[Federal Register Volume 79, Number 104 (Friday, May 30, 2014)]
[Rules and Regulations]
[Pages 31193-31195]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12393]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 42, and 52

[FAC 2005-74; FAR Case 2014-016; Item II; Docket No. 2014-0016, 
Sequence No. 1]
RIN 9000-AM77


Federal Acquisition Regulation; Repeal of the Recovery Act 
Reporting Requirements

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA have adopted as final, with changes, two 
interim rules amending the Federal Acquisition Regulation (FAR) to 
revise the clause on Recovery Act reporting procedures. This final rule 
implements a section of the Consolidated Appropriations Act, 2014, by 
repealing the reporting requirements of the American Recovery and 
Reinvestment Act of 2009.

DATES: Effective: May 30, 2014.
    Applicability: In accordance with FAR 1.108(d)(3), Contracting 
Officers may, at their discretion, modify existing contracts to amend 
52.204-11 in paragraph (c) to add a statement that ``Starting February 
1, 2014, future reporting is not required.''

FOR FURTHER INFORMATION CONTACT: Mr. Curtis E. Glover, Sr., Procurement 
Analyst, at 202-501-1448 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-74, FAR Case 2014-
016.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 627 of Division E of the Consolidated Appropriations Act, 
2014 (Pub. L. 113-76), repealed the contractor reporting requirements 
that were in section 1512(c) of Division A of the American Recovery and 
Reinvestment Act of 2009 (Recovery Act) (Pub. L. 111-5). Starting 
February 1, 2014, future reporting is not required. A message has been 
posted at www.federalreporting.gov notifying Federal contractors of 
this change. As of March 20, 2014, the Web site is closed for future 
reporting.
    Section 627 also amended section 1512(d) to replace the requirement 
that agencies make publicly available the information previously 
reported by contractors under section 1512(c) with the requirement that 
each agency that made recovery funds available to any recipient, make 
publicly available detailed spending data as prescribed by the Office 
of Management and Budget and pursuant to the Federal Funding 
Accountability and Transparency Act of 2006 (FFATA) (Pub. L. 109-282).
    Although Federal contractors and agencies are not required after 
January 31, 2014, to comply with future reporting requirements of the 
Recovery Act, which were implemented in FAR subpart 4.15, 42.15, and 
the clause at 52.204-11, American Recovery and Reinvestment Act--
Reporting Requirements, contractors and agencies are still required to 
continue their FFATA reporting on existing contracts, as implemented in 
FAR subpart 4.14 and clause 52.204-10, Reporting Executive Compensation 
and First-Tier Subcontract Awards.
    To notify the acquisition community of this change the following 
steps were taken: (1) The Civilian Agency Acquisition Council (CAAC) 
issued CAAC letter 2014-02 titled ``Class Deviation from the Federal 
Acquisition Regulation (FAR) to Repeal the American Recovery and 
Reinvestment Act of 2009 (the Recovery Act) Reporting Requirement'' on 
February 20, 2014; and (2) DoD issued a deviation titled ``Class 
Deviation-Repeal of the Recovery Act Reporting Requirements'' dated 
March 11, 2014.

II. Discussion and Analysis

    DoD, GSA, and NASA published an interim rule under FAR Case 2009-
009, American Recovery and Reinvestment Act of 2009 (Recovery Act)--
Reporting Requirements, in the Federal Register at 74 FR 14639 on March 
31, 2009, and notices published at 74 FR 42877 on August 25, 2009, and 
at 74 FR 48971 on September 25, 2009. DoD, GSA, and NASA published in 
the Federal Register a separate interim rule under FAR Case 2010-008, 
Recovery Act Subcontract Reporting Procedures, at 75 FR 38684 on July 
2, 2010, and a correction published at 75 FR 43090 on July 23,

[[Page 31194]]

2010. Responses to the interim rule published under 2009-009 were 
received from 39 respondents, and one respondent commented on the 
interim rule published under FAR Case 2010-008.
    The CAAC and the Defense Acquisition Regulations Council (DARC) 
reviewed the public comments received.
    However, due to the repeal of the Recovery Act reporting 
requirements, the two FAR cases under which the interim rules were 
published have been closed into this FAR Case 2014-016, which adopts 
the interim rules as a final rule, with changes. This final rule 
deletes the obsolete text at FAR subpart 4.15 and 52.204-11 and makes 
conforming changes at 42.1501(a)(5) and 52.212-5(b)(5).
    Therefore, the comments received with regard to the two previously 
published interim rules that addressed applicability, definitions, Web 
sites, the reporting requirements, paperwork burden, and impact on 
small business, are no longer relevant.

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. 601, et seq. The FRFA is summarized as follows:

    The objective of this final rule is to delete the reporting 
requirements at FAR subpart 4.15 and the clause at 52.204-11, 
American Recovery and Reinvestment Act Reporting Requirements. The 
two prior interim rules (2009-009 and 2010-008), which established 
the current FAR coverage, have been closed into this final rule. 
This is necessary because section 627 of Division E of the 
Consolidated Appropriations Act, 2014, amended Title XV of Division 
A of the American Recovery and Reinvestment Act, FY 2014 (Pub. L. 
111-5), including repeal of the contractor reporting requirements.
    Although comments were received on the two prior interim rules, 
these comments are no longer relevant, because the reporting 
requirements have been deleted, and there is no further burden on 
any entity, small or large, that is associated with Recovery Act 
reporting.
    An initial report, with quarterly updates, was required from all 
Federal contractors that received awards funded by the Recovery Act. 
As of March 15, 2010, the Federal Procurement Data System (FPDS) 
indicated that there were 36,680 Recovery Act awards, including 
modifications, totaling $43,716,219,816. Of the Recovery Act prime 
contract awards, 39.5%, or 14,501 were made to small businesses. The 
number of first-tier subcontractors estimated to participate in 
Recovery Act awards was 73,360. Of these 73,360 Recovery Act first-
tier subcontractors, it was estimated that 40%, or 29,344, were 
small businesses.
    Performance of most contracts awarded using Recovery Act funds 
is already complete. Therefore, we estimate that not more than 
several hundred small entities will be positively impacted by the 
elimination of the reporting requirements.
    The reports being deleted were probably prepared by a company 
contract administrator or contract manager or a company subcontract 
administrator. The information required in the report was primarily 
information that companies would maintain for their own business 
purposes including, but not limited to, contract or other award 
number, the dollar amount of invoices, the supplies or services 
delivered, a broad assessment of progress towards completion, the 
estimated number of new jobs created or retained resulting from the 
award, and first-tier subcontract information (or aggregate 
information if the subcontract is less than $25,000, or the 
subcontractor is an individual or had gross income in the previous 
tax year of less than $300,000). While most of the data elements 
imposed only one-time burden collection, some required quarterly 
updates.
    Deletion of the Recovery Act reporting requirements from the FAR 
has eliminated all economic impact of the two prior interim FAR 
rules on small entities.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy 
of the FRFA to the Chief Counsel for Advocacy of the Small Business 
Administration.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35). This final rule 
repealed the contractor reporting requirements that were in section 
1512(c) of Division A of the American Recovery and Reinvestment Act of 
2009 (Recovery Act) (Pub. L. 111-5). Therefore, a request will be 
submitted to OMB to cancel OMB clearances 9000-0166, 9000-0167, 9000-
0168, 9000-0169, and 9000-0176. As a result of this action, the public 
burden for reporting recovery actions has been reduced by 419,019 
hours. However, even though Federal contractors and agencies are not 
required after January 31, 2014, to comply with future reporting 
requirements of the Recovery Act, which were implemented in FAR 
subparts 4.15 and 42.15, and the clause at 52.204-11, American Recovery 
and Reinvestment Act--Reporting Requirements, both groups are still 
required to continue their FFATA reporting on existing contracts, as 
implemented in FAR subpart 4.14 and clause 52.204-10, Reporting 
Executive Compensation and First-Tier Subcontract Awards and that 
reporting requirement is covered under a separate collection.

List of Subjects in 48 CFR Parts 4, 42, and 52

    Government procurement.

    Dated: May 22, 2014.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Government-wide Policy.

Interim Rules Adopted as Final With Changes

    Accordingly, the interim rules amending 48 CFR parts 4 and 52, 
which were published in the Federal Register at 74 FR 14639, March 31, 
2009, and at 75 FR 38684, July 2, 2010, are adopted as final with the 
following changes:

0
1. The authority citation for 48 CFR parts 4, 42, 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 4--ADMINISTRATIVE MATTERS

Subpart 4.15 [Removed and Reserved]

0
2. Remove and reserve Subpart 4.15.

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES


42.1501   [Amended]

0
3. Amend section 42.1501 by removing from paragraph (a)(5) ``subparts 
4.14 and 4.15'' and adding ``subpart 4.14'' in its place.

[[Page 31195]]

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.204-11  [Removed and Reserved]

0
4. Remove and reserve section 52.204-11.

0
5. Amended section 52.212-5 by--
0
a. Revising the date of the clause; and
0
b. Removing and reserving paragraph (b)(5).
    The revised text reads as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

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Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (May 2014)

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[FR Doc. 2014-12393 Filed 5-29-14; 8:45 am]
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