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DOD/DARC

RIN: 0750-AG70

Publication ID: Spring 2011

Title: Restrictions on the Use of Mandatory Arbitration Agreements (DFARS Case 2010-D004)
Abstract: The rule implemented section 8116 of the DoD Appropriations Act for Fiscal Year 2010 (Pub. L. 111-118) prohibiting the use of Fiscal Year 2010 funds for any contract in excess of $1 million (including task or delivery orders and bilateral modifications adding new work), if the contractor restricts its employees to arbitration for claims arising under title VII of the Civil Rights Act of 1964, or arising out of sexual assault or harassment, including battery, intentional infliction of emotional distress, or false imprisonment. After June 17, 2010, section 8116(b) required the contractor to certify compliance by subcontractors. Further, it allowed the Secretary of Defense to waive applicability to a particular contractor or subcontractor, if determined necessary to avoid harm to national security. This rule does not apply to the acquisition of commercial items, including commercially available off-the-shelf items Most contractors should not be impacted unless they have a covered claim. A significant number of small businesses provide only commercial items to the Government, and this rule does not apply to that portion of the business community. DoD anticipates that there will be limited, if any, additional costs imposed on small businesses unless there is a covered claim filed against a particular contractor.
Agency: Department of Defense(DOD)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Completed Actions
Major: No	Unfunded Mandates: No
CFR Citation: 48 CFR 212 48 CFR 222 48 CFR 252
Legal Authority: PL 111-118

Legal Deadline:

Action	Source	Description	Date
Final	Statutory	Absent this interim regulatory change , the law will not be implemented.	05/01/2010

Overall Description of Deadline: Urgent and compelling reasons exist to provide implementing language quickly to preclude a contracting officer from inadvertently awarding a contract that is not in compliance with the DoD Appropriations Act for Fiscal Year 2010. Section 8116 of said Act prohibits the use of FY 2010 funds for any contract (including task or delivery orders and bilateral modifications in excess of $1M that is awarded after February 17, 2010.

Timetable:

Action	Date	FR Cite
Interim Final Rule	05/19/2010	75 FR 27946
Interim Final Rule Effective	05/19/2010
Interim Final Rule Comment Period End	07/19/2010
Final Action	12/08/2010	75 FR 76295
Final Action Effective	12/08/2010

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: No
RIN Data Printed in the FR: No
Agency Contact: Ynette R. Shelkin Editor, Defense Acquisition Regulations System Department of Defense Defense Acquisition Regulations Council OUSD/AT&L DPAP/DARS, 3060 Defense Pentagon, Room 3B855, Washington, DC 20301-3060 Phone:571 372-6089 Email: ynette.shelkin@osd.mil