Department of Defense, General Services Administration, National Aeronautics and Space Administration: Federal Acquisition Regulation; FAR Case 2007-013, Employment Eligibility Verification, GAO-09-221R, December 4, 2008
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The Honorable Patrick
J. Leahy
Chairman
The Honorable Arlen Specter
Ranking Minority Member
Committee on the Judiciary
The Honorable John
Conyers, Jr.
Chairman
The Honorable Lamar Smith
Ranking Minority Member
Committee on the Judiciary
House of Representatives
Subject: Department of Defense, General Services Administration, National Aeronautics and Space Administration: Federal Acquisition Regulation; FAR Case 2007-013, Employment Eligibility Verification
Pursuant to section
801(a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration (the agencies), entitled “Federal
Acquisition Regulation; FAR Case 2007-013, Employment Eligibility Verification”
(RIN: 9000-AK91). We received the rule
on
The final rule amends the Federal Acquisition Regulation
(FAR) to require certain federal contractors and subcontractors to use the
E-Verify system administered by the Department of Homeland Security, U.S.
Citizenship and Immigration Services (USCIS), as the means of verifying that
certain of the contractors’ employees are eligible to work in the
The Congressional Review Act requires major rules to have a
60-day delay in their effective date following publication in the Federal Register or receipt of the rule
by Congress, whichever is later. 5
U.S.C. sect. 801(a)(3)(A). Although this
rule was published on
Enclosed is our assessment of the agencies’ compliance with
the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title
5 with respect to the rule. Our review
indicates that, except for the delay in the effective date, the agencies
complied with the applicable requirements.
If you have any questions about this report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of the rule, please contact Michael R. Volpe, Assistant General Counsel, at (202) 512-8236.
signed
Robert J. Cramer
Associate General Counsel
Enclosure
cc: David
A. Drabkin
Senior Procurement Executive
General Services Administration
ENCLOSURE
REPORT UNDER 5 U.S.C. sect. 801(a)(2)(A) ON A MAJOR
RULE
ISSUED BY THE
DEPARTMENT OF DEFENSE,
GENERAL SERVICES ADMINISTRATION,
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
ENTITLED
"FEDERAL ACQUISITION REGULATION; FAR CASE 2007-013,
EMPLOYMENT ELIGIBILITY VERIFICATION"
(RIN: 9000-AK91)
(i) Cost-benefit analysis
The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration (the agencies) analyzed the costs and benefits of this final rule. During fiscal year 2009, the agencies estimate that this rule will require approximately 168,624 contractors and subcontractors to enroll in E-Verify and that there will be an additional 3.8 million employees vetted through the system. The agencies estimate the costs of the rule in 2009 to be approximately $245.4 million at 7-percent discount rate and $254.9 million at 3-percent discount rate. From 2009 to 2018, the agencies estimate the total costs of the rule will be approximately $1,105.4 million at 7-percent and $1,336.5 million at 3-percent.
The agencies expect this final rule to benefit employers by
providing an economical, web-based method for verifying employment eligibility
of employees, thus improving the ease and reliability of the verification
employers are already required to perform. The agencies also expect federal contractors’
participation in E-Verify to reduce the likelihood that contractors will
discover they hired unauthorized aliens at some point after making investments
in those employees. This initial
screening of employees thereby may spare contractors the cost of terminating
and replacing such employees after resources have been expended on the training
of those employees. This final rule will
also have the benefit, according to the agencies, of enhancing the federal government’s
procurement system by decreasing the employment of unauthorized aliens in the
supply chain, thereby fostering a more stable and dependable contracting
community.
(ii) Agency actions relevant to the Regulatory
Flexibility Act, 5 U.S.C. sections 603–605, 607, and 609
The agencies did not certify that this final rule will
have a significant impact on a substantial number of small entities under the
Act. However, the agencies do expect
this rule to impact nearly every small entity in the federal contractor base. According to the agencies, the direct costs imposed
by this rule do not appear to have a significant economic impact on a
substantial number of small entities. The
agencies did conduct a Final Regulatory Analysis under the Act. The agencies also made a number of changes in
this rule to lessen the impact on small businesses, including extending
timelines, raising the dollar amount and performance period thresholds, and
allowing the verification of all employees.
(iii) Agency actions relevant to sections 202–205 of
the Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections 1532–1535
The agencies did not discuss any agency actions relevant to
the Act in its submission to the Comptroller General. The agencies indicated that preparing a
written statement under the Act was not applicable to this final rule.
(iv) Other relevant information or requirements under
acts and executive orders
Administrative Procedure Act, 5 U.S.C. sections 551 et seq.
The agencies promulgated this final rule using the notice
and comment procedures found in the Administrative Procedure Act. 5 U.S.C. sect. 553. On
Paperwork Reduction Act, 44 U.S.C. sections 3501–3520
This final rule increases the estimated burden of a previously approved information collection requirement (OMB Control Number 1615-0092). The agencies are soliciting comments and seeking Office of Management and Budget (OMB) approval on the proposed amendments. The agencies estimate that the burden of this amended information collection requirement to be approximately 3,882,482 hours.
Statutory authorization for the rule
The agencies promulgated this final rule under the authority
of sections 101 and 121 of title 40, United States Code.
Executive Order No. 12,866
The agencies determined that this is a significant rule
under the Order because there is significant public interest in issues
pertaining to immigration and because the estimated annual costs are greater
than $100 million. The rule was reviewed
by the Office of Management and Budget.