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Federal Register / Vol. 71, No.

75 / Wednesday, April 19, 2006 / Rules and Regulations 20301

DEPARTMENT OF DEFENSE proposed.htm, including any personal Flexibility Act, 5 U.S.C. 601, et seq.,
and/or business confidential because the rule only applies to the
GENERAL SERVICES information provided. acquisition of services (except
ADMINISTRATION FOR FURTHER INFORMATION CONTACT: For commercial services under FAR Part
clarification of content, contact Mr. 12). Furthermore, the impact will be
NATIONAL AERONAUTICS AND William Clark, Procurement Analyst, at minimal unless the contractor or its
SPACE ADMINISTRATION (202) 219–1813. Please cite FAC 2005– employees engage in forms of trafficking
09, FAR case 2005–012. For information in persons or commercial sex acts that
48 CFR Parts 12, 22, and 52 pertaining to status or publication are illegal within the U.S. Although not
[FAC 2005–09; FAR Case 2005–012; Item schedules, contact the FAR Secretariat considered significant, additional
IV; Docket FAR–2006–0020] at (202) 501–4755. impact may be associated with contract
SUPPLEMENTARY INFORMATION:
performance in counties/states where
RIN 9000–AK31 certain commercial sex acts are legal.
A. Background However, the termination authorities at
Federal Acquisition Regulation; FAR
The Trafficking Victims Protection 22 U.S.C. 7104(g) apply to Government
Case 2005–012, Combating Trafficking
Reauthorization Act of 2003, as contracts performed in these areas.
in Persons
amended by the Trafficking Victims Therefore, an Initial Regulatory
AGENCIES: Department of Defense (DoD), Protection Reauthorization Act of 2005, Flexibility Analysis has not been
General Services Administration (GSA), addresses the victimization of countless performed. The Councils will consider
and National Aeronautics and Space men, women, and children in the comments from small entities
Administration (NASA). United States and abroad. The United concerning the affected FAR Parts 12,
ACTION: Interim rule with request for States believes that its contractors can 22, and 52 in accordance with 5 U.S.C.
comments. help combat trafficking in persons. 22 610. Interested parties must submit such
U.S.C. 7104(g) requires that the contract comments separately and should cite 5
SUMMARY: The Civilian Agency contain a clause allowing the agency to U.S.C 601, et seq. (FAC 2005–09, FAR
Acquisition Council and the Defense terminate the contract if the contractor case 2005–012), in correspondence.
Acquisition Regulations Council or subcontractor engages in severe forms C. Paperwork Reduction Act
(Councils) have agreed on an interim of trafficking in persons or has procured
rule amending the Federal Acquisition The Paperwork Reduction Act (Pub.
a commercial sex act, or used forced
Regulation (FAR) to implement 22 L. 104–13) applies because the interim
labor in the performance of the contract.
U.S.C. 7104(g). This statute requires that rule contains information collection
For this purpose, ‘‘contractors’’ includes
contracts must include a provision that requirements. Accordingly, the FAR
the contractor employees.
authorizes the department or agency to Secretariat has forwarded a request for
In order to implement the law, the
terminate the contract, if the Contractor approval of a new information
Councils have added FAR Subpart 22.17
or any subcontractor engages in collection requirement concerning OMB
with an associated clause at 52.222–50
trafficking in persons. Number 9000–00XX to the Office of
which address combating trafficking in
DATES: Effective Date: April 19, 2006. Management and Budget under 44
persons.
Comment Date: Interested parties U.S.C. 3501, et seq.
The interim rule applies to
should submit written comments to the The clause at 52.222–50 requires the
contractors awarded service contracts
FAR Secretariat on or before June 19, contractor to notify the contracting
(other than commercial service contracts
2006 to be considered in the officer of any information alleging
under FAR Part 12). Such contractors
formulation of a final rule. employee misconduct under the clause,
must develop policies to combat
and any actions taken against employees
ADDRESSES: Submit comments trafficking in persons. The clause lists
pursuant to the clause.
identified by FAC 2005–09, FAR case remedies, including termination, that Public reporting burden for this
2005–012, by any of the following may be imposed on contractors that collection of information is estimated to
methods: support or promote or fail to monitor average 1 hour per response, including
• Federal eRulemaking Portal: http:// the conduct of their employees and the time for reviewing instructions,
www.regulations.gov. Follow the subcontractors with regard to severe searching existing data sources,
instructions for submitting comments. forms of trafficking in persons, the gathering and maintaining the data
• Agency Web site: http:// procurement of commercial sex acts, or needed, and completing and reviewing
www.acqnet.gov/far/ProposedRules/ use of forced labor. the collection of information.
proposed.htm. Click on the FAR case This is a significant regulatory action The annual reporting burden is
number to submit comments. and, therefore, is subject to review estimated as follows:
• E-mail: farcase.2005–012@gsa.gov. under Section 6(b) of Executive Order Respondents: 250
Include FAC 2005–09, FAR case 2005– 12866, Regulatory Planning and Review, Responses per respondent: 1
012 in the subject line of the message. dated September 30, 1993. This interim Total annual responses: 250
• Fax: 202–501–4067. rule raises novel legal or policy issues Preparation hours per response: 1
• Mail: General Services arising out of legal mandates, the Total response burden hours: 250
Administration, Regulatory Secretariat President’s priorities, or the principles
(VIR), 1800 F Street, NW, Room 4035, set forth in this Executive Order. This D. Request for Comments Regarding
ATTN: Laurieann Duarte, Washington, rule is not a major rule under 5 U.S.C. Paperwork Burden
DC 20405. 804. Submit comments, including
Instructions: Please submit comments suggestions for reducing this burden,
B. Regulatory Flexibility Act
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only and cite FAC 2005–09, FAR case not later than June 19, 2006 to: FAR
2005–012, in all correspondence related The interim rule is not expected to Desk Officer, OMB, Room 10102, NEOB,
to this case. All comments received will have a significant economic impact on Washington, DC 20503, and a copy to
be posted without change to http:// a substantial number of small entities the General Services Administration,
www.acqnet.gov/far/ProposedRules/ within the meaning of the Regulatory FAR Secretariat (VIR), 1800 F Street,

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20302 Federal Register / Vol. 71, No. 75 / Wednesday, April 19, 2006 / Rules and Regulations

NW, Room 4035, Washington, DC PART 12—ACQUISITION OF performance of work under a


20405. Please cite OMB Control No. COMMERCIAL ITEMS Government contract, including all
9000–00XX, Combating Trafficking in direct cost employees and any other
Persons (FAR Case 2005–012), in all ■ 2. Amend section 12.503 by revising contractor employee who has other than
correspondence. the section heading and adding a minimal impact or involvement in
Public comments are particularly paragraph (a)(6) to read as follows: contract performance.
invited on: whether this collection of 12.503 Applicability of certain laws to Involuntary servitude includes a
information is necessary for the proper Executive agency contracts for the condition of servitude induced by
performance of functions of the FAR, acquisition of commercial services. means of—
and will have practical utility; whether (a)* * * (1) Any scheme, plan, or pattern
our estimate of the public burden of this (6) 22 U.S.C. 7104, Trafficking intended to cause a person to believe
collection of information is accurate, Victims Protection Reauthorization Act that, if the person did not enter into or
and based on valid assumptions and of 2003 (see 22.1705). continue in such conditions, that person
methodology; ways to enhance the * * * * * or another person would suffer serious
quality, utility, and clarity of the harm or physical restraint; or
information to be collected; and ways in PART 22—APPLICATION OF LABOR (2) The abuse or threatened abuse of
which we can minimize the burden of LAWS TO GOVERNMENT the legal process.
the collection of information on those ACQUISITIONS Severe forms of trafficking in persons
who are to respond, through the use of
■ 3. Add Subpart 22.17 to read as means—
appropriate technological collection
techniques or other forms of information follows: (1) Sex trafficking in which a
technology. commercial sex act is induced by force,
Requester may obtain a copy of the Subpart 22.17—Combating Trafficking fraud, or coercion, or in which the
justification from the General Services in Persons person induced to perform such act has
Administration, FAR Secretariat (VIR), not attained 18 years of age; or
Sec.
Room 4035, Washington, DC 20405, 22.1700 Scope of subpart. (2) The recruitment, harboring,
telephone (202) 501–4755. Please cite 22.1701 Applicability. transportation, provision, or obtaining
OMB Control Number 9000–00XX, 22.1702 Definitions. of a person for labor or services, through
Combating Trafficking in Persons (FAR 22.1703 Policy. the use of force, fraud, or coercion for
Case 2005–012), in all correspondence. 22.1704 Violations and remedies. the purpose of subjection to involuntary
22.1705 Contract clause. servitude, peonage, debt bondage, or
E. Determination to Issue an Interim slavery.
Rule 22.1700 Scope of subpart.
This subpart prescribes policy for Sex trafficking means the recruitment,
A determination has been made under harboring, transportation, provision, or
implementing 22 U.S.C. 7104 as
the authority of the Secretary of Defense obtaining of a person for the purpose of
amended by Pub. L. No. 108–193 and
(DoD), the Administrator of General a commercial sex act.
109–164.
Services (GSA), and the Administrator
of the National Aeronautics and Space 22.1701 Applicability. 22.1703 Policy.
Administration (NASA) that urgent and This subpart applies to acquisitions of Contracts for services (except
compelling reasons exist to promulgate all services except for commercial commercial services under Part 12)
this interim rule without prior services under Part 12. shall—
opportunity for public comment. This (a) Prohibit any activities on the part
action is necessary because the 22.1702 Definitions. of the contractor or contractor
Trafficking Victims Protection As used in this subpart— employees that support or promote—
Reauthorization Act of 2003 (Pub. L. Coercion means— (1) Severe forms of trafficking in
108–193), and the Trafficking Victims (1) Threats of serious harm to or persons;
Protection Reauthorization Act of 2005 physical restraint against any person;
(2) Any scheme, plan, or pattern (2) The procurement of commercial
(Pub. L. 109–164) were effective upon sex acts; or
enactment. However, pursuant to Public intended to cause a person to believe
that failure to perform an act would (3) The use of forced labor in the
Law 98–577 and FAR 1.501, the
result in serious harm to or physical performance of the contract;
Councils will consider public comments
received in response to this interim rule restraint against any person; or (b) Require contractors to develop
in the formation of the final rule. (3) The abuse or threatened abuse of policies to combat severe forms of
the legal process. trafficking in persons, the procurement
List of Subjects in 48 CFR Parts 12, 22, Commercial sex act means any sex act of commercial sex acts, and use of
and 52 on account of which anything of value forced labor; and
Government procurement. is given to or received by any person. (c) Impose suitable remedies,
Debt bondage means the status or including termination, on contractors
Dated: April 12, 2006.
condition of a debtor arising from a that support or promote or fail to
Gerald Zaffos,
pledge by the debtor of his or her monitor the conduct of their employees
Director, Contract Policy Division. personal services or of those of a person and subcontractors with regard to severe
■ Therefore, DoD, GSA, and NASA under his or her control as a security for forms of trafficking in persons, the
amend 48 CFR parts 12, 22, and 52 as debt, if the value of those services as procurement of commercial sex acts,
set forth below: reasonably assessed is not applied and use of forced labor.
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■ 1. The authority citation for 48 CFR toward the liquidation of the debt or the
parts 12, 22, and 52 continues to read length and nature of those services are 22.1704 Violations and remedies.
as follows: not respectively limited and defined. (a) Violations. The Government may
Authority: 40 U.S.C. 121(c); 10 U.S.C. Employee means an employee of a impose the remedies set forth in
chapter 137; and 42 U.S.C. 2473(c). contractor directly engaged in the paragraph (b) of this section if—

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Federal Register / Vol. 71, No. 75 / Wednesday, April 19, 2006 / Rules and Regulations 20303

(1) The contractor or any contractor Individual means a Contractor that has no of forced labor which may apply to its
employee engages in severe forms of more than one employee including the employees’ conduct in the host nation,
trafficking in persons; Contractor. including those laws for which jurisdiction is
Involuntary servitude includes a condition established by the Military Extraterritorial
(2) Any contractor employee procures
of servitude induced by means of— Jurisdiction Act of 2000 (18 U.S.C. 3261–
a commercial sex act during the period (1) Any scheme, plan, or pattern intended 3267), and 18 U.S.C 3271, Trafficking in
of performance of the contract; to cause a person to believe that, if the person Persons Offenses Committed by Persons
(3) The contractor or any contractor did not enter into or continue in such Employed by or Accompanying the Federal
employee uses forced labor in the conditions, that person or another person Government Outside the United States;
performance of the contract; or would suffer serious harm or physical (3) Provide all employees directly engaged
(4) The contractor fails to comply restraint; or in performance of the contract with a copy
with the requirements of the clause at (2) The abuse or threatened abuse of the of the statement required by paragraph (c)(1)
legal process. of this clause and obtain written agreement
52.222–50, Combating Trafficking in
Severe forms of trafficking in persons from the employee that the employee shall
Persons. means— abide by the terms of the statement; and
(b) Remedies. After determining in (1) Sex trafficking in which a commercial (4) Take appropriate action, up to and
writing that adequate evidence exists to sex act is induced by force, fraud, or including termination, against employees or
suspect any of the violations at coercion, or in which the person induced to subcontractors that violate the policy in
paragraph (a) of this section, the perform such act has not attained 18 years of paragraph (b) of this clause.
contracting officer may pursue any of age; or (d) Notification. The Contractor shall
the remedies specified in paragraph (e) (2) The recruitment, harboring, inform the contracting officer immediately
of the clause at 52.222–50, Combating transportation, provision, or obtaining of a of—
person for labor or services, through the use (1) Any information it receives from any
Trafficking in Persons. These remedies of force, fraud, or coercion for the purpose of
are in addition to any other remedies source (including host country law
subjection to involuntary servitude, peonage, enforcement) that alleges a contract employee
available to the Government. debt bondage, or slavery. has engaged in conduct that violates this
Sex trafficking means the recruitment, policy; and
22.1705 Contract clause. harboring, transportation, provision, or (2) Any actions taken against employees
Insert the clause at 52.222–50, obtaining of a person for the purpose of a pursuant to this clause.
Combating Trafficking in Persons, in all commercial sex act. (e) Remedies. In addition to other remedies
solicitations and contracts for the (b) Policy. The United States Government available to the Government, the Contractor’s
acquisition of services (except has adopted a zero tolerance policy regarding failure to comply with the requirements of
commercial services under Part 12). Contractors and Contractor employees that paragraphs (c) or (d) of this clause may
engage in or support severe forms of render the Contractor subject to—
PART 52—SOLICITATION PROVISIONS trafficking in persons, procurement of (1) Required removal of a Contractor
AND CONTRACT CLAUSES commercial sex acts, or use of forced labor. employee or employees from the
During the performance of this contract, the performance of the contract;
■ 4. Add section 52.222–50 to read as Contractor shall ensure that its employees do (2) Required subcontractor termination;
follows: not violate this policy. (3) Suspension of contract payments;
(c) Contractor requirements. The (4) Loss of award fee for the performance
52.222–50 Combating Trafficking in Contractor, if other than an individual, shall period in which the Government determined
Persons. establish policies and procedures for Contractor non-compliance;
ensuring that its employees do not engage in (5) Termination of the contract for default,
As prescribed in 22.1705, insert the
or support severe forms of trafficking in in accordance with the termination clause of
following clause: persons, procure commercial sex acts, or use this contract; or
COMBATING TRAFFICKING IN PERSONS forced labor in the performance of this (6) Suspension or debarment.
(APR 2006) contract. At a minimum, the Contractor (f) Subcontracts. The Contractor shall
(a) Definitions. As used in this clause— shall— include the substance of this clause,
Coercion means— (1) Publish a statement notifying its including this paragraph (f), in all
(1) Threats of serious harm to or physical employees of the United States Government’s subcontracts for the acquisition of services.
restraint against any person; zero tolerance policy described in paragraph [FR Doc. 06–3681 Filed 4–18–06; 8:45 am]
(2) Any scheme, plan, or pattern intended (b) of this clause and specifying the actions
to cause a person to believe that failure to that will be taken against employees for BILLING CODE 6820–EP–S
perform an act would result in serious harm violations of this policy. Such actions may
to or physical restraint against any person; or include, but are not limited to, removal from
(3) The abuse or threatened abuse of the the contract, reduction in benefits, or DEPARTMENT OF DEFENSE
legal process. termination of employment;
Commercial sex act means any sex act on (2) Establish an awareness program to GENERAL SERVICES
account of which anything of value is given inform employees about— ADMINISTRATION
to or received by any person. (i) The Contractor’s policy of ensuring that
Debt bondage means the status or employees do not engage in severe forms of NATIONAL AERONAUTICS AND
condition of a debtor arising from a pledge trafficking in persons, procure commercial SPACE ADMINISTRATION
by the debtor of his or her personal services sex acts, or use forced labor;
or of those of a person under his or her (ii) The actions that will be taken against
48 CFR Parts 19 and 52
control as a security for debt, if the value of employees for violation of such policy;
those services as reasonably assessed is not (iii) Regulations applying to conduct if [FAC 2005–09; FAR Case 2005–009; Item
applied toward the liquidation of the debt or performance of the contract is outside the V; Docket FAR–2006–0020]
the length and nature of those services are U.S., including—
not respectively limited and defined. (A) All host country Government laws and RIN 9000–AK22
Employee means an employee of a regulations relating to severe forms of
Contractor directly engaged in the trafficking in persons, procurement of Federal Acquisition Regulation; FAR
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performance of work under a Government commercial sex acts, and use of forced labor; Case 2005–009, Confirmation of
contract, including all direct cost employees and HUBZone Certification
and any other Contractor employee who has (B) All United States laws and regulations
other than a minimal impact or involvement on severe forms of trafficking in persons, AGENCIES: Department of Defense (DoD),
in contract performance. procurement of commercial sex acts, and use General Services Administration (GSA),

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