SUPPLEMENTARY INFORMATION:

A. Background

Department of Defense Inspector General Audit Report No. D02009-005, titled Controls Over the Contractor Common Access Card (CAC) Life Cycle, was performed to determine whether Government controls were in place over contractor CACs. A CAC is the DoD term for a Personal Identity Verification (PIV) card. A PIV card is required in order to gain access to a Federal facility. The most prevalent issue of the audit report, and the one that the Councils are undertaking with this case, was that the ( printed page 28772) CACs were not adequately accounted for after contract performance.

The Councils are proposing to amend the FAR by inserting new paragraphs (d)(1) and (2) under section 4.1301, Policy. Paragraph (d)(1) will provide policy on recovering PIVs. The text in paragraph (d)(1) states that agency procedures shall ensure that Government contractors account for all forms of Government-provided identification issued to Government contractors under a contract, and return such identification to the issuing agency at the earliest of any of the following, unless otherwise determined by the agency: when no longer needed for contract performance; upon completion of a contractor employee’s employment; upon contract completion or termination. The text in paragraph (d)(2) states that the contracting officer may delay final payment under a contract if the contractor fails to comply with these requirements.

The Councils are also proposing to modify FAR clause 52.204-9, Personal Identity Verification of Contractor Personnel to be consistent with Part 4.

This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

The Councils do not expect this proposed rule to 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 requirements of the actions required and the clause are not significantly burdensome. Currently, it is a common business practice to have procedures in place to revoke/return access cards when no longer in use by the contractor. An Initial Regulatory Flexibility Analysis has, therefore, not been performed. We invite comments from small businesses and other interested parties. The Councils will consider comments from small entities concerning the affected FAR Parts 4 and 52 in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 601, et seq. (FAR case 2009-027), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the proposed changes to the FAR do not impose information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. Chapter 35, et seq.

Government procurement.

Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 4 and 52 as set forth below:

1. The authority citation for 48 CFR parts 4 and 52 continues to read as follows:

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

2. Amend section 4.1301 by adding paragraphs (d)(1) and (d)(2) to read as follows:

3. Amend section 52.204-9 by:

a. Revising the date of the clause;

b. Redesignating paragraph (b) as paragraph (d), and adding new paragraphs (b) and (c); and revising the newly designated paragraph (d).

The added and revised text reads as follows: