[Federal Register Volume 61, Number 146 (Monday, July 29, 1996)]
[Rules and Regulations]
[Pages 39304-39305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19171]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 125


Government Contracting Assistance; Correction

AGENCY: Small Business Administration.

ACTION: Correction to final regulation.

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SUMMARY: This document contains corrections to a final rule published 
by the Small Business Administration (SBA) in the Federal Register on 
Wednesday, January 31, 1996 (61 FR 3310). The regulation related to 
small business prime contractor's performance. The correction is needed 
to ensure consistency with other provisions contained in SBA's 
regulations.

EFFECTIVE DATE: July 29, 1996.

FOR FURTHER INFORMATION CONTACT: Richard Sadowski, Acting Assistant 
Administrator, Office of Industrial Assistance, (202) 205-6475.

SUPPLEMENTARY INFORMATION: On January 31, 1996, SBA published in the 
Federal Register (61 FR 3310) a complete revision to the regulations 
pertaining to SBA's procurement assistance programs. Included within 
this final rule was a new section (Sec. 125.6) entitled ``Prime 
contractor performance requirements (limitations on subcontracting).'' 
61 FR 3315. As published, the final regulation contains two errors that 
may be misleading and need to be changed. First, Sec. 125.6(a)(2) uses 
the term ``regular dealer.'' However, the definition of ``regular 
dealer'' was abolished by section 7201 of the Federal Acquisition 
Streamlining Act of 1994 (FASA). Specifically, FASA repealed the 
``regular dealer'' or ``manufacturer'' eligibility requirements imposed 
by the Walsh-Healey Public Contracts Act. Without a current definition 
for the term ``regular dealer,'' SBA believes that its use in this

[[Page 39305]]

regulation would be confusing. As such, this correction rule 
substitutes the term ``non-manufacturer'' for ``regular dealer'' in 
Sec. 125.6(a)(2) to ensure consistency with other sections of 13 CFR 
Part 125 and to remove the ambiguity created by the use of the term 
``regular dealer.''
    Second, as set forth in the January 31, 1996 final rule, 
Sec. 125.6(c) stated that compliance with the Prime Contractor 
Performance Requirements would be determined as of the date the bid was 
submitted in a sealed bid procurement, and as of the date the concern 
submits its best and final offer in a negotiated procurement. This 
provision is inconsistent with the general responsibility requirements. 
In determining an offeror's responsibility to perform a specific 
contract as part of a Certificate of Competency review, SBA determines 
whether the offeror is capable of performing the contract at the time 
of award. The offeror can make changes to demonstrate that it can 
perform the contract up until the time of award. Because the Prime 
Contractor Performance Requirements are now to be considered an issue 
of responsibility, compliance with them also should be able to be 
demonstrated up until the time of award. Thus, this correction rule 
eliminates Sec. 125.6(c) for internal consistency, and redesignates 
paragraphs (d), (e), (f), and (g) as paragraphs (c), (d), (e), and (f), 
respectively.

Correction of Publication

    Accordingly, the publication on January 31, 1996, of the final 
regulations that were the subject of FR Doc. 96-1157, is corrected as 
follows:


Sec. 125.6  [Corrected]

    1. On page 3315 in the third column, Sec. 125.6(a)(2), remove the 
words ``regular dealer'' and add in their place the word ``non-
manufacturer''.
    2. On page 3316, in the first column, section 125.6, remove 
paragraph (c) in its entirety and redesignate paragraphs (d) through 
(g) as (c) through (f), respectively.

    Dated: July 16, 1996.
Ginger Lew,
Deputy Administrator.
[FR Doc. 96-19171 Filed 7-26-96; 8:45 am]
BILLING CODE 8025-01-P