Federal Acquisition Regulation: Prohibition on Contracting With Corporations With Delinquent Taxes or a Felony Conviction, 75903-75907 [2015-30456]
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Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations
Item V—Retention Periods (FAR Case
2015–009)
This final rule amends the FAR by
updating the Government file retention
periods to conform with the retention
periods in the National Archives and
Records Administration (NARA)
General Records Schedule (GRS).
Language is also added to instruct
agencies that require a shorter retention
period for certain records to request
approval from NARA through the
agency’s record officer. This rule change
does not place any new requirements on
small entities; the only change is the
timeframe for retention by the
Government of Government records.
Item VI—Establishing a Minimum
Wage for Contractors (FAR Case 2015–
003)
DoD, GSA, and NASA are issuing a
final rule adopting the interim rule
published December 15, 2014, with
change. The interim rule amended the
FAR to implement Executive Order
13658 and a Department of Labor final
rule issued on October 7, 2014, both
entitled ‘‘Establishing a Minimum Wage
for Contractors,’’ which established a
new minimum wage for covered service
and construction contracts of $10.10 per
hour, as of January 1, 2015. The
Executive Order minimum wage will be
adjusted annually, by the Department of
Labor. Contracting officers will include
a clause in covered contracts and will
adjust contract prices for the annual
adjustments in the Executive Order
minimum wage. Contractors shall
consider any subcontractor request,
including requests by small businesses
subcontractors, for a subcontract price
adjustment due to the annual
adjustment in the Executive Order
minimum wage.
There is no significant impact on
small entities imposed by the FAR rule.
Item VII—Technical Amendment
Editorial change is made at FAR
1.106.
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Dated: November 20, 2015.
William Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC)
2005–85 is issued under the authority of
the Secretary of Defense, the
Administrator of General Services, and
the Administrator for the National
Aeronautics and Space Administration.
Unless otherwise specified, all
Federal Acquisition Regulation (FAR)
and other directive material contained
in FAC 2005–85 is effective December 4,
2015 except for item I and III which are
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effective February 26, 2016, and item V
which is effective January 4, 2016.
Dated: November 23, 2015.
Claire M. Grady,
Director, Defense Procurement and
Acquisition Policy.
Dated: November 24, 2015.
Jeffrey A. Koses,
Senior Procurement Executive/Deputy CAO,
Office of Acquisition Policy, U.S. General
Services Administration.
Dated: November 20, 2015.
William P. McNally,
Assistant Administrator, Office of
Procurement, National Aeronautics and
Space Administration.
[FR Doc. 2015–30455 Filed 12–3–15; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 4, 9, 12, and 52
[FAC 2005–85; FAR Case 2015–011; Item
No. I; Docket No. 2015–0011; Sequence No.
1]
RIN 9000–AN05
Federal Acquisition Regulation:
Prohibition on Contracting With
Corporations With Delinquent Taxes or
a Felony Conviction
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
AGENCIES:
DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
implement sections of the Consolidated
and Further Continuing Appropriations
Act, 2015, to prohibit the Federal
Government from entering into a
contract with any corporation having a
delinquent Federal tax liability or a
felony conviction under any Federal
law, unless the agency has considered
suspension or debarment of the
corporation and has made a
determination that this further action is
not necessary to protect the interests of
the Government.
DATES: Effective date: February 26, 2016.
Comment date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before
February 2, 2016 to be considered in the
formation of the final rule.
SUMMARY:
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75903
Submit comments
identified by FAC 2005–85, FAR Case
2015–011, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching for ‘‘FAR Case 2015–011’’.
Select the link ‘‘Comment Now’’ that
corresponds with ‘‘FAR Case 2015–
011’’. Follow the instructions provided
on the screen. Please include your
name, company name (if any), and
‘‘FAR Case 2015–011’’ on your attached
document.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Ms. Flowers, 1800 F
Street NW., 2nd Floor, Washington, DC
20405–0001.
Instructions: Please submit comments
only and cite FAC 2005–85, FAR Case
2015–011, Prohibition on Contracting
with Corporation with Delinquent Taxes
or a Felony Conviction, in all
correspondence related to this case.
Comments received generally will be
posted without change to https://
regulations.gov, including any personal
and/or business confidential
information provided. To confirm
receipt of your comment(s), please
check www.regulations.gov,
approximately two to three Days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Cecelia L. Davis, Procurement Analyst,
at 202–219–0202 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat Division at
202–501–4755. Please cite FAC 2005–
85, FAR Case 2015–011.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. Background
This interim rule amends the FAR to
implement sections 744 and 745 of
Division E of the Consolidated and
Further Continuing Appropriations Act,
2015 (Pub. L. 113–235) and section 523
of Division B of the same act.
A. Representation
This rule requires that all offerors
responding to Federal solicitations make
a representation regarding whether the
offeror is a corporation with a
delinquent tax liability or a felony
conviction under Federal law, as
required by sections 744 and 745 of
Division E of the Consolidated and
Further Continuing Appropriations Act,
2015 (Pub. L. 113–235) (and similar
provisions in subsequent appropriations
acts).
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When an offeror provides an
affirmative response in paragraph (b)(1)
or (2) to the representation, the
contracting officer is required to request
additional information from the offeror
and notify the agency official
responsible for initiating debarment or
suspension action. The contracting
officer shall not make an award to the
corporation unless an agency
suspending or debarring official has
considered suspension or debarment of
the corporation and determined that this
further action is not necessary to protect
the interests of the Government.
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B. Certification
This rule also adds a certification
requirement regarding tax matters, in
solicitations for which the resultant
contract (including options) may have a
value greater than $5,000,000, and that
will use funds made available by
Division B of the Consolidated and
Further Continuing Appropriations Act,
2015 (Pub. L. 113–235) (and similar
provisions in subsequent appropriations
acts).
Agencies funded by these acts include
the Department of Commerce, the
Department of Justice, NASA, as well as
some smaller agencies.
If the certification regarding tax
matters is applicable, then the
contracting officer shall not award any
contract in an amount greater than
$5,000,000, unless the offeror
affirmatively certified in its offer to all
the required certifications regarding tax
matters in FAR Clause 52.209–12(b).
This certification will not be included
in the annual representations and
certifications, because it has very
limited application. In accordance with
41 U.S.C. 1304, the certification
included in this regulation is
specifically required by statute, and
therefore its inclusion in the FAR does
not require the written approval of the
Administrator for Federal Procurement
Policy.
C. Applicability to Commercial Items
(Including Commercially Available Offthe-Shelf (COTS) Items) and
Acquisitions Not Greater Than the
Simplified Acquisition Threshold
This interim rule implements sections
744 and 745 of Division E, Title VII, and
section 523 of Division B, Title V, of the
Consolidated and Further Continuing
Appropriations Act, 2015. Sections 744
and 745 of Division E prohibit any
Federal agency from using funds
appropriated or otherwise made
available by the Act or any other act to
enter into a contract with a corporation
that has delinquent unpaid taxes or has
been convicted of a felony criminal
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violation under any Federal law within
the past 24 months, unless the Federal
agency has considered suspension or
debarment of the corporation and has
made a determination that this further
action is not necessary to protect the
interests of the government. Section 523
of Division B, which affects Commerce,
Justice, NASA, and some smaller
agencies, requires certification with
regard to violations of certain tax
matters.
The FAR Council and the
Administrator for Federal Procurement
Policy have determined that it is not in
the best interest of the United States to
exempt contracts for the acquisition of
commercial items (including
commercially available off-the-shelf
items) or acquisitions in amounts not
greater than the simplified acquisition
threshold (other than the certification
requirement), because it imposes a
minimal burden (just a representation
or, in limited instances, a certification),
in contrast to the benefit of avoiding
awarding contracts to corporations that
have delinquent unpaid taxes, or felony
convictions for violations of Federal
Law, or to prospective contractors with
other violations relating to Federal tax
matters. Tax liability is a serious matter
and Congressional hearings (e.g., the
Permanent Subcommittee on
Investigations, Committee on Homeland
Security and Governmental Affairs, U.S.
Senate, held a hearing on May 24, 2011,
entitled, ‘‘Stimulus Contractors Who
Cheat On Their Taxes: What
Happened?,’’ and the Subcommittee on
Government Management, Organization,
and Procurement, Committee on
Oversight and Government Reform,
House of Representatives held a hearing
on April 19, 2007, also concerning
Federal contractors who abuse the
Federal tax system) have been held to
identify ways to ensure that funds are
not spent with contractors with tax
delinquencies. It is in the interest of the
United States to only award contracts to
entities that are responsible and lawabiding.
This determination is consistent with
the current coverage in paragraph (h)(4)
of the FAR clause at 52.212–3, Offeror
Representations and Certifications—
Commercial Items, which requires
offerors to represent whether they have,
within a three-year period preceding
their offer, been notified of any
delinquent Federal taxes in an amount
that exceeds $3,500 for which the
liability remains unsatisfied.
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
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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.
III. Regulatory Flexibility Act
Although DoD, GSA, and NASA do
not expect that this change will 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., an
Initial Regulatory Flexibility Analysis
(IRFA) has been prepared and is
summarized as follows:
This action is necessary to implement
sections 744 and 745 of Division E of the
Consolidated and Continuing Further
Appropriations Act, 2015 (Pub. L. 113–235)
(and similar provisions in subsequent
appropriations acts), to prohibit using any of
the funds made available under that or any
other act to enter a contract with any
corporation with any delinquent Federal tax
liability or a felony conviction, unless an
agency has considered suspension or
debarment of the corporation and has made
a determination that this further action is not
necessary to protect the interests of the
Government.
The rule also implements section 523 of
Division B of the Consolidated and Further
Continuing Appropriations Act, 2015 (Pub. L.
113–235) (and similar provisions in
subsequent appropriations acts). This section
prohibits the award of any contract in an
amount greater than $5,000,000, using funds
appropriated under Division B of the
Consolidated and Continuing Further
Appropriations Act, 2015, unless the offeror
affirmatively certifies that it has filed all
Federal tax returns required during the three
years preceding the certification; has not
been convicted of a criminal offense under
the Internal Revenue Code of 1986; and has
not, more than 90 days prior to certification,
been notified of any unpaid Federal tax
assessment for which the liability remains
unsatisfied, unless the assessment is the
subject of an installment agreement or offer
in compromise that has been approved by the
Internal Revenue Service and is not in
default, or the assessment is the subject of a
non-frivolous administrative or judicial
proceeding.
The objective of the interim rule is to
prohibit award to entities that are delinquent
in the payment of Federal taxes or have been
convicted of a felony under Federal law. The
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legal basis for the rule is the above cited
statutes.
Based on current data with regard to active
registrants in the System for Award
Management (SAM), the rule will apply to
approximately 65,000 small business
concerns, which are required to complete the
annual representations and certifications at
least once per year in order to keep their
registration in SAM current.
The information collection requirement
imposed by this rule is minimal—it is a brief
representation, and in some cases also a
certification. Each representation is estimated
to require an average of six minutes to
complete.
The rule does not duplicate, overlap, or
conflict with any other Federal rules.
DoD, GSA, and NASA were unable to
identify any significant alternatives that
would reduce the impact on small businesses
and still meet the objectives of the statute.
However, other than the potential for not
receiving award if the small entity is
delinquent in payment of Federal taxes or
has been convicted of a felony, there is no
significant economic impact on small entities
because the information collection burden
imposed by the rule is minimal.
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 the rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAR Case 2015–011), in
correspondence.
IV. Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. Chapter 35) applies. The rule
contains information collection
requirements. The Office of
Management and Budget (OMB) has
cleared this information collection
requirement under OMB Control
Number 9000–0193, titled: Prohibition
on Contracting with Corporations with
Delinquent Taxes or a Felony
Conviction.
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A. Public Reporting Burden
The public reporting burden for this
collection of information is estimated to
average .1 hours per response, including
the time for reviewing instructions,
searching existing data sources,
gathering and maintaining the data
needed, and completing and reviewing
the collection of information.
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1. 52.209–11
Representation
The annual reporting burden for
52.209–11 is estimated as follows:
Respondents: 352,000.
Responses per respondent:
Approximately 1.01.
Total annual responses: 355,520.
Preparation hours per response: .1
hours.
Total response Burden Hours: 35,552.
2. 52.209–12
Certification
The annual reporting burden for
52.209–12 is estimated as follows:
Respondents: 440.
Responses per respondent: 3.
Total annual responses: 1,320.
Preparation hours per response: .1
hours.
Total response Burden Hours: 132.
3. Total
The average annual reporting burden
is estimated as follows:
Total annual responses: 356,840.
Preparation hours per response: .1
hours.
Total response Burden Hours: 35,684.
B. Request for Comments Regarding
Paperwork Burden
Submit comments, including
suggestions for reducing this burden,
not later than February 2, 2016 to: FAR
Desk Officer, OMB, Room 10102, NEOB,
Washington, DC 20503, and a copy to
the General Services Administration,
Regulatory Secretariat Division (MVCB),
ATTN: Ms. Flowers, 1800 F Street NW.,
2nd Floor, Washington, DC 20405–0001.
Public comments are particularly
invited on: Whether this collection of
information is necessary for the proper
performance of functions of the FAR,
and will have practical utility; whether
our estimate of the public burden of this
collection of information is accurate,
and based on valid assumptions and
methodology; ways to enhance the
quality, utility, and clarity of the
information to be collected; and ways in
which we can minimize the burden of
the collection of information on those
who are to respond, through the use of
appropriate technological collection
techniques or other forms of information
technology.
Requesters may obtain a copy of the
supporting statement from the General
Services Administration, Regulatory
Secretariat Divison (MVCB), ATTN: Ms.
Flowers, 1800 F Street NW., 2nd Floor,
Washington, DC 20405–0001. Please cite
OMB Control Number 9000–0193,
Prohibition on Contracting with
Corporations with Delinquent Taxes or
a Felony Conviction, in all
correspondence.
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75905
V. 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 because these
appropriations act restrictions apply to
all funds appropriated under the
respective acts, and it is important to
provide immediate direction to
contracting officers, so that they do not
inadvertently violate the conditions
placed upon the expenditure of the
funds. The effective date is set as
February 26, 2016, to allow the
Government to conform its procurement
databases. 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 1, 4, 9,
12, and 52
Government procurement.
Dated: November 20, 2015.
William F. Clark,
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 1, 4, 9, 12, and 52
as set forth below:
■ 1. The authority citation for 48 CFR
parts 1, 4, 9, 12, and 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.
PART 1—FEDERAL ACQUISITION
REGULATIONS SYSTEM
1.106
[Amended]
2. Amend section 1.106 in the table
following the introductory text by
adding, in sequence, FAR segments
‘‘52.209–11’’ and ‘‘52.209–12’’ and their
corresponding OMB Control number
‘‘9000–0193’’.
■
PART 4—ADMINISTRATIVE MATTERS
3. Amend section 4.1202 by
redesignating paragraphs (a)(8) through
(29) as paragraphs (a)(9) through (30),
respectively; and adding a new
paragraph (a)(8) to read as follows:
■
4.1202 Solicitation provision and contract
clause.
(a) * * *
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(8) 52.209–11, Representation by
Corporations Regarding Delinquent Tax
Liability or a Felony Conviction under
any Federal Law.
*
*
*
*
*
PART 9—CONTRACTOR
QUALIFICATIONS
4. Amend section 9.104–5 by revising
the section heading and paragraph (b)
and adding paragraphs (c) and (d) to
read as follows:
■
9.104–5 Representation and certifications
regarding responsibility matters.
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*
*
*
*
*
(b) The provision at 52.209–11,
Representation by Corporations
Regarding Delinquent Tax Liability or a
Felony Conviction under any Federal
Law, implements sections 744 and 745
of Division E of the Consolidated and
Further Continuing Appropriations Act,
2015 (Pub. L. 113–235) (and similar
provisions in subsequent appropriations
acts). When an offeror provides an
affirmative response in paragraph (b)(1)
or (2) of the provision at 52.209–11 or
paragraph (q)(2)(i) or (ii) of provision
52.212–3, the contracting officer shall—
(1) Promptly, upon receipt of offers,
request such additional information
from the offeror as the offeror deems
necessary in order to demonstrate the
offeror’s responsibility to the
contracting officer (but see 9.405);
(2) Notify, in accordance with agency
procedures (see 9.406–3(a) and 9.407–
3(a)), the agency official responsible for
initiating debarment or suspension
action; and
(3) Not award to the corporation
unless an agency suspending or
debarring official has considered
suspension or debarment of the
corporation and made a determination
that suspension or debarment is not
necessary to protect the interests of the
Government.
(c) If the provision at 52.209–12,
Certification Regarding Tax Matters, is
applicable (see 9.104–7(e)), then the
contracting officer shall not award any
contract in an amount greater than
$5,000,000, unless the offeror
affirmatively certified in its offer, as
required by paragraph (b)(1), (2), and (3)
of the provision.
(d) Offerors who do not furnish the
representation or certifications or such
information as may be requested by the
contracting officer shall be given an
opportunity to remedy the deficiency.
Failure to furnish the representation or
certifications or such information may
render the offeror nonresponsible.
■ 5. Amend section 9.104–7 by adding
paragraphs (d) and (e) to read as follows:
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9.104–7 Solicitation provisions and
contract clauses.
52.204–8 Annual Representations and
Certifications.
*
*
*
*
*
*
(d) The contracting officer shall insert
the provision 52.209–11, Representation
by Corporations Regarding Delinquent
Tax Liability or a Felony Conviction
under any Federal Law, in all
solicitations.
(e) For agencies receiving funds
subject to section 523 of Division B of
the Consolidated and Further
Continuing Appropriations Act, 2015
(Pub. L. 113–235) and similar provisions
in subsequent appropriations acts, the
contracting officer shall insert the
provision 52.209–12, Certification
Regarding Tax Matters, in solicitations
for which the resultant contract
(including options) may have a value
greater than $5,000,000. Division B of
the Consolidated and Continuing
Further Appropriations Act, 2015
appropriates funds for the following
agencies: The Department of Commerce,
the Department of Justice, the National
Aeronautics and Space Administration,
the Office of Science and Technology
Policy, the National Science
Foundation, the Commission on Civil
Rights, the Equal Employment
Opportunity Commission, the U.S.
International Trade Commission, the
Legal Services Corporation, the Marine
Mammal Commission, the Office of the
United States Trade Representative, and
the State Justice Institute.
PART 12—ACQUISITION OF
COMMERCIAL ITEMS
6. Amend section 12.301 by
redesignating paragraphs (d)(4) through
(6) as paragraphs (d)(5) through (7),
respectively, and adding a new
paragraph (d)(4) to read as follows:
■
12.301 Solicitation provisions and
contract clauses for the acquisition of
commercial items.
*
*
*
*
*
(d) * * *
(4) Insert the provision at 52.209–12,
Certification Regarding Tax Matters, as
prescribed at 9.104–7(e).
*
*
*
*
*
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
7. Amend section 52.204–8 by—
a. Revising the date of the provision;
■ b. Redesignating paragraphs (c)(1)(vii)
through (xxi) as (c)(1)(viii) through
(xxii), respectively; and
■ c. Adding a new paragraph (c)(1)(vii).
The revision and addition read as
follows:
■
■
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*
*
*
*
Annual Representations and Certifications
(Feb 2016)
*
*
*
*
*
(c)(1) * * *
(vii) 52.209–11, Representation by
Corporations Regarding Delinquent Tax
Liability or a Felony Conviction under any
Federal Law. This provision applies to all
solicitations.
*
*
*
*
*
8. Add sections 52.209–11 and
52.209–12 to read as follows:
■
52.209–11 Representation by Corporations
Regarding Delinquent Tax Liability or a
Felony Conviction under any Federal Law.
As prescribed in 9.104–7(d), insert the
following provision:
Representation by Corporations Regarding
Delinquent Tax Liability or a Felony
Conviction under any Federal Law (Feb
2016)
(a) As required by sections 744 and 745 of
Division E of the Consolidated and Further
Continuing Appropriations Act, 2015 (Pub. L.
113–235), and similar provisions, if
contained in subsequent appropriations acts,
the Government will not enter into a contract
with any corporation that—
(1) Has any unpaid Federal tax liability
that has been assessed, for which all judicial
and administrative remedies have been
exhausted or have lapsed, and that is not
being paid in a timely manner pursuant to an
agreement with the authority responsible for
collecting the tax liability, where the
awarding agency is aware of the unpaid tax
liability, unless an agency has considered
suspension or debarment of the corporation
and made a determination that suspension or
debarment is not necessary to protect the
interests of the Government; or
(2) Was convicted of a felony criminal
violation under any Federal law within the
preceding 24 months, where the awarding
agency is aware of the conviction, unless an
agency has considered suspension or
debarment of the corporation and made a
determination that this action is not
necessary to protect the interests of the
Government.
(b) The Offeror represents that—
(1) It is [ ] is not [ ] a corporation that has
any unpaid Federal tax liability that has been
assessed, for which all judicial and
administrative remedies have been exhausted
or have lapsed, and that is not being paid in
a timely manner pursuant to an agreement
with the authority responsible for collecting
the tax liability; and
(2) It is [ ] is not [ ] a corporation that was
convicted of a felony criminal violation
under a Federal law within the preceding 24
months.
(End of provision)
52.209–12
Matters.
Certification Regarding Tax
As prescribed in 9.104–7(e), insert the
following provision:
E:\FR\FM\04DER2.SGM
04DER2
Federal Register / Vol. 80, No. 233 / Friday, December 4, 2015 / Rules and Regulations
Certification Regarding Tax Matters (Feb
2016)
(a) This provision implements section 523
of Division B of the Consolidated and Further
Continuing Appropriations Act, 2015 (Pub. L.
113–235), and similar provisions, if
contained in subsequent appropriations acts.
(b) If the Offeror is proposing a total
contract price that will exceed $5,000,000
(including options), the Offeror shall certify
that, to the best of its knowledge and belief,
it—
(1) Has [ ] filed all Federal tax returns
required during the three years preceding the
certification;
(2) Has not [ ] been convicted of a criminal
offense under the Internal Revenue Code of
1986; and
(3) Has not [ ], more than 90 days prior to
certification, been notified of any unpaid
Federal tax assessment for which the liability
remains unsatisfied, unless the assessment is
the subject of an installment agreement or
offer in compromise that has been approved
by the Internal Revenue Service and is not in
default, or the assessment is the subject of a
non-frivolous administrative or judicial
proceeding.
(End of provision)
■ 9. Amend section 52.212–3 by—
■ a. Revising the date of the provision;
■ b. Removing from the introductory
text and the first undesignated
paragraph in paragraph (b)(2) ‘‘through
p’’ and adding ‘‘though q’’ in their
places, respectively; and
■ c. Adding paragraph (q).
The revision and addition read as
follows:
agency has considered suspension or
debarment of the corporation and made a
determination that this action is not
necessary to protect the interests of the
Government.
(2) The Offeror represents that—
(i) It is [ ] is not [ ] a corporation that has
any unpaid Federal tax liability that has been
assessed, for which all judicial and
administrative remedies have been exhausted
or have lapsed, and that is not being paid in
a timely manner pursuant to an agreement
with the authority responsible for collecting
the tax liability; and
(ii) It is [ ] is not [ ] a corporation that was
convicted of a felony criminal violation
under a Federal law within the preceding 24
months.
(End of provision)
[FR Doc. 2015–30456 Filed 12–3–15; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 22, and 52
[FAC 2005–85; FAR Case 2015–013; Item
II; Docket No. 2015–0013, Sequence No. 1]
RIN 9000–AN01
52.212–3 Offeror Representations and
Certifications—Commercial Items.
Federal Acquisition Regulation;
Further Amendments to Equal
Employment Opportunity
*
AGENCY:
*
*
*
*
Offeror Representations and Certifications—
Commercial Items (Feb 2016)
wgreen on DSK2VPTVN1PROD with RULES2
*
*
*
*
*
(q) Representation by Corporations
Regarding Delinquent Tax Liability or a
Felony Conviction under any Federal Law. (1)
As required by sections 744 and 745 of
Division E of the Consolidated and Further
Continuing Appropriations Act, 2015 (Pub. L.
113–235), and similar provisions, if
contained in subsequent appropriations acts,
The Government will not enter into a
contract with any corporation that—
(i) Has any unpaid Federal tax liability that
has been assessed, for which all judicial and
administrative remedies have been exhausted
or have lapsed, and that is not being paid in
a timely manner pursuant to an agreement
with the authority responsible for collecting
the tax liability, where the awarding agency
is aware of the unpaid tax liability, unless an
agency has considered suspension or
debarment of the corporation and made a
determination that suspension or debarment
is not necessary to protect the interests of the
Government; or
(ii) Was convicted of a felony criminal
violation under any Federal law within the
preceding 24 months, where the awarding
agency is aware of the conviction, unless an
VerDate Sep<11>2014
15:22 Dec 03, 2015
Jkt 238001
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
DoD, GSA, and NASA have
adopted as final, without change, an
interim rule amending the Federal
Acquisition Regulation (FAR) to
implement Executive Order (E.O.)
13672, entitled, ‘‘Further Amendments
to Executive Order 11478, Equal
Employment Opportunity in the Federal
Government, and Executive Order
11246, Equal Employment
Opportunity,’’ and a final rule issued by
the Department of Labor (DOL).
DATES: Effective: December 4, 2015.
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 2005–85, FAR
Case 2015–013.
SUPPLEMENTARY INFORMATION:
SUMMARY:
PO 00000
Frm 00007
Fmt 4701
Sfmt 4700
75907
I. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
80 FR 19504 on April 10, 2015, to
implement E.O. 13672, entitled,
‘‘Further Amendments to Executive
Order 11478, Equal Employment
Opportunity in the Federal Government,
and Executive Order 11246, Equal
Employment Opportunity,’’ and a final
rule issued by the Department of Labor
at 41 CFR part 60. One public comment
was submitted on the interim rule.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the public comment in the
development of the final rule. The
respondent had pointed to an error in a
clause number in the interim rule
publication. The error in FAR 52.213–4
was corrected in a Technical
Amendment to Federal Acquisition
Circular 2005–82 published in the
Federal Register at 80 FR 26427 on May
7, 2015; therefore no further change to
the interim rule is required.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under Section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared
a Final Regulatory Flexibility Analysis
(FRFA) consistent with the Regulatory
Flexibility Act, 5 U.S.C. 604, et seq. The
FRFA is summarized as follows:
This rule is necessary to implement
Executive Order (E.O.) 13672, ‘‘Further
Amendments to Executive Order 11478,
Equal Employment Opportunity in the
Federal Government, and Executive Order
11246, Equal Employment Opportunity,’’ and
a final rule issued by the DOL at 41 CFR part
60, which published in the Federal Register
at 79 FR 72985 on December 09, 2014.
The interim rule, published on April 10,
2015, provides for a uniform policy to
E:\FR\FM\04DER2.SGM
04DER2
Agencies
[Federal Register Volume 80, Number 233 (Friday, December 4, 2015)]
[Rules and Regulations]
[Pages 75903-75907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30456]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 4, 9, 12, and 52
[FAC 2005-85; FAR Case 2015-011; Item No. I; Docket No. 2015-0011;
Sequence No. 1]
RIN 9000-AN05
Federal Acquisition Regulation: Prohibition on Contracting With
Corporations With Delinquent Taxes or a Felony Conviction
AGENCIES: 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 sections of the
Consolidated and Further Continuing Appropriations Act, 2015, to
prohibit the Federal Government from entering into a contract with any
corporation having a delinquent Federal tax liability or a felony
conviction under any Federal law, unless the agency has considered
suspension or debarment of the corporation and has made a determination
that this further action is not necessary to protect the interests of
the Government.
DATES: Effective date: February 26, 2016.
Comment date: Interested parties should submit written comments to
the Regulatory Secretariat on or before February 2, 2016 to be
considered in the formation of the final rule.
ADDRESSES: Submit comments identified by FAC 2005-85, FAR Case 2015-
011, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching for ``FAR Case
2015-011''. Select the link ``Comment Now'' that corresponds with ``FAR
Case 2015-011''. Follow the instructions provided on the screen. Please
include your name, company name (if any), and ``FAR Case 2015-011'' on
your attached document.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor,
Washington, DC 20405-0001.
Instructions: Please submit comments only and cite FAC 2005-85, FAR
Case 2015-011, Prohibition on Contracting with Corporation with
Delinquent Taxes or a Felony Conviction, in all correspondence related
to this case. Comments received generally will be posted without change
to https://regulations.gov, including any personal and/or business
confidential information provided. To confirm receipt of your
comment(s), please check www.regulations.gov, approximately two to
three Days after submission to verify posting (except allow 30 days for
posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement
Analyst, at 202-219-0202 for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat Division at 202-501-4755. Please cite FAC 2005-85, FAR Case
2015-011.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule amends the FAR to implement sections 744 and 745
of Division E of the Consolidated and Further Continuing Appropriations
Act, 2015 (Pub. L. 113-235) and section 523 of Division B of the same
act.
A. Representation
This rule requires that all offerors responding to Federal
solicitations make a representation regarding whether the offeror is a
corporation with a delinquent tax liability or a felony conviction
under Federal law, as required by sections 744 and 745 of Division E of
the Consolidated and Further Continuing Appropriations Act, 2015 (Pub.
L. 113-235) (and similar provisions in subsequent appropriations acts).
[[Page 75904]]
When an offeror provides an affirmative response in paragraph
(b)(1) or (2) to the representation, the contracting officer is
required to request additional information from the offeror and notify
the agency official responsible for initiating debarment or suspension
action. The contracting officer shall not make an award to the
corporation unless an agency suspending or debarring official has
considered suspension or debarment of the corporation and determined
that this further action is not necessary to protect the interests of
the Government.
B. Certification
This rule also adds a certification requirement regarding tax
matters, in solicitations for which the resultant contract (including
options) may have a value greater than $5,000,000, and that will use
funds made available by Division B of the Consolidated and Further
Continuing Appropriations Act, 2015 (Pub. L. 113-235) (and similar
provisions in subsequent appropriations acts).
Agencies funded by these acts include the Department of Commerce,
the Department of Justice, NASA, as well as some smaller agencies.
If the certification regarding tax matters is applicable, then the
contracting officer shall not award any contract in an amount greater
than $5,000,000, unless the offeror affirmatively certified in its
offer to all the required certifications regarding tax matters in FAR
Clause 52.209-12(b).
This certification will not be included in the annual
representations and certifications, because it has very limited
application. In accordance with 41 U.S.C. 1304, the certification
included in this regulation is specifically required by statute, and
therefore its inclusion in the FAR does not require the written
approval of the Administrator for Federal Procurement Policy.
C. Applicability to Commercial Items (Including Commercially Available
Off-the-Shelf (COTS) Items) and Acquisitions Not Greater Than the
Simplified Acquisition Threshold
This interim rule implements sections 744 and 745 of Division E,
Title VII, and section 523 of Division B, Title V, of the Consolidated
and Further Continuing Appropriations Act, 2015. Sections 744 and 745
of Division E prohibit any Federal agency from using funds appropriated
or otherwise made available by the Act or any other act to enter into a
contract with a corporation that has delinquent unpaid taxes or has
been convicted of a felony criminal violation under any Federal law
within the past 24 months, unless the Federal agency has considered
suspension or debarment of the corporation and has made a determination
that this further action is not necessary to protect the interests of
the government. Section 523 of Division B, which affects Commerce,
Justice, NASA, and some smaller agencies, requires certification with
regard to violations of certain tax matters.
The FAR Council and the Administrator for Federal Procurement
Policy have determined that it is not in the best interest of the
United States to exempt contracts for the acquisition of commercial
items (including commercially available off-the-shelf items) or
acquisitions in amounts not greater than the simplified acquisition
threshold (other than the certification requirement), because it
imposes a minimal burden (just a representation or, in limited
instances, a certification), in contrast to the benefit of avoiding
awarding contracts to corporations that have delinquent unpaid taxes,
or felony convictions for violations of Federal Law, or to prospective
contractors with other violations relating to Federal tax matters. Tax
liability is a serious matter and Congressional hearings (e.g., the
Permanent Subcommittee on Investigations, Committee on Homeland
Security and Governmental Affairs, U.S. Senate, held a hearing on May
24, 2011, entitled, ``Stimulus Contractors Who Cheat On Their Taxes:
What Happened?,'' and the Subcommittee on Government Management,
Organization, and Procurement, Committee on Oversight and Government
Reform, House of Representatives held a hearing on April 19, 2007, also
concerning Federal contractors who abuse the Federal tax system) have
been held to identify ways to ensure that funds are not spent with
contractors with tax delinquencies. It is in the interest of the United
States to only award contracts to entities that are responsible and
law-abiding.
This determination is consistent with the current coverage in
paragraph (h)(4) of the FAR clause at 52.212-3, Offeror Representations
and Certifications--Commercial Items, which requires offerors to
represent whether they have, within a three-year period preceding their
offer, been notified of any delinquent Federal taxes in an amount that
exceeds $3,500 for which the liability remains unsatisfied.
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.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
III. Regulatory Flexibility Act
Although DoD, GSA, and NASA do not expect that this change will
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., an Initial Regulatory Flexibility Analysis (IRFA) has
been prepared and is summarized as follows:
This action is necessary to implement sections 744 and 745 of
Division E of the Consolidated and Continuing Further Appropriations
Act, 2015 (Pub. L. 113-235) (and similar provisions in subsequent
appropriations acts), to prohibit using any of the funds made
available under that or any other act to enter a contract with any
corporation with any delinquent Federal tax liability or a felony
conviction, unless an agency has considered suspension or debarment
of the corporation and has made a determination that this further
action is not necessary to protect the interests of the Government.
The rule also implements section 523 of Division B of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub.
L. 113-235) (and similar provisions in subsequent appropriations
acts). This section prohibits the award of any contract in an amount
greater than $5,000,000, using funds appropriated under Division B
of the Consolidated and Continuing Further Appropriations Act, 2015,
unless the offeror affirmatively certifies that it has filed all
Federal tax returns required during the three years preceding the
certification; has not been convicted of a criminal offense under
the Internal Revenue Code of 1986; and has not, more than 90 days
prior to certification, been notified of any unpaid Federal tax
assessment for which the liability remains unsatisfied, unless the
assessment is the subject of an installment agreement or offer in
compromise that has been approved by the Internal Revenue Service
and is not in default, or the assessment is the subject of a non-
frivolous administrative or judicial proceeding.
The objective of the interim rule is to prohibit award to
entities that are delinquent in the payment of Federal taxes or have
been convicted of a felony under Federal law. The
[[Page 75905]]
legal basis for the rule is the above cited statutes.
Based on current data with regard to active registrants in the
System for Award Management (SAM), the rule will apply to
approximately 65,000 small business concerns, which are required to
complete the annual representations and certifications at least once
per year in order to keep their registration in SAM current.
The information collection requirement imposed by this rule is
minimal--it is a brief representation, and in some cases also a
certification. Each representation is estimated to require an
average of six minutes to complete.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
DoD, GSA, and NASA were unable to identify any significant
alternatives that would reduce the impact on small businesses and
still meet the objectives of the statute. However, other than the
potential for not receiving award if the small entity is delinquent
in payment of Federal taxes or has been convicted of a felony, there
is no significant economic impact on small entities because the
information collection burden imposed by the rule is minimal.
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 the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-011),
in correspondence.
IV. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The
rule contains information collection requirements. The Office of
Management and Budget (OMB) has cleared this information collection
requirement under OMB Control Number 9000-0193, titled: Prohibition on
Contracting with Corporations with Delinquent Taxes or a Felony
Conviction.
A. Public Reporting Burden
The public reporting burden for this collection of information is
estimated to average .1 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
1. 52.209-11 Representation
The annual reporting burden for 52.209-11 is estimated as follows:
Respondents: 352,000.
Responses per respondent: Approximately 1.01.
Total annual responses: 355,520.
Preparation hours per response: .1 hours.
Total response Burden Hours: 35,552.
2. 52.209-12 Certification
The annual reporting burden for 52.209-12 is estimated as follows:
Respondents: 440.
Responses per respondent: 3.
Total annual responses: 1,320.
Preparation hours per response: .1 hours.
Total response Burden Hours: 132.
3. Total
The average annual reporting burden is estimated as follows:
Total annual responses: 356,840.
Preparation hours per response: .1 hours.
Total response Burden Hours: 35,684.
B. Request for Comments Regarding Paperwork Burden
Submit comments, including suggestions for reducing this burden,
not later than February 2, 2016 to: FAR Desk Officer, OMB, Room 10102,
NEOB, Washington, DC 20503, and a copy to the General Services
Administration, Regulatory Secretariat Division (MVCB), ATTN: Ms.
Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405-0001.
Public comments are particularly invited on: Whether this
collection of information is necessary for the proper performance of
functions of the FAR, and will have practical utility; whether our
estimate of the public burden of this collection of information is
accurate, and based on valid assumptions and methodology; ways to
enhance the quality, utility, and clarity of the information to be
collected; and ways in which we can minimize the burden of the
collection of information on those who are to respond, through the use
of appropriate technological collection techniques or other forms of
information technology.
Requesters may obtain a copy of the supporting statement from the
General Services Administration, Regulatory Secretariat Divison (MVCB),
ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405-
0001. Please cite OMB Control Number 9000-0193, Prohibition on
Contracting with Corporations with Delinquent Taxes or a Felony
Conviction, in all correspondence.
V. 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 because these appropriations act restrictions apply to all
funds appropriated under the respective acts, and it is important to
provide immediate direction to contracting officers, so that they do
not inadvertently violate the conditions placed upon the expenditure of
the funds. The effective date is set as February 26, 2016, to allow the
Government to conform its procurement databases. 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 1, 4, 9, 12, and 52
Government procurement.
Dated: November 20, 2015.
William F. Clark,
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 1, 4, 9, 12, and 52
as set forth below:
0
1. The authority citation for 48 CFR parts 1, 4, 9, 12, and 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.
PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.106 [Amended]
0
2. Amend section 1.106 in the table following the introductory text by
adding, in sequence, FAR segments ``52.209-11'' and ``52.209-12'' and
their corresponding OMB Control number ``9000-0193''.
PART 4--ADMINISTRATIVE MATTERS
0
3. Amend section 4.1202 by redesignating paragraphs (a)(8) through (29)
as paragraphs (a)(9) through (30), respectively; and adding a new
paragraph (a)(8) to read as follows:
4.1202 Solicitation provision and contract clause.
(a) * * *
[[Page 75906]]
(8) 52.209-11, Representation by Corporations Regarding Delinquent
Tax Liability or a Felony Conviction under any Federal Law.
* * * * *
PART 9--CONTRACTOR QUALIFICATIONS
0
4. Amend section 9.104-5 by revising the section heading and paragraph
(b) and adding paragraphs (c) and (d) to read as follows:
9.104-5 Representation and certifications regarding responsibility
matters.
* * * * *
(b) The provision at 52.209-11, Representation by Corporations
Regarding Delinquent Tax Liability or a Felony Conviction under any
Federal Law, implements sections 744 and 745 of Division E of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L.
113-235) (and similar provisions in subsequent appropriations acts).
When an offeror provides an affirmative response in paragraph (b)(1) or
(2) of the provision at 52.209-11 or paragraph (q)(2)(i) or (ii) of
provision 52.212-3, the contracting officer shall--
(1) Promptly, upon receipt of offers, request such additional
information from the offeror as the offeror deems necessary in order to
demonstrate the offeror's responsibility to the contracting officer
(but see 9.405);
(2) Notify, in accordance with agency procedures (see 9.406-3(a)
and 9.407-3(a)), the agency official responsible for initiating
debarment or suspension action; and
(3) Not award to the corporation unless an agency suspending or
debarring official has considered suspension or debarment of the
corporation and made a determination that suspension or debarment is
not necessary to protect the interests of the Government.
(c) If the provision at 52.209-12, Certification Regarding Tax
Matters, is applicable (see 9.104-7(e)), then the contracting officer
shall not award any contract in an amount greater than $5,000,000,
unless the offeror affirmatively certified in its offer, as required by
paragraph (b)(1), (2), and (3) of the provision.
(d) Offerors who do not furnish the representation or
certifications or such information as may be requested by the
contracting officer shall be given an opportunity to remedy the
deficiency. Failure to furnish the representation or certifications or
such information may render the offeror nonresponsible.
0
5. Amend section 9.104-7 by adding paragraphs (d) and (e) to read as
follows:
9.104-7 Solicitation provisions and contract clauses.
* * * * *
(d) The contracting officer shall insert the provision 52.209-11,
Representation by Corporations Regarding Delinquent Tax Liability or a
Felony Conviction under any Federal Law, in all solicitations.
(e) For agencies receiving funds subject to section 523 of Division
B of the Consolidated and Further Continuing Appropriations Act, 2015
(Pub. L. 113-235) and similar provisions in subsequent appropriations
acts, the contracting officer shall insert the provision 52.209-12,
Certification Regarding Tax Matters, in solicitations for which the
resultant contract (including options) may have a value greater than
$5,000,000. Division B of the Consolidated and Continuing Further
Appropriations Act, 2015 appropriates funds for the following agencies:
The Department of Commerce, the Department of Justice, the National
Aeronautics and Space Administration, the Office of Science and
Technology Policy, the National Science Foundation, the Commission on
Civil Rights, the Equal Employment Opportunity Commission, the U.S.
International Trade Commission, the Legal Services Corporation, the
Marine Mammal Commission, the Office of the United States Trade
Representative, and the State Justice Institute.
PART 12--ACQUISITION OF COMMERCIAL ITEMS
0
6. Amend section 12.301 by redesignating paragraphs (d)(4) through (6)
as paragraphs (d)(5) through (7), respectively, and adding a new
paragraph (d)(4) to read as follows:
12.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
* * * * *
(d) * * *
(4) Insert the provision at 52.209-12, Certification Regarding Tax
Matters, as prescribed at 9.104-7(e).
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Amend section 52.204-8 by--
0
a. Revising the date of the provision;
0
b. Redesignating paragraphs (c)(1)(vii) through (xxi) as (c)(1)(viii)
through (xxii), respectively; and
0
c. Adding a new paragraph (c)(1)(vii).
The revision and addition read as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
Annual Representations and Certifications (Feb 2016)
* * * * *
(c)(1) * * *
(vii) 52.209-11, Representation by Corporations Regarding
Delinquent Tax Liability or a Felony Conviction under any Federal
Law. This provision applies to all solicitations.
* * * * *
0
8. Add sections 52.209-11 and 52.209-12 to read as follows:
52.209-11 Representation by Corporations Regarding Delinquent Tax
Liability or a Felony Conviction under any Federal Law.
As prescribed in 9.104-7(d), insert the following provision:
Representation by Corporations Regarding Delinquent Tax Liability or a
Felony Conviction under any Federal Law (Feb 2016)
(a) As required by sections 744 and 745 of Division E of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub.
L. 113-235), and similar provisions, if contained in subsequent
appropriations acts, the Government will not enter into a contract
with any corporation that--
(1) Has any unpaid Federal tax liability that has been assessed,
for which all judicial and administrative remedies have been
exhausted or have lapsed, and that is not being paid in a timely
manner pursuant to an agreement with the authority responsible for
collecting the tax liability, where the awarding agency is aware of
the unpaid tax liability, unless an agency has considered suspension
or debarment of the corporation and made a determination that
suspension or debarment is not necessary to protect the interests of
the Government; or
(2) Was convicted of a felony criminal violation under any
Federal law within the preceding 24 months, where the awarding
agency is aware of the conviction, unless an agency has considered
suspension or debarment of the corporation and made a determination
that this action is not necessary to protect the interests of the
Government.
(b) The Offeror represents that--
(1) It is [ ] is not [ ] a corporation that has any unpaid
Federal tax liability that has been assessed, for which all judicial
and administrative remedies have been exhausted or have lapsed, and
that is not being paid in a timely manner pursuant to an agreement
with the authority responsible for collecting the tax liability; and
(2) It is [ ] is not [ ] a corporation that was convicted of a
felony criminal violation under a Federal law within the preceding
24 months.
(End of provision)
52.209-12 Certification Regarding Tax Matters.
As prescribed in 9.104-7(e), insert the following provision:
[[Page 75907]]
Certification Regarding Tax Matters (Feb 2016)
(a) This provision implements section 523 of Division B of the
Consolidated and Further Continuing Appropriations Act, 2015 (Pub.
L. 113-235), and similar provisions, if contained in subsequent
appropriations acts.
(b) If the Offeror is proposing a total contract price that will
exceed $5,000,000 (including options), the Offeror shall certify
that, to the best of its knowledge and belief, it--
(1) Has [ ] filed all Federal tax returns required during the
three years preceding the certification;
(2) Has not [ ] been convicted of a criminal offense under the
Internal Revenue Code of 1986; and
(3) Has not [ ], more than 90 days prior to certification, been
notified of any unpaid Federal tax assessment for which the
liability remains unsatisfied, unless the assessment is the subject
of an installment agreement or offer in compromise that has been
approved by the Internal Revenue Service and is not in default, or
the assessment is the subject of a non-frivolous administrative or
judicial proceeding.
(End of provision)
0
9. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Removing from the introductory text and the first undesignated
paragraph in paragraph (b)(2) ``through p'' and adding ``though q'' in
their places, respectively; and
0
c. Adding paragraph (q).
The revision and addition read as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Feb 2016)
* * * * *
(q) Representation by Corporations Regarding Delinquent Tax
Liability or a Felony Conviction under any Federal Law. (1) As
required by sections 744 and 745 of Division E of the Consolidated
and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235),
and similar provisions, if contained in subsequent appropriations
acts, The Government will not enter into a contract with any
corporation that--
(i) Has any unpaid Federal tax liability that has been assessed,
for which all judicial and administrative remedies have been
exhausted or have lapsed, and that is not being paid in a timely
manner pursuant to an agreement with the authority responsible for
collecting the tax liability, where the awarding agency is aware of
the unpaid tax liability, unless an agency has considered suspension
or debarment of the corporation and made a determination that
suspension or debarment is not necessary to protect the interests of
the Government; or
(ii) Was convicted of a felony criminal violation under any
Federal law within the preceding 24 months, where the awarding
agency is aware of the conviction, unless an agency has considered
suspension or debarment of the corporation and made a determination
that this action is not necessary to protect the interests of the
Government.
(2) The Offeror represents that--
(i) It is [ ] is not [ ] a corporation that has any unpaid
Federal tax liability that has been assessed, for which all judicial
and administrative remedies have been exhausted or have lapsed, and
that is not being paid in a timely manner pursuant to an agreement
with the authority responsible for collecting the tax liability; and
(ii) It is [ ] is not [ ] a corporation that was convicted of a
felony criminal violation under a Federal law within the preceding
24 months.
(End of provision)
[FR Doc. 2015-30456 Filed 12-3-15; 8:45 am]
BILLING CODE 6820-EP-P