Federal Acquisition Regulation; Pilot Program for Enhancement of Contractor Employee Whistleblower Protections, 60169-60173 [2013-23703]
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Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Rules and Regulations
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 3 and 52
[FAC 2005–70; FAR Case 2013–015; Item
I; Docket 2013–0015, Sequence 1]
RIN 9000–AM56
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Federal Acquisition Regulation; Pilot
Program for Enhancement of
Contractor Employee Whistleblower
Protections
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Patricia Corrigan, Procurement Analyst,
at 202–208–1963, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–70, FAR
Case 2013–015.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are issuing an
interim rule amending the Federal
Acquisition Regulation (FAR) to
implement a four-year pilot program to
AGENCY: Department of Defense (DoD),
enhance the existing whistleblower
General Services Administration (GSA), protections for contractor employees at
and National Aeronautics and Space
FAR subpart 3.9. The pilot program is
Administration (NASA).
mandated by section 828, entitled ‘‘Pilot
Program for Enhancement of Contractor
ACTION: Interim rule.
Employee Whistleblower Protections,’’
SUMMARY: DoD, GSA, and NASA are
of the National Defense Authorization
issuing an interim rule amending the
Act (NDAA) for Fiscal Year (FY) 2013
Federal Acquisition Regulation (FAR) to (Pub. L. 112–239, enacted January 2,
implement a statutory pilot program
2013).
enhancing whistleblower protections for
Paragraph (a) of section 828 adds to
contractor employees.
title 41 a new section 4712 that contains
DATES: Effective: September 30, 2013.
the elements of the pilot program,
Applicability: In accordance with FAR which took effect by operation of law on
1.108(d)(3), contracting officers are
July 1, 2013, and is effective through
encouraged to include the changes in
January 1, 2017. Paragraph (c) of section
these rules in major modifications to
828 suspends the pre-existing
contracts and orders awarded prior to
whistleblower protections in 41 U.S.C.
the effective date of this interim rule.
4705 ‘‘(w)hile section 4712 of this title
Comment Date: Interested parties
is in effect . . .’’ (i.e., from July 1, 2013,
should submit written comments to the
through January 1, 2017). Accordingly,
Regulatory Secretariat on or before
this interim rule creates a new FAR
November 29, 2013 to be considered in
section 3.908 to implement section
the formulation of a final rule.
4712. The rule leaves intact FAR
sections 3.901 through 3.906, which
ADDRESSES: Submit comments
implement the pre-existing
identified by FAC 2005–70, FAR Case
whistleblower protections in 41 U.S.C.
2013–015, by any of the following
4705, but suspends their applicability
methods:
during the period when the pilot is in
• Regulations.gov: https://
www.regulations.gov. Submit comments effect. Absent Congressional action,
these authorities will automatically be
via the Federal eRulemaking portal by
reinstated when the pilot authority
searching ‘‘FAR Case 2013–015’’ Select
sunsets.
the link ‘‘Submit a Comment’’ that
The interim rule also clarifies that the
corresponds with ‘‘FAR Case 2013–
pilot authority applies to title 41
015’’. Follow the instructions provided
agencies and is inapplicable to DoD,
at the ‘‘Submit a Comment’’ screen.
NASA, and the Coast Guard. The latter
Please include your name, company
three agencies are covered by 10 U.S.C.
name (if any), and ‘‘FAR Case 2013–
2409, which was amended by section
015’’ on your attached document.
827 of the NDAA to impose permanent
• Fax: 202–501–4067.
requirements very similar to the
• Mail: General Services
temporary requirements of the pilot
Administration, Regulatory Secretariat
program established in title 41.
(MVCB), ATTN: Ms. Flowers, 1800 F
Section 4712 and its implementing
Street NW., 2nd Floor, Washington, DC
regulations (1) protect contractor or
20405.
Instructions: Please submit comments subcontractor employees against
reprisal for activities protected by FAR
only and cite FAC 2005–70, FAR Case
2013–015, in all correspondence related 3.908–3(a) and (2) do not change any
to this case. All comments received will right or remedy otherwise available to
the employee.
be posted without change to https://
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60169
FAR 3.907, which addresses
whistleblower protections under the
American Recovery and Reinvestment
Act of 2009, is unaffected by this rule.
II. Discussion and Analysis
FAR section 3.908, entitled ‘‘Pilot
program for enhancement of contractor
employee whistleblower protections,’’ is
a self-contained complete
implementation of the pilot program
requirements in section 828 of the
NDAA for FY 2013. FAR 3.908–1 spells
out exemptions from the pilot for DoD,
NASA, and the Coast Guard, as well as
elements of the intelligence community
in accordance with the requirements in
41 U.S.C. 4712(f)(1) and (2). FAR 3.908–
2 includes the definitions of ‘‘abuse of
authority’’ and ‘‘Inspector General’’
from paragraph (g) of 41 U.S.C. 4712, as
added by section 828.
The specific prohibited actions that
constitute reprisal and the entities to
whom disclosing information
constitutes whistleblowing as defined in
41 U.S.C. 4712 are similar to, but not
exactly the same as, the current FAR
contractor whistleblower coverage.
These are addressed in the policy
subsection, FAR 3.908–3. This
subsection also clarifies what
constitutes disclosure as that term is
used in the law and the FAR coverage.
FAR subsections 3.908–4 and -5
include procedures for filing complaints
and procedures for the Inspector
General to investigate complaints. This
coverage reflects paragraph (b) of 41
U.S.C. 4712.
The interim rule addresses remedies
at FAR 3.908–6. The source material for
this subsection is paragraphs (c)(1)
through (3), and (c)(7) of 41 U.S.C. 4712.
The law puts the remedies in the hands
of the head of the agency and provides
time lines for action. Under the law, the
agency head may decide that the report
of the Inspector General does not
provide sufficient basis to conclude that
the contractor employee has been
subjected to reprisal. If, however,
sufficient basis does exist, then the
agency head must either issue an order
denying relief or order the contractor to
take one or more of the following
actions:
(1) Take affirmative action to abate the
reprisal.
(2) Reinstate the complainantemployee to the position that the person
held before the reprisal, together with
compensatory damages (including back
pay), employment benefits, and other
terms and conditions of employment
that would apply to the person in that
position if the reprisal had not been
taken.
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(3) Pay the complainant-employee an
amount equal to the aggregate amount of
all costs and expenses (including
attorneys’ fees and expert witnesses’
fees) that were reasonably incurred for,
or in connection with, bringing the
complaint regarding the reprisal. The
law also provides that complainants,
after they are deemed to have exhausted
all administrative remedies, may bring
an action at law or equity against the
contractor.
Paragraphs (c)(4) and (c)(5) of 41
U.S.C. 4712 address procedures for
enforcement of the orders issued by the
head of the agency. These paragraphs
are implemented at FAR 3.908–7, and
they require the agency head to file an
action for enforcement in the U.S.
district court if a person fails to comply
with an order issued under section (c)(1)
of 41 U.S.C. 4712, describe the types of
relief that the court may grant, and
allow the whistleblower complainantemployee to join in the action or
separately file an action for
enforcement. Further, the law enables
persons adversely affected by an order
issued by the agency head to request
review in the U.S. Court of Appeals for
a circuit in which the reprisal is alleged
in the order to have occurred. There is
a 60-day time limit for such filing from
the date that the agency head issued the
order.
Paragraph (h) of section 4712 provides
that nothing in the new law may be
construed to provide any rights to
disclose classified information not
otherwise provided by law. This
important caveat has been included at
subsection 3.908–8 of the FAR.
A new contract clause is provided for
the pilot program, in accordance with
paragraph (d) of section 4712. The
clause informs offerors that employees
working on any Government contract
are subject to the whistleblower rights
and remedies of the pilot program and
requires the contractor (and its
subcontractors) to inform their
employees in writing of employee
whistleblower rights and protections
under 41 U.S.C. 4712 in the
predominant native language of the
workforce.
The interim rule applies the pilot to
purchases of commercial items and
commercially available off-the-shelf
(COTS) items. This implementation is
consistent with the implementation of
the whistleblower protections in 41
U.S.C. 4705.
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
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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
DoD, GSA, and NASA do not expect
this rule to 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. However, an Initial Regulatory
Flexibility Analysis (IRFA) has been
performed and is summarized as
follows:
This interim rule was initiated to amend
the FAR to implement a four-year pilot
program to enhance the existing
whistleblower protections for contractor
employees at FAR subpart 3.9. The pilot
program is mandated by section 828, entitled
‘‘Pilot Program for Enhancement of
Contractor Employee Whistleblower
Protections,’’ of the National Defense
Authorization Act (NDAA) for Fiscal Year
(FY) 2013 (Pub. L. 112–239, enacted January
2, 2013). The law establishes a pilot program
for the period ending on January 1, 2017.
Based on a reading of 41 U.S.C. 3101(c) and
sections 827 and 828 of the NDAA for FY
2013, the pilot program will apply to all
Federal agencies except DoD, NASA, and the
Coast Guard. Except for contracts funded
under the American Recovery and
Reinvestment Act of 2009 (see 3.907), the
current protections for contractor
whistleblowers are established in law at 41
U.S.C. 4705; paragraph (c) of section 828
suspends 41 U.S.C. 4705 ‘‘(w)hile section
4712 of this title is in effect . . .’’ Paragraph
(a) of section 828 adds the new section 4712
to title 41 that contains the elements of the
pilot program and is effective until January
1, 2017.
With the exception of DoD, NASA, and the
Coast Guard, as well as any element of the
intelligence community, as defined in section
3(4) of the National Security Act of 1947 (50
U.S.C. 401(a)(4)), the pilot program applies to
the employees of Government contractors
and their subcontractors. DoD, GSA, and
NASA do not expect the pilot program,
which applies to the majority of entities
doing business with the Government
regardless of business size, to have a
significant economic impact specific to small
entities. The following information is
provided as a means of estimating the overall
numbers of entities to which the rule will
apply. Based on Federal Procurement Data
System reporting data, in Fiscal Year 2012,
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a Government-wide total of 273,970 new
awards that exceeded the simplified
acquisition threshold were made to small
businesses and other than small businesses
by agencies other than DoD, NASA, and the
Coast Guard. Of that total, 95,436 new award
actions were made to small business entities.
The remaining 178,534 award actions were
made to other than small businesses.
A new contract clause is provided for the
pilot program, in accordance with paragraph
(d) of section 4712. The clause informs
offerors that employees working on any
contract awarded are subject to the
whistleblower rights and remedies of the
pilot program and requires the contractor
(and its subcontractors), regardless of
business size, to inform their employees in
writing of employee whistleblower rights and
protections under 41 U.S.C. 4712.
There is no requirement for small entities
to submit any information under this clause.
The rule does not duplicate, overlap, or
conflict with any other Federal rules.
There are no practical alternatives that will
accomplish the objectives of the interim rule.
The Regulatory Secretariat has
submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat. DoD, GSA and
NASA invite comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by this rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAC 2005–70, FAR Case 2013–015) in
correspondence.
V. Paperwork Reduction Act
The interim 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).
VI. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
(DoD), the Administrator of General
Services (GSA), and the Administrator
of the National Aeronautics and Space
Administration (NASA) that urgent and
compelling reasons exist to promulgate
this interim rule, without prior
opportunity for public comment. This
action is necessary for the following
reasons:
First, by operation of law, the new
statute for the pilot program became
effective on July 1, 2013, i.e., Congress
included language in section 828(b)
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specifically addressing the effective date
of 41 U.S.C. 4712. The statute for the
pilot program imposes new
responsibilities on agencies, and creates
certain new rights for contractor and
subcontractor employees. Specifically,
as of July 1, 2013:
• There are changes and additions in
the list of entities to whom a
whistleblower disclosure makes the
whistleblower employee eligible for
additional protections against reprisal;
• Agency heads have expanded
responsibilities to take specific actions
with regard to a finding by the Inspector
General of the executive agency
involved of reprisal against a contractor
whistleblower;
• The law requires that the written
notice to employees of their
whistleblower rights must be provided
in the ‘‘predominant native language of
the workforce;’’ and
• Contractors must flow down to their
subcontractors the requirement to
provide written notice to their
employees.
In addition, there is a new exemption
for elements of the intelligence
community that was not available under
previous laws.
The most effective and efficient way
to ensure awareness and compliance by
agencies and their contractors with all
of these requirements is through
immediate regulatory change. Delaying
promulgation may delay the effective
date of regulations but will not postpone
when the law becomes applicable to
contractors (and subcontractors). Thus,
ordinary notice and comment
procedures would unnecessarily
increase the risk of confusion and
noncompliance, defeating the regulatory
objective.
Moreover, there is little likelihood
that the publication of this rule without
prior comment will increase burden on
contractors. This interim regulation
provides basic guidance that agencies
and contractors need to comply with the
statute. Indeed, this regulation
prescribes little beyond that which is set
forth clearly in the statute. However,
pursuant to 41 U.S.C. 1707 and FAR
1.501–3(b), DoD, GSA, and NASA will
consider public comments received in
response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Parts 3 and
52
Government procurement.
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Dated: September 24, 2013.
William Clark,
Acting Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 3 and 52 as set
forth below:
PART 3—IMPROPER BUSINESS
PRACTICES AND PERSONAL
CONFLICTS OF INTEREST
1. The authority citation for 48 CFR
part 3 is revised to read as follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
2. Revise section 3.900 to read as
follows:
■
3.900
Scope of subpart.
This subpart implements three
different statutory whistleblower
programs. This subpart does not
implement 10 U.S.C. 2409, which is
applicable only to DoD, NASA, and the
Coast Guard.
(a) 41 U.S.C. 4705 (in effect before July
1, 2013 and on or after January 2, 2017).
Sections 3.901 through 3.906 of this
subpart implement 41 U.S.C. 4705,
applicable to civilian agencies other
than NASA and the Coast Guard, except
as provided in paragraph (c) of this
section. These sections are not in effect
for the duration of the pilot program
described in paragraph (b) of this
section.
(b) 41 U.S.C. 4712 (in effect on July 1,
2013 through January 1, 2017). Section
3.908 of this subpart implements the
pilot program, applicable to civilian
agencies other than NASA and the Coast
Guard, except as provided in paragraph
(c) of this section.
(c) Contracts funded by the American
Recovery and Reinvestment Act. Section
3.907 of this subpart implements section
1553 of the American Recovery and
Reinvestment Act of 2009 (Pub. L. 111–
5), and applies to all contracts funded
in whole or in part by that Act.
■ 3. Add sections 3.908 through 3.908–
9 to subpart 3.9 to read as follows:
3.908 Pilot program for enhancement of
contractor employee whistleblower
protections
3.908–1
Scope of section.
(a) This section implements 41 U.S.C.
4712.
(b) This section does not apply to—
(1) DoD, NASA, and the Coast Guard;
or
(2) Any element of the intelligence
community, as defined in section 3(4) of
the National Security Act of 1947 (50
U.S.C. 3003(4)). This section does not
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60171
apply to any disclosure made by an
employee of a contractor or
subcontractor of an element of the
intelligence community if such
disclosure—
(i) Relates to an activity of an element
of the intelligence community; or
(ii) Was discovered during contract or
subcontract services provided to an
element of the intelligence community.
3.908–2
Definitions.
As used in this section—
Abuse of authority means an arbitrary
and capricious exercise of authority that
is inconsistent with the mission of the
executive agency concerned or the
successful performance of a contract of
such agency.
Inspector General means an Inspector
General appointed under the Inspector
General Act of 1978 and any Inspector
General that receives funding from, or
has oversight over contracts awarded
for, or on behalf of, the executive agency
concerned.
3.908–3
Policy.
(a) Contractors and subcontractors are
prohibited from discharging, demoting,
or otherwise discriminating against an
employee as a reprisal for disclosing, to
any of the entities listed at paragraph (b)
of this subsection, information that the
employee reasonably believes is
evidence of gross mismanagement of a
Federal contract, a gross waste of
Federal funds, an abuse of authority
relating to a Federal contract, a
substantial and specific danger to public
health or safety, or a violation of law,
rule, or regulation related to a Federal
contract (including the competition for
or negotiation of a contract). A reprisal
is prohibited even if it is undertaken at
the request of an executive branch
official, unless the request takes the
form of a non-discretionary directive
and is within the authority of the
executive branch official making the
request.
(b) Entities to whom disclosure may
be made.
(1) A Member of Congress or a
representative of a committee of
Congress.
(2) An Inspector General.
(3) The Government Accountability
Office.
(4) A Federal employee responsible
for contract oversight or management at
the relevant agency.
(5) An authorized official of the
Department of Justice or other law
enforcement agency.
(6) A court or grand jury.
(7) A management official or other
employee of the contractor or
subcontractor who has the
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responsibility to investigate, discover, or
address misconduct.
(c) An employee who initiates or
provides evidence of contractor or
subcontractor misconduct in any
judicial or administrative proceeding
relating to waste, fraud, or abuse on a
Federal contract shall be deemed to
have made a disclosure.
3.908–4
Filing complaints.
A contractor or subcontractor
employee who believes that he or she
has been discharged, demoted, or
otherwise discriminated against
contrary to the policy in 3.908–3 of this
section may submit a complaint with
the Inspector General of the agency
concerned. Procedures for submitting
fraud, waste, abuse, and whistleblower
complaints are generally accessible on
agency Office of Inspector General
Hotline or Whistleblower Internet sites.
A complaint by the employee may not
be brought under 41 U.S.C. 4712 more
than three years after the date on which
the alleged reprisal took place.
3.908–5 Procedures for investigating
complaints.
Investigation of complaints by the
Inspector General will be in accordance
with 41 U.S.C. 4712(b).
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3.908–6
Statutory remedies.
(a) Agency response to Inspector
General report. Not later than 30 days
after receiving an Inspector General
report in accordance with 41 U.S.C.
4712, the head of the agency shall—
(1) Determine whether sufficient basis
exists to conclude that the contractor or
subcontractor has subjected the
employee who submitted the complaint
to a reprisal as prohibited by 3.908–3;
and
(2) Issue an order denying relief or
take one or more of the following
actions:
(i) Order the contractor to take
affirmative action to abate the reprisal.
(ii) Order the contractor or
subcontractor to reinstate the
complainant-employee to the position
that the person held before the reprisal,
together with compensatory damages
(including back pay), employment
benefits, and other terms and conditions
of employment that would apply to the
person in that position if the reprisal
had not been taken.
(iii) Order the contractor or
subcontractor to pay the complainantemployee an amount equal to the
aggregate amount of all costs and
expenses (including attorneys’ fees and
expert witnesses’ fees) that were
reasonably incurred by the complainant
for, or in connection with, bringing the
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complaint regarding the reprisal, as
determined by the head of the agency.
(b) Complainant’s right to go to court.
If the head of the agency issues an order
denying relief or has not issued an order
within 210 days after the submission of
the complaint or within 30 days after
the expiration of an extension of time
granted in accordance with 41 U.S.C.
4712(b)(2)(B) for the submission of the
Inspector General’s report on the
investigative findings of the complaint
to the head of the agency, the contractor
or subcontractor, and the complainant,
and there is no showing that such delay
is due to the bad faith of the
complainant—
(1) The complainant shall be deemed
to have exhausted all administrative
remedies with respect to the complaint;
and
(2) The complainant may bring a de
novo action at law or equity against the
contractor or subcontractor to seek
compensatory damages and other relief
available under 41 U.S.C. 4712 in the
appropriate district court of the United
States, which shall have jurisdiction
over such an action without regard to
the amount in controversy. Such an
action shall, at the request of either
party to the action, be tried by the court
with a jury. An action under this
authority may not be brought more than
two years after the date on which
remedies are deemed to have been
exhausted.
(c) Admissibility in evidence. An
Inspector General determination and an
agency head order denying relief under
this section shall be admissible in
evidence in any de novo action at law
or equity brought pursuant to 41 U.S.C.
4712.
(d) No waiver. The rights and
remedies provided for in 41 U.S.C. 4712
may not be waived by any agreement,
policy, form, or condition of
employment.
3.908–7
Enforcement of orders.
(a) Whenever a contractor or
subcontractor fails to comply with an
order issued under 3.908–6(a)(2) of this
section, the head of the agency
concerned shall file an action for
enforcement of the order in the U.S.
district court for a district in which the
reprisal was found to have occurred. In
any action brought pursuant to this
authority, the court may grant
appropriate relief, including injunctive
relief, compensatory and exemplary
damages, and attorney fees and costs.
The complainant-employee upon whose
behalf an order was issued may also file
such an action or join in an action filed
by the head of the agency.
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(b) Any person adversely affected or
aggrieved by an order issued under
3.908–6(a)(2) may obtain review of the
order’s conformance with 41 U.S.C.
4712 and its implementing regulations,
in the U.S. court of appeals for a circuit
in which the reprisal is alleged in the
order to have occurred. No petition
seeking such review may be filed more
than 60 days after issuance of the order
by the head of the agency. Filing such
an appeal shall not act to stay the
enforcement of the order of the head of
an agency, unless a stay is specifically
entered by the court.
3.908–8
Classified information.
41 U.S.C. 4712 does not provide any
right to disclose classified information
not otherwise provided by law.
3.908–9
Contract clause.
The contracting officer shall insert the
clause at 52.203–17, Contractor
Employee Whistleblower Rights and
Requirement to Inform Employees of
Whistleblower Rights, in all
solicitations and contracts that exceed
the simplified acquisition threshold.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
4. The authority citation for 48 CFR
part 52 continues to read as follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
5. Add section 52.203–17 to read as
follows:
■
52.203–17 Contractor Employee
Whistleblower Rights and Requirement To
Inform Employees of Whistleblower Rights.
As prescribed in 3.908–9, insert the
following clause:
Contractor Employee Whistleblower Rights
and Requirement To Inform Employees of
Whistlerblower Rights (Sep 2013)
(a) This contract and employees working
on this contract will be subject to the
whistleblower rights and remedies in the
pilot program on Contractor employee
whistleblower protections established at 41
U.S.C. 4712 by section 828 of the National
Defense Authorization Act for Fiscal Year
2013 (Pub. L. 112–239) and FAR 3.908.
(b) The Contractor shall inform its
employees in writing, in the predominant
language of the workforce, of employee
whistleblower rights and protections under
41 U.S.C. 4712, as described in section 3.908
of the Federal Acquisition Regulation.
(c) The Contractor shall insert the
substance of this clause, including this
paragraph (c), in all subcontracts over the
simplified acquisition threshold.
(End of clause)
6. Amend section 52.212–4 by
revising the date of the clause; and
removing from paragraph (r) ‘‘41 U.S.C.
■
E:\FR\FM\30SER4.SGM
30SER4
Federal Register / Vol. 78, No. 189 / Monday, September 30, 2013 / Rules and Regulations
[FAC 2005–70; FAR Case 2013–017; Item
II; Docket 2013–0017, Sequence 1]
name (if any), and ‘‘FAR Case 2013–
017’’ on your attached document.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Ms. Flowers, 1800 F
Street NW., 2nd Floor, Washington, DC
20405.
Instructions: Please submit comments
only and cite FAC 2005–70, FAR Case
2013–017, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: 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 2005–70, FAR Case 2013–017.
SUPPLEMENTARY INFORMATION:
RIN 9000–AM64
I. Background
Federal Acquisition Regulation;
Allowability of Legal Costs for
Whistleblower Proceedings
This interim rule revises the cost
principle at FAR 31.205–47 to
implement sections 827 paragraph (g)
and 828 paragraph (d) of the NDAA for
FY 2013 (Pub. L. 112–239). Section 827
paragraph (g) amends 10 U.S.C. 2324(k),
Allowable costs under defense
contracts, and section 828 paragraph (d)
similarly amends 41 U.S.C. 4310,
Proceeding costs not allowable, to
address the allowability of legal costs
incurred by a contractor or
subcontractor in connection with a
whistleblower proceeding commenced
by a contractor or subcontractor
employee submitting a complaint of
reprisal under the applicable
whistleblower statute (10 U.S.C. 2409,
Contractor employees: protection from
reprisal for disclosure of certain
information, or 41 U.S.C. 4712, Pilot
program for enhancement of contractor
[employee] protection from reprisal for
disclosure of certain information,
respectively).
The NDAA for FY 2013 (Pub. L. 112–
239, enacted January 2, 2013) enacted
enhanced whistleblower protections for
contractor and subcontractor employees
in separate, but parallel, sections of the
NDAA for titles 10 and 41 agencies,
respectively. Title 10 agencies are
required by the terms of section 827
paragraph (i)(2) to revise their respective
FAR supplements. These enhanced
whistleblower protections and the
associated cost principle changes are
being implemented by two Defense
Federal Acquisition Regulation
Supplement (DFARS) cases (for DoD
only) and two FAR cases (for title 41
265’’ and adding ‘‘41 U.S.C. 4712’’ in its
place.
The revised text reads as follows:
52.212–4 Contract Terms and
Conditions—Commercial Items.
*
*
*
*
*
Contract Terms and Conditions—
Commercial Items (Sep 2013)
*
*
*
*
*
[FR Doc. 2013–23703 Filed 9–27–13; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 31
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
implement a section of the National
Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2013 that addresses the
allowability of legal costs incurred by a
contractor or subcontractor related to a
whistleblower proceeding commenced
by the submission of a complaint of
reprisal by the contractor or
subcontractor employee.
DATES: Effective: September 30, 2013.
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before
November 29, 2013 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments
identified by FAC 2005–70, FAR Case
2013–017, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching for ‘‘FAR Case 2013–017’’
Select the link ‘‘Submit a Comment’’
that corresponds with ‘‘FAR Case 2013–
017.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
tkelley on DSK3SPTVN1PROD with RULES4
SUMMARY:
VerDate Mar<15>2010
19:34 Sep 27, 2013
Jkt 229001
PO 00000
Frm 00007
Fmt 4701
Sfmt 4700
60173
agencies), which are independent, but
parallel, rulemakings because of some
minor differences in the operations of
the underlying statutes and because the
title 41 statute is only a four-year pilot
program.
Sections 827 and 828, in addition to
the paragraphs relating to the
allowability of the legal costs for
whistleblower proceedings, also
enhance the whistleblower protections
for contractor and subcontractor
employees at 10 U.S.C. 2409 (applicable
to DoD, NASA, and the Coast Guard)
and create a new pilot program for
enhancement of contractor and
subcontractor employee whistleblower
protections at 41 U.S.C. 4712, applicable
to all other civilian agencies (see FAR
case 2013–015).
The NDAA for FY 2013 was enacted
on January 2, 2013. Section 827
(amending 10 U.S.C. 2409 and 10 U.S.C.
2324) takes effect 180 days after
enactment (July 1, 2013) and requires
implementation in the DFARS no later
than that date. Section 828 paragraph
(a), which established 41 U.S.C. 4712,
took effect 180 days after enactment.
The pilot program is effective through
January 1, 2017. During the time period
that 41 U.S.C. 4712 (the pilot program)
is in effect, the effectiveness of the prior
statute that covered whistleblower
protections under 41 U.S.C. 4705 is
suspended.
The changes to 41 U.S.C. 4310
(required by section 828 paragraph (d))
were effective upon enactment and
specifically referenced 41 U.S.C. 4712,
with no specified applicability to
contracts, orders, or contract
modifications. Although the change to
the text of 41 U.S.C. 4310 is permanent,
the change only covers actions under 41
U.S.C. 4712, which expires January 1,
2017. Therefore, the new portion of the
statute addressing proceeding costs that
references 41 U.S.C. 4712, unless the
pilot program is extended, will cease to
be effective after January 1, 2017.
II. 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:\FR\FM\30SER4.SGM
30SER4
Agencies
[Federal Register Volume 78, Number 189 (Monday, September 30, 2013)]
[Rules and Regulations]
[Pages 60169-60173]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23703]
[[Page 60169]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 3 and 52
[FAC 2005-70; FAR Case 2013-015; Item I; Docket 2013-0015, Sequence 1]
RIN 9000-AM56
Federal Acquisition Regulation; Pilot Program for Enhancement of
Contractor Employee Whistleblower Protections
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to implement a statutory pilot
program enhancing whistleblower protections for contractor employees.
DATES: Effective: September 30, 2013.
Applicability: In accordance with FAR 1.108(d)(3), contracting
officers are encouraged to include the changes in these rules in major
modifications to contracts and orders awarded prior to the effective
date of this interim rule.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before November 29, 2013 to be
considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-70, FAR Case 2013-
015, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching ``FAR Case
2013-015'' Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2013-015''. Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2013-015'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor,
Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-70, FAR
Case 2013-015, in all correspondence related to this case. All comments
received will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: Ms. Patricia Corrigan, Procurement
Analyst, at 202-208-1963, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-70, FAR Case 2013-
015.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are issuing an interim rule amending the Federal
Acquisition Regulation (FAR) to implement a four-year pilot program to
enhance the existing whistleblower protections for contractor employees
at FAR subpart 3.9. The pilot program is mandated by section 828,
entitled ``Pilot Program for Enhancement of Contractor Employee
Whistleblower Protections,'' of the National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2013 (Pub. L. 112-239, enacted January 2,
2013).
Paragraph (a) of section 828 adds to title 41 a new section 4712
that contains the elements of the pilot program, which took effect by
operation of law on July 1, 2013, and is effective through January 1,
2017. Paragraph (c) of section 828 suspends the pre-existing
whistleblower protections in 41 U.S.C. 4705 ``(w)hile section 4712 of
this title is in effect . . .'' (i.e., from July 1, 2013, through
January 1, 2017). Accordingly, this interim rule creates a new FAR
section 3.908 to implement section 4712. The rule leaves intact FAR
sections 3.901 through 3.906, which implement the pre-existing
whistleblower protections in 41 U.S.C. 4705, but suspends their
applicability during the period when the pilot is in effect. Absent
Congressional action, these authorities will automatically be
reinstated when the pilot authority sunsets.
The interim rule also clarifies that the pilot authority applies to
title 41 agencies and is inapplicable to DoD, NASA, and the Coast
Guard. The latter three agencies are covered by 10 U.S.C. 2409, which
was amended by section 827 of the NDAA to impose permanent requirements
very similar to the temporary requirements of the pilot program
established in title 41.
Section 4712 and its implementing regulations (1) protect
contractor or subcontractor employees against reprisal for activities
protected by FAR 3.908-3(a) and (2) do not change any right or remedy
otherwise available to the employee.
FAR 3.907, which addresses whistleblower protections under the
American Recovery and Reinvestment Act of 2009, is unaffected by this
rule.
II. Discussion and Analysis
FAR section 3.908, entitled ``Pilot program for enhancement of
contractor employee whistleblower protections,'' is a self-contained
complete implementation of the pilot program requirements in section
828 of the NDAA for FY 2013. FAR 3.908-1 spells out exemptions from the
pilot for DoD, NASA, and the Coast Guard, as well as elements of the
intelligence community in accordance with the requirements in 41 U.S.C.
4712(f)(1) and (2). FAR 3.908-2 includes the definitions of ``abuse of
authority'' and ``Inspector General'' from paragraph (g) of 41 U.S.C.
4712, as added by section 828.
The specific prohibited actions that constitute reprisal and the
entities to whom disclosing information constitutes whistleblowing as
defined in 41 U.S.C. 4712 are similar to, but not exactly the same as,
the current FAR contractor whistleblower coverage. These are addressed
in the policy subsection, FAR 3.908-3. This subsection also clarifies
what constitutes disclosure as that term is used in the law and the FAR
coverage.
FAR subsections 3.908-4 and -5 include procedures for filing
complaints and procedures for the Inspector General to investigate
complaints. This coverage reflects paragraph (b) of 41 U.S.C. 4712.
The interim rule addresses remedies at FAR 3.908-6. The source
material for this subsection is paragraphs (c)(1) through (3), and
(c)(7) of 41 U.S.C. 4712. The law puts the remedies in the hands of the
head of the agency and provides time lines for action. Under the law,
the agency head may decide that the report of the Inspector General
does not provide sufficient basis to conclude that the contractor
employee has been subjected to reprisal. If, however, sufficient basis
does exist, then the agency head must either issue an order denying
relief or order the contractor to take one or more of the following
actions:
(1) Take affirmative action to abate the reprisal.
(2) Reinstate the complainant-employee to the position that the
person held before the reprisal, together with compensatory damages
(including back pay), employment benefits, and other terms and
conditions of employment that would apply to the person in that
position if the reprisal had not been taken.
[[Page 60170]]
(3) Pay the complainant-employee an amount equal to the aggregate
amount of all costs and expenses (including attorneys' fees and expert
witnesses' fees) that were reasonably incurred for, or in connection
with, bringing the complaint regarding the reprisal. The law also
provides that complainants, after they are deemed to have exhausted all
administrative remedies, may bring an action at law or equity against
the contractor.
Paragraphs (c)(4) and (c)(5) of 41 U.S.C. 4712 address procedures
for enforcement of the orders issued by the head of the agency. These
paragraphs are implemented at FAR 3.908-7, and they require the agency
head to file an action for enforcement in the U.S. district court if a
person fails to comply with an order issued under section (c)(1) of 41
U.S.C. 4712, describe the types of relief that the court may grant, and
allow the whistleblower complainant-employee to join in the action or
separately file an action for enforcement. Further, the law enables
persons adversely affected by an order issued by the agency head to
request review in the U.S. Court of Appeals for a circuit in which the
reprisal is alleged in the order to have occurred. There is a 60-day
time limit for such filing from the date that the agency head issued
the order.
Paragraph (h) of section 4712 provides that nothing in the new law
may be construed to provide any rights to disclose classified
information not otherwise provided by law. This important caveat has
been included at subsection 3.908-8 of the FAR.
A new contract clause is provided for the pilot program, in
accordance with paragraph (d) of section 4712. The clause informs
offerors that employees working on any Government contract are subject
to the whistleblower rights and remedies of the pilot program and
requires the contractor (and its subcontractors) to inform their
employees in writing of employee whistleblower rights and protections
under 41 U.S.C. 4712 in the predominant native language of the
workforce.
The interim rule applies the pilot to purchases of commercial items
and commercially available off-the-shelf (COTS) items. This
implementation is consistent with the implementation of the
whistleblower protections in 41 U.S.C. 4705.
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
DoD, GSA, and NASA do not expect this rule to 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.
However, an Initial Regulatory Flexibility Analysis (IRFA) has been
performed and is summarized as follows:
This interim rule was initiated to amend the FAR to implement a
four-year pilot program to enhance the existing whistleblower
protections for contractor employees at FAR subpart 3.9. The pilot
program is mandated by section 828, entitled ``Pilot Program for
Enhancement of Contractor Employee Whistleblower Protections,'' of
the National Defense Authorization Act (NDAA) for Fiscal Year (FY)
2013 (Pub. L. 112-239, enacted January 2, 2013). The law establishes
a pilot program for the period ending on January 1, 2017. Based on a
reading of 41 U.S.C. 3101(c) and sections 827 and 828 of the NDAA
for FY 2013, the pilot program will apply to all Federal agencies
except DoD, NASA, and the Coast Guard. Except for contracts funded
under the American Recovery and Reinvestment Act of 2009 (see
3.907), the current protections for contractor whistleblowers are
established in law at 41 U.S.C. 4705; paragraph (c) of section 828
suspends 41 U.S.C. 4705 ``(w)hile section 4712 of this title is in
effect . . .'' Paragraph (a) of section 828 adds the new section
4712 to title 41 that contains the elements of the pilot program and
is effective until January 1, 2017.
With the exception of DoD, NASA, and the Coast Guard, as well as
any element of the intelligence community, as defined in section
3(4) of the National Security Act of 1947 (50 U.S.C. 401(a)(4)), the
pilot program applies to the employees of Government contractors and
their subcontractors. DoD, GSA, and NASA do not expect the pilot
program, which applies to the majority of entities doing business
with the Government regardless of business size, to have a
significant economic impact specific to small entities. The
following information is provided as a means of estimating the
overall numbers of entities to which the rule will apply. Based on
Federal Procurement Data System reporting data, in Fiscal Year 2012,
a Government-wide total of 273,970 new awards that exceeded the
simplified acquisition threshold were made to small businesses and
other than small businesses by agencies other than DoD, NASA, and
the Coast Guard. Of that total, 95,436 new award actions were made
to small business entities. The remaining 178,534 award actions were
made to other than small businesses.
A new contract clause is provided for the pilot program, in
accordance with paragraph (d) of section 4712. The clause informs
offerors that employees working on any contract awarded are subject
to the whistleblower rights and remedies of the pilot program and
requires the contractor (and its subcontractors), regardless of
business size, to inform their employees in writing of employee
whistleblower rights and protections under 41 U.S.C. 4712.
There is no requirement for small entities to submit any
information under this clause. The rule does not duplicate, overlap,
or conflict with any other Federal rules.
There are no practical alternatives that will accomplish the
objectives of the interim rule.
The Regulatory Secretariat has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small Business Administration. A copy
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA
and NASA invite comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this rule
in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAC 2005-70, FAR Case
2013-015) in correspondence.
V. Paperwork Reduction Act
The interim 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).
VI. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule, without prior opportunity for public comment. This action
is necessary for the following reasons:
First, by operation of law, the new statute for the pilot program
became effective on July 1, 2013, i.e., Congress included language in
section 828(b)
[[Page 60171]]
specifically addressing the effective date of 41 U.S.C. 4712. The
statute for the pilot program imposes new responsibilities on agencies,
and creates certain new rights for contractor and subcontractor
employees. Specifically, as of July 1, 2013:
There are changes and additions in the list of entities to
whom a whistleblower disclosure makes the whistleblower employee
eligible for additional protections against reprisal;
Agency heads have expanded responsibilities to take
specific actions with regard to a finding by the Inspector General of
the executive agency involved of reprisal against a contractor
whistleblower;
The law requires that the written notice to employees of
their whistleblower rights must be provided in the ``predominant native
language of the workforce;'' and
Contractors must flow down to their subcontractors the
requirement to provide written notice to their employees.
In addition, there is a new exemption for elements of the
intelligence community that was not available under previous laws.
The most effective and efficient way to ensure awareness and
compliance by agencies and their contractors with all of these
requirements is through immediate regulatory change. Delaying
promulgation may delay the effective date of regulations but will not
postpone when the law becomes applicable to contractors (and
subcontractors). Thus, ordinary notice and comment procedures would
unnecessarily increase the risk of confusion and noncompliance,
defeating the regulatory objective.
Moreover, there is little likelihood that the publication of this
rule without prior comment will increase burden on contractors. This
interim regulation provides basic guidance that agencies and
contractors need to comply with the statute. Indeed, this regulation
prescribes little beyond that which is set forth clearly in the
statute. However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD,
GSA, and NASA will consider public comments received in response to
this interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 3 and 52
Government procurement.
Dated: September 24, 2013.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office
of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 3 and 52 as set
forth below:
PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
0
1. The authority citation for 48 CFR part 3 is revised to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
0
2. Revise section 3.900 to read as follows:
3.900 Scope of subpart.
This subpart implements three different statutory whistleblower
programs. This subpart does not implement 10 U.S.C. 2409, which is
applicable only to DoD, NASA, and the Coast Guard.
(a) 41 U.S.C. 4705 (in effect before July 1, 2013 and on or after
January 2, 2017). Sections 3.901 through 3.906 of this subpart
implement 41 U.S.C. 4705, applicable to civilian agencies other than
NASA and the Coast Guard, except as provided in paragraph (c) of this
section. These sections are not in effect for the duration of the pilot
program described in paragraph (b) of this section.
(b) 41 U.S.C. 4712 (in effect on July 1, 2013 through January 1,
2017). Section 3.908 of this subpart implements the pilot program,
applicable to civilian agencies other than NASA and the Coast Guard,
except as provided in paragraph (c) of this section.
(c) Contracts funded by the American Recovery and Reinvestment Act.
Section 3.907 of this subpart implements section 1553 of the American
Recovery and Reinvestment Act of 2009 (Pub. L. 111-5), and applies to
all contracts funded in whole or in part by that Act.
0
3. Add sections 3.908 through 3.908-9 to subpart 3.9 to read as
follows:
3.908 Pilot program for enhancement of contractor employee
whistleblower protections
3.908-1 Scope of section.
(a) This section implements 41 U.S.C. 4712.
(b) This section does not apply to--
(1) DoD, NASA, and the Coast Guard; or
(2) Any element of the intelligence community, as defined in
section 3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4)).
This section does not apply to any disclosure made by an employee of a
contractor or subcontractor of an element of the intelligence community
if such disclosure--
(i) Relates to an activity of an element of the intelligence
community; or
(ii) Was discovered during contract or subcontract services
provided to an element of the intelligence community.
3.908-2 Definitions.
As used in this section--
Abuse of authority means an arbitrary and capricious exercise of
authority that is inconsistent with the mission of the executive agency
concerned or the successful performance of a contract of such agency.
Inspector General means an Inspector General appointed under the
Inspector General Act of 1978 and any Inspector General that receives
funding from, or has oversight over contracts awarded for, or on behalf
of, the executive agency concerned.
3.908-3 Policy.
(a) Contractors and subcontractors are prohibited from discharging,
demoting, or otherwise discriminating against an employee as a reprisal
for disclosing, to any of the entities listed at paragraph (b) of this
subsection, information that the employee reasonably believes is
evidence of gross mismanagement of a Federal contract, a gross waste of
Federal funds, an abuse of authority relating to a Federal contract, a
substantial and specific danger to public health or safety, or a
violation of law, rule, or regulation related to a Federal contract
(including the competition for or negotiation of a contract). A
reprisal is prohibited even if it is undertaken at the request of an
executive branch official, unless the request takes the form of a non-
discretionary directive and is within the authority of the executive
branch official making the request.
(b) Entities to whom disclosure may be made.
(1) A Member of Congress or a representative of a committee of
Congress.
(2) An Inspector General.
(3) The Government Accountability Office.
(4) A Federal employee responsible for contract oversight or
management at the relevant agency.
(5) An authorized official of the Department of Justice or other
law enforcement agency.
(6) A court or grand jury.
(7) A management official or other employee of the contractor or
subcontractor who has the
[[Page 60172]]
responsibility to investigate, discover, or address misconduct.
(c) An employee who initiates or provides evidence of contractor or
subcontractor misconduct in any judicial or administrative proceeding
relating to waste, fraud, or abuse on a Federal contract shall be
deemed to have made a disclosure.
3.908-4 Filing complaints.
A contractor or subcontractor employee who believes that he or she
has been discharged, demoted, or otherwise discriminated against
contrary to the policy in 3.908-3 of this section may submit a
complaint with the Inspector General of the agency concerned.
Procedures for submitting fraud, waste, abuse, and whistleblower
complaints are generally accessible on agency Office of Inspector
General Hotline or Whistleblower Internet sites. A complaint by the
employee may not be brought under 41 U.S.C. 4712 more than three years
after the date on which the alleged reprisal took place.
3.908-5 Procedures for investigating complaints.
Investigation of complaints by the Inspector General will be in
accordance with 41 U.S.C. 4712(b).
3.908-6 Statutory remedies.
(a) Agency response to Inspector General report. Not later than 30
days after receiving an Inspector General report in accordance with 41
U.S.C. 4712, the head of the agency shall--
(1) Determine whether sufficient basis exists to conclude that the
contractor or subcontractor has subjected the employee who submitted
the complaint to a reprisal as prohibited by 3.908-3; and
(2) Issue an order denying relief or take one or more of the
following actions:
(i) Order the contractor to take affirmative action to abate the
reprisal.
(ii) Order the contractor or subcontractor to reinstate the
complainant-employee to the position that the person held before the
reprisal, together with compensatory damages (including back pay),
employment benefits, and other terms and conditions of employment that
would apply to the person in that position if the reprisal had not been
taken.
(iii) Order the contractor or subcontractor to pay the complainant-
employee an amount equal to the aggregate amount of all costs and
expenses (including attorneys' fees and expert witnesses' fees) that
were reasonably incurred by the complainant for, or in connection with,
bringing the complaint regarding the reprisal, as determined by the
head of the agency.
(b) Complainant's right to go to court. If the head of the agency
issues an order denying relief or has not issued an order within 210
days after the submission of the complaint or within 30 days after the
expiration of an extension of time granted in accordance with 41 U.S.C.
4712(b)(2)(B) for the submission of the Inspector General's report on
the investigative findings of the complaint to the head of the agency,
the contractor or subcontractor, and the complainant, and there is no
showing that such delay is due to the bad faith of the complainant--
(1) The complainant shall be deemed to have exhausted all
administrative remedies with respect to the complaint; and
(2) The complainant may bring a de novo action at law or equity
against the contractor or subcontractor to seek compensatory damages
and other relief available under 41 U.S.C. 4712 in the appropriate
district court of the United States, which shall have jurisdiction over
such an action without regard to the amount in controversy. Such an
action shall, at the request of either party to the action, be tried by
the court with a jury. An action under this authority may not be
brought more than two years after the date on which remedies are deemed
to have been exhausted.
(c) Admissibility in evidence. An Inspector General determination
and an agency head order denying relief under this section shall be
admissible in evidence in any de novo action at law or equity brought
pursuant to 41 U.S.C. 4712.
(d) No waiver. The rights and remedies provided for in 41 U.S.C.
4712 may not be waived by any agreement, policy, form, or condition of
employment.
3.908-7 Enforcement of orders.
(a) Whenever a contractor or subcontractor fails to comply with an
order issued under 3.908-6(a)(2) of this section, the head of the
agency concerned shall file an action for enforcement of the order in
the U.S. district court for a district in which the reprisal was found
to have occurred. In any action brought pursuant to this authority, the
court may grant appropriate relief, including injunctive relief,
compensatory and exemplary damages, and attorney fees and costs. The
complainant-employee upon whose behalf an order was issued may also
file such an action or join in an action filed by the head of the
agency.
(b) Any person adversely affected or aggrieved by an order issued
under 3.908-6(a)(2) may obtain review of the order's conformance with
41 U.S.C. 4712 and its implementing regulations, in the U.S. court of
appeals for a circuit in which the reprisal is alleged in the order to
have occurred. No petition seeking such review may be filed more than
60 days after issuance of the order by the head of the agency. Filing
such an appeal shall not act to stay the enforcement of the order of
the head of an agency, unless a stay is specifically entered by the
court.
3.908-8 Classified information.
41 U.S.C. 4712 does not provide any right to disclose classified
information not otherwise provided by law.
3.908-9 Contract clause.
The contracting officer shall insert the clause at 52.203-17,
Contractor Employee Whistleblower Rights and Requirement to Inform
Employees of Whistleblower Rights, in all solicitations and contracts
that exceed the simplified acquisition threshold.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. The authority citation for 48 CFR part 52 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
0
5. Add section 52.203-17 to read as follows:
52.203-17 Contractor Employee Whistleblower Rights and Requirement To
Inform Employees of Whistleblower Rights.
As prescribed in 3.908-9, insert the following clause:
Contractor Employee Whistleblower Rights and Requirement To Inform
Employees of Whistlerblower Rights (Sep 2013)
(a) This contract and employees working on this contract will be
subject to the whistleblower rights and remedies in the pilot
program on Contractor employee whistleblower protections established
at 41 U.S.C. 4712 by section 828 of the National Defense
Authorization Act for Fiscal Year 2013 (Pub. L. 112-239) and FAR
3.908.
(b) The Contractor shall inform its employees in writing, in the
predominant language of the workforce, of employee whistleblower
rights and protections under 41 U.S.C. 4712, as described in section
3.908 of the Federal Acquisition Regulation.
(c) The Contractor shall insert the substance of this clause,
including this paragraph (c), in all subcontracts over the
simplified acquisition threshold.
(End of clause)
0
6. Amend section 52.212-4 by revising the date of the clause; and
removing from paragraph (r) ``41 U.S.C.
[[Page 60173]]
265'' and adding ``41 U.S.C. 4712'' in its place.
The revised text reads as follows:
52.212-4 Contract Terms and Conditions--Commercial Items.
* * * * *
Contract Terms and Conditions--Commercial Items (Sep 2013)
* * * * *
[FR Doc. 2013-23703 Filed 9-27-13; 8:45 am]
BILLING CODE 6820-EP-P