[Federal Register Volume 65, Number 170 (Thursday, August 31, 2000)]
[Rules and Regulations]
[Pages 52954-52955]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-22093]


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DEPARTMENT OF DEFENSE

48 CFR Parts 209 and 223

[DFARS Case 2000-D004]


Defense Federal Acquisition Regulation Supplement; Pollution 
Control and Clean Air and Water

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to revise and relocate policy on the level of approval required to 
except a contract from certain restrictions of the Clean Air Act or the 
Clean Water Act. The policy is moved from the Pollution Control and 
Clean Air and Water subpart to the Debarment, Suspension, and 
Ineligibility subpart of the DFARS, because the Federal Acquisition 
Regulation (FAR) subpart on Pollution Control and Clean Air and Water 
has been removed.

EFFECTIVE DATE: August 31, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Sandra G. Haberlin, Defense 
Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
telefax (703) 602-0350. Please cite DFARS Case 2000-D004.

SUPPLEMENTARY INFORMATION:

A. Background

    On December 27, 1999, Item I of Federal Acquisition Circular 97-15 
(64 FR 72415) removed Subpart 23.1, Pollution Control and Clean Air and 
Water, from the FAR. Subpart 23.1 contained policy pertaining to 
entities that are ineligible for contract award due to a violation of 
the Clean Air Act or the Clean Water Act. The FAR text was deemed 
unnecessary, because contracting officers can use the General Services 
Administration List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs to ensure that they do not award contracts to 
ineligible entities. In accordance with Environmental Protection Agency 
regulations at 40 CFR 32.215(b), FAR Subpart 23.1 permitted an agency 
head to except a contract from the prohibition on award to a Clean Air 
Act or Clean Water Act violator if it was in the paramount interest of 
the United States to do so. DFARS Subpart 223.1 limited delegation of 
this exception authority to a level no lower than an official who is 
appointed by and with the advice of the Senate.
    This final rule--
    1. Removes the text from DFARS Subpart 223.1, since FAR Subpart 
23.1 no longer exists; and relocates the text to DFARS 209.405(b), 
since the corresponding text at FAR 9.405(b) addresses matters relating 
to entities on the List of Parties Excluded from Federal Procurement 
and Nonprocurement Programs;
    2. Retains a limitation on delegation of the exception authority, 
but lowers the permitted level of delegation to a level no lower than a 
general or flag officer or a member of the Senior Executive Service; 
and
    3. Designates the text already located at DFARS 209.405 as 
209.405(a), and amends the text to clarify that the provisions of 10 
U.S.C. 2393 regarding a ``compelling reason'' determination apply only 
to the conduct of business with entities that are debarred or 
suspended.
    DoD published a proposed rule at 65 FR 32065 on May 22, 2000. DoD 
received no public comments on the proposed rule. The proposed rule is 
converted to a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final 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., 
because the rule pertains only to the exceptional situations where 
there is a need to conduct business with entities that are debarred or 
suspended or, because of a violation of the Clean Air Act or the Clean 
Water Act, are ineligible for award.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

[[Page 52955]]

List of Subjects in 48 CFR Parts 209 and 223

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Parts 209 and 223 are amended as follows:
    1. The authority citation for 48 CFR Parts 209 and 223 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 209--CONTRACTOR QUALIFICATIONS

    2. Section 209.405 is revised to read as follows:


209.405  Effect of listing.

    (a) Under 10 U.S.C. 2393(b), when a department or agency determines 
that a compelling reason exists for it to conduct business with a 
contractor that is debarred or suspended from procurement programs, it 
must provide written notice of the determination to the General 
Services Administration, Office of Acquisition Policy. Examples of 
compelling Reasons are--
    (i) Only a debarred or suspended contractor can provide the 
supplies or services;
    (ii) Urgency requires contracting with a debarred or suspended 
contractor;
    (iii) The contractor and a department or agency have an agreement 
covering the same events that resulted in the debarment or suspension 
and the agreement includes the department or agency decision not to 
debar or suspend the contractor; or
    (iv) The national defense requires continued business dealings with 
the debarred or suspended contractor.
    (b)(i) The Procurement Cause and Treatment Code ``H'' annotation in 
the GSA List of Parties Excluded from Federal Procurement and 
Nonprocurement Programs identifies contractors that are declared 
ineligible for award of a contract or subcontract because of a 
violation of the Clean Air Act (42 U.S.C. 7606) or the Clean Water Act 
(33 U.S.C. 1368).
    (ii) Under the authority of 40 CFR 32.215(b), the agency head may 
grant an exception permitting award to a Code ``H'' ineligible 
contractor if it is in the paramount interest of the United States.
    (A) The agency head may delegate this exception authority to a 
level no lower than a general or flag officer or a member of the Senior 
Executive Service.
    (B) The official granting the exception must provide written notice 
to the Environmental Protection Agency debarring official.

PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

Subpart 223.1--[Removed]

    3. Subpart 223.1 is removed.

[FR Doc. 00-22093 Filed 8-30-00; 8:45 am]
BILLING CODE 5000-04-M