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DOD/DARC RIN: 0750-AH37 Publication ID: Fall 2011 
Title: ●Award Fee Reduction or Denial for Health or Safety Issues (DFARS Case 2011-D033) 
Abstract: This interim rule amends the Defense FAR Supplement(DFARS) to implement section 834 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2011. Section 834 is entitled "Enhancements of Authority of Secretary of Defense to Reduce or Deny Award Fees to Companies Found to Jeopardize the Health or Safety of Government Personnel. Section 834 of the statute added to existing statutory authorities to decrease or eliminate a contractor's award fee for a performance period and applies only to contractors and subcontractors that are not subject to jurisdiction of U.S. courts. The final determination of fault is the result of an investigation of a serious bodily injury or death alleged to have been caused by a contractor or subcontractor. A contractor's award fee is affected if, after the investigation, a determination is made that the serious bodily injury or death was caused by the contractor's or subcontractor's gross negligence or with reckless disregard for the safety of civilian or military personnel of the Government. By definition, a small business is a firm that is located in the United States and is subject to the jurisdiction of U.S. courts. Therefore, no impact to small business is anticipated as a result of this rule. 
Agency: Department of Defense(DOD)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 48 CFR ch 1     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: PL 111-383    PL 110-417   
Legal Deadline:
Action Source Description Date
Other  Statutory  180 days after date of enactment of applicable statute  07/07/2011 

Overall Description of Deadline: Section 834 of the National Defense Authorization Act for Fiscal Year 2011 became effective on enactment, January 7, 2011, and requires implementation no later than 180 days after the date of enactment. Contracting officers may not be aware of the requirement to consider reduction or denial of award fees for a period in which actions of gross negligence or reckless disregard of safety or health by the contractor or subcontractor caused serious bodily injury or death of Government personnel.

Action Date FR Cite
Interim Final Rule  09/16/2011  76 FR 57674   
Interim Final Rule Comment Period End  11/15/2011    
Final Action  05/00/2012    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Related RINs: Duplicate of 0750-AH24, Duplicate of 0750-AH31 
Agency Contact:
Ynette R. Shelkin
Editor, Defense Acquisition Regulations System
Department of Defense
Defense Acquisition Regulations Council
3060 Defense Pentagon,
Washington, DC 20301
Phone:703 602-8384