[Federal Register: May 31, 2011 (Volume 76, Number 104)]
[Rules and Regulations]               
[Page 31416]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 31416]]





48 CFR Part 42

[FAC 2005-52; FAR Case 2010-017; Item V; Docket 2010-0017, Sequence 1]
RIN 9000-AL92

Federal Acquisition Regulation; Oversight of Contractor Ethics 

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

ACTION: Final rule.


SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to add to the list of contract 
administration functions, the function to ensure that contractors have 
implemented the mandatory contractor business ethics program 

DATES: Effective Date: June 30, 2011.

FOR FURTHER INFORMATION CONTACT: Mr. Anthony Robinson, Procurement 
Analyst, at (202) 501-2658, for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-52, FAR 
Case 2010-017.


I. Background

    This final rule amends the FAR in response to recommendations from 
the Government Accountability Office (GAO) Report GAO-09-591, Defense 
Contracting Integrity--Opportunities Exist to Improve DoD's Oversight 
of Contractor Ethics Programs. The ethics program requirement flows 
from FAR 52.203-13, Contractor Code of Business Ethics and Conduct.
    This final rule modifies FAR 42.302, Contract Administration 
Functions, to add to the list of contract administration functions, the 
function to ensure that contractors have implemented the mandatory 
contractor business ethics program requirements of FAR 52.203-13.

II. 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 a significant regulatory action and, therefore, was 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.

III. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707. However, DoD, GSA, and 
NASA will consider comments from small entities concerning the affected 
FAR part in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 610, et seq. 
(FAC 2005-52, FAR Case 2010-017) in correspondence.

IV. Paperwork Reduction Act

    The final 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).

List of Subjects in 48 CFR Part 42

    Government procurement.

    Dated: May 18, 2011.
Millisa Gary,
Acting Director, Office of Governmentwide Acquisition Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 42 as set forth 


1. The authority citation for 48 CFR part 42 continues to read as 

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

2. Amend section 42.302 by adding paragraph (a)(71) to read as follows:

42.302   Contract administration functions.

    (a) * * *
    (71) Ensure that the contractor has implemented the requirements of 
52.203-13, Contractor Code of Business Ethics and Conduct.
* * * * *
[FR Doc. 2011-12855 Filed 5-27-11; 8:45 am]