
increased thresholds for application of
the World Trade Organization
Government Procurement Agreement
and the Free Trade Agreements, as
PO 00000
Frm 00037
Fmt 4701
Sfmt 4700
determined by the United States Trade
Representative.
DATES: Effective Date: January 15, 2009.
FOR FURTHER INFORMATION CONTACT: Ms.
Meredith Murphy, Procurement
Analyst, at (202) 208–6925, for
clarification of content. For information
pertaining to status or publication
schedules, contact the FAR Secretariat
at (202) 501–4755. Please cite FAC
2005–30, FAR case 2007–016.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
73 FR 10962 on February 28, 2008, to
implement the biannual changes
specified by the United States Trade
Representative (USTR) to the trade
agreements thresholds. A correction was
published in the Federal Register at 73
FR 16747, March 28, 2008.
No comments were received by the
close of the public comment period on
April 28, 2008. Therefore, the Councils
agreed to convert the interim rule to a
final rule without change.
This is not a significant regulatory
action and, therefore, was not subject to
review under Section 6(b) of Executive
Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
B. Regulatory Flexibility Act
GENERAL SERVICES
ADMINISTRATION
Combating Trafficking in
2745
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 within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because the
dollar threshold changes are designed to
keep pace with inflation and thus
maintain the status quo.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub.
L. 104–13) applies because the final rule
contains information collection
requirements that affect the
prescriptions for use of the certifications
at FAR 52.225–4 (OMB Control No.
9000–0130) and FAR 52.225–6 (OMB
Control No. 9000–0025) and the clauses
at FAR 52.225–9 and 52.225–11 (OMB
Control No. 9000–0141), which contain
information collection requirements
approved under the specified OMB
control numbers by the Office of
Management and Budget under 44
U.S.C. 3501, et seq. However, there is no
impact on the estimated burden hours,
because the threshold changes are in
E:\FR\FM\15JAR3.SGM
15JAR3
Agencies
[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Rules and Regulations]
[Pages 2741-2745]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-548]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 12, 22, and 52
[FAC 2005-30; FAR Case 2005-012; Item VII; Docket 2006-0020; Sequence
25]
RIN 9000-AK31
Federal Acquisition Regulation; FAR Case 2005-012, Combating
Trafficking in Persons
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed to adopt as
final, with changes, the second interim rule published in the Federal
Register at 72 FR 46335, August 17, 2007, amending the Federal
Acquisition Regulation (FAR) to implement 22 U.S.C. 7104(g). This
statute requires that contracts include a provision that authorizes the
department or agency to terminate the contract, if the contractor or
any subcontractor engages in trafficking in persons.
DATES: Effective Date: February 17, 2009.
FOR FURTHER INFORMATION CONTACT: Mr. Ernest Woodson, Procurement
Analyst, at (202) 501-3775 for clarification of content. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-30, FAR
case 2005-012.
SUPPLEMENTARY INFORMATION:
A. Background
The Trafficking Victims Protection Reauthorization Act (TVPRA) of
2003, as amended by TVPRA of 2005, addresses the victimization of
countless men, women, and children in the United States and abroad. In
order to implement the law, DoD, GSA, and NASA published a second
interim rule in the Federal Register at 72 FR 46335, August 17, 2007
with request for comments by October 16, 2007. Five respondents
submitted comments on the second interim rule. Those comments,
summarized as follows, were considered by the Councils in the formation
of this final rule:
1. Applicability to Commercial Items. Four comments were received
from three different respondents regarding the applicability of the
rule to commercial items.
(a) One respondent is concerned that although the FAR Matrix
indicates that FAR clause 52.222-50 is not applicable to commercial
items, FAR 52.212-5 includes 52.222-50 as a clause that the contracting
officer may mark as being applicable to commercial items.
Response: The Councils concur with the respondent's concern and
agrees to indicate in the FAR clause matrix that clause 52.222-50 is
required.
(b) One respondent believes that by making the rule applicable to
commercial items, the Councils misinterpreted the separate Federal
crimes created under Chapter 77 of Title 18, United States Code, as
providing the necessary criminal or civil penalties for the contract
violations to which the Federal Acquisition Streamlining Act was meant
to apply. The respondent requests the Councils to reconsider the
applicability to commercial items.
Response: The Councils note that application of the rule to all
contracts for supplies and services, including those for commercial
items, is consistent with the broad scope of the statutory directive
and is in compliance with the Federal Acquisition Streamlining Act's
(FASA) provision concerning commercial contracts. Specifically, the
statutory language at 22 U.S.C. 7104(g) contained no exceptions or
limitations with regard to its application to Federal contracts. While
FASA governs and limits the applicability of laws to commercial items,
it also provides that if a provision of law contains criminal or civil
penalties, or if the Federal Acquisition Regulatory Council determines
that it is not in the best interest of the Federal Government to exempt
commercial item contracts, then the provision of law will apply to
contracts for commercial items.
(c) Another respondent asked the Councils to give further
consideration to not applying the rule to commercial items
(subcontracts), indicating that the application will give rise to
unintended consequences and create an effect inconsistent with Federal
acquisition goals.
Response: The Councils believe that the TVPRA of 2003 and 2005
reflects Congress's intent to allow for the
[[Page 2742]]
termination of all U.S. contracts when specified prohibited acts take
place. Although the intent of the Federal Acquisition Streamlining Act
and the Clinger-Cohen Act is to limit the applicability of laws to
commercial items and commercially available off-the-shelf (COTS) items,
these laws also provide that if a provision of law contains criminal or
civil penalties, then commercial items are not to be exempted. The
Councils believe the rule corresponds to these laws and the mandate of
the TVPRA.
(d) The respondent further commented that if the rule's
applicability to commercial items is to be retained, that it be listed
in FAR 52.244-6, Subcontracts for Commercial Items.
Response: The Councils agree with the respondent's comment to add
FAR 52.222-50 at 52.244-6(c)(1), requiring flow-down to subcontracts
for commercial items.
2. Exemption. One respondent recommended creating a general
exemption from the rule where the Federal Government affirmatively
contracts for services to support front-line intervention activities
domestically or internationally. The respondent states that many
contractors that are involved in both the health and international
development arena may directly or indirectly be involved in front-line
intervention contracts and even advocacy programs to increase awareness
of these and related activities.
Response: The Councils note the respondent's concern as it relates
to ``front-line'' intervention contracts. However, the councils are not
aware of any conflict that this rule may present in relation to those
efforts. The terms used throughout the rule reflect the terms used in
the statute. Actions taken to help trafficking victims do not violate
the rule. Therefore, the Councils do not believe that an exemption is
necessary and the final rule remains unchanged.
3. Contractor Employees. Three comments were received regarding
employees.
(a) One respondent is concerned with the term ``minimal impact or
involvement in contract performance'' in the definition of employee.
The respondent believes that in the acquisition of commercial items
(commercially available off the shelf supplies), a contractor may not
know which employees had a minimal impact on contract performance. The
respondent suggests that a commercial item supplier make a ``good faith
determination'' regarding the minimal impact requirement.
Response: The Councils agree that the contractor should make a
first good faith determination of the employee's involvement. The
Councils do not agree that use of the term ``minimal impact or
involvement in contract performance'' is ambiguous. The term narrows
the scope of the definition of employee and leaves the determination of
impact/involvement to the contractor. The Councils do not agree that a
contractor cannot determine if an employee had a ``minimal impact or
involvement in contract performance'' in the acquisition of commercial
items. The contractor is in the best position to know and determine
what role an employee plays in the performance of a contract, major or
minor. The contractor is responsible for work production as well as
work assignments. In the case of a violation of the clause, the
contractor can determine the employee's duties under the contract and
associate those duties with performance under the contract.
(b) One respondent is concerned that as written, the rule fails to
achieve the contractor-accountability provisions of the TVPRA of 2005
and requests that the Councils reinsert the requirements for
contractors to obtain written notification of understanding of polices
and procedures to combat human trafficking.
Response: As written, the rule requires the contractor to notify
its employees and take appropriate action against employees that
violate policies and procedures to combat human trafficking. The
Councils appreciate the respondent's concern for ensuring that
contractor employees who engage in trafficking are appropriately held
accountable. However, the Councils do not believe that requiring the
contractor to obtain written notification of employees' understanding
of policies and procedures to combat human trafficking will ensure that
no violations occur. In fact, such a requirement may impose an undue
and unnecessary burden on the contractor and taxpayer. The requirement
for the contractor to notify its employees of the prohibited
trafficking and other behaviors, as well as the actions that may be
taken for violations, satisfies the requirements of 22 U.S.C. 7104(g),
to hold those engaged in trafficking accountable.
(c) Two respondents are concerned that the rule is directed to
contractor employees not the contractor and requests that the rule be
revised to limit it to the contractor and its employees during the
performance of the contact, not to employee behavior outside work.
Response: As written, the rule reflects the statutory language
prohibiting severe forms of trafficking in persons or the procurement
of a commercial sex act during the period of performance of the
contract. The Councils believe that limiting the rule in the manner
suggested by the respondent would inadequately implement the statute
since employee violations are more likely to occur after working hours.
Furthermore, contractor employees are often perceived as representing
the Government, and their actions reflect upon the Government's
integrity and ethics. Therefore, to ensure that U.S. Government
contractors do not contribute to trafficking in persons, the rule
requires the contractor to notify its employees (as defined in the
clause) of the U.S. zero tolerance policy, and take action against
those employees who violate the U.S. policy.
4. Scope of Contractor's Obligation. One respondent suggested that
the text of the clause at FAR 52.222-50 be revised to further elaborate
on the scope of the contractor's obligations regarding what actions it
may take against employees and subcontractors who violate the policy.
Response: The Councils do not believe that further elaboration is
necessary. The clause is clear that contractors must notify their
employees regarding the policy and the actions that may be taken for
violations. The clause lists examples of actions that contractors may
take, but does not limit the actions to only those listed. Furthermore,
the clause already provides contractors with flexibility as to what
actions they may choose to impose against either employees or
subcontractors in subparagraph (c)(2) by stating that the contractor
shall take ``appropriate'' action.
5. Reporting Allegations and Employment. Three comments were
received regarding the procedures for reporting allegations and
employment issues.
(a) One respondent objected to the obligation in the FAR clause
52.222-50(d)(1), which requires contractors to notify the contracting
officer immediately when they learn of allegations that the policy has
been violated. The respondent proposed that contractors be obligated to
notify only when they have ``adequate evidence'' of a violation.
Response: The Councils believes that it is important for the
contracting officer to learn immediately of alleged violations of U.S.
trafficking policy. Many such allegations become a subject of interest
quickly, and it is important in those situations that the contracting
officer be informed. The Councils further believes that the ``adequate
evidence'' standard contained in FAR 22.1704(b) properly limits the
[[Page 2743]]
contracting officer's ability to exercise the available remedies with
respect to allegations of conduct that violate U.S. policy.
(b) One respondent is concerned that the rule does not provide
guidance on how employees found to have engaged in trafficking will be
prevented from working on another Government contract. The respondent
believes that some ``stop-gap'' measure is required until the
Government deals with the investigations and prosecution issue.
Response: The Councils disagree that the rule should provide
guidance on how employees found to have engaged in trafficking are to
be prevented from working on another Government contract. Providing
such guidance would be outside the scope of the rule. Each acquisition
carries its own unique and special contract requirements and terms and
conditions for which the contractor is responsible and liable. This
responsibility and liability includes the contractor's hiring of
responsible employees and subcontractors that meet the performance
requirements, and terms and conditions specified in the acquisition.
This responsibility may include the contractor's responsibility to
conduct appropriate background investigations prior to hiring its
employees and subcontractors.
(c) Another respondent is concerned that the rule provides the
potential for wrongful discharge filings and collective bargaining
issues.
Response: A contractor may need to update the employment contracts
it forms (whether with unions or non-unionized employees) to reflect
the anti-trafficking statute, which is intended to have an impact on
the behavior of Government contractor employees.
6. Prescriptive Language Applicability. One respondent noted that
the prescriptive language at FAR 22.1703 and 22.1704(a) provides that
``Government contracts shall prohibit contractors, contractor
employees, subcontractors and subcontractor employees'' from taking the
listed actions. However, the clause at FAR 52.222-50(b) is limited to
``contractor and contractor employees.'' The prescriptive language and
clause language should be reconciled.
Response: It should be noted that provisions and clauses are
directed to the offeror or contractor. The term ``contractor and
contractor employees'' refers to the prime contractor only. When a
prime contractor issues a subcontract, the clause would then be
applicable to the subcontractor using the term ``contractor and
contractor employees.'' However, the prescriptive language provides all
conditions, requirements, and instructions for using the provision or
clause and is applicable to both contractors and subcontractors. The
Councils recommends that the final rule remain unchanged.
7. Administrative Issues. One respondent recommended several
administrative changes, as follows:
(a) FAR 22.1703 uses the word ``and'' while FAR 52.222-50(b) uses
the word ``or.'' This should be reconciled;
(b) Move the reference to FAR clause 52.222-50 from FAR 52.212-
5(b)(24)(i) and (ii) to FAR 52.212-5(a) because the clause applies to
all contracts;
(c) FAR 52.212-5(e)(1)(vii) needlessly cites a reason for listing
the flow-down clause. By incorporating the clause in paragraph (e), by
definition the clause flows down to subcontractors; and
(d) FAR 52.222-50(e) should be reworded to remove awkwardness.
Responses:
(a) FAR language at 22.1703(a)(2) has been changed to read ``or''
instead of ``and.'' All other conjunctions are used correctly
throughout the rule.
(b) FAR clause 52.222-50 has been moved to 52.212-5(a).
(c) FAR language at 52.212-5(e)(1)(vii) has been revised to remove
the reason for flow-down.
(d) FAR 52.222-50(e) has been revised to remove awkward wording of
remedies.
8. Clarification of Definitions. Two respondents recommended
further revisions regarding definitions. One respondent recommended
adding a definition for ``forced labor'' as defined in the criminal
statute at 18 U.S.C. Sec. 1589, and another recommended more
elaboration to the definitions of ``sex act'' and ``employee'' and
offered suggested language as well.
Response: The Councils concur that a definition of ``forced labor''
should be added. The statute prohibits severe forms of trafficking in
persons and, separately, forced labor. While forced labor is a severe
form of trafficking in persons, as defined in 22 U.S.C. 7102, the
Councils agree that defining the specific term ``forced labor'' would
add more clarity. Therefore, a definition of ``forced labor'' has been
added to 22.1702 and the clause at 52.222-50.
Because the FAR rule reflects the definition of ``commercial sex
act'' in accordance with 22 U.S.C. 7102, the Councils believe that the
statutory definition of commercial sex acts should remain as stated in
the rule without further elaboration.
Lastly, a respondent requested clarifications in the definition of
``employee'' to more clearly outline what is meant by ``directly
engaged'' and ``minimal impact or involvement''. The original rule
issued on April 19, 2006 (71 FR 20301) used the phrase ``including all
direct cost employees'' in the definition of ``employee'', similar to
the language used in FAR 23.503 implementing the Drug-Free Workplace
Act. The Councils subsequently removed this phrase in the second
interim rule based on public comment that the phrase caused confusion
since the term ``direct cost'' appeared to refer to cost-reimbursement
contracts only. The phrase ``minimal impact or involvement'' is also
used in the definition of ``employee'' under FAR 23.503 and is not
further defined. The Councils are not aware that the lack of more
definitive elaboration has caused any problems in the implementation of
the drug-free workplace requirements. Also see the discussion under
Paragraph 3.
9. Facilitation of Investigations and Prosecutions. One respondent
suggested the creation of an anti-trafficking hotline that would link
directly to the Department of Justice to allow contractor employees to
report trafficking allegations.
Response: This comment goes beyond the statutory requirements of
the Act, which requires only that contracts contain provisions allowing
for termination if the contractor or subcontractor engages in conduct
that violates U.S. policy on trafficking. However, the Councils
recommend adding a link to the Department of State's Office to Monitor
and Combat Trafficking in Persons' (DOS G/TIP) (https://www.state.gov/g/
tip) at FAR 22.1703 for further information on human trafficking and
links to other Government websites.
10. One respondent suggested making a distinction between
trafficking abuses and the procurement of a commercial sex act. The
respondent further states that trafficking in persons is a felony while
procurement of a commercial sex act is not covered by Federal law and
is treated in most states as a misdemeanor, unless it involves a child.
The lack of distinction in the rule heightens confusion and becomes
difficult to implement.
Response: The statute requires that the Government have the
authority to terminate a contract in cases where the contractor or
subcontractor engages in severe forms of trafficking in persons, or in
cases involving the procurement of a commercial sex act. The rule seeks
to implement both statutory directives and remains unchanged.
11. Enforcement Issues Where Commercial Sex Acts are Legal. One
respondent was concerned that certain
[[Page 2744]]
types of sex acts are legal in several jurisdictions of the U.S. and in
some foreign countries and urged that careful attention be given to how
the remedies in this rule intersect with otherwise lawful conduct.
Response: The Councils recognize the challenges contractors face in
monitoring employee actions during non-work hours. However, contractors
and their employees need to understand that procuring commercial sex
acts is an unacceptable behavior that carries penalties. The Councils
do not believe that a change in the language to distinguish enforcement
actions for ``unlawful commercial sex acts'' and ``lawful commercial
sex acts'' is consistent with the statute and therefore the final rule
remains unchanged.
12. Investigation and Punishment of Violators. One respondent
submitted two comments regarding the investigation of trafficking
violators.
(a) The respondent recommends revising the text to include specific
procedures governing the investigation and punishment of contractors
for violating the rule. The respondent also questions whether there is
a requirement for the contractor to investigate if the company learns
that an employee may have been involved in a commercial sex act.
Response: Violations of the rule should be handled in the same
manner that the contractor handles other allegations of employee
misconduct.
(b) The respondent also suggests creating a decision-tree for
contracting officers attempting to apply the rule.
Response: In cases where trafficking is alleged, the FAR is clear
on what actions the contracting officer may take. After making a
determination in writing that adequate evidence exists to suspect any
of the violations in paragraph (a) of FAR 22.1704, the contracting
officer may pursue any of the remedies specified in paragraph (e) of
FAR clause 52.222-50.
13. Public Meeting. One respondent requested that the Councils seek
an active dialogue with the contractor community in developing the
final rule.
Response: The Councils have solicited the public several times for
comments to assist with the development of this rule. Public comments
were solicited on April 16, 2006 and August 17, 2007.
This is a significant regulatory action and, therefore, was subject
to review under Executive Order 12866, Regulatory Planning and Review,
dated September 30, 1993. This rule is not a major rule under 5 U.S.C.
804.
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 within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because the impact will be
minimal unless the contractor or its employees or subcontractors engage
in forms of trafficking in persons, use forced labor, or procure
commercial sex acts that are illegal within the U.S. Although not
considered significant, additional impact may be associated with
contract performance in counties/states and locations outside the U.S.
where certain commercial sex acts are legal. However, the termination
authorities at 22 U.S.C. 7104(g) apply to Government contracts
performed in these areas.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 104-13) applies because the
final rule contains information collection requirements. Accordingly,
the Regulatory Secretariat will forward a request for approval of a new
information collection requirement to the Office of Management and
Budget under 44 U.S.C. 3501, et seq. Public comments concerning this
request will be invited through a subsequent Federal Register notice.
List of Subjects in 48 CFR Parts 12, 22, and 52
Government procurement.
Dated: December 24, 2008
Edward Loeb,
Acting Director, Office of Acquisition Policy.
0
Accordingly, the interim rules published in the Federal Register at 71
FR 20301, April 19, 2006, and at 72 FR 46335, August 17, 2007, are
adopted as a final rule with the following changes:
0
1. The authority citation for 48 CFR parts 22 and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
0
2. Amend section 22.1702 by adding, in alphabetical order, the
definition ``Forced Labor'' to read as follows:
22.1702 Definitions.
* * * * *
Forced labor means knowingly providing or obtaining the labor or
services of a person--
(1) By threats of serious harm to, or physical restraint against,
that person or another person;
(2) By means of any scheme, plan, or pattern intended to cause the
person to believe that, if the person did not perform such labor or
services, that person or another person would suffer serious harm or
physical restraint; or
(3) By means of the abuse or threatened abuse of law or the legal
process.
* * * * *
0
3. Amend section 22.1703 by revising the introductory paragraph; and by
removing from the end of paragraph (a)(2) ``and'' and adding ``or'' in
its place. The revised text reads as follows:
22.1703 Policy.
The United States Government has adopted a zero tolerance policy
regarding trafficking in persons. Additional information about
trafficking in persons may be found at the website for the Department
of State's Office to Monitor and Combat Trafficking in Persons' at
https://www.state.gov/g/tip. Government contracts shall--
* * * * *
0
4. Amend section 22.1704 in paragraph (b) by adding a new sentence
after the first sentence to read as follows:
22.1704 Violations and remedies.
* * * * *
(b) * * * The contracting officer may take into consideration
whether the contractor had a Trafficking in Persons awareness program
at the time of the violation as a mitigating factor when determining
the appropriate remedies. * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (a)(1) and (a)(2) as (a)(2) and (a)(3),
respectively; and adding a new paragraph (a)(1);
0
c. Removing paragraph (b)(25); and redesignating paragraphs (b)(26)
through (b)(42) as (b)(25) through (b)(41), respectively; and
0
d. Revising paragraph (e)(1)(viii) to read 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 (FEB 2009)
(a) * * *
[[Page 2745]]
(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22
U.S.C. 7104(g)).
----Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
* * * * *
(e)(1) * * *
(viii) 52.222-50, Combating Trafficking in Persons (FEB 2009)
(22 U.S.C. 7104(g)).
----Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).
* * * * *
0
6. Amend section 52.213-4 by revising the date of the clause and
paragraph (a)(1)(iv); and removing from paragraph (a)(2)(vi) ``(DEC
2008)'' and adding ``(FEB 2009)'' in its place to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
TERMS AND CONDITIONS--SIMPLIFIED ACQUISITIONS (OTHER THAN
COMMERCIAL ITEMS (FEB 2009)
(a) * * *
(1) * * *
(iv) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22
U.S.C. 7104(g)).
* * * * *
0
7. Amend section 52.222-50 by--
0
a. Revising the date of the clause;
0
b. Adding, in alphabetical order, the definition ``Forced Labor'';
0
c. Removing from the introductory text of paragraph (e) ``render the
Contractor subject to'' and adding ``result in'' in its place; and
revising paragraphs (e)(1) and (e)(2); and
0
d. Adding paragraph (g) to read as follows:
52.222-50 Combating Trafficking in Persons.
* * * * *
COMBATING TRAFFICKING IN PERSONS (FEB 2009)
(a) * * *
* * * * *
Forced Labor means knowingly providing or obtaining the labor or
services of a person--
(1) By threats of serious harm to, or physical restraint
against, that person or another person;
(2) By means of any scheme, plan, or pattern intended to cause
the person to believe that, if the person did not perform such labor
or services, that person or another person would suffer serious harm
or physical restraint; or
(3) By means of the abuse or threatened abuse of law or the
legal process.
* * * * *
(e) * * *
(1) Requiring the Contractor to remove a Contractor employee or
employees from the performance of the contract;
(2) Requiring the Contractor to terminate a subcontract;
* * * * *
(g) Mitigating Factor. The Contracting Officer may consider
whether the Contractor had a Trafficking in Persons awareness
program at the time of the violation as a mitigating factor when
determining remedies. Additional information about Trafficking in
Persons and examples of awareness programs can be found at the
website for the Department of State's Office to Monitor and Combat
Trafficking in Persons at https://www.state.gov/g/tip.
(End of clause)
0
8. Amend section 52.244-6 by revising the date of the clause; by
redesignating paragraph (c)(1)(vii) as paragraph (c)(1)(viii); and
adding a new paragraph (c)(1)(vii) to read as follows:
52.244-6 Subcontracts for Commercial Items.
* * * * *
SUBCONTRACTS FOR COMMERCIAL ITEMS (FEB 2009)
* * * * *
(c)(1) * * *
(vii) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22
U.S.C. 7104(g)).
* * * * *
[FR Doc. E9-548 Filed 1-14-09; 8:45 am]
BILLING CODE 6820-EP-S