Federal Acquisition Regulation: System for Award Management Registration

AGENCY:

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

ACTION:

Proposed rule.

SUMMARY:

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to update the instructions for System for Award Management (SAM) registration requirements and to correct an inconsistency with offeror representation and certification requirements.

DATES:

Interested parties should submit written comments to the Regulatory Secretariat Division at one of the addresses shown below on or before July 19, 2016 to be considered in the formation of the final rule.

ADDRESSES:

Submit comments in response to FAR case 2015-005 by any of the following methods:

• Regulations.gov: http://www.regulations.gov . Submit comments via the Federal eRulemaking portal by searching “FAR Case 2015-005”. Select the link “Comment Now” that corresponds with “FAR Case 2015-005.” Follow the instructions provided on the screen. Please include your name, company name (if any), and “FAR Case 2015-005” on your attached document.
• Mail: General Services Administration, Regulatory Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405.

Instructions: Please submit comments only and cite FAR Case 2015-005, in all correspondence related to this case. All comments received will be posted without change to http://www.regulations.gov,, including any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT:

Mr. Curtis E. Glover, Sr., Procurement Analyst, at 202-501-1448 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAR Case 2015-005.

SUPPLEMENTARY INFORMATION:

I. Background

Currently, the language in the FAR is not consistent in terms of whether offerors need to be registered in SAM prior to submitting an offer or prior to award. Per FAR clause 52.204-7 an offeror is not “registered in the SAM database” unless an offeror has completed its online annual representations and certifications. FAR 52.204-8(b) and (d) state that if clause 52.204-7 is included in the solicitation, then the offeror verifies by submission of the offer that the representations and certifications in SAM are current and accurate. While the clauses instruct offerors to complete representations and certifications by registering in SAM prior to the submission of offers, the policy at FAR 4.1102 states that SAM registration (which includes online reps and certs) must be completed by the time of award. In order to correct this inconsistency DoD, GSA, and NASA are proposing to amend FAR 4.1102 and 4.1103 to require offeror registration in SAM prior to submission of an offer.

In addition, the proposed rule will require contracting officers to use the name and physical address from the contractor's SAM registration for the provided Data Universal Numbering System (DUNS). We recognize that there is an ongoing FAR case (2015-022, Unique Identification of Entities Receiving Federal Awards) to remove the reference to the DUNS number, and once the final rule from that case is published; references to the DUNS number will be changed. This proposed rule also removes the term “division name” from the FAR text at FAR 4.1102, clause 52.204-13, and provision 52.212-4.

The proposed rule also changes the referenced Web site “acquisition.gov” to “SAM.gov” to be consistent with the rest of the FAR. “Database” is also added to “SAM” so that in the FAR it is clearly understood that the reference is to the “SAM database”.

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 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 proposed rule is not a major rule under 5 U.S.C. 804.

V. Regulatory Flexibility Act

DoD, GSA, and NASA 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 proposed rule would only change when an offeror must be registered in SAM. However, an initial regulatory flexibility analysis (IRFA) has been performed and is summarized as follows:

FAR subpart 4.11 was updated by FAR case 2012-033 which was published in the Federal Register at 78 FR 37676 on June 21, 2013, to reflect the retirement of the Central Contractor Registration and Online Representation and Certification Application systems and the implementation of SAM. Since the final rule was published, the Department of Defense (DoD) identified three clarifications that need to be made to the subpart and its associated provisions and clauses.

Currently, the language in the FAR is not consistent in terms of whether offerors need to be registered in SAM prior to submitting an offer or prior to award. Per FAR clause 52.204-7 an offeror is not “registered in the SAM database” unless an offeror has completed its online annual representations and certifications. FAR 52.204-8(b) and (d) state that if clause 52.204-7 is included in the solicitation, then the offeror verifies by submission of the offer that the representations and certifications in SAM are current and accurate. While the clauses instruct offerors to complete representations and certifications by registering in SAM prior to submission of offers, the policy at FAR 4.1102 states that SAM registration (which includes online reps and certs) must be completed by the time of award.

In order to correct this inconsistency the rule proposes that offerors be registered in SAM prior to submission of an offer. Once offerors are registered in SAM they are in the system and are only required to update SAM registration in accordance with the clause. This eliminates the need for potential offerors to complete reps and certs multiple times when responding to solicitations.

The proposed rule would apply to small businesses that submit offers to the Federal Government. The rule contains information collection requirements. OMB has cleared this information collection requirement under OMB Control Number 9000-0159, titled: Central Contractor Registration. GSA has submitted a request to OMB to change the name of the collection to “System for Award Management Registration.” That request is pending.

The total number of small businesses in the Federal Procurement Data System (FPDS) for FY 2013 is 111,036. This proposed rule would apply to that number of small businesses, as well as an estimated equal number that did not receive an award for FY 2013.

There will be no burden on small businesses because this proposed rule change does not place any new requirements on small entities. The only change is when the requirement for submission of the representations and certifications must occur.

This proposed rule requires offerors to be registered in SAM prior to submission of an offer. Once offerors are registered in SAM they are in the system and are only required to update SAM registration in accordance with the clause. This eliminates the need for potential offerors to complete representations and certifications multiple times when responding to solicitations.

The proposed rule does not duplicate, overlap, or conflict with any other Federal rules.

There are no significant alternatives to the rule which accomplish the stated objectives of applicable statutes and which minimize any significant economic impact of the proposed rule on small entities.

The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this proposed rule on small entities.

DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the proposed rule consistent with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-005), in correspondence.

VI. Paperwork Reduction Act

The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The proposed rule contains information collection requirements. OMB has cleared this information collection requirement under OMB Control Number 9000-0159; Central Contractor Registration. GSA has submitted a request to OMB to change the name of the collection to “System for Award Management Registration.” That request is pending.

List of Subjects in 48 CFR Parts 2, 4, 7, 9, 12, 13, 17, 18, 19, 22, 25, 26, 28, 32, 44, and 52

• Government procurement

Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR parts 2, 4, 7, 9, 12, 13, 17, 18, 19, 22, 25, 26, 28, 32, 44, and 52, as set forth below:

1. The authority citation for 48 CFR parts 2, 4, 7, 9, 12, 13, 17, 18, 19, 22, 25, 26, 28, 32, 44, and 52 continues to read as follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113.

PART 2—DEFINITIONS OF WORDS AND TERMS

2. Amend section 2.101 in paragraph (b) by removing from the definition “Disaster Response Registry”, “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

PART 4—ADMINISTRATIVE MATTERS

3. Amend section 4.605 by revising the introductory text of paragraph (c)(2) to read as follows.

4. Amend section 4.1102 by—

a. Revising the introductory text of paragraph (a);

b. Redesignate paragraph (c) as paragraph (d);

c. Adding a new paragraph (c); and

d. Revising newly redesignated paragraph (d)(1)(i).

The revisions read as follows.

5. Revise section 4.1103 to read as follows:

6. Amend section 4.1104 by removing from the paragraph “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

7. Amend section 4.1200 by removing from the introductory text “System for Award Management (SAM)” and adding “System for Award Management (SAM) database” in its place.

8. Amend section 4.1201 by—

a. Removing from paragraph (a) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place; and

b. Removing from paragraph (b)(1) “shall update” and adding “shall review and update” in its place.

PART 7—ACQUISITION PLANNING

9. Removing from paragraph (y) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

PART 9—CONTRACTOR QUALIFICATIONS

10. Amend section 9.404 by—

a. Revising the section heading;

b. Revising paragraph (a)(1);

c. Removing from the introductory text of paragraph (b) “The SAM Exclusions” and adding “An exclusion record in SAM” in its place;

d. Removing from paragraph (b)(1) “of all contractors debarred” and adding “of the contractor debarred” in its place;

e. Revising paragraph (c); and

f. Removing from paragraph (d) “ https://www.acquisition.gov and adding “ https://www.sam.gov ” in its place.

The revisions read as follows:

PART 12—ACQUISITION OF COMMERCIAL ITEMS

11. Removing from paragraphs (d)(1) and (2) “registered in SAM” and adding “registered in the SAM database” in their places, respectively.

PART 13—SIMPLIFIED ACQUISITION PROCEDURES

12. Amend section 13.102 by removing from paragraph (a) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

PART 17—SPECIAL CONTRACTING METHODS

13. Amend section 17.207 by revising paragraph (c)(5) to read as follows.

PART 18—EMERGENCY ACQUISITIONS

14. Revise section 18.102 to read as follows.

PART 19—SMALL BUSINESS PROGRAMS

15. Amend section 19.307 by removing from paragraph (i)(3)(iii) “(SAM)” and adding “(SAM) database” in its place; and removing from paragraph (i)(5)(iii) “designation in SAM” and adding “designation in the SAM database” in its place.

16. Amend section 19.308 by removing from paragraph (i)(3)(iii) “(SAM)” and adding “(SAM) database” in its place; and removing from paragraph (i)(5)(iii) “designation in SAM” and adding “designation in the SAM database” in its place.

17. Amend section 19.1503 by removing from paragraph (b)(1) “(SAM)” and adding “(SAM) database” in its place.

PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

18. Amend section 22.1025 by revising the first sentence of the text to read as follows.

PART 25—FOREIGN ACQUISITION

19. Amend section 25.703-3 by revising paragraph (a) to read as follows.

PART 26—OTHER SOCIOECONOMIC PROGRAMS

20. Amended section 26.205 by removing from paragraphs (a) and (b) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in their places.

PART 28—BONDS AND INSURANCE

21. Amend section 28.203-7 by revising paragraph (c); and removing from paragraph (d) “(see 9.404) unless” and adding “(see 9.404), unless” in its place.

The revision reads as follows:

PART 32—CONTRACT FINANCING

22. Amend section 32.805 by removing from paragraph (d)(4) “Management” and adding “Management database” in its place.

23. Amend section 32.1108 by removing from paragraph (b)(2)(i) “(SAM)” and adding “(SAM) database” in its place; and removing from paragraph (b)(2)(ii) “SAM indicates” and adding “SAM database indicates” in its place.

24. Amend section 32.1110 by revising the introductory text of paragraph (a)(1) to read as follows:

PART 44—SUBCONTRACTING POLICIES AND PROCEDURES

25. Amend section 44.202-2 by revising paragraph (a)(13) to read as follows:

PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

26. Amend section 52.204-7 by—

a. Revising the date of the provision;

b. Revising paragraph (b)(1);

c. Removing from paragraph (c)(2)(i) “legal business.” and adding “legal business name.” in its place;

d. Revising paragraph (d);

e. Removing paragraphs (e) and (f); and

f. Revising the date of Alternate I and paragraph (b)(1) of Alternate I.

The revisions read as follows.

27. Amend section 52.204-8 by—

a. Revising the date of the provision,

b. Removing from the introductory text of paragraph (b)(2) “Management (SAM),” and adding “Management (SAM) database” in its place; and

c. Removing from paragraph (d) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

The revisions read as follows:

28. Amend section 52.204-13 by—

a. Revising the date of the clause;

b. Removing from the first sentence of paragraph (b) “for the accuracy” and adding “for currency, accuracy” in its place; and removing from the last sentence “the SAM does” and adding “the SAM database does” in its place;

c. Revising the first sentence of the introductory text of paragraph (c)(1)(i);

d. Removing from the second sentence of paragraph (c)(2) “in the SAM” and adding “in the SAM database” in its place; and

e. Removing from paragraph (d) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

The revisions read as follows:

29. Amend section 52.209-7 by revising the date of the provision and removing from paragraph (d) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

The revision reads as follows:

30. Amend section 52.209-9 by revising the date of the clause and removing from paragraph (a) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place.

The revision reads as follows:

31. Amend section 52.212-1 by revising the date of provision and paragraph (k) to read as follows:

32. Amend section 52.212-3 by—

a. Revising the date of the provision;

b. Removing from the introductory text of the provision “ http://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place;

c. Revising paragraph (b)(2); and

d. Removing from the introductory text of paragraph (p) “registered in SAM” and adding “registered in the SAM database” in its place.

The revision reads as follows:

33. Amend section 52.212-4 by—

a. Revising the date of the clause;

b. Revising paragraphs (t)(1) and (t)(2)(i);

c. Removing from paragraph (t)(4) “ https://www.acquisition.gov ” and adding “ https://www.sam.gov ” in its place; and

d. Removing from paragraph (v) “System for Award Management (SAM)” and adding “SAM database” in its place.

The revised text reads as follows: