II.  Discussion and Analysis of the Public Comments

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) have reviewed the public comments in development of the final rule. As a result of this review, the Councils have incorporated some changes in the final rule, including the following more significant changes:

Revised the definition of "covered employee" to clarify applicability to subcontracts.

Revised the contracting officer procedures at FAR 3.1103(a)(1) and (a)(3), and (b)(3).

Revised the discussion of violations at FAR 3.1105.

Added a new paragraph FAR 3.1106(c) to provide additional clarification on use of FAR clause 52.203-16 when contracting with a self-employed individual.

Amended 12.503(a) to clarify that the statute does not apply to contracts for the acquisition of commercial items.

Revised the clause at FAR 52.203-16 by--

[cir] Clarifying the financial disclosure requirements in paragraph (b)(1), including deletion of the requirement for an annual update of the disclosure statement;

[cir] Adding to the list of possible personal conflicts-of-interest violations in (b)(6);

[cir] Removing the list of remedies in paragraph (d); and

[cir] Clarifying the clause flowdown.