It's what provides the electrical connection to the steering wheel. It's located under the steering wheel. If you are going to change it yourself make sure you follow the directions in the service manual.
Here is the Desctription of the clockspring from the service manual.
The clockspring assembly is secured with two screws onto the multi-function switch mounting housing near the top of the steering column behind the steering wheel (Clockspring and Multi-Function Switch). The clockspring consists of a flat, round molded plastic case with a stubby tail that hangs below the steering column and contains two connector receptacles that face toward the instrument panel. Within the plastic housing is a spool-like molded plastic rotor with a large exposed hub. The upper surface of the rotor hub has a large center hole, two large flats, an engagement dowel with a yellow rubber boot, a short pigtail wire with connector, and two connector receptacles that face toward the steering wheel. The lower surface of the rotor hub has a molded plastic turn signal cancel cam with two lobes that is keyed to the rotor and is secured there with four integral snap features. Within the plastic case and wound around the rotor spool is a long ribbon-like tape that consists of several thin copper wire leads sandwiched between two thin plastic membranes. The outer end of the tape terminates at the connector receptacles that face the instrument panel, while the inner end of the tape terminates at the pigtail wire and connector receptacles on the hub of the clockspring rotor that face the steering wheel.
Service replacement clocksprings are shipped pre-centered and with a locking pin that snaps into a receptacle on the rotor and is engaged between two tabs on the upper surface of the rotor case. The locking pin secures the centered clockspring rotor to the clockspring case during shipment, but the locking pin must be removed from the clockspring after it is installed on the steering column.
The clockspring cannot be repaired. If the clockspring is faulty, damaged, or if the driver airbag has been deployed, the clockspring must be replaced.