[Federal Register: December 13, 2010 (Volume 75, Number 238)]
[Rules and Regulations]
[Page 77737-77739]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13de10-11]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 19, and 52
[FAC 2005-47; FAR Case 2009-019; Item IV; Docket 2010-0108, Sequence 1]
RIN 9000-AL77
Federal Acquisition Regulation; Small Disadvantaged Business
Self-Certification
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are issuing an interim rule
amending the Federal Acquisition Regulation (FAR) to incorporate
changes made by the Small Business Administration (SBA) to its Small
Disadvantaged Business (SDB) Program.
DATES: Effective Date: December 13, 2010.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before February 11, 2011 to be
considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-47, FAR Case 2009-
019, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2009-019'' under the heading ``Enter Keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2009-019.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2009-019'' on your attached document.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street, NE.,
Washington, DC 20417.
Instructions: Please submit comments only and cite FAC 2005-47, FAR
Case 2009-019, in all correspondence related to this case. All comments
received will be posted without change to http://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Mr. Karlos Morgan, Procurement Analyst, at (202) 501-2364. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-47, FAR
Case 2009-019.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends the FAR to allow subcontractors on Federal
contracts to self-represent their status as SDBs to prime contractors.
SBA published an interim final rule in the Federal Register at 73 FR
57490, October 3, 2008, to allow SDB subcontractors to provide written
statements to prime contractors representing in good faith their status
as an SDB concern for the purposes of subcontract awards under Federal
prime contracts. Under SBA's previous regulation, only those firms that
were certified by SBA as SDBs could participate as SDBs for Federal
prime contract and subcontract opportunities. SBA stated that,
effective October 3, 2008, it would no longer serve as a source for SDB
certification for firms seeking to establish themselves as SDBs. The
revision to SBA's regulation removed any uncertainty regarding SDB
subcontractors' ability to self-represent themselves in good faith to
prime contractors.
In order to maintain consistency between the SBA regulations and
the FAR, the Councils are amending the FAR as outlined below:
FAR 2.101, Definitions: The term ``small disadvantaged
business concern'' is revised to be consistent with 13 CFR part 124,
which continues to recognize small business concerns that have been
certified by SBA, and to add language that allows small business
concerns to self-represent their status as SDBs for subcontracts.
FAR 19.301-1, Representations by the offeror: Amended to
update citations.
FAR 19.703, Eligibility requirements for participating in
the
[[Page 77738]]
program: Amended to add language that allows the contractor to rely on
small business concerns to self-represent their status as SDBs for
subcontracts.
FAR 52.219-8, Utilization of Small Business Concerns:
Amended to include language that the small business concern can self-
represent its SDB status in writing.
FAR 52.219-25, Small Disadvantaged Business Participation
Program--Disadvantaged Status and Reporting: Amended to allow the
contractor to accept written self-representations of small
disadvantaged status from subcontractors.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of the 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 Councils do not expect this interim rule to 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 revision removes a requirement for SDBs to obtain SBA SDB
certification prior to award of a subcontract. This change will be
beneficial to SDBs because they will no longer have to incur the cost
associated with a formal certification process. Therefore, an Initial
Regulatory Flexibility Analysis has not been performed. The Councils
invite comments from small business concerns and other interested
parties on the expected impact of this rule on small entities.
The Councils will also consider comments from small entities
concerning the existing regulations in parts affected by this rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAC 2005-47, FAR Case
2009-019) in all correspondence.
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.
chapter 35, et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense, the Administrator of General Services, and the
Administrator of the National Aeronautics and Space Administration that
urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
because the FAR currently prohibits small business concerns that are
not certified by the SBA from participating as SDB concerns for
subcontracting. This interim rule implements changes promulgated by the
SBA and is necessary for the FAR to be consistent with SBA's
regulations pertaining to SDB certifications. However, pursuant to 41
U.S.C. 418b and FAR 1.501-3(b), the Councils will consider public
comments received in response to this interim rule in the formation of
the final rule.
List of Subjects in 48 CFR Parts 2, 19, and 52
Government procurement.
Dated: November 24, 2010.
Millisa Gary,
Acting Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 19, and 52 as set
forth below:
0
1. The authority citation for 48 CFR parts 2, 19, and 52 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 2--DEFINITIONS OF WORDS AND TERMS
0
2. Amend section 2.101 in paragraph (b)(2), in the definition ``Small
disadvantaged business concern'', by--
0
a. Revising the introductory text and paragraph (1)(iii);
0
b. Amending paragraph (2) by removing the period at the end of the
paragraph and adding a semicolon in its place; and
0
c. Adding paragraph (3).
The revised and added text reads as follows:
2.101 Definitions.
* * * * *
(b) * * *
(2) * * *
Small disadvantaged business concern (except for 52.212-3(c)(4) and
52.219-1(b)(2) for general statistical purposes and 52.212-3(c)(9)(ii),
52.219-22(b)(2), 52.219-22(b)(1)(C), and 52.219-23(a)(3) for joint
ventures under the price evaluation adjustment for small disadvantaged
business concerns), consistent with 13 CFR 124.1002, means an offeror,
that is a small business under the size standard applicable to the
acquisition; and either--
(1) * * *
(iii) It is identified, on the date of its representation, as a
certified small disadvantaged business concern in the CCR Dynamic Small
Business Search data base maintained by the Small Business
Administration;
* * * * *
(3) It represents in writing that it qualifies as a small
disadvantaged business (SDB) for any Federal subcontracting program if
it believes in good faith that it is owned and controlled by one or
more socially and economically disadvantaged individuals and meets the
SDB eligibility criteria of 13 CFR 124.1002.
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
19.301-1 [Amended]
0
3. Amend section 19.301-1 in paragraph (d), in the last sentence, by
removing ``13 CFR 124.1011'' and adding ``13 CFR 124.1004'' in its
place.
0
4. Amend section 19.703 by removing from paragraph (a)(1) ``HUBZone
small business,'' and adding ``HUBZone small business, small
disadvantaged business,'' in its place; removing from paragraph (a)(2),
in the second sentence, ``13 CFR 124.1015 through 124.1022'' and adding
``13 CFR 124.1007 through 124.1014'' in its place; and revising
paragraph (b) to read as follows:
19.703 Eligibility requirements for participating in the program.
* * * * *
(b) A contractor acting in good faith may rely on the written
representation of its subcontractor regarding the subcontractor's
status as a small business, small disadvantaged business, veteran-owned
small business, service-disabled veteran-owned small business, or a
woman-owned small business concern. The contractor, the contracting
officer, or any other interested party can challenge a subcontractor's
size status representation by filing a protest, in accordance with 13
CFR 121.1001 through 121.1008. Protests challenging a subcontractor's
small disadvantaged business representation must be filed in accordance
with 13 CFR 124.1007 through 124.1014.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Amend section 52.212-5 by revising the date of the clause; removing
from paragraph (b)(11) ``(MAY 2004)'', and adding ``(DEC 2010)'' in its
place; removing from paragraph (e)(1)(ii) ``(October 2000)'', and
adding ``(DEC
[[Page 77739]]
2010)'' in its place; revising the date of Alternate II; and removing
from Alternate II, paragraph (e)(1)(ii)(C) ``(MAY 2004)'' and adding
``(DEC 2010)'' in its place.
The revised text reads as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Items (DEC 2010)
* * * * *
Alternate II (DEC 2010). * * *
* * * * *
0
6. Amend section 52.213-4 by revising the date of the clause, and
paragraph (a)(2)(vii) to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (DEC 2010)
(a) * * *
(2) * * *
(vii) 52.244-6, Subcontracts for Commercial Items (DEC 2010).
* * * * *
0
7. Amend section 52.219-8 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (c), in the definition ``Small disadvantaged business
concern'', by redesignating paragraphs (1) through (4) as paragraphs
(1)(i) through (iv), respectively, and revising the newly redesignated
paragraph (1)(iv); and adding paragraph (2).
The revised and added text reads as follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (DEC 2010)
* * * * *
(c) * * *
* * * * *
Small disadvantaged business concern * * *
(1)(i) * * *
(iv) It is identified, on the date of its representation, as a
certified small disadvantaged business in the CCR Dynamic Small
Business Search database maintained by the Small Business
Administration, or
(2) It represents in writing that it qualifies as a small
disadvantaged business (SDB) for any Federal subcontracting program,
and believes in good faith that it is owned and controlled by one or
more socially and economically disadvantaged individuals and meets
the SDB eligibility criteria of 13 CFR 124.1002.
* * * * *
0
8. Amend section 52.219-25 by revising the date of the clause; revising
the second sentence of paragraph (a); redesignating paragraph (b) as
paragraph (c); and adding a new paragraph (b) to read as follows:
52.219-25 Small Disadvantaged Business Participation Program--
Disadvantaged Status and Reporting.
* * * * *
Small Disadvantaged Business Participation Program--Disadvantaged
Status and Reporting (DEC 2010)
(a) * * * The Contractor shall obtain representations of small
disadvantaged status from joint venture partners, teaming
arrangement members, and subcontractors (see exception in paragraph
(b) of this section) through use of a provision substantially the
same as paragraph (b)(1)(i) of the provision at FAR 52.219-22, Small
Disadvantaged Business Status. * * *
(b) For subcontractors that are not certified as a small
disadvantaged business by the Small Business Administration, the
Contractor shall accept the subcontractor's written self-
representation as a small disadvantaged business, unless the
Contractor has reason to question the self-representation.
* * * * *
0
9. Amend section 52.244-6 by revising the date of the clause; and
removing from paragraph (c)(1)(iii) ``(MAY 2004)'' and adding ``(DEC
2010)'' in its place.
The revised text reads as follows:
52.244-6 Subcontracts for Commercial Items.
* * * * *
Subcontracts for Commercial Items (DEC 2010)
* * * * *
[FR Doc. 2010-30563 Filed 12-10-10; 8:45 am]
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