Federal Acquisition Regulation; Public Access to the Federal Awardee Performance and Integrity Information System, 197-202 [2011-33420]
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Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules and Regulations
accordance with paragraph (h)(3)(iii) of
this section that a fixed-price order is
not suitable;
(B) Include a ceiling price in the order
that the contractor exceeds at its own
risk; and
(C) When the total performance
period, including options, is more than
three years, the D&F prepared in
accordance with this paragraph shall be
signed by the contracting officer and
approved by the head of the contracting
activity prior to the execution of the
base period.
(iii) The D&F required by paragraph
(h)(3)(ii)(A) of this section shall contain
sufficient facts and rationale to justify
that a fixed-price order is not suitable.
At a minimum, the D&F shall—
(A) Include a description of the
market research conducted (see 8.404(c)
and 10.002(e));
(B) Establish that it is not possible at
the time of placing the order to
accurately estimate the extent or
duration of the work or anticipate costs
with any reasonable degree of
confidence;
(C) Establish that the current
requirement has been structured to
maximize the use of fixed-price orders
(e.g., by limiting the value or length of
the time-and-materials/labor-hour order;
or, establishing fixed prices for portions
of the requirement) on future
acquisitions for the same or similar
requirements; and
(D) Describe actions to maximize the
use of fixed-price orders on future
acquisitions for the same requirements.
(iv) The contracting officer shall
authorize any subsequent change in the
order ceiling price only upon a
determination, documented in the order
file, that it is in the best interest of the
ordering activity to change the ceiling
price.
■ 3. Amend section 8.405–2 by
redesignating paragraph (e) as paragraph
(f); and adding a new paragraph (e) to
read as follows:
8.405–2 Ordering procedures for services
requiring a statement of work.
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(e) Use of time-and-materials and
labor-hour orders for services. When
placing a time-and-materials or laborhour order for services, see 8.404(h).
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■ 4. Amend section 8.405–3 by revising
paragraphs (b)(2)(ii) and (c)(3) to read as
follows:
8.405–3
(BPAs).
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Blanket purchase agreements
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(b) * * *
(2) * * *
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(ii) Type-of-order preference. The
ordering activity shall specify the order
type (i.e., firm-fixed price, time-andmaterials, or labor-hour) for the services
identified in the statement of work. The
contracting officer should establish
firm-fixed priced orders to the
maximum extent practicable. For timeand-materials and labor-hour orders, the
contracting officer shall follow the
procedures at 8.404(h).
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(c) * * *
(3) BPAs for hourly-rate services. If
the BPA is for hourly-rate services, the
ordering activity shall develop a
statement of work for each order
covered by the BPA. Ordering activities
should place these orders on a firmfixed price basis to the maximum extent
practicable. For time-and-materials and
labor-hour orders, the contracting officer
shall follow the procedures at 8.404(h).
All orders under the BPA shall specify
a price for the performance of the tasks
identified in the statement of work.
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PART 12—ACQUISITION OF
COMMERCIAL ITEMS
5. Amend section 12.207 by removing
from paragraph (b)(2)(ii) ‘‘degree of
certainty’’ and adding ‘‘degree of
confidence’’ in its place; and adding
paragraph (b)(4) to read as follows:
■
12.207
Contract type.
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(b) * * *
(4) See 8.404(h) for the requirement
for determination and findings when
using Federal Supply Schedules.
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PART 16—TYPES OF CONTRACTS
6. Revise section 16.201 to read as
follows:
■
16.201
General.
(a) Fixed-price types of contracts
provide for a firm price or, in
appropriate cases, an adjustable price.
Fixed-price contracts providing for an
adjustable price may include a ceiling
price, a target price (including target
cost), or both. Unless otherwise
specified in the contract, the ceiling
price or target price is subject to
adjustment only by operation of contract
clauses providing for equitable
adjustment or other revision of the
contract price under stated
circumstances. The contracting officer
shall use firm-fixed-price or fixed-price
with economic price adjustment
contracts when acquiring commercial
items, except as provided in 12.207(b).
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(b) Time-and-materials contracts and
labor-hour contracts are not fixed-price
contracts.
■ 7. Add section 16.600 to read as
follows:
16.600
Scope.
Time-and-materials contracts and
labor-hour contracts are not fixed-price
contracts.
[FR Doc. 2011–33418 Filed 12–30–11; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 9, 12, 42, and 52
[FAC 2005–55; FAR Case 2010–016; Item
V; Docket 2010–0016, Sequence 1]
RIN 9000–AL94
Federal Acquisition Regulation; Public
Access to the Federal Awardee
Performance and Integrity Information
System
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA have
adopted as final, with changes, an
interim rule amending the Federal
Acquisition Regulation (FAR) to
implement a section of the
Supplemental Appropriations Act,
2010. This section requires that the
information in the Federal Awardee
Performance and Integrity Information
System (FAPIIS), excluding past
performance reviews, shall be made
publicly available. The interim rule
notified contractors of this new
statutory requirement for public access
to FAPIIS.
DATES: Effective Date: January 3, 2012.
FOR FURTHER INFORMATION CONTACT:
Mr. Edward Loeb, Procurement Analyst,
at (202) 501–0650, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at (202) 501–
4755. Please cite FAC 2005–55, FAR
Case 2010–016.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
76 FR 4188 on January 24, 2011, to
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Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules and Regulations
implement section 3010 of the
Supplemental Appropriations Act, 2010
(Pub. L. 111–212).
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the comments in 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:
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A. General Comments
Comments: Several respondents made
positive comments about the rule
granting public access to the FAPIIS.
One respondent stated that this is a
most welcome process. One respondent
stated that making public the data in
FAPIIS will benefit contractors with
records of business integrity and
performance excellence. Another
respondent commented that by making
this information public, construction
subcontractors will soon be able to
evaluate the business ethics and quality
of potential contractor clients.
According to this respondent, this can
reduce risk and save taxpayers millions
of dollars.
Response: Noted.
Comments: On the other hand, some
of the respondents are concerned about
possible risk associated with making
FAPIIS data available to the public.
• One respondent noted that the new
proposed rule is over-reaching the
purpose for which FAPIIS was initiated.
According to the respondent, FAPIIS
was designed to do one thing and was
approved with comments to the effect
that Government contractor sensitive
information would not be publicized.
The Government is now essentially
rescinding this, with the exception of
not making ‘‘past performance
information’’ available. Further, the
respondent feared that it is only a matter
of time before the Government also
allows the public access to Government
contractor ‘‘past performance
information’’ and expands FAPIIS in
other ways.
• Another respondent pointed out
that contractors face a number of risks
associated with release of information
subject to the Freedom of Information
Act (FOIA). In particular, this
respondent was concerned that by
making FAPIIS public, there is an
increased likelihood that contractors
could be subject to a False Claims Act
litigation on the basis of the certification
at FAR 52.209–7(c) (that the information
entered into FAPIIS is current, accurate,
and complete).
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Response: This change in FAPIIS was
mandated by section 3010 of the
Supplemental Appropriations Act, 2010
(Pub. L. 111–212), enacted by Congress.
With regard to possible litigation
under the False Claims Act, as with any
FAR contract provision or clause, it is
the responsibility of the contractor to
ensure that the information being
certified is current, accurate, and
complete.
The Councils recognize the risk to
contractors if the data is made public
prior to offering the contractor a chance
to review. The rule has been revised to
provide to contractors a 7-calendar-day
review period to identify information
posted in FAPIIS that is covered by a
disclosure exemption under the FOIA.
The information entered into FAPIIS by
the contracting officer or suspension
and debarment official will be made
publicly available within an additional
7-calendar-day period, unless the
contractor asserts to the Government
official, who posted the item, that it is
protected by a disclosure exemption
under FOIA. In such case, the
information will be removed by the
Government official and the issue
resolved in accordance with agency
FOIA procedures. If the Government
official does not remove the item, it will
be automatically released to the public
site within 14 calendar days after the
review period began.
B. Make More Data Public
1. Narrow definition of ‘‘past
performance review’’.
Comment: One respondent noted that
Congress did not define ‘‘past
performance review’’ and requested that
the Councils define the term very
narrowly, in a way that allows all ‘‘past
performance information’’ to be made
public, except that which proposes a
legitimate threat to commercial
proprietary or personal privacy
interests.
The respondent stated that the
Government releases a broad array of
past performance information in bid
protest decisions, and should do the
same with FAPIIS, because this will
strengthen efforts to exclude nonresponsible contractors.
Response: This FAR case uses the
definition of ‘‘past performance’’ in FAR
part 2 and the discussion of contractor
performance information in FAR
subpart 42.15, including ‘‘past
performance evaluations’’ and ‘‘past
performance reports’’ that are entered
into the Past Performance Information
Retrieval System (PPIRS) as a result of
past performance evaluations. This
coverage of past performance was in the
FAR when Congress passed Public Law
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111–212 and section 3010 specifically
excludes ‘‘past performance reviews.’’
The FAR Council published a
proposed rule, FAR Case 2009–042,
Documenting Contractor Performance,
in the Federal Register at 76 FR 37704
on June 28, 2011, with public comments
due on September 29, 2011, that
clarified ‘‘past performance
information’’—see https://
edocket.access.gpo.gov/2011/pdf/201116169.pdf. The language in FAR Case
2009–042 has been updated to reference
the part of FAR subpart 42.15 related to
‘‘past performance.’’
The Councils also note that the
Government Accountability Office
allows a party to request redaction of
‘‘past performance information’’ prior to
the release of a bid protest decision.
2. Release data entered prior to April
15, 2011.
Comments: One respondent opposed
the new regulation regarding
information entered into FAPIIS before
April 15, 2011. Specifically, FAR
52.209–9 provides that information
posted in FAPIIS prior to April 15,
2011, will not be publicly disclosed,
except by request submitted under
FOIA. Due to the respondent’s concern
about the shortcomings of the FOIA
process, the respondent requested that
all data posted prior to April 15, 2011,
be made available to the public without
requiring requests through FOIA.
Response: The data posted in FAPIIS
prior to April 15, 2011, cannot be made
publicly available because the final rule,
FAR Case 2008–027, published in the
Federal Register at 75 FR 14059,
effective April 22, 2010, included a
statement in paragraph (b)(3) of FAR
52.209–8, Updates of Information
Regarding Responsibility Matters, that
‘‘(w)ith the exception of the Contractor,
only Government personnel and
authorized users performing business on
behalf of the Government will be able to
view the Contractor’s record in the
system.’’ The paragraph continued with
the statement that public requests for
system information would be handled
under the FOIA procedures. After
section 3010 was enacted, the
Government began to plan the transition
to making the data in FAPIIS available
to the public. The Councils concluded
that it was not appropriate to make
information publicly available that the
Government contractually committed
that it would only release in accordance
with the procedures of FOIA.
The Councils took every feasible
action to make the maximum amount of
data publicly available, without
violating the contractual commitments
made by the Government in contracts
containing FAR 52.209–8.
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C. Protection of Data That Should Not
Be Released
1. Include in the FAR specific
prohibition against entry of
inappropriate data in FAPIIS.
Comment: Several respondents were
concerned about lack of sufficient
guidance in the interim rule on the
scope of information to be withheld.
Several respondents recommended that
the rule should explicitly prohibit the
contracting officer from posting
information in FAPIIS that is protected
by a disclosure exemption under FOIA.
According to one respondent, the rule
should list the FOIA exemptions,
specifically instruct contracting officers
to redact information protected by
FOIA, and further instruct contracting
officers to consult a FOIA expert to
resolve questions regarding the
applicability of an exemption.
Another respondent requested that
the FAR should expressly state that
additional information not identified in
FAR 9.104–6 cannot be posted in the
publicly available iteration of FAPIIS.
Response: The Councils have revised
the final rule, at FAR 9.105–2(b)(2)(iv)
and 52.209–9(c)(1), to prohibit
contracting officers from posting
information in FAPIIS that is protected
by a disclosure exemption under FOIA.
To alleviate errors or oversights, the
FAR text points to the FOIA exemptions
and allows the agencies’ FOIA officers
to determine the applicable exemption
relevant to their situation. It is not
customary practice to list all the FOIA
exemptions in the FAR, as they are
readily available in the Department of
Justice Guide to the Freedom of
Information Act (2009 Edition) at
https://www.justice.gov/oip/
foia_guide09.htm or at agencies’ FOIA
Office Web sites.
2. Allow contractors to review before
making public.
Comment: Several respondents
recommended that the interim rule
should be revised to allow contractors to
review information that will be posted
to FAPIIS for public review prior to its
release.
Several respondents stated that
privacy rights could be irreparably
impaired, and proprietary information
could be irreparably lost as a result of
release to the public through FAPIIS,
even if the data is later removed.
One respondent stated that
contractors should be allowed to
determine if any of the information
might be protected from release under
FOIA, thus allowing contractors to
request redaction of properly FOIAprotected information.
Another respondent requested time to
review the data both to ensure accuracy
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and completeness, as well as to ensure
that it does not violate the requirement
to protect proprietary information. This
respondent stated that publicly posting
proprietary information or inaccurate or
incomplete information is not
quantifiable and there is no remedy that
can adequately address the contractor’s
losses.
Another respondent noted that the
Councils have recognized the
importance of allowing contractors the
opportunity to respond to information
in FAPIIS before the Government acts
on that information. FAR 9.104–6
entitles an offeror to present additional
information to demonstrate
responsibility after a contracting officer
identified ‘‘relevant information’’ in
FAPIIS.
Several respondents requested
periods varying from 30 days to 60 days
to review the information before it is
made public, although the respondent
that requested 60 days noted that the
FAR currently allows the contractor
only 30 days to respond to past
performance information in PPIRS.
Another respondent believed that this
approach should not require major
changes to the system. The respondent
suggested that when the information is
first entered into FAPIIS, it could be
quarantined in the ‘‘non-public’’
iteration of FAPIIS, similar to past
performance information.
Response: The Councils have revised
the final rule, at FAR 9.105–2(b)(2) and
52.209(c), to allow contractors 7
calendar days to review information
posted to FAPIIS before that information
is made available to the public. A notice
is sent to the contractor whenever
information is entered into the system
about that contractor. If contractors
assert to the Government, within
7 calendar days, that information has
been posted that is covered by a
disclosure exemption under FOIA, the
information will be removed while the
agency resolves the issue in accordance
with agency FOIA procedures.
3. Allow submission of two versions—
redacted for public and unredacted for
Government.
Comment: One respondent
recommended that two versions of the
information should be submitted—a
complete version for the Government,
and a redacted version for the public.
Response: The statute requires that all
information in FAPIIS, other than
information on ‘‘past performance
reviews,’’ must be made available to the
public. Therefore, submission of two
different versions would not meet the
statutory requirement.
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4. Include systems protections so that
past performance data is not
inadvertently made public.
Comment: One respondent
recommended that the FAR Council
should coordinate with the FAPIIS
Program Manager to take all the
appropriate steps from a system
architecture/controls standpoint to
preclude the public disclosure
(advertent or inadvertent) of ‘‘past
performance information.’’ According to
the respondent, this should include
systemic protections that make it
impossible to post ‘‘past performance
information’’ to the publicly-available
iteration of FAPIIS.
Response: The structure of FAPIIS
ensures that ‘‘past performance
reviews’’ (as described in FAR subpart
42.15) will not be inadvertently
released. Past performance information
is stored in a completely separate
module from the other information in
FAPIIS. There is no connection between
the past performance module and the
public Web site for FAPIIS. This
assurance was provided by the
Contractor Performance Assessment
Reporting System/PPIRS Program
Manager and the FAPIIS Program
Manager.
D. Ensure That Data Is Timely and
Accurate
1. Timeliness.
Comment: One respondent
recommended that the FAR should
assign responsibility to a particular
Government official to timely remove
stale information from FAPIIS.
Response: All information in FAPIIS
is marked with the date of the
occurrence. In response to search
requests, FAPIIS only provides access to
information that is dated within five
years of the date of the request.
2. Accuracy.
Comment: One respondent stated that
the FAR should require contracting
officers and suspension and debarment
officials (SDOs) to validate the accuracy
of information before inputting into
FAPIIS.
Response: The procedures at FAR
9.406–3(f) and 9.407–3(e) already
require that the SDOs are responsible for
the accuracy of the documentation
entered into FAPIIS regarding an
administrative agreement to resolve a
debarment or suspension proceeding.
The Councils have revised the rule at
FAR 9.105–2(b)(2)(ii) and 42.1503(f)(1)
to make the contracting officer/agency
responsible for the accuracy of agency
data entered into FAPIIS.
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E. Technical Recommendations
1. Include FAR 52.209–9 in the list at
FAR 52.212–5.
Comment: Two respondents suggested
that FAR 52.209–9, Updates to Publicly
Available Information Regarding
Responsibility Matters, should be added
to the list of clauses incorporated as part
of FAR 52.212–5 (at paragraph (b)) for
FAR part 12 commercial item
acquisitions. Another respondent noted
that, if the clause is not included in FAR
52.212–5, it may be inadvertently
omitted.
Response: The change has been made
in the final rule by listing FAR 52.209–
9 under FAR 52.212–5, Contract Terms
and Conditions Required To Implement
Statutes or Executive Orders—
Commercial Items.
2. Allow incorporation of clause by
reference.
Comment: A respondent noted that
the FAR matrix now requires that both
FAR 52.209–9 and its Alternate be
incorporated in full text. The
respondent commented that both the
clause and its alternate should be
available for incorporation into
contracts by reference.
Response: The change has been
incorporated into the FAR provision
and clause matrix under FAR subpart
52.3, Provision and Clause Matrix,
available for review at https://
www.acquisition.gov/far/current/html/
52_300.html#wp1077611.
3. Designate contractor point of
contact to receive notification of entry
into FAPIIS.
Comment: One respondent stated that
FAR 52.209–9(b)(1) does not specify
who in the contractor’s organization
will be notified when new information
is posted. The respondent
recommended that the FAR should
designate the contractor’s Central
Contractor Registration (CCR) point of
contact as the person who will receive
all notification related to the
Government posting new information
on the contractor’s record.
Response: If the contractor specifies a
past performance point of contact in its
CCR record, then the notification goes to
the specified point of contact. At the
contractor’s discretion, this past
performance point of contact’s email
address can be a single individual or a
common email address that multiple
individuals in the company can access.
If the contractor does not specify a past
performance point of contact, then the
notification is sent to the contractor’s
Government business point of contact,
which is a mandatory field in CCR.
4. Allow larger field in FAPIIS for
contractor comments.
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Comment: One respondent requested
a larger field to enter contractor
comments.
Response: The field currently allows
1000 characters per entry. As a result of
the public comments, the FAPIIS
Program Manager doubled the available
characters to 2000 and this change is
effective now.
F. Requests for Further Rulemaking
(Outside the Scope of This Rule)
1. Make training and guidance subject
to rulemaking.
Comment: Two respondents were
concerned about the statements in the
preamble to the final FAPIIS rule under
FAR Case 2008–027 that policies and
guidance would be developed to ensure
the timely and accurate input of
information into the FAPIIS database.
Further, the Councils would work with
the FAPIIS Program Manager, the
Federal Acquisition Institute, and the
Defense Acquisition University to
develop guidance for contracting
officials and suspension and debarment
officials. The respondent was concerned
that training, policies, and guidance to
contracting officers and SDOs will, in
effect, provide further direction
regarding what constitutes proper input,
accuracy, and timeliness. The
respondent believed that this guidance
will supplement and clarify FAPIIS data
requirements. Therefore, according to
the respondent, it should be published
in the Federal Register so that all
impacted parties may provide input.
Another respondent was also
concerned that the clear direction to the
contracting officer should be included
in the FAR, rather than in subsequent
training and informal guidance. This
respondent stated that the final FAPIIS
rule did not go far enough, and
recommended additional changes to the
FAR to clarify what information is
relevant to responsibility
determinations and past performance
evaluations. The respondent also
wanted the FAR to make clear that not
all information in FAPIIS will be
relevant to a contractor’s past
performance.
Response: The FAR includes direction
to the contracting officer about the
FAPIIS requirement and relevancy of
that information. The FAPIIS training
will not include new policies, but rather
procedures on how to comply with
existing FAR policies and guidance. The
current FAPIIS training overview is
available at https://www.fai.gov/FAPIIS/
trailer/module.htm for the public to
view. Follow-on training will also be
publicly available later this year.
2. Provide more regulation on
contractor reporting obligations.
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Comment: One respondent had
comments that relate to clear definition
of ‘‘reportable outcomes.’’ This
respondent provided a list of items that
should be excluded from the database
and a list of items that should be
reportable.
Another respondent contended that
the reporting obligations of the FAPIIS
regulations are unclear, addressing the
need for guidance relating to clarifying
‘‘the Offeror, and/or any of its
principals,’’ ‘‘within the last five years,’’
‘‘in connection with a Federal contract
or grant,’’ ‘‘administrative proceeding,’’
and ‘‘consent or compromise.’’
Response: This FAR case was
established to implement section 3010,
which required information in FAPIIS,
excluding ‘‘past performance reviews,’’
to be publicly available.
Any further definition of reportable
outcomes or guidance on reporting
requirements would require publication
of a new rulemaking for public
comment.
3. Get public comments before adding
any new data elements to FAPIIS or
change databases that feed into FAPIIS.
Comment: One respondent wanted to
ensure that the Councils will get public
comments before adding any new data
elements to FAPIIS or changing
databases that feed into FAPIIS.
Response: Addition of new data
elements to FAPIIS would require
further rulemaking for public comment.
4. Update to FAPIIS.
Comment: One respondent stated that
the Councils should clarify the
requirement to update FAPIIS
information on a semi-annual basis.
Response: Additional clarification is
not necessary. FAR clause 52.209–9,
Updates of Publicly Available
Information Regarding Responsibility
Matters, tells contractors that they are
required to update the information in
the FAPIIS on a semi-annual basis,
throughout the life of the contract.
G. Deadline
1. Display pilot run before deadline.
Comment: One respondent requested
to see a pilot run of the FAPIIS format
and the program before it is officially
‘‘rolled out.’’
Response: The statute did not provide
for a delay in implementation; therefore,
FAPIIS is now available to the public at
https://fapiis.ppirs.gov.
2. Postpone deadline until all issues
resolved.
Comment: Two respondents requested
that the deadline of April 15, 2011, be
postponed until certain issues can be
resolved (see issues identified in section
II.F. of this preamble). Both respondents
pointed out that Congress did not
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mandate that FAPIIS be made available
to the public on a particular date. One
respondent concluded that it is implicit
that Congress intended for the Councils
to take the time necessary to ‘‘get it
right.’’
Response: The statute did not provide
for any delay in implementation. In the
interest of transparency in Government
contracting, the Councils implemented
the FAR changes and system changes to
provide direction to Government and
contractor personnel in a timely manner
to align with the statute.
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
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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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 just notifies the contractors that the
public will have access to the database.
The rule does not impose any additional
burdens on small entities. The interim
rule made editorial changes to FAR
52.209–7 and transferred the
information collection requirement from
FAR 52.209–8 to a new clause at FAR
52.209–9.
In response to public comments, the
final rule allows a 14-calendar-day
delay before making the data available
to the public. Contractors have 7
calendar days within those 14 calendar
days to assert a disclosure exemption
under the Freedom of Information Act.
In addition, the FAPIIS system has been
modified to allow more space for
contractor comments. The rule does not
impose any new requirements on small
businesses.
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17:59 Dec 30, 2011
Jkt 226001
Therefore, a Final Regulatory
Flexibility Analysis has not been
performed. DoD, GSA, and NASA did
not receive any comments relating to
impact on small entities.
V. Paperwork Reduction Act
This 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 1, 9, 12,
42, and 52
Government procurement.
Dated: December 21, 2011.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Interim Rule Adopted as Final With
Changes
Accordingly, the interim rule
amending 48 CFR parts 1, 9, 12, 42, and
52, which was published in the Federal
Register at 76 FR 4188 on January 24,
2011, is adopted as final with the
following changes:
■ 1. The authority citation for 48 CFR
parts 1, 9, 12, 42, 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 9—CONTRACTOR
QUALIFICATIONS
2. Amend section 9.104–7 by adding
paragraph (c) to read as follows:
■
9.104–7 Solicitation provisions and
contract clauses.
*
*
*
*
*
(c) The contracting officer shall insert
the clause at 52.209–9, Updates of
Publicly Available Information
Regarding Responsibility Matters—
(1) In solicitations where the resultant
contract value is expected to exceed
$500,000; and
(2) In contracts in which the offeror
checked ‘‘has’’ in paragraph (b) of the
provision at 52.209–7.
*
*
*
*
*
■ 3. Amend section 9.105–2 by revising
paragraph (b)(2)(ii); and adding
paragraphs (b)(2)(iii) and (b)(2)(iv) to
read as follows:
9.105–2 Determinations and
documentation.
*
*
*
*
*
(b) * * *
(2) * * *
(ii) The contracting officer is
responsible for the timely submission,
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Fmt 4701
Sfmt 4700
201
within 3 working days, and sufficiency,
and accuracy of the documentation
regarding the nonresponsibility
determination.
(iii) As required by section 3010 of the
Supplemental Appropriations Act, 2010
(Pub. L. 111–212), all information
posted in FAPIIS on or after April 15,
2011, except past performance reviews,
will be publicly available. FAPIIS
consists of two segments—
(A) The non-public segment, into
which Government officials and
contractors post information, which can
only be viewed by—
(1) Government personnel and
authorized users performing business on
behalf of the Government; or
(2) An offeror or contractor, when
viewing data on itself; and
(B) The publicly-available segment, to
which all data in the non-public
segment of FAPIIS is automatically
transferred after a waiting period of 14
calendar days, except for—
(1) Past performance reviews required
by subpart 42.15;
(2) Information that was entered prior
to April 15, 2011; or
(3) Information that is withdrawn
during the 14-calendar-day waiting
period by the Government official who
posted it in accordance with paragraph
(b)(2)(iv) of this section.
(iv) The contracting officer, or any
other Government official, shall not post
any information in the non-public
segment of FAPIIS that is covered by a
disclosure exemption under the
Freedom of Information Act. If the
contractor asserts within 7 calendar
days, to the Government official who
posted the information, that some of the
information posted to the non-public
segment of FAPIIS is covered by a
disclosure exemption under the
Freedom of Information Act, the
Government official who posted the
information must within 7 calendar
days remove the posting from FAPIIS
and resolve the issue in accordance with
agency Freedom of Information Act
procedures, prior to reposting the
releasable information.
4. Amend section 9.406–3 by adding
paragraph (f)(3) to read as follows:
■
9.406–3
Procedures.
*
*
*
*
*
(f) * * *
(3) With regard to information that
may be covered by a disclosure
exemption under the Freedom of
Information Act, the debarring official
shall follow the procedures at 9.105–
2(b)(2)(iv).
5. Amend section 9.407–3 by adding
paragraph (e)(3) to read as follows:
■
E:\FR\FM\03JAR2.SGM
03JAR2
202
Federal Register / Vol. 77, No. 1 / Tuesday, January 3, 2012 / Rules and Regulations
9.407–3
Procedures.
*
*
*
*
*
(e) * * *
(3) With regard to information that
may be covered by a disclosure
exemption under the Freedom of
Information Act, the suspending official
shall follow the procedures at 9.105–
2(b)(2)(iv).
PART 12—ACQUISITION OF
COMMERCIAL ITEMS
12.301
[Amended]
6. Amend section 12.301 by removing
paragraph (d)(4).
■
PART 42—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
7. Amend section 42.1503 by revising
the introductory text of paragraph (f)(1);
and adding paragraph (f)(3) to read as
follows:
■
42.1503
Procedures.
*
*
*
*
*
(f) * * *
(1) Agencies shall ensure information
is accurately reported in the FAPIIS
module of PPIRS within 3 calendar days
after a contracting officer—
*
*
*
*
*
(3) With regard to information that
may be covered by a disclosure
exemption under the Freedom of
Information Act, the contracting officer
shall follow the procedures at 9.105–
2(b)(2)(iv).
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
8. Amend section 52.209–9 by
revising the date of the clause and
paragraph (b); and adding paragraphs (c)
and (d) to read as follows:
■
52.209–9 Updates of Publicly Available
Information Regarding Responsibility
Matters.
*
*
*
*
(End of clause)
*
Updates of Publicly Available
Information Regarding Responsibility
Matters (JAN 2012)
TKELLEY on DSK3SPTVN1PROD with RULES2
*
*
*
*
*
(b) As required by section 3010 of the
Supplemental Appropriations Act, 2010
(Pub. L. 111–212), all information posted in
FAPIIS on or after April 15, 2011, except past
performance reviews, will be publicly
available. FAPIIS consists of two segments—
(1) The non-public segment, into which
Government officials and the Contractor post
information, which can only be viewed by—
(i) Government personnel and authorized
users performing business on behalf of the
Government; or
(ii) The Contractor, when viewing data on
itself; and
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17:59 Dec 30, 2011
Jkt 226001
(2) The publicly-available segment, to
which all data in the non-public segment of
FAPIIS is automatically transferred after a
waiting period of 14 calendar days, except
for—
(i) Past performance reviews required by
subpart 42.15;
(ii) Information that was entered prior to
April 15, 2011; or
(iii) Information that is withdrawn during
the 14-calendar-day waiting period by the
Government official who posted it in
accordance with paragraph (c)(1) of this
clause.
(c) The Contractor will receive notification
when the Government posts new information
to the Contractor’s record.
(1) If the Contractor asserts in writing
within 7 calendar days, to the Government
official who posted the information, that
some of the information posted to the nonpublic segment of FAPIIS is covered by a
disclosure exemption under the Freedom of
Information Act, the Government official
who posted the information must within 7
calendar days remove the posting from
FAPIIS and resolve the issue in accordance
with agency Freedom of Information
procedures, prior to reposting the releasable
information. The contractor must cite
52.209–9 and request removal within 7
calendar days of the posting to FAPIIS.
(2) The Contractor will also have an
opportunity to post comments regarding
information that has been posted by the
Government. The comments will be retained
as long as the associated information is
retained, i.e., for a total period of 6 years.
Contractor comments will remain a part of
the record unless the Contractor revises
them.
(3) As required by section 3010 of Pub. L.
111–212, all information posted in FAPIIS on
or after April 15, 2011, except past
performance reviews, will be publicly
available.
(d) Public requests for system information
posted prior to April 15, 2011, will be
handled under Freedom of Information Act
procedures, including, where appropriate,
procedures promulgated under E.O. 12600.
9. Amend section 52.212–5 by
revising the date of the clause; and
redesignating paragraphs (b)(7) through
(b)(50) as (b)(8) through (b)(51),
respectively; and adding new (b)(7) 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
(JAN 2012)
*
*
*
*
*
(b) * * *
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Fmt 4701
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(7) 52.209–9, Updates of Publicly Available
Information Regarding Responsibility Matters
(JAN 2012) (41 U.S.C. 2313).
*
*
*
*
*
[FR Doc. 2011–33420 Filed 12–30–11; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 31 and 52
[FAC 2005–55; FAR Case 2010–005; Item
VI; Docket 2010–0005, Sequence 1]
RIN 9000–AM00
Federal Acquisition Regulation;
Updated Financial Accounting
Standards Board Accounting
References
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
update references to authoritative
accounting standards owing to the
Financial Accounting Standards Board’s
Accounting Standards Codification of
Generally Accepted Accounting
Principles.
SUMMARY:
Effective Date: February 2, 2012.
Mr.
Edward N. Chambers, Procurement
Analyst, at (202) 501–3221, for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat at (202) 501–4755. Please
cite FAC 2005–55, FAR Case 2010–005.
SUPPLEMENTARY INFORMATION:
DATES:
FOR FURTHER INFORMATION CONTACT:
I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
76 FR 8989 on February 16, 2011, to
update the references based upon the
Financial Accounting Standards Board’s
(FASB) Statement Number 168 which
stated that the FASB Accounting
Standards Codification (ASC) would
become the source of authoritative U.S.
Generally Accepted Accounting
Principles (GAAP) recognized by the
FASB to be applied to nongovernmental
entities. The revisions are intended to
have no effect other than to simply
replace the superseded references with
E:\FR\FM\03JAR2.SGM
03JAR2
Agencies
[Federal Register Volume 77, Number 1 (Tuesday, January 3, 2012)]
[Rules and Regulations]
[Pages 197-202]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33420]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 9, 12, 42, and 52
[FAC 2005-55; FAR Case 2010-016; Item V; Docket 2010-0016, Sequence 1]
RIN 9000-AL94
Federal Acquisition Regulation; Public Access to the Federal
Awardee Performance and Integrity Information System
AGENCIES: 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 a section of the Supplemental Appropriations Act, 2010. This
section requires that the information in the Federal Awardee
Performance and Integrity Information System (FAPIIS), excluding past
performance reviews, shall be made publicly available. The interim rule
notified contractors of this new statutory requirement for public
access to FAPIIS.
DATES: Effective Date: January 3, 2012.
FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst,
at (202) 501-0650, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at (202) 501-4755. Please cite FAC 2005-55, FAR Case 2010-
016.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published an interim rule in the Federal
Register at 76 FR 4188 on January 24, 2011, to
[[Page 198]]
implement section 3010 of the Supplemental Appropriations Act, 2010
(Pub. L. 111-212).
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the comments in 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. General Comments
Comments: Several respondents made positive comments about the rule
granting public access to the FAPIIS. One respondent stated that this
is a most welcome process. One respondent stated that making public the
data in FAPIIS will benefit contractors with records of business
integrity and performance excellence. Another respondent commented that
by making this information public, construction subcontractors will
soon be able to evaluate the business ethics and quality of potential
contractor clients. According to this respondent, this can reduce risk
and save taxpayers millions of dollars.
Response: Noted.
Comments: On the other hand, some of the respondents are concerned
about possible risk associated with making FAPIIS data available to the
public.
One respondent noted that the new proposed rule is over-
reaching the purpose for which FAPIIS was initiated. According to the
respondent, FAPIIS was designed to do one thing and was approved with
comments to the effect that Government contractor sensitive information
would not be publicized. The Government is now essentially rescinding
this, with the exception of not making ``past performance information''
available. Further, the respondent feared that it is only a matter of
time before the Government also allows the public access to Government
contractor ``past performance information'' and expands FAPIIS in other
ways.
Another respondent pointed out that contractors face a
number of risks associated with release of information subject to the
Freedom of Information Act (FOIA). In particular, this respondent was
concerned that by making FAPIIS public, there is an increased
likelihood that contractors could be subject to a False Claims Act
litigation on the basis of the certification at FAR 52.209-7(c) (that
the information entered into FAPIIS is current, accurate, and
complete).
Response: This change in FAPIIS was mandated by section 3010 of the
Supplemental Appropriations Act, 2010 (Pub. L. 111-212), enacted by
Congress.
With regard to possible litigation under the False Claims Act, as
with any FAR contract provision or clause, it is the responsibility of
the contractor to ensure that the information being certified is
current, accurate, and complete.
The Councils recognize the risk to contractors if the data is made
public prior to offering the contractor a chance to review. The rule
has been revised to provide to contractors a 7-calendar-day review
period to identify information posted in FAPIIS that is covered by a
disclosure exemption under the FOIA. The information entered into
FAPIIS by the contracting officer or suspension and debarment official
will be made publicly available within an additional 7-calendar-day
period, unless the contractor asserts to the Government official, who
posted the item, that it is protected by a disclosure exemption under
FOIA. In such case, the information will be removed by the Government
official and the issue resolved in accordance with agency FOIA
procedures. If the Government official does not remove the item, it
will be automatically released to the public site within 14 calendar
days after the review period began.
B. Make More Data Public
1. Narrow definition of ``past performance review''.
Comment: One respondent noted that Congress did not define ``past
performance review'' and requested that the Councils define the term
very narrowly, in a way that allows all ``past performance
information'' to be made public, except that which proposes a
legitimate threat to commercial proprietary or personal privacy
interests.
The respondent stated that the Government releases a broad array of
past performance information in bid protest decisions, and should do
the same with FAPIIS, because this will strengthen efforts to exclude
non-responsible contractors.
Response: This FAR case uses the definition of ``past performance''
in FAR part 2 and the discussion of contractor performance information
in FAR subpart 42.15, including ``past performance evaluations'' and
``past performance reports'' that are entered into the Past Performance
Information Retrieval System (PPIRS) as a result of past performance
evaluations. This coverage of past performance was in the FAR when
Congress passed Public Law 111-212 and section 3010 specifically
excludes ``past performance reviews.''
The FAR Council published a proposed rule, FAR Case 2009-042,
Documenting Contractor Performance, in the Federal Register at 76 FR
37704 on June 28, 2011, with public comments due on September 29, 2011,
that clarified ``past performance information''--see https://edocket.access.gpo.gov/2011/pdf/2011-16169.pdf. The language in FAR
Case 2009-042 has been updated to reference the part of FAR subpart
42.15 related to ``past performance.''
The Councils also note that the Government Accountability Office
allows a party to request redaction of ``past performance information''
prior to the release of a bid protest decision.
2. Release data entered prior to April 15, 2011.
Comments: One respondent opposed the new regulation regarding
information entered into FAPIIS before April 15, 2011. Specifically,
FAR 52.209-9 provides that information posted in FAPIIS prior to April
15, 2011, will not be publicly disclosed, except by request submitted
under FOIA. Due to the respondent's concern about the shortcomings of
the FOIA process, the respondent requested that all data posted prior
to April 15, 2011, be made available to the public without requiring
requests through FOIA.
Response: The data posted in FAPIIS prior to April 15, 2011, cannot
be made publicly available because the final rule, FAR Case 2008-027,
published in the Federal Register at 75 FR 14059, effective April 22,
2010, included a statement in paragraph (b)(3) of FAR 52.209-8, Updates
of Information Regarding Responsibility Matters, that ``(w)ith the
exception of the Contractor, only Government personnel and authorized
users performing business on behalf of the Government will be able to
view the Contractor's record in the system.'' The paragraph continued
with the statement that public requests for system information would be
handled under the FOIA procedures. After section 3010 was enacted, the
Government began to plan the transition to making the data in FAPIIS
available to the public. The Councils concluded that it was not
appropriate to make information publicly available that the Government
contractually committed that it would only release in accordance with
the procedures of FOIA.
The Councils took every feasible action to make the maximum amount
of data publicly available, without violating the contractual
commitments made by the Government in contracts containing FAR 52.209-
8.
[[Page 199]]
C. Protection of Data That Should Not Be Released
1. Include in the FAR specific prohibition against entry of
inappropriate data in FAPIIS.
Comment: Several respondents were concerned about lack of
sufficient guidance in the interim rule on the scope of information to
be withheld. Several respondents recommended that the rule should
explicitly prohibit the contracting officer from posting information in
FAPIIS that is protected by a disclosure exemption under FOIA.
According to one respondent, the rule should list the FOIA exemptions,
specifically instruct contracting officers to redact information
protected by FOIA, and further instruct contracting officers to consult
a FOIA expert to resolve questions regarding the applicability of an
exemption.
Another respondent requested that the FAR should expressly state
that additional information not identified in FAR 9.104-6 cannot be
posted in the publicly available iteration of FAPIIS.
Response: The Councils have revised the final rule, at FAR 9.105-
2(b)(2)(iv) and 52.209-9(c)(1), to prohibit contracting officers from
posting information in FAPIIS that is protected by a disclosure
exemption under FOIA. To alleviate errors or oversights, the FAR text
points to the FOIA exemptions and allows the agencies' FOIA officers to
determine the applicable exemption relevant to their situation. It is
not customary practice to list all the FOIA exemptions in the FAR, as
they are readily available in the Department of Justice Guide to the
Freedom of Information Act (2009 Edition) at https://www.justice.gov/oip/foia_guide09.htm or at agencies' FOIA Office Web sites.
2. Allow contractors to review before making public.
Comment: Several respondents recommended that the interim rule
should be revised to allow contractors to review information that will
be posted to FAPIIS for public review prior to its release.
Several respondents stated that privacy rights could be irreparably
impaired, and proprietary information could be irreparably lost as a
result of release to the public through FAPIIS, even if the data is
later removed.
One respondent stated that contractors should be allowed to
determine if any of the information might be protected from release
under FOIA, thus allowing contractors to request redaction of properly
FOIA-protected information.
Another respondent requested time to review the data both to ensure
accuracy and completeness, as well as to ensure that it does not
violate the requirement to protect proprietary information. This
respondent stated that publicly posting proprietary information or
inaccurate or incomplete information is not quantifiable and there is
no remedy that can adequately address the contractor's losses.
Another respondent noted that the Councils have recognized the
importance of allowing contractors the opportunity to respond to
information in FAPIIS before the Government acts on that information.
FAR 9.104-6 entitles an offeror to present additional information to
demonstrate responsibility after a contracting officer identified
``relevant information'' in FAPIIS.
Several respondents requested periods varying from 30 days to 60
days to review the information before it is made public, although the
respondent that requested 60 days noted that the FAR currently allows
the contractor only 30 days to respond to past performance information
in PPIRS.
Another respondent believed that this approach should not require
major changes to the system. The respondent suggested that when the
information is first entered into FAPIIS, it could be quarantined in
the ``non-public'' iteration of FAPIIS, similar to past performance
information.
Response: The Councils have revised the final rule, at FAR 9.105-
2(b)(2) and 52.209(c), to allow contractors 7 calendar days to review
information posted to FAPIIS before that information is made available
to the public. A notice is sent to the contractor whenever information
is entered into the system about that contractor. If contractors assert
to the Government, within 7 calendar days, that information has been
posted that is covered by a disclosure exemption under FOIA, the
information will be removed while the agency resolves the issue in
accordance with agency FOIA procedures.
3. Allow submission of two versions--redacted for public and
unredacted for Government.
Comment: One respondent recommended that two versions of the
information should be submitted--a complete version for the Government,
and a redacted version for the public.
Response: The statute requires that all information in FAPIIS,
other than information on ``past performance reviews,'' must be made
available to the public. Therefore, submission of two different
versions would not meet the statutory requirement.
4. Include systems protections so that past performance data is not
inadvertently made public.
Comment: One respondent recommended that the FAR Council should
coordinate with the FAPIIS Program Manager to take all the appropriate
steps from a system architecture/controls standpoint to preclude the
public disclosure (advertent or inadvertent) of ``past performance
information.'' According to the respondent, this should include
systemic protections that make it impossible to post ``past performance
information'' to the publicly-available iteration of FAPIIS.
Response: The structure of FAPIIS ensures that ``past performance
reviews'' (as described in FAR subpart 42.15) will not be inadvertently
released. Past performance information is stored in a completely
separate module from the other information in FAPIIS. There is no
connection between the past performance module and the public Web site
for FAPIIS. This assurance was provided by the Contractor Performance
Assessment Reporting System/PPIRS Program Manager and the FAPIIS
Program Manager.
D. Ensure That Data Is Timely and Accurate
1. Timeliness.
Comment: One respondent recommended that the FAR should assign
responsibility to a particular Government official to timely remove
stale information from FAPIIS.
Response: All information in FAPIIS is marked with the date of the
occurrence. In response to search requests, FAPIIS only provides access
to information that is dated within five years of the date of the
request.
2. Accuracy.
Comment: One respondent stated that the FAR should require
contracting officers and suspension and debarment officials (SDOs) to
validate the accuracy of information before inputting into FAPIIS.
Response: The procedures at FAR 9.406-3(f) and 9.407-3(e) already
require that the SDOs are responsible for the accuracy of the
documentation entered into FAPIIS regarding an administrative agreement
to resolve a debarment or suspension proceeding. The Councils have
revised the rule at FAR 9.105-2(b)(2)(ii) and 42.1503(f)(1) to make the
contracting officer/agency responsible for the accuracy of agency data
entered into FAPIIS.
[[Page 200]]
E. Technical Recommendations
1. Include FAR 52.209-9 in the list at FAR 52.212-5.
Comment: Two respondents suggested that FAR 52.209-9, Updates to
Publicly Available Information Regarding Responsibility Matters, should
be added to the list of clauses incorporated as part of FAR 52.212-5
(at paragraph (b)) for FAR part 12 commercial item acquisitions.
Another respondent noted that, if the clause is not included in FAR
52.212-5, it may be inadvertently omitted.
Response: The change has been made in the final rule by listing FAR
52.209-9 under FAR 52.212-5, Contract Terms and Conditions Required To
Implement Statutes or Executive Orders--Commercial Items.
2. Allow incorporation of clause by reference.
Comment: A respondent noted that the FAR matrix now requires that
both FAR 52.209-9 and its Alternate be incorporated in full text. The
respondent commented that both the clause and its alternate should be
available for incorporation into contracts by reference.
Response: The change has been incorporated into the FAR provision
and clause matrix under FAR subpart 52.3, Provision and Clause Matrix,
available for review at https://www.acquisition.gov/far/current/html/52_300.html#wp1077611.
3. Designate contractor point of contact to receive notification of
entry into FAPIIS.
Comment: One respondent stated that FAR 52.209-9(b)(1) does not
specify who in the contractor's organization will be notified when new
information is posted. The respondent recommended that the FAR should
designate the contractor's Central Contractor Registration (CCR) point
of contact as the person who will receive all notification related to
the Government posting new information on the contractor's record.
Response: If the contractor specifies a past performance point of
contact in its CCR record, then the notification goes to the specified
point of contact. At the contractor's discretion, this past performance
point of contact's email address can be a single individual or a common
email address that multiple individuals in the company can access. If
the contractor does not specify a past performance point of contact,
then the notification is sent to the contractor's Government business
point of contact, which is a mandatory field in CCR.
4. Allow larger field in FAPIIS for contractor comments.
Comment: One respondent requested a larger field to enter
contractor comments.
Response: The field currently allows 1000 characters per entry. As
a result of the public comments, the FAPIIS Program Manager doubled the
available characters to 2000 and this change is effective now.
F. Requests for Further Rulemaking (Outside the Scope of This Rule)
1. Make training and guidance subject to rulemaking.
Comment: Two respondents were concerned about the statements in the
preamble to the final FAPIIS rule under FAR Case 2008-027 that policies
and guidance would be developed to ensure the timely and accurate input
of information into the FAPIIS database. Further, the Councils would
work with the FAPIIS Program Manager, the Federal Acquisition
Institute, and the Defense Acquisition University to develop guidance
for contracting officials and suspension and debarment officials. The
respondent was concerned that training, policies, and guidance to
contracting officers and SDOs will, in effect, provide further
direction regarding what constitutes proper input, accuracy, and
timeliness. The respondent believed that this guidance will supplement
and clarify FAPIIS data requirements. Therefore, according to the
respondent, it should be published in the Federal Register so that all
impacted parties may provide input.
Another respondent was also concerned that the clear direction to
the contracting officer should be included in the FAR, rather than in
subsequent training and informal guidance. This respondent stated that
the final FAPIIS rule did not go far enough, and recommended additional
changes to the FAR to clarify what information is relevant to
responsibility determinations and past performance evaluations. The
respondent also wanted the FAR to make clear that not all information
in FAPIIS will be relevant to a contractor's past performance.
Response: The FAR includes direction to the contracting officer
about the FAPIIS requirement and relevancy of that information. The
FAPIIS training will not include new policies, but rather procedures on
how to comply with existing FAR policies and guidance. The current
FAPIIS training overview is available at https://www.fai.gov/FAPIIS/trailer/module.htm for the public to view. Follow-on training will also
be publicly available later this year.
2. Provide more regulation on contractor reporting obligations.
Comment: One respondent had comments that relate to clear
definition of ``reportable outcomes.'' This respondent provided a list
of items that should be excluded from the database and a list of items
that should be reportable.
Another respondent contended that the reporting obligations of the
FAPIIS regulations are unclear, addressing the need for guidance
relating to clarifying ``the Offeror, and/or any of its principals,''
``within the last five years,'' ``in connection with a Federal contract
or grant,'' ``administrative proceeding,'' and ``consent or
compromise.''
Response: This FAR case was established to implement section 3010,
which required information in FAPIIS, excluding ``past performance
reviews,'' to be publicly available.
Any further definition of reportable outcomes or guidance on
reporting requirements would require publication of a new rulemaking
for public comment.
3. Get public comments before adding any new data elements to
FAPIIS or change databases that feed into FAPIIS.
Comment: One respondent wanted to ensure that the Councils will get
public comments before adding any new data elements to FAPIIS or
changing databases that feed into FAPIIS.
Response: Addition of new data elements to FAPIIS would require
further rulemaking for public comment.
4. Update to FAPIIS.
Comment: One respondent stated that the Councils should clarify the
requirement to update FAPIIS information on a semi-annual basis.
Response: Additional clarification is not necessary. FAR clause
52.209-9, Updates of Publicly Available Information Regarding
Responsibility Matters, tells contractors that they are required to
update the information in the FAPIIS on a semi-annual basis, throughout
the life of the contract.
G. Deadline
1. Display pilot run before deadline.
Comment: One respondent requested to see a pilot run of the FAPIIS
format and the program before it is officially ``rolled out.''
Response: The statute did not provide for a delay in
implementation; therefore, FAPIIS is now available to the public at
https://fapiis.ppirs.gov.
2. Postpone deadline until all issues resolved.
Comment: Two respondents requested that the deadline of April 15,
2011, be postponed until certain issues can be resolved (see issues
identified in section II.F. of this preamble). Both respondents pointed
out that Congress did not
[[Page 201]]
mandate that FAPIIS be made available to the public on a particular
date. One respondent concluded that it is implicit that Congress
intended for the Councils to take the time necessary to ``get it
right.''
Response: The statute did not provide for any delay in
implementation. In the interest of transparency in Government
contracting, the Councils implemented the FAR changes and system
changes to provide direction to Government and contractor personnel in
a timely manner to align with the statute.
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 Executive Order 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 just notifies
the contractors that the public will have access to the database. The
rule does not impose any additional burdens on small entities. The
interim rule made editorial changes to FAR 52.209-7 and transferred the
information collection requirement from FAR 52.209-8 to a new clause at
FAR 52.209-9.
In response to public comments, the final rule allows a 14-
calendar-day delay before making the data available to the public.
Contractors have 7 calendar days within those 14 calendar days to
assert a disclosure exemption under the Freedom of Information Act. In
addition, the FAPIIS system has been modified to allow more space for
contractor comments. The rule does not impose any new requirements on
small businesses.
Therefore, a Final Regulatory Flexibility Analysis has not been
performed. DoD, GSA, and NASA did not receive any comments relating to
impact on small entities.
V. Paperwork Reduction Act
This 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 1, 9, 12, 42, and 52
Government procurement.
Dated: December 21, 2011.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Interim Rule Adopted as Final With Changes
Accordingly, the interim rule amending 48 CFR parts 1, 9, 12, 42,
and 52, which was published in the Federal Register at 76 FR 4188 on
January 24, 2011, is adopted as final with the following changes:
0
1. The authority citation for 48 CFR parts 1, 9, 12, 42, 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 9--CONTRACTOR QUALIFICATIONS
0
2. Amend section 9.104-7 by adding paragraph (c) to read as follows:
9.104-7 Solicitation provisions and contract clauses.
* * * * *
(c) The contracting officer shall insert the clause at 52.209-9,
Updates of Publicly Available Information Regarding Responsibility
Matters--
(1) In solicitations where the resultant contract value is expected
to exceed $500,000; and
(2) In contracts in which the offeror checked ``has'' in paragraph
(b) of the provision at 52.209-7.
* * * * *
0
3. Amend section 9.105-2 by revising paragraph (b)(2)(ii); and adding
paragraphs (b)(2)(iii) and (b)(2)(iv) to read as follows:
9.105-2 Determinations and documentation.
* * * * *
(b) * * *
(2) * * *
(ii) The contracting officer is responsible for the timely
submission, within 3 working days, and sufficiency, and accuracy of the
documentation regarding the nonresponsibility determination.
(iii) As required by section 3010 of the Supplemental
Appropriations Act, 2010 (Pub. L. 111-212), all information posted in
FAPIIS on or after April 15, 2011, except past performance reviews,
will be publicly available. FAPIIS consists of two segments--
(A) The non-public segment, into which Government officials and
contractors post information, which can only be viewed by--
(1) Government personnel and authorized users performing business
on behalf of the Government; or
(2) An offeror or contractor, when viewing data on itself; and
(B) The publicly-available segment, to which all data in the non-
public segment of FAPIIS is automatically transferred after a waiting
period of 14 calendar days, except for--
(1) Past performance reviews required by subpart 42.15;
(2) Information that was entered prior to April 15, 2011; or
(3) Information that is withdrawn during the 14-calendar-day
waiting period by the Government official who posted it in accordance
with paragraph (b)(2)(iv) of this section.
(iv) The contracting officer, or any other Government official,
shall not post any information in the non-public segment of FAPIIS that
is covered by a disclosure exemption under the Freedom of Information
Act. If the contractor asserts within 7 calendar days, to the
Government official who posted the information, that some of the
information posted to the non-public segment of FAPIIS is covered by a
disclosure exemption under the Freedom of Information Act, the
Government official who posted the information must within 7 calendar
days remove the posting from FAPIIS and resolve the issue in accordance
with agency Freedom of Information Act procedures, prior to reposting
the releasable information.
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4. Amend section 9.406-3 by adding paragraph (f)(3) to read as follows:
9.406-3 Procedures.
* * * * *
(f) * * *
(3) With regard to information that may be covered by a disclosure
exemption under the Freedom of Information Act, the debarring official
shall follow the procedures at 9.105-2(b)(2)(iv).
0
5. Amend section 9.407-3 by adding paragraph (e)(3) to read as follows:
[[Page 202]]
9.407-3 Procedures.
* * * * *
(e) * * *
(3) With regard to information that may be covered by a disclosure
exemption under the Freedom of Information Act, the suspending official
shall follow the procedures at 9.105-2(b)(2)(iv).
PART 12--ACQUISITION OF COMMERCIAL ITEMS
12.301 [Amended]
0
6. Amend section 12.301 by removing paragraph (d)(4).
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
7. Amend section 42.1503 by revising the introductory text of paragraph
(f)(1); and adding paragraph (f)(3) to read as follows:
42.1503 Procedures.
* * * * *
(f) * * *
(1) Agencies shall ensure information is accurately reported in the
FAPIIS module of PPIRS within 3 calendar days after a contracting
officer--
* * * * *
(3) With regard to information that may be covered by a disclosure
exemption under the Freedom of Information Act, the contracting officer
shall follow the procedures at 9.105-2(b)(2)(iv).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.209-9 by revising the date of the clause and
paragraph (b); and adding paragraphs (c) and (d) to read as follows:
52.209-9 Updates of Publicly Available Information Regarding
Responsibility Matters.
* * * * *
Updates of Publicly Available Information Regarding Responsibility
Matters (JAN 2012)
* * * * *
(b) As required by section 3010 of the Supplemental
Appropriations Act, 2010 (Pub. L. 111-212), all information posted
in FAPIIS on or after April 15, 2011, except past performance
reviews, will be publicly available. FAPIIS consists of two
segments--
(1) The non-public segment, into which Government officials and
the Contractor post information, which can only be viewed by--
(i) Government personnel and authorized users performing
business on behalf of the Government; or
(ii) The Contractor, when viewing data on itself; and
(2) The publicly-available segment, to which all data in the
non-public segment of FAPIIS is automatically transferred after a
waiting period of 14 calendar days, except for--
(i) Past performance reviews required by subpart 42.15;
(ii) Information that was entered prior to April 15, 2011; or
(iii) Information that is withdrawn during the 14-calendar-day
waiting period by the Government official who posted it in
accordance with paragraph (c)(1) of this clause.
(c) The Contractor will receive notification when the Government
posts new information to the Contractor's record.
(1) If the Contractor asserts in writing within 7 calendar days,
to the Government official who posted the information, that some of
the information posted to the non-public segment of FAPIIS is
covered by a disclosure exemption under the Freedom of Information
Act, the Government official who posted the information must within
7 calendar days remove the posting from FAPIIS and resolve the issue
in accordance with agency Freedom of Information procedures, prior
to reposting the releasable information. The contractor must cite
52.209-9 and request removal within 7 calendar days of the posting
to FAPIIS.
(2) The Contractor will also have an opportunity to post
comments regarding information that has been posted by the
Government. The comments will be retained as long as the associated
information is retained, i.e., for a total period of 6 years.
Contractor comments will remain a part of the record unless the
Contractor revises them.
(3) As required by section 3010 of Pub. L. 111-212, all
information posted in FAPIIS on or after April 15, 2011, except past
performance reviews, will be publicly available.
(d) Public requests for system information posted prior to April
15, 2011, will be handled under Freedom of Information Act
procedures, including, where appropriate, procedures promulgated
under E.O. 12600.
(End of clause)
0
9. Amend section 52.212-5 by revising the date of the clause; and
redesignating paragraphs (b)(7) through (b)(50) as (b)(8) through
(b)(51), respectively; and adding new (b)(7) 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 (JAN 2012)
* * * * *
(b) * * *
(7) 52.209-9, Updates of Publicly Available Information
Regarding Responsibility Matters (JAN 2012) (41 U.S.C. 2313).
* * * * *
[FR Doc. 2011-33420 Filed 12-30-11; 8:45 am]
BILLING CODE 6820-EP-P