[Federal Register: April 19, 2006 (Volume 71, Number 75)]
[Rules and Regulations]               
[Page 20303-20304]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]





48 CFR Parts 19 and 52

[FAC 2005-09; FAR Case 2005-009; Item V; Docket FAR-2006-0020]
RIN 9000-AK22

Federal Acquisition Regulation; FAR Case 2005-009, Confirmation 
of HUBZone Certification

AGENCIES: Department of Defense (DoD), General Services Administration 

[[Page 20304]]

and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.


SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed to adopt as 
final without change, the interim rule amending the Federal Acquisition 
Regulation (FAR) to clarify that prime contractors must confirm that a 
subcontractor representing itself as a Historically Underutilized 
Business Zone (HUBZone) small business concern is certified, consistent 
with the requirements of 15 U.S.C. 632 et. seq., as amended.

DATES: Effective Date: April 19, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Rhonda Cundiff, Procurement Analyst, at (202) 501-0044. Please cite 
FAC 2005-09, FAR case 2005-009. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.


A. Background

    DoD, GSA, and NASA published an interim rule in the Federal 
Register at 70 FR 43581, July 27, 2005, with request for comments. No 
public comments were received on the interim rule. The Councils agreed 
to convert the interim rule to a final rule without change.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The changes may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because this final rule will 
have a positive effect on small businesses who are certified HUBZone 
small business concerns and are losing subcontracting opportunities 
taken by another company falsely claiming to be a certified HUBZone 
small business concern.
    The FAR Secretariat has submitted a copy of the Final Regulatory 
Flexibility Analysis to the Chief Counsel for Advocacy of the Small 
Business Administration. The analysis is summarized as follows:

Final Regulatory Flexibility Analysis

    A Department of Defense Inspector General report D-2003-019 
``DoD Contractor Subcontracting With Historically Underutilized 
Business Zones (HUBZones) Small Businesses'' found that prime 
contractors were overstating their HUBZone accomplishments because 
subcontractor's representations were not being verified. This final 
rule revises the Federal Acquisition Regulation to require a prime 
contractor to verify that its HUBZone subcontractors are certified 
as required by 15 U.S.C. 632 et seq., as amended.
    Interested parties may obtain a copy from the FAR Secretariat.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 19 and 52

    Government procurement.

    Dated: April 12, 2006.
Gerald Zaffos,
Director,Contract Policy Division.

Interim Rule Adopted as Final Without Change

Accordingly, the interim rule amending 48 CFR parts 19 and 52, which 
was published at 70 FR 43581, July 27, 2005, is adopted as a final rule 
without change.
[FR Doc. 06-3682 Filed 4-18-06; 8:45 am]