Personal Identity Verification of Contractor Personnel (FAR Case 2009–027)
Summary:
FAC 2005-48 includes a final rule amending the Federal Acquisition Regulation (FAR) to provide additional regulatory coverage to reinforce the requirement of collecting from contractors all forms of Government-provided identification once they are no longer needed to support a contract.
Background:
This DoD Inspector General Audit Report No. D-2009-005, entitled "Controls Over the Contractor Common Access Card Life Cycle," addressed whether Government controls over contractor Common Access Cards (CAC) were in place and worked as intended. 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 DoD, GSA, and NASA are undertaking to resolve with this case, was that the CACs were not adequately accounted for after contract performance or completion.
DoD, GSA, and NASA are amending the FAR by inserting new paragraphs (d)(1) and (d)(2) under FAR 4.1301, Policy. Paragraph (d)(1) provides policy on recovering PIVs. Paragraph (d)(1) requires that agency procedures 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; or
• upon contract completion or termination.
Paragraph (d)(2) authorizes the contracting officer to delay final payment under a contract if the contractor fails to comply with these requirements.
DoD, GSA, and NASA are also modifying FAR clause 52.204-9, Personal
Identity Verification of Contractor Personnel, to be consistent with
DoD, GSA, and NASA published a proposed rule in the Federal Register at 75 FR 28771 on May 24, 2010. Three respondents submitted four comments on the proposed rule, which are addressed here.
Although none of the public comments received caused a change in the FAR text, the FAR text is changed in the final rule as follows:
• FAR 4.1301(d)(1) is revised to clarify that this section applies to agency procedures related to PIV card return.
• FAR 4.1301(d)(1) and 52.204-9(b) are revised to clarify that the rule applies when PIV cards are issued to contractor employees.
• FAR 52.204-9(d) is revised to clarify that the rule flows down to all subcontractor employees when they are required to have access to a Federally-controlled facility and/or routine access to a Federally-controlled information system.
• FAR 52.204-9(d) is also revised to clarify that the prime contractor is responsible for returning all subcontractor PIV cards that have been issued by an agency.
Dates:
The Effective Date for this final rule is 31 January 2011.
Click here to read the entire Federal Register notice for this rule.
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