[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4389]


[[Page Unknown]]

[Federal Register: March 10, 1994]


-----------------------------------------------------------------------


DEPARTMENT OF DEFENSE
48 CFR Part 19

[FAC 90-20; FAR Case 91-97; Item VIII]
RIN 9000-AF30

 

Federal Acquisition Regulation; Small Business Competitiveness 
Demonstration Program

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 have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to clarify how to proceed when 
there is not a reasonable expectation of offers from two or more 
responsible emerging small businesses (ESB), or when it is necessary to 
cancel an ESB set-aside and the emerging small business reserve amount 
established by the Office of Federal Procurement Policy (OFPP) is 
greater than $25,000. The FAR has also been amended to extend the Small 
Business Competitiveness Demonstration Program through September 30, 
1996.

EFFECTIVE DATE: May 9, 1994.

FOR FURTHER INFORMATION CONTACT:
Ms. Shirley Scott at (202) 501-0168 in reference to this FAR case. For 
general information, contact the FAR Secretariat, room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-20, 
FAR case 91-97.

SUPPLEMENTARY INFORMATION: 

A. Background

    The Small Business Competitiveness Demonstration Program, FAR 
19.10, is based on the OFPP Policy Directive and Test Plan, dated 
August 31, 1989. As part of this program, acquisitions in designated 
industry groups, with an estimated value equal to or less than a 
specified reserve amount, are set aside for emerging small businesses. 
OFPP may set a higher reserve amount in the event that emerging small 
business concerns are not receiving 15 percent of the total dollar 
value of contract awards in one or more of the designated industry 
groups. OFPP published a notice in the Federal Register at 56 FR 46656, 
September 13, 1991, which increased the reserve amount for the 
architectural and engineering services industry from $25,000 to 
$50,000. The increase of an emerging small business reserve amount 
above $25,000 makes this final rule necessary to clarify the internal 
Government procedures for proceeding with an acquisition when there is 
not a reasonable expectation of offers from two or more responsible 
ESB's or when it is necessary to cancel an ESB set-aside. Section 201 
of the Small Business Credit and Business Opportunity Enhancement Act 
of 1992 extended the Small Business Competitiveness Demonstration 
Program through September 20, 1996.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601 et seq., because the rule clarifies internal Government procedures 
for proceeding with an acquisition when (1) the emerging small business 
(ESB) reserve amount is increased by OFPP above $25,000, (2) there is 
not a reasonable expectation of offers from two or more responsible 
ESB's, or (3) it is necessary to cancel an ESB set-aside.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections of information from offerors, contractors, 
or members of the public which require the approval of the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 19

    Government procurement.

    Dated: February 15, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 19 is amended as set forth below:

PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

    1. The authority citation for 48 FR part 19 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 19.1001 is amended in paragraph (b) by revising the 
second sentence to read as follows:


19.1001  General.

* * * * *
    (b) * * * The program will be conducted over the period from 
January 1, 1989, through September 30, 1996. * * *
    2. Section 19.1006 is amended in paragraph (b)(1) by removing the 
date ``December 31, 1992'', and inserting ``September 30, 1996'' in its 
place; removing the words ``subparagraph (b)(2)'' and inserting 
``subparagraphs (b)(2) and (c)(1)'' in its place; and by revising 
paragraphs (c)(1) and (c)(2) to read as follows:


19.1006  Procedures.

* * * * *
    (c) Emerging small business set-aside. (1) All acquisitions in the 
four designated industry groups with an estimated value equal to or 
less than the emerging small business reserve amount established by the 
Office of Federal Procurement Policy shall be set aside for ESB's; 
provided that the contracting officer determines that there is a 
reasonable expectation of obtaining offers from two or more responsible 
ESB's that will be competitive in terms of market price, quality, and 
delivery. If no such reasonable expectation exists, the contracting 
officer shall--
    (i) For acquisitions $25,000 or less, proceed in accordance with 
13.105 or subpart 19.5; or
    (ii) For acquisitions over $25,000, proceed in accordance with 
paragraph (b) of this section.
    (2) If the contracting officer proceeds with the ESB set-aside and 
receives a quotation from only one ESB at a reasonable price, the 
contracting officer shall make the award. If there is no quote from an 
ESB, or the quote is not at a reasonable price, then the contracting 
officer shall cancel the ESB set-aside and proceed in accordance with 
(c)(1) (i) or (ii) of this section.
* * * * *
[FR Doc. 94-4389 Filed 3-9-94; 8:45 am]
BILLING CODE 6820-34-M