[Federal Register Volume 77, Number 209 (Monday, October 29, 2012)]
[Proposed Rules]
[Page 65500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-26543]

Proposed Rules
                                                Federal Register

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.


Federal Register / Vol. 77, No. 209 / Monday, October 29, 2012 / 
Proposed Rules

[[Page 65500]]


2 CFR Part 1880

RIN 2700-AD81

Extension of Suspension and Debarment Exclusions, Grants and 
Cooperative Agreements

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.


SUMMARY: NASA proposes to extend coverage of nonprocurement suspension 
and debarment to all-tier procurement and non-procurement actions under 
all grants and cooperative agreements.

DATES: Interested parties should submit comments to NASA at the address 
below on or before December 28, 2012 to be considered in formulation of 
the final rule.

ADDRESSES: Interested parties may submit comments, identified by RIN 
number 2700-AD81 via the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. 
Comments may also be submitted to Leigh Pomponio via email at 
[email protected].

Procurement, (202) 358-0592 or email: [email protected].


A. Background

    The revisions herein are part of NASA's retrospective plan under EO 
13563 completed in August 2011. NASA's full plan can be accessed at: 
    On August 31, 2005 (70 FR 51865) The Office of Management and 
Budget promulgated guidelines to Federal agencies on the 
governnmentwide debarment suspension system for nonprocurement 
programs. The OMB guidance to Federal Agencies was amended on November 
15, 2006 (71 FRN 664320). These two notices resulted in the 
governmentwide regulation at 2 CFR 180. Specifically, at Sec.  
180.220(c), OMB offered Federal agencies flow down options for 
application of nonprocurement suspension and debarment regulations to 
procurement actions under covered transactions. OMB permitted Agencies 
to flow down requirements to just the first-tier or to all lower-tier 
    On April 20, 2007, NASA promulgated a final rule (72 FR 19783) 
which established a new Part 1880 in Title 2 of the Code of Federal 
Regulations (CFR) on nonprocurement debarment and suspension. This rule 
implemented and supplemented the Office of Management and Budget's 
(OMB) guidance provided at 2 CFR Part 180. It included agency-specific 
regulations related to nonprocurement suspension and debarment. At the 
time of that action, NASA elected to limit the flow down of 
nonprocurement suspension and debarment applicability to only first-
tier procurement contacts thereunder. However, NASA has reconsidered 
its position on flow down and is currently proposing to revise 2 CFR 
1880.220 to apply to all participants at all tiers under procurement 
and non-procurement actions at any dollar amount. NASA will not permit 
any subawards to individuals or entities that are listed on the 
Excluded Parties List Service (EPLS).

B. 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 final rule is not a ``significant regulatory action'' under 
section 3(f) of Executive Order 12866. This rule is not a major rule 
under 5 U.S.C. 804.

C. Regulatory Flexibility Act

    NASA certifies that this proposed rule will not 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. It will 
require entities to check the Excluded Parties List System (EPLS) prior 
to making subawards under a grant or cooperative agreement; the EPLS is 
an easy-to-access and use on-line resource.

D. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) is not applicable 
because the NFS changes do not impose information collection 
requirements that require the approval of the Office of Management and 
Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 2 CFR Part 1880

    Government procurement.

William P. McNally,
Assistant Administrator for Procurement.
    Accordingly, 2 CFR Part 1880 is amended as follows:
    1. The authority citation for 2 CFR part 1880 continues to read as 

    Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 
12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 
235; 42 U.S.C. 2473(c)(1).

    2. Section 1880.220 is revised to read as follows:

Sec.  1880.220  What contracts and subcontracts, in addition to those 
listed in 2 CFR 180.220, are covered transactions?

    NASA extends coverage of nonprocurement suspension and debarment 
requirements beyond first-tier procurement contracts under a covered 
nonprocurement action, to all lower tier subcontracts, at all dollar 
values, consistent with OMB guidance at 2 CFR 180.220(c) and the figure 
in the appendix at 2 CFR part 180. NASA does not permit subcontracting 
to suspended or debarred entities at any tier, at any dollar amount.

[FR Doc. 2012-26543 Filed 10-26-12; 8:45 am]