[Federal Register Volume 78, Number 39 (Wednesday, February 27, 2013)]
[Rules and Regulations]
[Pages 13211-13212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-04569]

Rules and Regulations
                                                Federal Register

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Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / 
Rules and Regulations

[[Page 13211]]


2 CFR Part 1880

RIN 2700-AD81

Commercial Acquisition; Extension of Suspension and Debarment 
Exclusions, Grants and Cooperative Agreements

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.


SUMMARY: NASA has adopted as final, with no change, a proposed rule to 
extend coverage of non-procurement suspension and debarment to all 
tiers of procurement and non-procurement actions under all grants and 
cooperative agreements. 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: http://www.nasa.gov/pdf/581545main_Final%20Plan%20for%20Retrospective0%20Analysis%20of%20Existing%20Regulations.pdf.

DATES: Effective Date: March 29, 2013.

Procurement, Contract Management Division (Suite 5G84); (202) 358-0592; 
email: leigh.pomponio@nasa.gov.


A. Background

    On August 31, 2005 (70 FR 51865), the Office of Management and 
Budget promulgated guidelines to Federal agencies on the governmentwide 
debarment and 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 part 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 participants.
    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 since 
reconsidered its position on flow down and this final rule revises 2 
CFR 1880.220 to apply to all participants at all tiers, and to 
procurement and non-procurement actions at any dollar amount, under 
Agency grants and cooperative agreements. NASA will not permit any 
subawards to individuals or entities that are listed on the Excluded 
Parties List Service (EPLS).
    To extend the suspension and debarment exclusions, NASA published a 
proposed rule on October 29, 2012. The due date for public comments in 
response to the proposed rule was December 28, 2012. NASA did not 
receive any comments.

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 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. Small entities are 
already required to check the Excluded Parties List System (EPLS) prior 
to making first-tier, procurement subawards under a grant or 
cooperative agreement. They will now be required to ensure that none of 
their potential subrecipients are on the EPLS. The EPLS is an easy-to-
access and easy-to-use on-line resource.

D. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 104-13) is not applicable 
because the 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; Federal Grant program.

Ronald A. Poussard,
Acting Assistant Administrator for Procurement.

    Accordingly, 2 CFR part 1880 is amended as follows:


1. The authority citation for part 1880 continues to read as follows:

    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

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

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or debarred entities at any tier, at any dollar amount.

[FR Doc. 2013-04569 Filed 2-26-13; 8:45 am]