Federal Acquisition Regulation; Certification Requirement and Procurement Prohibition Relating to Iran Sanctions, 68027-68028 [2011-27783]

Download as PDF Federal Register / Vol. 76, No. 212 / Wednesday, November 2, 2011 / Rules and Regulations 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. 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 FAR change removes the requirement for Federal prime contractors to confirm that small disadvantaged business subcontractors have obtained SDB certification from the SBA. This change will also be beneficial to SDB firms because they will no longer have to incur the costs associated with the formal certification process. IV. Paperwork Reduction Act The final rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). List of Subjects in 48 CFR Parts 2, 19, and 52 Government procurement. Dated: October 21, 2011. Laura Auletta, Acting Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. mstockstill on DSK4VPTVN1PROD with RULES4 Interim Rule Adopted as Final Without Change [FR Doc. 2011–27782 Filed 11–1–11; 8:45 am] BILLING CODE 6820–EP–P VerDate Mar<15>2010 18:15 Nov 01, 2011 Jkt 226001 GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 4, 25, and 52 [FAC 2005–54; FAR Case 2010–012; Item IV; Docket 2010–0102, Sequence 1] Sensitive Technology to Iran, will provide further implementation of section 106 by adding a representation regarding export of sensitive technology to Iran and a waiver provision. Two respondents submitted comments on the interim rule. II. Discussion and Analysis of the Public Comments Federal Acquisition Regulation; Certification Requirement and Procurement Prohibition Relating to Iran Sanctions Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. A discussion of the comments and the changes made to the rule as a result of those comments are provided as follows: A. Applicability to Construction RIN 9000–AL71 AGENCY: III. Regulatory Flexibility Act Accordingly, the interim rule amending 48 CFR parts 2, 19, and 52, which was published in the Federal Register at 75 FR 77737 on December 13, 2010, is adopted as a final rule without change. DEPARTMENT OF DEFENSE 68027 DoD, GSA, and NASA have adopted as final, with changes, an interim rule amending the Federal Acquisition Regulation (FAR) to implement sections 102 and 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. Section 102 requires certification that each offeror, and any person owned or controlled by the offeror, does not engage in any activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act of 1996 (the Iran Sanctions Act). Section 106 imposes a procurement prohibition relating to contracts with persons that export certain sensitive technology to Iran. There will be further implementation of section 106 in FAR Case 2010–018, Representation Regarding Export of Sensitive Technology to Iran. DATES: Effective Date: November 2, 2011. FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219–0202, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501– 4755. Please cite FAC 2005–54, FAR Case 2010–012. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background DoD, GSA, and NASA published an interim rule in the Federal Register at 75 FR 60254 on September 29, 2010, to implement section 102 and to partially implement section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. FAR Case 2010–018, Representation Regarding Export of PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 Comment: One respondent was concerned that the prescription at FAR 25.1103, which requires use of the FAR provision at 52.225–25, Prohibition on Engaging in Sanctioned Activities Relating to Iran—Certification, in ‘‘each solicitation for the acquisition of products or services’’ could be interpreted to exclude construction. The respondent suggested changing the prescription to require use in ‘‘all solicitations.’’ Response: The phrase ‘‘products or services’’ was intended to include construction, as indicated in the FAR clause matrix. DoD, GSA, and NASA have agreed to change the final rule to require use of the provision in ‘‘all solicitations.’’ B. Commercial Database of Persons Doing Business With Iran Comment: One respondent provided information about the commercial Iran Economic Interest database of persons doing business with Iran, provided by World-Check, a provider of data services to organizations, including Government contractors. This respondent believed that this data set provided by his company is the only standard that would allow Government contractors the ability to comply with the provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. He suggested that the Government should require or recommend that contractors should have this data available before they ‘‘self-certify.’’ Response: The Government does not generally promote the use of particular commercial services. DoD, GSA, and NASA have not changed the final rule in response to this comment. E:\FR\FM\02NOR4.SGM 02NOR4 68028 Federal Register / Vol. 76, No. 212 / Wednesday, November 2, 2011 / Rules and Regulations 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 a significant regulatory action and, therefore, was 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. mstockstill on DSK4VPTVN1PROD with RULES4 IV. 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 this rule will only have impact on an offeror that is engaging in an activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act or that is exporting sensitive technology to Iran. This rule will have little effect on domestic small business concerns, because such dealings with Iran are already generally prohibited under U.S. law. Due to current restrictions on trade with Iran, domestic entities are generally prohibited from engaging in activity that would cause them to be subject to the procurement bans described in this rule (see e.g., Department of the Treasury Office of Foreign Assets Control regulations at 31 CFR part 560). Accordingly, it is expected that the number of domestic entities, both large and small, significantly impacted by this rule will be minimal, if any. Although this rule mainly affects foreign entities, the Regulatory Flexibility Act is for the protection of domestic small entities, not foreign entities. For the definition of ‘‘small business’’, the Regulatory Flexibility Act refers to the Small Business Act, which in turn allows the 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 VerDate Mar<15>2010 18:15 Nov 01, 2011 Jkt 226001 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.’’ Therefore, the impact assessment does not include the impact on foreign entities. V. Paperwork Reduction Act The final rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). List of Subjects in 48 CFR Parts 4, 25, and 52 Government procurement. Dated: October 21, 2011. Laura Auletta, Acting Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. Interim Rule Adopted as Final With Change Accordingly, the interim rule amending 48 CFR parts 4, 25, and 52 which was published in the Federal Register at 75 FR 60254 on September 29, 2010, is adopted as final with the following change: PART 25—FOREIGN ACQUISITION 1. The authority citation for 48 CFR part 25 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). 2. Amend section 25.1103 by revising paragraph (e) to read as follows: ■ 25.1103 Other provisions and clauses. * * * * * (e) The contracting officer shall include in all solicitations the provision at 52.225–25, Prohibition on Contracting with Entities Engaging in Sanctioned Activities Relating to Iran— Representation and Certification. [FR Doc. 2011–27783 Filed 11–1–11; 8:45 am] BILLING CODE 6820–EP–P PO 00000 Frm 00016 Fmt 4701 Sfmt 4700 DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 4, 25, and 52 [FAC 2005–54; FAR Case 2010–018; Item V; Docket 2010–0018, Sequence 1] RIN 9000–AL91 Federal Acquisition Regulation; Representation Regarding Export of Sensitive Technology to Iran Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Interim rule. AGENCY: DoD, GSA, and NASA are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to add a representation to implement section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010. Section 106 imposes a procurement prohibition relating to contracts with persons that export certain sensitive technology to Iran. SUMMARY: Effective Date: November 2, 2011. Comment Date: Interested parties should submit written comments to the Regulatory Secretariat at one of the addresses shown below on or before January 3, 2012 to be considered in the formulation of the final rule. ADDRESSES: Submit comments identified by FAC 2005–54, FAR Case 2010–018 by any of the following methods: • Regulations.gov: http:// www.regulations.gov. Submit comments via the Federal eRulemaking portal by inputting ‘‘FAR Case 2010–018’’ under the heading ‘‘Enter Keyword or ID’’ and selecting ‘‘Search.’’ Select the link ‘‘Submit a Comment’’ that corresponds with ‘‘FAR Case 2010–018.’’ Follow the instructions provided at the ‘‘Submit a Comment’’ screen. Please include your name, company name (if any), and ‘‘FAR Case 2010–018’’ on your attached document. • Fax: (202) 501–4067. • Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street, NE., 7th Floor, Washington, DC 20417. Instructions: Please submit comments only and cite FAC 2005–54, FAR Case 2010–018, in all correspondence related DATES: E:\FR\FM\02NOR4.SGM 02NOR4

Agencies

[Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)]
[Rules and Regulations]
[Pages 68027-68028]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27783]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 25, and 52

[FAC 2005-54; FAR Case 2010-012; Item IV; Docket 2010-0102, Sequence 1]
RIN 9000-AL71


Federal Acquisition Regulation; Certification Requirement and 
Procurement Prohibition Relating to Iran Sanctions

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

ACTION: Final rule.

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

SUMMARY: DoD, GSA, and NASA have adopted as final, with changes, an 
interim rule amending the Federal Acquisition Regulation (FAR) to 
implement sections 102 and 106 of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010. Section 102 requires 
certification that each offeror, and any person owned or controlled by 
the offeror, does not engage in any activity for which sanctions may be 
imposed under section 5 of the Iran Sanctions Act of 1996 (the Iran 
Sanctions Act). Section 106 imposes a procurement prohibition relating 
to contracts with persons that export certain sensitive technology to 
Iran. There will be further implementation of section 106 in FAR Case 
2010-018, Representation Regarding Export of Sensitive Technology to 
Iran.

DATES: Effective Date: November 2, 2011.

FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement 
Analyst, at (202) 219-0202, for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-54, FAR 
Case 2010-012.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA published an interim rule in the Federal 
Register at 75 FR 60254 on September 29, 2010, to implement section 102 
and to partially implement section 106 of the Comprehensive Iran 
Sanctions, Accountability, and Divestment Act of 2010. FAR Case 2010-
018, Representation Regarding Export of Sensitive Technology to Iran, 
will provide further implementation of section 106 by adding a 
representation regarding export of sensitive technology to Iran and a 
waiver provision.
    Two respondents submitted comments on the interim rule.

II. Discussion and Analysis of the Public Comments

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule. A discussion of the comments and the 
changes made to the rule as a result of those comments are provided as 
follows:

A. Applicability to Construction

    Comment: One respondent was concerned that the prescription at FAR 
25.1103, which requires use of the FAR provision at 52.225-25, 
Prohibition on Engaging in Sanctioned Activities Relating to Iran--
Certification, in ``each solicitation for the acquisition of products 
or services'' could be interpreted to exclude construction. The 
respondent suggested changing the prescription to require use in ``all 
solicitations.''
    Response: The phrase ``products or services'' was intended to 
include construction, as indicated in the FAR clause matrix. DoD, GSA, 
and NASA have agreed to change the final rule to require use of the 
provision in ``all solicitations.''

B. Commercial Database of Persons Doing Business With Iran

    Comment: One respondent provided information about the commercial 
Iran Economic Interest database of persons doing business with Iran, 
provided by World-Check, a provider of data services to organizations, 
including Government contractors. This respondent believed that this 
data set provided by his company is the only standard that would allow 
Government contractors the ability to comply with the provisions of the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010. He suggested that the Government should require or recommend that 
contractors should have this data available before they ``self-
certify.''
    Response: The Government does not generally promote the use of 
particular commercial services. DoD, GSA, and NASA have not changed the 
final rule in response to this comment.

[[Page 68028]]

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 a significant regulatory action and, therefore, was 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

    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 this rule will only 
have impact on an offeror that is engaging in an activity for which 
sanctions may be imposed under section 5 of the Iran Sanctions Act or 
that is exporting sensitive technology to Iran. This rule will have 
little effect on domestic small business concerns, because such 
dealings with Iran are already generally prohibited under U.S. law. Due 
to current restrictions on trade with Iran, domestic entities are 
generally prohibited from engaging in activity that would cause them to 
be subject to the procurement bans described in this rule (see e.g., 
Department of the Treasury Office of Foreign Assets Control regulations 
at 31 CFR part 560). Accordingly, it is expected that the number of 
domestic entities, both large and small, significantly impacted by this 
rule will be minimal, if any.
    Although this rule mainly affects foreign entities, the Regulatory 
Flexibility Act is for the protection of domestic small entities, not 
foreign entities. For the definition of ``small business'', the 
Regulatory Flexibility Act refers to the Small Business Act, which in 
turn allows the 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.'' Therefore, the impact assessment does not include the 
impact on foreign entities.

V. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 4, 25, and 52

    Government procurement.

    Dated: October 21, 2011.
Laura Auletta,
Acting Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

Interim Rule Adopted as Final With Change

    Accordingly, the interim rule amending 48 CFR parts 4, 25, and 52 
which was published in the Federal Register at 75 FR 60254 on September 
29, 2010, is adopted as final with the following change:

PART 25--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 25 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).



0
2. Amend section 25.1103 by revising paragraph (e) to read as follows:


25.1103   Other provisions and clauses.

* * * * *
    (e) The contracting officer shall include in all solicitations the 
provision at 52.225-25, Prohibition on Contracting with Entities 
Engaging in Sanctioned Activities Relating to Iran--Representation and 
Certification.

[FR Doc. 2011-27783 Filed 11-1-11; 8:45 am]
BILLING CODE 6820-EP-P