[Federal Register Volume 59, Number 248 (Wednesday, December 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30637]


[Federal Register: December 28, 1994]


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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 52

[FAC 90-23; FAR Case 92-628; Item XXXIV]
RIN 9000-AG09


Federal Acquisition Regulation; Small Business and Small 
Disadvantaged Business Subcontracting Plan

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council (CAAC) and the Defense 
Acquisition Regulations Council (DARC) have agreed to amend the Federal 
Acquisition Regulation (FAR) to state that a firm may rely on the 
information contained in the Procurement Automated Source System (PASS) 
as an accurate representation of a concern's size and ownership 
characteristics for purposes of maintaining a small business source 
list and as its source list. This regulatory action was not subject to 
Office of Management and Budget review under Executive Order 12866, 
dated September 30, 1993.

EFFECTIVE DATE: February 27, 1995.

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 90-23, FAR case 92-628.

SUPPLEMENTARY INFORMATION:

A. Background

    The Small Business Administration (SBA) amended its size 
regulations in the Federal Register at 58 FR 47371, September 9, 1993, 
to make a general policy statement that prime contractors may rely on 
the information contained in SBA's Procurement Automated Source System 
(PASS) as an accurate representation of a concern's size and ownership 
characteristics for the purpose of maintaining a small business source 
list.
    The current regulation, while not specifically requiring an annual 
certification, is apparently being interpreted as requiring one. A 
number of large businesses are under the impression that as a part of a 
subcontracting plan, they are required to obtain certifications as to 
the size and socio-economic status of their potential subcontractors on 
an annual basis. This has resulted in substantial effort and the 
expenditure of several million dollars each year by contractors in 
trying to keep their small business source lists up to date. It has 
also resulted in small businesses on those lists receiving numerous 
requests from different companies for the same type of information.
    The current wording of the FAR clause at 52.219-9, Small Business 
and Small Disadvantaged Business Subcontracting Plan, does not clearly 
indicate that a prime contractor's use of the PASS will meet the 
requirement to both establish and maintain a mailing list for potential 
small, small disadvantaged, and women-owned businesses. This rule will 
clarify that contractor's can meet the requirement to maintain a 
current bidders list through use of the SBA PASS.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577 and publication 
for public comment is not required. Therefore, the Regulatory 
Flexibility Act does not apply. However, comments from small entities 
concerning the affected FAR subpart will be considered in accordance 
with 5 U.S.C. 610. Such comments must be submitted separately and cite 
FAC 90-23, FAR Case 92-628 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the final rule do not impose recordkeeping or information collection 
requirements 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 52

    Government procurement.

    Dated: December 7, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR part 52 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 52.219-9 is amended by revising the clause date to read 
``(Feb 1995)''; and adding three sentences to the end of paragraph 
(d)(5) and revising (d)(11)(i) to read as follows:


52.219-9  Small Business and Small Disadvantaged Business 
Subcontracting Plan.

* * * * *

Small Business and Small Disadvantaged Business Subcontracting Plan 
(Feb 1995)

    (d) * * *
    (5) * * * A firm may rely on the information contained in PASS 
as an accurate representation of a concern's size and ownership 
characteristics for purposes of maintaining a small business source 
list. A firm may rely on PASS as its small business source list. Use 
of the PASS as its source list does not relieve a firm of its 
responsibilities (i.e., outreach, assistance, counseling, 
publicizing subcontracting opportunities) in this clause.
* * * * *
    (11) * * *
    (i) Source lists, e.g., PASS guides and other data that identify 
small and small disadvantaged business concerns.
* * * * *
[FR Doc. 94-30637 Filed 12-27-94; 8:45 am]
BILLING CODE 6820-34-P