Defense Federal Acquisition Regulation Supplement: Preventing Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-D007), 79013-79017 [2024-21099]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 89, Number 187 (Thursday, September 26, 2024)]
[Proposed Rules]
[Pages 79013-79017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21099]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 209, 212, 237, and 252

[Docket DARS-2024-0029]
RIN 0750-AM04


Defense Federal Acquisition Regulation Supplement: Preventing 
Conflicts of Interest for Certain Consulting Services (DFARS Case 2024-
D007)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement a section of the National 
Defense Authorization Act for Fiscal Year 2024 that prohibits 
contracting officers from awarding contracts assigned certain North 
American Industry Classification System codes to offerors that hold 
contracts that involve consulting services with certain covered foreign 
entities.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before November 25, 2024, to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2024-D007, using 
either of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for DFARS Case 2024-D007. Select ``Comment'' and follow the 
instructions to submit a comment. Please include ``DFARS Case 2024-
D007'' on any attached documents.
    [cir] Email: [email protected]. Include DFARS Case 2024-D007 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Mr. Jon Snyder, telephone 703-945-
5341.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to implement section 812 of 
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 
(Pub. L. 118-31). Section 812 prohibits contracting officers from 
awarding contracts assigned a North American Industry Classification 
System (NAICS) code beginning with 5416 to offerors who hold contracts 
that involve consulting services with certain covered foreign entities. 
NAICS codes beginning with 5416 are for management, scientific, and 
technical consulting services. Section 812 allows an offeror to submit 
a conflict-of-interest mitigation plan and allows the prohibition to be 
waived under certain circumstances.

II. Discussion and Analysis

    This proposed rule includes a new section 209.57X, Conflicts of 
Interest in Certain Consulting Services, to implement section 812 of 
the NDAA for FY 2024. This new section 209.57X provides contracting 
officers the scope, definitions, prohibition, and waiver procedures for 
conflicts of interest in consulting services. DFARS 209.57X(c) 
prohibits contracting officers from awarding contracts assigned a NAICS 
code beginning with 5416 to an offeror that holds a contract for 
consulting services with one or more covered foreign entities if the 
offeror does not have an approved conflict-of-interest mitigation plan. 
DFARS 209.57X(b) contains the definitions of ``consulting services'', 
``contract oversight entity'', ``covered contract'', and ``covered 
foreign entity''. The proposed rule also includes DFARS 209.503-70, 
which specifies the waiver authority for the prohibition at 209.57X(c).
    A new solicitation provision is proposed at DFARS 252.209-70XX, 
Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification, for use in solicitations assigned a NAICS code beginning 
with 5416 that involve consulting services, including solicitations 
using Federal Acquisition Regulation (FAR) part 12 procedures for the 
acquisition of commercial services. DFARS 252.209-70XX requires an 
offeror to certify whether or not the offeror, its subsidiaries, or its 
affiliates hold a contract for consulting services with one or more 
covered foreign entities. If the offeror cannot certify to this, the 
offeror may contact the contracting officer for guidance on submitting 
an existing

[[Page 79014]]

conflict-of-interest mitigation plan. If such a plan is submitted and 
approved, the provision specifies that the plan will be incorporated 
into any resulting contract awarded to the offeror. The new 
solicitation provision is prescribed at 209.57X(e).
    The new solicitation provision is proposed to be added to the list 
of provisions and clauses for use in solicitations and contracts for 
commercial products and commercial services at DFARS 212.301.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), and for Commercial Services

    This proposed rule proposes a new provision at DFARS 252.209-70XX, 
Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification, to implement the requirements of section 812 of the NDAA 
for FY 2024. The provision at DFARS 252.209-70XX is prescribed at DFARS 
209.57X(e) for use in solicitations assigned a NAICS code beginning 
with 5416 that involve consulting services, including solicitations 
using FAR part 12 procedures for the acquisition of commercial 
services. DoD does intend to apply the proposed rule to contracts at or 
below the SAT and for the acquisition of commercial services. DoD does 
not intend to apply the proposed rule to contracts for the acquisition 
of commercial products, including COTS items.

A. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold

    The statute at 41 U.S.C. 1905 governs the applicability of laws to 
contracts or subcontracts in amounts not greater than the simplified 
acquisition threshold. It is intended to limit the applicability of 
laws to such contracts or subcontracts. The statute at 41 U.S.C. 1905 
provides that if a provision of law contains criminal or civil 
penalties, or if the Federal Acquisition Regulatory Council makes a 
written determination that it is not in the best interest of the 
Federal Government to exempt contracts or subcontracts at or below the 
SAT, the law will apply to them. The Principal Director, Defense 
Pricing, Contracting, and Acquisition Policy (DPCAP), is the 
appropriate authority to make comparable determinations for regulations 
to be published in the DFARS, which is part of the Federal Acquisition 
Regulation system of regulations. DoD does intend to make that 
determination. Therefore, this proposed rule will apply at or below the 
simplified acquisition threshold.

B. Applicability to Contracts for the Acquisition of Commercial 
Products Including COTS Items and for the Acquisition of Commercial 
Services

    The statue at 10 U.S.C. 3452 exempts contracts and subcontracts for 
the acquisition of commercial products including COTS items, and 
commercial services from provisions of law enacted after October 13, 
1994, unless the Under Secretary of Defense (Acquisition and 
Sustainment) (USD(A&S)) makes a written determination that it would not 
be in the best interest of DoD to exempt contracts for the procurement 
of commercial products and commercial services from the applicability 
of the provision or contract requirement, except for a provision of law 
that--
     Provides for criminal or civil penalties;
     Requires that certain articles be bought from American 
sources pursuant to 10 U.S.C. 4862 (previously 10 U.S.C. 2533c), or 
that strategic materials critical to national security be bought from 
American sources pursuant to 10 U.S.C. 4863 (previously 10 U.S.C. 
2533b); or
     Specifically refers to 10 U.S.C. 3452 and states that it 
shall apply to contracts and subcontracts for the acquisition of 
commercial products (including COTS items) and commercial services.
    The statute implemented in this proposed rule does not impose 
criminal or civil penalties, does not require purchase pursuant to 10 
U.S.C. 4862 or 4863, and does not refer to 10 U.S.C. 3452. Therefore, 
section 812 of the NDAA for FY 2024 will not apply to the acquisition 
of commercial services or commercial products including COTS items 
unless a written determination is made. Due to delegations of 
authority, the Principal Director, DPCAP is the appropriate authority 
to make this determination.
    DoD intends to make that determination to apply this statute to the 
acquisition of commercial services. DoD does not intend to make that 
determination to apply this statute to the acquisition of commercial 
products including COTS items. Therefore, this proposed rule will apply 
to the acquisition of commercial services but will not apply to the 
acquisition of commercial products including COTS items.

C. Determinations

    Given that the requirements of section 812 of the NDAA for FY 2024 
were enacted to ensure the integrity and security of contracted 
consulting services, it is in the best interest of the Federal 
Government to apply the statute to contracts valued at or below the SAT 
and for the acquisition of commercial services, as defined at Federal 
Acquisition Regulation 2.101. Acquisitions below the SAT represent 42 
percent of the consulting services contracts awarded in the last three 
fiscal years. Therefore, excluding these contracts would result in a 
significant national security risk.
    Consulting services are commercial services, as defined at FAR 
2.101. Therefore, an exception for contracts for the acquisition of 
commercial services would exclude the contracts intended to be covered 
by the law, thereby undermining the overarching purpose of the law.

IV. Expected Impact of the Rule

    This proposed rule, when finalized, will prohibit contracting 
officers from awarding contracts, assigned a NAICS code beginning with 
5416, to offerors who hold contracts that involve consulting services 
with covered foreign entities. NAICS codes beginning with 5416 are for 
management, scientific, and technical consulting services.
    Offerors responding to solicitations assigned those NAICS codes 
will be required to certify whether or not they hold contracts that 
involve consulting services with one or more covered foreign entities 
and whether they maintain a conflict-of-interest mitigation plan. If an 
offeror certifies that they do hold such a contract, the offeror may 
consult with the contracting officer and submit a conflict-of-interest 
mitigation plan that is auditable by a contract oversight entity. If 
the offeror's plan is approved, the contracting officer will 
incorporate the plan into the resulting contract. If the offeror does 
not submit a conflict-of-interest mitigation plan, the contracting 
officer may determine the award is in the best interests of the United 
States with appropriate approval. In addition, the agency will be 
required to submit to Congress any use of such waiver authority.
    DoD expects this proposed rule, when finalized, to prevent 
adversaries from accessing sensitive information that may cause harm to 
the United States.

V. 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

[[Page 79015]]

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, as amended.

VI. Regulatory Flexibility Act

    DoD does not expect this proposed rule, when finalized, 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., because this proposed rule primarily impacts offerors that hold 
contracts with certain covered foreign entities. However, an initial 
regulatory flexibility analysis has been performed and is summarized as 
follows:
    This proposed rule is required to implement section 812 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 
(Pub. L. 118-31). Section 812 prohibits contracting officers from 
awarding contracts, assigned a North American Industry Classification 
System (NAICS) code beginning with 5416, to an offeror that holds a 
contract for consulting services with one or more covered foreign 
entities. NAICS codes beginning with 5416 are for management, 
scientific, and technical consulting services.
    The objective of this proposed rule is to implement section 812 of 
the NDAA for FY 2024, which is the legal basis for this proposed rule.
    According to data obtained from the Procurement Integrated 
Enterprise Environment in the last three fiscal years, DoD awarded 
contracts with NAICS codes starting with 5416 to an average of 864 
unique small entities per year. However, DoD cannot determine how many 
of those contracts awarded to small entities involve potential 
conflicts of interest.
    This proposed rule does impose new reporting, recordkeeping, or 
other compliance requirements for small entities. The new solicitation 
provision at DFARS 252.209-70XX, Notice of Prohibition Relating to 
Conflicts of Interest in Consulting Services--Certification, requires 
offerors to certify whether they or their subsidiaries or affiliates 
hold a contract for consulting services with one or more covered 
entities and whether they maintain a conflict-of-interest mitigation 
plan that meets certain criteria listed in the solicitation provision.
    This proposed rule does not duplicate, overlap, or conflict with 
any other Federal rules.
    There are no known alternatives that would accomplish the stated 
objectives of the applicable statute.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this proposed rule in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (DFARS Case 2024-
D007), in correspondence.

VII. Paperwork Reduction Act

    This proposed rule contains 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). Accordingly, DoD 
has submitted a request for approval of a new information collection 
requirement concerning DFARS Case 2024-D007, Preventing Conflicts of 
Interest for Certain Consulting Services, to the Office of Management 
and Budget.

A. Estimate of Public Burden

    Public reporting burden for this collection of information is 
estimated to average 1 hour 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.
    The annual reporting burden is estimated as follows:
1. Certification
    Respondents: 5,307.
    Number of annual responses: 5,307.
    Annual burden hours: 5,307.
2. Conflict-of-Interest Mitigation Plan
    Respondents: 114.
    Number of annual responses: 177.
    Annual burden hours: 144.
3. Total Public Burden
    Respondents: 5,307.
    Number of annual responses: 5,484.
    Annual burden hours: 5,484.

B. Request for Comments Regarding Paperwork Burden

    Written comments and recommendations on the proposed information 
collection, including suggestions for reducing this burden, should be 
submitted using the Federal eRulemaking Portal at https://www.regulations.gov or by email to [email protected]. Comments can be 
received up to 60 days after the date of this document.
    Public comments are particularly invited on: whether this 
collection of information is necessary for the proper performance of 
the functions of DoD, including whether the information will have 
practical utility; the accuracy of DoD's estimate of the burden of this 
information collection; ways to enhance the quality, utility, and 
clarity of the information to be collected; and ways to minimize the 
burden of the information collection on respondents, including through 
the use of automated collection techniques or other forms of 
information technology.
    To obtain a copy of the supporting statement and associated 
collection instruments, please email [email protected]. Include DFARS 
Case 2024-D007 in the subject line of the message.

List of Subjects in 48 CFR Parts 209, 212, 237, and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, the Defense Acquisition Regulations System proposes to 
amend 48 CFR parts 209, 212, 237, and 252 as follows:

0
1. The authority citation for parts 209, 212, 237, and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

PART 209--CONTRACTOR QUALIFICATIONS

0
2. Add section 209.503-70 to read as follows:


209.503-70   Waiver.

    Notwithstanding FAR 9.503, for consulting services, as defined at 
209.57X(b), the waiver approval authority is the Secretary of Defense 
and the following officials, without power of delegation below an 
official appointed by the President and confirmed by the Senate:
    (a) The Under Secretary of Defense (Acquisition and Sustainment).
    (b) The assistant secretaries of the military departments. (See PGI 
209.503-70.)
0
3. Add section 209.57X to read as follows:


209.57  X Conflicts of interest in certain consulting services.

    (a) Scope. (1) This section implements section 812 of the National 
Defense Authorization Act for Fiscal Year 2024 (Pub. L. 118-31).
    (2) To the extent that this section is inconsistent with FAR 
subpart 9.5, this section takes precedence.

[[Page 79016]]

    (b) Definitions. As used in this section--
    Consulting services means advisory and assistance services, except 
that the term does not include the provision of products or services 
related to--
    (i) Compliance with legal, audit, accounting, tax, reporting, or 
other requirements of the laws and standards of countries; or
    (ii) Participation in a judicial, legal, or equitable dispute 
resolution proceeding.
    Contract oversight entity means any of the following:
    (i) The contracting officer.
    (ii) The contracting officer's representative.
    (iii) The Defense Contract Management Agency.
    (iv) The Defense Contract Audit Agency.
    (v) The DoD Office of Inspector General or any subcomponent of that 
office.
    (vi) The Government Accountability Office.
    Covered contract means a DoD contract involving consulting 
services.
    Covered foreign entity means any of the following:
    (i) The government of the People's Republic of China, the Chinese 
Communist Party, the People's Liberation Army, the Ministry of State 
Security, or other security service or intelligence agency of the 
People's Republic of China.
    (ii) The government of the Russian Federation or any entity 
sanctioned by the Secretary of the Treasury under Executive Order 
13662, Blocking Property of Additional Persons Contributing to the 
Situation in Ukraine.
    (iii) The government of any country if the Secretary of State 
determines that such government has repeatedly provided support for 
acts of international terrorism pursuant to any of the following:
    (A) Section 1754(c)(1)(A) of the Export Control Reform Act of 2018 
(50 U.S.C. 4318(c)(1)(A)).
    (B) Section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2371).
    (C) Section 40 of the Arms Export Control Act (22 U.S.C. 2780).
    (D) Any other provision of law.
    (iv) Any entity included on any of the following lists maintained 
by the Department of Commerce (see the Export Administration 
Regulations at 15 CFR subchapter C):
    (A) The Entity List in supplement no. 4 to 15 CFR part 744.
    (B) The Denied Persons List as described in 15 CFR 764.3(a)(2).
    (C) The Unverified List in supplement no. 6 to 15 CFR part 744.
    (D) The Military End User List in supplement no. 7 to 15 CFR part 
744.
    (v) Any entity identified by the Secretary of Defense pursuant to 
section 1237(b) of the National Defense Authorization Act for Fiscal 
Year 1999 (Pub. L. 105-261; 50 U.S.C. 1701 note).
    (vi) Any entity on the Non-Specially Designated Nationals Chinese 
Military-Industrial Complex Companies List maintained by the Office of 
Foreign Assets Control of the Department of the Treasury under 
Executive Order 14032, Addressing the Threat From Securities 
Investments That Finance Certain Companies of the People's Republic of 
China.
    (c) Prohibition. The contracting officer shall not award a contract 
assigned a North American Industry Classification System (NAICS) code 
beginning with 5416 that involves consulting services to an offeror 
that--
    (1) Cannot certify that neither the offeror nor its subsidiaries or 
affiliates hold a contract involving consulting services with one or 
more covered foreign entities; and
    (2) Does not have a conflict-of-interest mitigation plan that is 
auditable by a contract oversight entity and approved by the 
contracting officer.
    (d) Waiver. (1) If the prospective contractor(s) certified, in 
response to paragraph (c) of the provision at 252.209-70XX, Prohibition 
Relating to Conflicts of Interest in Consulting Services--
Certification, that it or its subsidiaries or affiliates hold a 
contract for consulting services with one or more covered foreign 
entities and the offeror has not submitted an acceptable conflict-of-
interest mitigation plan, the contracting officer shall--
    (i) Notify the offeror of the potential withholding of award due to 
the unmitigated conflict of interest; and
    (ii) Specify that the offeror has 10 days to respond to the 
notification.
    (2) If the contracting officer determines that it is in the best 
interests of the United States to award the contract, notwithstanding 
the conflict of interest, the contracting officer shall request a 
waiver in accordance with 209.503-70.
    (3) The prohibition may be waived on a case-by-case basis if an 
official listed at 209.503-70 determines that a waiver is necessary for 
national security purposes.
    (4) The contracting officer shall include the waiver request and 
the waiver in the contract file.
    (5) Not later than 30 days after approval of the waiver, the agency 
shall provide written notification to the House and Senate Armed 
Services Committees of the use of such waiver authority. The 
notification shall include--
    (i) The specific justification for providing the waiver;
    (ii) The number of offerors that did not require a waiver;
    (iii) The number of offerors that were granted a waiver;
    (iv) Identification of the covered foreign entity that is the 
subject of the waiver; and
    (v) The total dollar value of the covered contract.
    (e) Solicitation provision. Use the provision at 252.209-70XX, 
Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification, in solicitations, including solicitations using FAR part 
12 procedures for the acquisition of commercial services, assigned a 
NAICS code beginning with 5416. Do not include the provision in 
solicitations for the acquisition of commercial products.

PART 212--ACQUISITION OF COMMERCIAL PRODUCTS AND COMMERCIAL 
SERVICES

0
4. Amend section 212.301 by revising paragraph (f)(iv) to read as 
follows:


212.301   Solicitation provisions and contract clauses for the 
acquisition of commercial products and commercial services.

* * * * *
    (f) * * *
    (iv) Part 209--Contractor Qualifications. (A) Use the provision at 
252.209-7011, Representation for Restriction on the Use of Certain 
Institutions of Higher Education, as prescribed at 209.170-4, to comply 
with section 1062 of the National Defense Authorization Act for Fiscal 
Year 2021 (Pub. L. 116-283).
    (B) Use the provision at 252.209-70XX, Prohibition Relating to 
Conflicts of Interest in Consulting Services--Certification, as 
prescribed in 209.57X(e), to comply with section 812 of the National 
Defense Authorization Act for Fiscal Year 2024 (Pub. L. 118-31).
* * * * *

PART 237--SERVICE CONTRACTING

0
5. Add section 237.27X to read as follows:


237.27X  Consulting services.

    See 209.57X for requirements related to conflicts of interest in 
consulting services.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. Add section 252.209-70XX to read as follows:

[[Page 79017]]

252.209-70XX  Prohibition Relating to Conflicts of Interest in 
Consulting Services--Certification.

    As prescribed in 209.57X(e), use the following provision:

Prohibition Relating to Conflicts of Interest in Consulting Services--
Certification (DATE)

    (a) Definitions. As used in this provision--
    Consulting services means advisory and assistance services, 
except that the term does not include the provision of products or 
services related to--
    (1) Compliance with legal, audit, accounting, tax, reporting, or 
other requirements of the laws and standards of countries; or
    (2) Participation in a judicial, legal, or equitable dispute 
resolution proceeding.
    Contract oversight entity means any of the following:
    (1) The Contracting Officer.
    (2) The Contracting Officer's Representative.
    (3) The Defense Contract Management Agency.
    (4) The Defense Contract Audit Agency.
    (5) The DoD Office of Inspector General or any subcomponent of 
that office.
    (6) The Government Accountability Office.
    Covered contract means a DoD contract involving consulting 
services.
    Covered foreign entity means any of the following:
    (1) The government of the People's Republic of China, the 
Chinese Communist Party, the People's Liberation Army, the Ministry 
of State Security, or other security service or intelligence agency 
of the People's Republic of China.
    (2) The government of the Russian Federation or any entity 
sanctioned by the Secretary of the Treasury under Executive Order 
13662, Blocking Property of Additional Persons Contributing to the 
Situation in Ukraine.
    (3) The government of any country, if the Secretary of State 
determines that such government has repeatedly provided support for 
acts of international terrorism, pursuant to any of the following:
    (i) Section 1754(c)(1)(A) of the Export Control Reform Act of 
2018 (50 U.S.C. 4318(c)(1)(A)).
    (ii) Section 620A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2371).
    (iii) Section 40 of the Arms Export Control Act (22 U.S.C. 
2780).
    (iv) Any other provision of law.
    (4) Any entity included on any of the following lists maintained 
by the Department of Commerce (see the Export Administration 
Regulations at 15 CFR subchapter C):
    (i) The Entity List in supplement no. 4 to 15 CFR part 744.
    (ii) The Denied Persons List as described in 15 CFR 764.3(a)(2).
    (iii) The Unverified List in supplement no. 6 to 15 CFR part 
744.
    (iv) The Military End User List in supplement no. 7 to 15 CFR 
part 744.
    (5) Any entity identified by the Secretary of Defense pursuant 
to section 1237(b) of the National Defense Authorization Act for 
Fiscal Year 1999 (Pub. L. 105-261; 50 U.S.C. 1701 note).
    (6) Any entity on the Non-Specially Designated Nationals Chinese 
Military-Industrial Complex Companies List maintained by the Office 
of Foreign Assets Control of the Department of the Treasury under 
Executive Order 14032, Addressing the Threat from Securities 
Investments that Finance Certain Companies of the People's Republic 
of China.
    (b) Prohibition. If the Offeror cannot certify that neither the 
Offeror nor any of its subsidiaries or affiliates hold a contract 
that involves consulting services with one or more covered foreign 
entities, DoD cannot award to the Offeror a contract assigned a 
North American Industry Classification System code beginning with 
5416.
    (c) Certification. The Offeror certifies that--
    (1)(i) It does [ ] does not [ ] hold a contract for consulting 
services with one or more covered foreign entities; and
    (ii) Its subsidiaries or affiliates do [ ] do not [ ] hold a 
contract for consulting services with one or more covered foreign 
entities; and
    (2) It does [ ] does not [ ] maintain a conflict-of-interest 
mitigation plan described in paragraph (d) of this provision.
    (d) Conflict-of-interest mitigation plan. If the Offeror 
answered in the affirmative in paragraphs (c)(1) and (2) of this 
provision, the Offeror may contact the Contracting Officer for 
guidance on submitting the Offeror's conflict-of-interest mitigation 
plan.
    (1) The Offeror's conflict-of-interest mitigation plan shall be 
auditable by a contract oversight entity and shall include--
    (i) An identification, unless otherwise prohibited by law or 
regulation, of any covered contracts of the Offeror or its 
subsidiaries or affiliates with a covered foreign entity. If the 
Offeror is unable to identify one or more covered foreign entities 
due to confidentiality obligations, the Offeror shall identify such 
entities as a covered foreign entity;
    (ii) A written analysis, including a course of action for 
avoiding, neutralizing, or mitigating the actual or potential 
conflict of interest of such a covered contract;
    (iii) A description of the procedures by which the Offeror or 
its subsidiaries or affiliates will ensure that individuals who will 
perform the scope of a covered contract will not, for the duration 
of such contract, also provide any consulting services to any 
covered foreign entity; and
    (iv) A description of the procedures by which the Offeror or its 
subsidiaries or affiliates will submit to the contract oversight 
entities a notice of an unmitigated conflict of interest with 
respect to a covered contract within 15 days of determining that 
such a conflict has arisen.
    (2) If the Contracting Officer approves the Offeror's conflict-
of-interest mitigation plan, the Contracting Officer will 
incorporate the plan into any contract awarded to the Offeror 
resulting from this solicitation.


(End of provision)

[FR Doc. 2024-21099 Filed 9-25-24; 8:45 am]
 BILLING CODE 6001-FR-P