Management and Budget Office – Federal Register Recent Federal Regulation Documents

The Office of Management and Budget (OMB) request comments on proposed revisions to Circular A-119, ``Federal Participation in the Development and Use of Voluntary Consensus Standards and in Conformity Assessment Activities'' (hereinafter, Circular A-119, or, the Circular) in light of changes that have taken place in the world of regulation, standards, and conformity assessment since the Circular was last revised in 1998. These materials are available at https:// www.whitehouse.gov/omb/inforeginfopoltech. The National Technology Transfer and Advancement Act of 1995 (Pub. L. 104-113; hereinafter known as the NTTAA) codified pre-existing policies on the development and use of voluntary consensus standards in Circular A-119, established additional reporting requirements for agencies, and authorized the National Institute of Standards and Technology (NIST) to coordinate conformity assessment activities. In response, OMB in 1998 issued a revised version of Circular A-119, which remains the current version. In this notice, OMB is seeking public comment on proposed revisions to the Circular. These proposed revisions reflect the experience gained by U. S. agencies in implementing the Circular since 1998; domestic and international developments in regulatory, standards, and conformity assessment policy; concluding and implementing U.S. trade agreements; and comments received in response to OMB's March 2012 Request for Information on whether and how to supplement Circular A-119. The proposed revision to Circular A-119 includes the following elements: Preference for voluntary consensus standards. The revised Circular would maintain a strong preference for using voluntary consensus standards in Federal regulation and procurement. It would also acknowledge, however, that there may be some standards not developed using a consensus-driven process that are in use in the market particularly in the information technology spaceand that may be relevant (and necessary) in meeting agency missions and priorities. Guidance on use of standards and participation in standards development. The revised Circular would provide more detailed guidance on how Federal representatives should participate in standards development activities. It would also strengthen the role of agency Standards Executives, encourage better internal coordination and training on standards, and update the provisions on how the U.S. Government manages and reports on the development and use of standards. The Circular would also provide criteria for agencies to consider when examining whether a standard meets agency needs and should be adopted. Guidance on conformity assessment. The revised Circular would encourage agencies to consider international conformity assessment schemes and private sector conformity assessment activities in lieu of conformity assessment activities or schemes developed or carried out by the government, and set out criteria for agencies to consider when they are selecting or designing an appropriate conformity assessment procedure. Enhanced transparency. The proposed revisions would provide guidance to agencies on how they should discuss implementation of the Circular in their rulemakings and guidance documents; encourage agencies to alert the public when considering whether to participate in standards development activities; and set out factors for agencies to consider when incorporating standards by reference in regulation. Burden reduction. The proposed revisions would require agencies to utilize the retrospective review mechanism set out in Executive Orders 13563 and 13610 to implement the Circular, including ensuring that standards incorporated by reference in regulation are updated on a timely basis. The revisions also encourage agencies to work together to reference the same version of a standard in regulation and procurements and coordinate on conformity assessment requirements, where feasible. International considerations. The proposed revisions incorporate references to trade-related statutory obligations on standards-related measures and direct Federal agencies to consult with USTR on how to comply with international obligations with regard to standards and conformity assessment. They provide guidance on how to identify such obligations, direct agencies to take into account their obligations under Executive Order 13609 when they engage in standards and conformity assessment activities, and encourage greater coordination with respect to the Government's formulation of global strategies on standards, regulation, and international trade.

On November 26, 2013, the Office of Management and Budget (OMB) invited public comments on the Technical Support Document entitled Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866. That request may be found at 78 FR 70586. This notice extends the public comment period for another 30 days. OMB requests that comments be submitted electronically to OMB by February 26, 2014 through www.regulations.gov.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) is publishing final revisions to OMB Circular A-131, Value Engineering, to update and reinforce policies associated with the consideration and use of value engineering (VE). VE is a well-established commercial practice for cutting waste and inefficiency that can help Federal agencies reduce program and acquisition costs, improve the quality and timeliness of performance, and take greater advantage of innovation to meet 21st century expectations and demands. The revisions are designed to ensure that the Federal Government has the capabilities and tools to consider the use of VE for new and ongoing projects, whenever appropriate.

The Office of Management and Budget is publishing the attached memorandum to the Heads of Executive Departments and Agencies announcing that $952,308 is the ``benchmark compensation amount'' for certain executives and employees in terms of costs allowable under Federal Government contracts during contractors' fiscal year 2012. This determination is required under Section 39 of the Office of Federal Procurement Policy Act, as amended (41 U.S.C. 1127). The benchmark compensation amount applies to both defense and civilian agencies.

In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et seq.) the Office of Management and Budget (OMB) invites the general public and Federal agencies to comment on a revision of an approved information form (SF-SAC) that is used to report audit results, audit findings, and questioned costs as required by the Single Audit Act Amendments of 1996 (31 U.S.C. 7501, et seq.) and OMB Circular A-133, ``Audits of States, Local Governments, and Non-Profit Organizations.'' The first notice of this information collection request, as required by the Paperwork Reduction act, was published in the Federal Register on May 9, 2013 [78 FR 27259]. The proposed changes are to revise some existing data elements in the form and add other data elements that would make easier for the Federal agencies to identify the types of audit findings reported in the audits performed under the Single Audit Act. The current Form SF-SAC was designed for audit periods ending in 2011and 2012. The proposed revised Form SF-SAC will replace the current form for audit periods ending 2013, 2014 and 2015. The detail proposed changes along with the proposed format are described on OMB Web site at: https://www.whitehouse.gov/omb/grants forms/

OMB Circular No. A-123, ``Management's Responsibility for Internal Control,'' defines management's responsibility for internal control in Federal agencies. OMB Circular No. A-127,''Financial Management Systems,'' previously prescribed policies and standards for executive departments and agencies to follow in developing, operating, evaluating, and reporting on financial management systems. OMB is issuing this interim final version of a new appendix, Appendix D, to Circular A-123, to provide a framework for determining compliance with the Federal Financial Management Improvement Act (FFMIA) of 1996, bringing financial systems policy into greater alignment with financial management policy in Circular A-123 and with general IT guidance contained in OMB Circular No. A-130, ``Management of Federal Information Resources.'' The new appendix to Circular A-123 supersedes, and makes it no longer necessary to maintain, Circular A-127. Accordingly, OMB is suspending application of Circular A-127.

The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards (CAS) Board, is conducting fact-finding for the development of a Staff Discussion Paper (SDP) on CAS 413 Pension Adjustments for Extraordinary Events. This is the first step in a four- step process that may result in a final rule. As part of these efforts, the public is invited to attend two public meetings that are scheduled for July 31, 2013 and August 14, 2013. To facilitate fact-finding, the CAS Board encourages the submission of written comments for consideration in the drafting of the SDP.

The Office of Management and Budget (OMB) requests comments on its Draft 2013 Report to Congress on the Benefits and Costs of Federal Regulations, available at: https://www.whitehouse.gov/omb/inforeg_ regpol_reports_congress/. The Draft Report is divided into three chapters. Chapter I examines the benefits and costs of major Federal regulations issued in fiscal year 2012 and summarizes the benefits and costs of major regulations issued between October 2002 and September 2012. It also discusses regulatory impacts on State, local, and tribal governments, small business, wages, and economic growth. Chapter II offers recommendations for regulatory reform. Chapter III summarizes agency compliance with the Unfunded Mandates Reform Act. OMB requests that comments be submitted electronically to OMB by July 31, 2013 through www.regulations.gov.

Public Law 112-25, the Budget Control Act of 2011 amended the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) by reinstating the discretionary spending limits that had expired after 2002. These limits were further revised by P.L. 112-240, the American Taxpayer Relief Act of 2012 (ATRA). Section 254 of BBEDCA requires the Office of Management and Budget (OMB) to issue a Final Sequestration Report after Congress ends a session to determine whether or not a sequestration of discretionary budget authority is required based on OMB scoring of enacted appropriations legislation against those limits. ATRA, however, delayed the release of this report. Based on its scoring of enacted 2013 appropriations, OMB has determined that a sequestration of discretionary budget authority pursuant to section 251 of BBEDCA is not required. As required, these estimates rely on the same economic and technical assumptions used in the President's 2013 Budget, which the Administration transmitted to the Congress on February 13, 2012.

The Secretary of Education (Secretary) is authorized to modify the terms and conditions of loans made to the following four institutions affected by Hurricanes Katrina and Rita under the Historically Black College and University (HBCU) Capital Financing Program: Dillard University, Southern University at New Orleans, Tougaloo College, and Xavier University. The loan modifications are required by statute to be on such terms as the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget (OMB) jointly determine are in the best interests of both the United States and the borrowers and necessary to mitigate the economic effects of the hurricanes, provided that the modifications do not result in any net cost to the Federal Government. This notice (1) establishes the terms and conditions of the loan modifications, (2) outlines the methodology undertaken and factors considered in evaluating the loan modifications, and (3) describes how the loan modifications do not result in any net cost to the Federal Government.

The theft of trade secrets from U.S. corporations can impact national security, undermine U.S. global competitiveness, diminish U.S. export prospects, and put American jobs at risk. Trade secrets play a crucial role in maintaining America's global competitiveness. The Administration will continue to act vigorously to combat the theft of American trade secrets that could be used by foreign companies or foreign governments to gain an unfair commercial advantage over U.S. companies. We need to ensure that our laws are as effective as possible. Therefore, the Administration is reviewing applicable Federal law related to enforcement against economic espionage and trade secret theft. This review is pursuant to the Administration Strategy on Mitigating the Theft of U.S. Trade Secrets issued on February 20, 2013. The strategy is available at: https://www.whitehouse.gov/sites/default/ files/omb/IPEC/admin_strategy_on_mitigating_the_theft_of_u.s. _ trade_secrets.pdf http:/www.whitehouse.gov/sites/default/files/omb/ IPEC/admin_strategy_on_mitigating_the_theft_of_u.s._trade_ secrets.pdf. A related OMB blog post is available at: https://www.whitehouse.gov/ blog/2013/02/19/launch-administration-s-strategy-mitigate-the ft-us- trade-secrets. And video of the rollout event is available at: https:// www.youtube.com/watch?v=vwgYahyQ754&feature=youtu.be. In the strategy, the U.S. Intellectual Property Enforcement Coordinator (IPEC) committed to a review of existing laws related to the enforcement of trade secrets to determine if legislative changes are needed to enhance enforcement. IPEC invites public input and participation in shaping the Administration's review. Specifically, we are requesting any recommendations for legislative changes that would enhance enforcement against, or reduce the risk of, the misappropriation of trade secrets for the benefit of foreign competitors or foreign governments.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) seeks input from the public on the practice of comparing the relative cost of performance by Federal employees versus contract performance in order to identify the most cost-effective source. OFPP intends to consider feedback received in response to this notice as it evaluates existing policies addressing cost comparisons and considers new ones to help agencies save money and drive better results. Feedback will also be considered in connection with the development of guidance required by section 1655 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013, Public Law 112-239. Section 1655 requires OMB to publish guidance addressing the conversion of a function being performed by a small business concern to performance by a Federal employee. Interested parties may offer oral and/or written comments at a public meeting to be held on March 5, 2013. Parties are also encouraged to provide all written comments directly to www.regulations.gov.

This report is being published as required by the Statutory Pay-As-You-Go (PAYGO) Act of 2010, 2 U.S.C. 931 et seq. The Act requires that OMB issue (1) an annual report as specified in 2 U.S.C. 934(a) and (2) a sequestration order, if necessary.

The OFPP and CAS Board invite public comments concerning this proposed rule to clarify the exemption for contracts or subcontracts for the acquisition of commercial items (hereafter referred to as the ``(b)(6) commercial item exemption'') so that the regulatory text is more consistent with the statutory text. Specifically, the proposed rule clarification will eliminate the detailed listing of permissible contract and subcontract types, and instead the revised provision will contain more generalized language that reads ``contracts and subcontracts for the acquisition of commercial items,'' which reflects the statutory text.

Public Law 112-25, the Budget Control Act of 2011 (BCA, ``the Act'') amended the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) by reinstating the discretionary spending limits that had expired after 2002. Section 254 of the BBEDCA requires the Office of Management and Budget (OMB) to issue a Sequestration Update Report on August 20th of each year on the overall status of discretionary legislation. This report provides OMB's current estimates of the spending limits set in the Act and OMB's scoring of pending appropriations legislation against those limits as of August 2012. As required, these estimates rely on the same economic and technical assumptions used in the President's 2013 Budget, which the Administration transmitted to the Congress on February 13, 2012.

The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards Board (Board), is publishing technical corrections to the final rule that revised Cost Accounting Standard (CAS) 412, ``Composition and Measurement of Pension Cost,'' and CAS 413, ``Adjustment and Allocation of Pension Cost'' for the CAS Pension Harmonization Rule, published on December 27, 2011. Some illustrations in that document are not consistent with their corresponding Table or text, or the text used in the two effective date provisions is not consistent with each other in the amendment language. This document corrects the final regulations by revising the applicable sections accordingly.

The Office of Federal Procurement Policy is publishing this notice to advise the public that it has developed a Request for Comment to invite comment from the public on whether changes to current regulations and other guidance might improve contracting officers' access to relevant information about contractor business ethics in the Federal Awardee Performance and Integrity Information System (FAPIIS). FAPIIS is designed to facilitate the Government's ability to evaluate the business ethics of prospective contractors and protect the Government from awarding contracts to contractors that are not responsible sources.

The Office of Federal Procurement Policy (OFPP) in the Office of Management and Budget (OMB) is proposing to revise OMB Circular A- 131, Value Engineering, to update and reinforce policies associated with the consideration and use of Value Engineering (VE). VE is an effective technique for cutting waste and inefficiencyhelping Federal agencies save billions of dollars in program and acquisition costs, improve performance, enhance quality, and foster the use of innovation. The proposed revisions are designed to ensure that the Federal Government has the capabilities and tools to consider and apply VE techniques to the maximum extent appropriate.

The Office of Management and Budget (OMB) requests comments on its Draft 2012 Report to Congress on the Benefits and Costs of Federal Regulations, available at: https://www.whitehouse.gov/omb/inforeg_ regpol_reports_congress/. The Draft Report is divided into four chapters. Chapter I examines the benefits and costs of major Federal regulations issued in Fiscal Year 2011 and summarizes the benefits and costs of major regulations issued between October 2001 and September 2011. It also discusses regulatory impacts on State, local, and tribal governments, small business, wages, and economic growth. Chapter II offers recommendations for regulatory reform. Chapter III provides an update on implementation of the Information Quality Act. Chapter IV summarizes agency compliance with the Unfunded Mandates Reform Act. OMB requests that comments be submitted electronically to OMB within 60 days from the date of notice publication in the Federal Register through www.regulations.gov.

The Office of Management and Budget (OMB) is extending the comment period for the Advance Notice of Proposed Guidance on Reform of Federal Policies Relating to Grants and Cooperative Agreements; cost principles and administrative requirements (including Single Audit Act). The original comment period was scheduled to end on March 29, 2012. With this document, OMB is extending the time period in which to provide public comments until April 30, 2012. This will allow interested parties additional time to analyze the issues and prepare their comments.

In his November 23, 2009, Executive Order 13520 on Reducing Improper Payments and his February 28, 2011, Presidential Memorandum on Administrative Flexibility, Lower Costs, and Better Results for State, Local, and Tribal Governments, the President directed the Office of Management and Budget (OMB) to work with Executive Branch agencies; state, local, and tribal governments; and other key stakeholders to evaluate potential reforms to Federal grants policies. Consistent with the Administration's commitment to increasing the effectiveness and efficiency of Federal programs, the reform effort seeks to strengthen the oversight of Federal grant dollars by aligning existing administrative requirements to better address ongoing and emerging risks to program outcomes and integrity. The reform effort further seeks to increase efficiency and effectiveness of grant programs by eliminating unnecessary and duplicative requirements. Through close and sustained collaboration with Federal and non-Federal partners, OMB has developed a series of reform ideas that would standardize information collections across agencies, adopt a risk-based model for Single Audits, and provide new administrative approaches for determining and monitoring the allocation of Federal funds.

The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards Board (Board), is publishing this final rule to revise Cost Accounting Standard (CAS) 412, ``Composition and Measurement of Pension Cost,'' and CAS 413, ``Adjustment and Allocation of Pension Cost.'' This revision will harmonize the measurement and period assignment of the pension cost allocable to Government contracts, and the minimum required contribution under the Employee Retirement Income Security Act of 1974 (ERISA), as amended, as required by the Pension Protection Act (PPA) of 2006. The PPA amended the minimum funding requirements for qualified defined benefit pension plans. The Board issues this final rule to revise CAS 412 and CAS 413 to include the recognition of a ``minimum actuarial liability'' and ``minimum normal cost,'' which are measured on a basis consistent with the liability measurement used to determine the PPA minimum required contribution, and accelerate the recognition of actuarial gains and losses. These and other revisions will better align both the measurement and period assignment of pension cost allocable to a contractor's Government contracts and other final cost objectives in accordance with CAS, and the measurement and period assignment requirements for determining the contractor's minimum pension contribution under the PPA.

The Office of Management and Budget (OMB) is issuing final guidance to Executive Departments and agencies concerning the appointment of federally registered lobbyists to boards and commissions. On June 18, 2010, President Obama issued ``Lobbyists on Agency Boards and Commissions,'' a memorandum directing agencies and departments in the Executive Branch not to appoint or re-appoint federally registered lobbyists to advisory committees and other boards and commissions. The Presidential Memorandum further directed the Director of OMB to ``issue proposed guidance to implement this policy to the full extent permitted by law.'' Proposed guidance was posted on November 2, 2010 and the final guidance was formulated after review of the comments received to the proposed guidance. The Presidential Memorandum is available at https://www.whitehouse.gov/the-press-office/ presidential-memorandum-lobbyists-agency-boards-and-commissio ns.