SUPPLEMENTARY INFORMATION:

I. Background

This rule is a result of the GSAM Rewrite initiative undertaken by GSA to revise the GSAM to maintain consistency with the Federal Acquisition Regulation (FAR), and to implement streamlined and innovative acquisition procedures that contractors, offerors, and GSA contracting personnel can utilize when entering into and administering contractual relationships. The GSAM incorporates the GSAR as well as internal agency acquisition policy. GSA will rewrite each part of the GSAR and GSAM, and as each GSAR part is rewritten, will publish it in the Federal Register . This rule covers the rewrite of GSAR Part 504, Administrative Matters.

On October 9, 2008, GSA published in the Federal Register at 73 FR 59589 a proposed rule with a request for comments.

Two comments were received and are addressed below. In addition, internal ( printed page 59791) review comments were received and have been incorporated, as appropriate.

II. Discussion and Analysis of the Public Comments

The General Services Administration reviewed the public comments in the development of the final rule. Two public comments were received from one respondent in response to the proposed rule. The comments and responses are as follows:

Comment: One respondent expressed concern that GSAR 504.1303 duplicates information found in FAR 4.1303 and does not add any additional or clarifying language. Thus, the respondent recommended deletion of GSAR 504.1303.

Response: Nonconcur. GSAR 504.1303 provides the prescription for inclusion of the clause at 552.204-9, Personal Identity Verification Requirements, in solicitations and contracts when it is determined that contractor employees will require routine physical access to GSA controlled facilities or information systems to perform contract requirements.

Comment: One respondent recommended deleting the clause at GSAR 552.204-9, in favor of the FAR clause 52.204-9, because the clause does not provide any additional information to the FAR other than vague references to GSA requirements.

Response: Nonconcur. The GSAR clause replaces the FAR clause when the contractor is required to adhere to GSA verification requirements.

Revisions to GSAR Part 504, Administrative Matters, include updating statutory and regulatory references, updating titles, deleting outdated office symbols, eliminating confusing or redundant supplementary material, maintaining consistency with the FAR while eliminating duplication, and editing text for clarity. This final rule amends:

• GSAR Subpart 504.4, Safeguarding Classified Information Within Industry, to delete subtitles, renumber the section, delete former GSAM 504.402(a)(2) and GSAM 504.402(b)(2)in its entirety, and includes some minor revisions for clarity.
• GSAR 504.475, Return of classified information, to delete outdated references, and add a reference to the “National Industrial Security Program Operating Manual (NISPOM)”, and link to the web address for NISPOM. GSAM 504.475 additionally contains some minor revisions for clarity and to add a new paragraph (c) to address the contractor's responsibility for the return of the classified information.
• GSAR Subpart 504.5, Electronic Commerce in Contracting, to delete GSAR 504.500, Scope of Part, in its entirety. GSAR 504.502, Policy, was revised to add language addressing the methods of authentication used for electronic signatures. Additionally, paragraphs (a), (b), and (c) are deleted in its entirety. GSAR 504.570, Procedures for using EPS, are deleted in its entirety.
• GSAR Subpart 504.6, Contract Reporting, to add GSAR 504.604, Responsibilities, to address FPDS data verification and validation requirements and to include applicable text to address timely and accurate input of data into the Federal Procurement Data System (FPDS).
• GSAR 504.602-71, Federal Procurement Data System—Public Access to Data, is redesignated as GSAR 504.605-70 and paragraph (a) is revised to delete the words “Federal Acquisition Regulation.”
• GSAR Subpart 504.11, Central Contractor Registration (CCR) and GSAR 504.1103, Procedures, to add the requirement that prior to awarding a contractual instrument, the contracting officer verifies the prospective contractor's legal business name, Doing-Business-As (DBA) name (if any), physical street address, and Data Universal Number System (DUNS) number or DUNS+4 number. Further, the contracting officer is required to verify that the contractor's address code exists in GSA's financial accounting application (Pegasys) and that it is CCR enabled with the contractor's DUNS or DUNS+4 number.
• GSAR Subpart 504.13, Personal Identity Verification of Contractor Personnel, and GSAR 504.1301, Policy, to establish the requirement for ensuring compliance with Homeland Security Presidential Directive-12 (HSPD-12), Policy for a Common Identification Standard for Federal Employees and Contractors; Office of Management and Budget Memorandum M-05-24, Implementation of Homeland Security Presidential Directive (HSPD)12—Policy for a Common Identification Standard for Federal Employees and Contractors; Department of Commerce Federal Information Processing Standards (FIPS) Publication (PUB) 201; and GSA HSPD-12 Personal Identify Verification and Credentialing Standard Operating Procedures.
• GSAR 504.1303, Contract Clause, to add the prescription for GSAR clause 552.204-9, Personal Identity Verification Requirements, which is to be included in solicitations and contracts when it is determined that contractor employees will require routine physical access to federally controlled facilities or information systems to perform contract requirements.
• GSAR 552.204-9, Personal Identity Verification Requirements, to add a clause in contracts when it is determined that contractor employees will require routine physical access to federally controlled facilities or information systems to perform contract requirements.
• GSAM 553.370-1720, GSA Form 1720, Request for Release of Classified Information to U.S. Industry, to delete the form in its entirety. This form was removed from the GSA Forms library due to lack of demand for printed copies.

III. 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 not a significant regulatory action and, therefore, was not 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.

IV. Regulatory Flexibility Act

The General Services Administration certify 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 changes are editorial in nature, primarily consisting of updating statutory and regulatory references, updating titles, deleting outdated office symbols, and eliminating confusing or redundant supplementary material.

V. 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).

Therefore, GSA amends 48 CFR parts 504 and 552 as set forth below:

1. The authority citation for 48 CFR parts 504 and 552 continues to read as follows:

Authority: 40 U.S.C. 121(c).

2. Revise section 504.402 to read as follows:

3. Revise section 504.475 to read as follows:

4. Remove and reserve section 504.500.

5. Revise section 504.502 to read as follows:

6. Remove and reserve section 504.570.

7. Redesignate section 504.602-71 as section 504.605-70.

8. Add section 504.604 to read as follows:

9. Amend the newly redesignated section 504.605-70 by removing from paragraph (a) “Federal Acquisition Regulation (FAR) Subpart” and adding “FAR subpart” in its place.

10. Add Subpart 504.11 to read as follows:

11. Add Subpart 504.13 to read as follows:

12. Add section 552.204-9 to read as follows: