[Federal Register: August 30, 2002 (Volume 67, Number 169)]
[Rules and Regulations]
[Page 56122-56123]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30au02-27]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 4, 5, 7, 19, 52, and 53
[FAC 2001-09; FAR Case 2000-302; Item III]
RIN 9000-AI93
Federal Acquisition Regulation; Veterans Entrepreneurship and
Small Business Development Act of 1999
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), 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 on a final rule
amending the Federal Acquisition Regulation (FAR) to adopt, as final,
the first interim rule published at 65 FR 60542, October 11, 2000,
which implemented portions of the Veterans Entrepreneurship and Small
Business Development Act of 1999 which added a subcontracting plan goal
for veteran-owned small businesses and a 3 percent Governmentwide
agency goal for service-disabled veteran-owned small businesses, and
the second interim rule published at 66 FR 53492, October 22, 2001,
which implemented Section 803 of the Small Business Reauthorization Act
of 2000 (part of the Consolidated Appropriations Act, 2001), which
added an additional subcontracting plan goal for service-disabled
veteran-owned small business concerns. Both rules, and the correction
published January 14, 2002, are adopted as final without change.
DATES: Effective Date: August 30, 2002.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Rhonda Cundiff, Procurement Analyst, at (202) 501-
0044. Please cite FAC 2001-09, FAR case 2000-302.
SUPPLEMENTARY INFORMATION:
A. Background
The final rule amends the FAR to implement portions of the Veterans
Entrepreneurship and Small Business Development Act of 1999 (Pub. L.
106-50) and section 803 of the Small Business Reauthorization Act of
2000 (part of the Consolidated Appropriations Act, 2001, Pub. L. 106-
554). The Veterans Entrepreneurship and Small Business Development Act
of 1999 established new assistance programs for veterans and service-
disabled veterans who own and operate small businesses. Specifically,
the Act--
Defines the terms ``small business concern owned and
controlled by service-disabled veterans''; and ``small business concern
owned and controlled by service-disabled veterans'';
Establishes that veteran-owned and service-disabled
veteran-owned small businesses be afforded maximum practical
opportunity to participate in the performance of contracts and
subcontracts awarded by any Federal agency;
Establishes a requirement to include a goal for veteran-
owned small businesses in subcontracting plans under the clause at
52.219-9;
Establishes a 3 percent Governmentwide goal (based on the
total value of all prime contract and subcontract awards) for
participation by service-disabled veteran-owned small businesses; and
Adds data collection requirements for prime and
subcontract awards to veteran-owned small businesses and service
disabled veteran-owned small business concerns.
DoD, GSA, and NASA published in the Federal Register two interim
rules (65 FR 60542, October 11, 2000 (FAC 97-20) and 66 FR 53492,
October 22, 2001 (FAC 2001-01), respectively); and a correction to the
second interim rule (67 FR 1858, January 14, 2002 (FAC 2001-01
Correction)), to implement the statutes.
Four respondents submitted comments in response to the interim
rule. The Councils considered all comments and made no changes as a
result. However, three of the comments merit noting. The first comment
was that the interim rule, as published on October 11, 2001, is flawed
as 19.704(a)(1) and the clause at 52.219-9(d)(1) still contain the
phrase ``a separate goal for service-disabled veteran-owned small
business concerns is not required.'' Response: The appearance of that
phrase in the Federal Register was an error and was subsequently
corrected by the January 14, 2002, Federal Register notice.
The second comment consists of several suggestions of policy steps
that should be taken to implement the legislation. Response: The
comment is outside the scope of the case, as it does not address any
existing or proposed FAR coverage.
The third comment suggests that the rule be modified to provide
service-disabled veteran-owned small business concerns ``the benefit of
every contracting preference afforded SDBs and women-owned small
businesses * * *''. The comment also suggests limiting of competition
for certain commodities or service that may be furnished by service-
disabled veteran-owned small business concerns. Response: Existing
legislation does not permit adopting any of the suggestions contained
in the comment.
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 the rule adds a new
statutory subcontracting plan goal requirement for service-disabled
veteran-owned small business concerns. A Final Regulatory Flexibility
Analysis (FRFA) has been prepared and is summarized as follows:
This final rule revises the Federal Acquisition Regulation to
implement
[[Page 56123]]
portions of the Veterans Entrepreneurship and Small Business
Development Act of 1999 (Pub. L. 106-50) and section 803 of the
Small Business Reauthorization Act of 2000, part of the Consolidated
Appropriations Act, 2001 (Pub. L. 106-554). The statutes added a
separate subcontracting plan goal requirement for veteran-owned
small business and another goal for service-disabled veteran-owned
small business concerns. There are approximately 4 to 5.5 million
small businesses owned and controlled by veterans and 100,000 to
300,000 small businesses owned and controlled by service-disabled
veterans. This rule does not duplicate, overlap, or conflict with
other relevant Federal regulations. There are no alternatives to the
final rule that would accomplish the stated objectives.
The FAR Secretariat has submitted a copy of the FRFA to the Chief
Counsel for Advocacy of the Small Business Administration. Interested
parties may obtain a copy from the FAR Secretariat. The Councils will
consider comments from small entities concerning the affected FAR Parts
2, 4, 5, 7, 19, 52, and 53 in accordance with 5 U.S.C. 610. Interested
parties must submit such comments separately and should cite 5 U.S.C
601, et seq. (FAC 2001-09, FAR case 2000-302), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (Pub. L. 104-13) applies.
However, this final rule requires contractors to report, as a separate
item, information already collected and reported under OMB Control
Numbers 9000-0006 and 9000-0007. The impact of this final rule on the
information collection hours of these OMB clearances is so small as to
be within the estimating parameters of these clearances. Therefore, the
clearances have not been changed.
List of Subjects in 48 CFR Parts 2, 4, 5, 7, 19, 52, and 53
Government procurement.
Dated: August 21, 2002.
Al Matera,
Director, Acquisition Policy Division.
Interim Rule Adopted as Final Without Change
Accordingly, DoD, GSA, and NASA adopt the interim rules and
correction amending 48 CFR parts 2, 4, 5, 7, 19, 52, and 53, which were
published in the Federal Register at 65 FR 60542, October 11, 2000, the
second interim rule at 66 FR 53492, October 22, 2001, and the
correction to the second interim rule at 67 FR 1858, January 14, 2002,
as a final rule without change.
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[FR Doc. 02-21869 Filed 8-29-02; 8:45 am]
BILLING CODE 6820-EP-U