[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Rules and Regulations]
[Pages 39900-39901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19413]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

48 CFR Parts 219 and 252

[DFARS Case 96-D304]


Defense Federal Acquisition Regulation Supplement; Comprehensive 
Subcontracting Plans

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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

SUMMARY: The Director of Defense Procurement has amended the Defense 
Federal Acquisition Regulation Supplement (DFARS) to reflect revisions 
made to the DoD Test Program for Negotiation of Comprehensive Small 
Business Subcontracting Plans. This action was subject to Office of 
Management and Budget review under Executive Order 12866.

DATES: Effective Date: July 31, 1996.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before September 30, 1996, to 
be considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Susan L. Schneider, 
PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 96-
D304 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Susan L. Schneider, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule amends DFARS Subpart 219.7 and the clause at 
252.219-7004 to reflect revisions made to the DoD Test Program for 
Negotiation of Comprehensive Small Business Subcontracting Plans. The 
revisions to the test program implement Section 811 of the National 
Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106). The 
revised test plan is published elsewhere in this issue of the Federal 
Register.
    This rule also contains editorial revisions to reflect changes to 
Part 19 of the Federal Acquisition Regulation, published as Item V of 
Federal Acquisition Circular 90-32 on September 18, 1995 (60 FR 48206).

B. Regulatory Flexibility Act

    The interim rule is not expected 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 small 
businesses are exempt from subcontracting plan requirements, and the 
rule does not change the contractor's obligation to maximize 
subcontracting opportunities for small business concerns. An initial 
regulatory flexibility analysis has therefore not been performed. 
Comments are invited from small businesses and other interested 
parties. Comments from small entities concerning the affected DFARS 
subparts will also be considered in accordance with Section 610 of the 
Act. Such comments must be submitted separately and cite DFARS Case 96-
D304 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this interim 
rule does not impose any information collection requirements which 
require approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense to issue this rule as an interim rule. Compelling reasons 
exist to promulgate this rule without prior opportunity for public 
comment. This interim DFARS rule reflects changes to the Test Program 
for Negotiation of Comprehensive Small Business Subcontracting Plans, 
as required by Section 811 of the National Defense Authorization Act 
for Fiscal Year 1996 (Pub. L. 104-106). Section 811, which amends 
requirements that contractors must meet to participate in the test 
program, was effective upon enactment on February 10, 1996. However, 
comments received in response to the publication of this interim rule 
will be considered in formulating the final rule.

List of Subjects in 48 CFR Parts 219 and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulation Council.

    Therefore, 48 CFR Parts 219 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 219 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

    2. Part 219 heading is revised to read as follows:

PART 219--SMALL BUSINESS PROGRAMS

    3. Section 219.702 is amended by revising the introductory text of 
paragraph (a) to read as follows:


219.702  Statutory and requirements.

    (a) Section 834 of Public Law 101-189, as amended, requires the DoD 
to establish a test program to determine whether comprehensive 
subcontracting plans on a corporate, division, or plant-wide basis will 
reduce administrative burdens while enhancing subcontracting 
opportunities for small and small disadvantaged business concerns.
* * * * *

[[Page 39901]]

    4. Section 219.708 is amended by revising paragraphs (b)(1)(A), 
(b)(1)(B), and (c)(1)(A) to read as follows:


219.708  Solicitation provisions and contract clauses.

    (b)(1) (A) Use the clause at 252.219-7003, Small, Small 
Disadvantaged and Women-Owned Small Business Subcontracting Plan (DoD 
Contracts), in solicitation and contracts that contain the clause at 
FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan.
    (B) In contracts with contractors which have comprehensive 
subcontracting plans approved under the test program described in 
219.702(a), use the clause at 252.219-7004, Small, Small Disadvantaged 
and Women-Owned Small Business Subcontracting Plan (Test Program), 
instead of the clauses at 252.219-7003, Small, Small Disadvantaged and 
Women-Owned Small Business Subcontracting Plan (DoD Contracts), and FAR 
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan.
* * * * *
    (c)(1) * * *
    (A) When contracting by negotiation, use the clause at 252.219-
7005, Incentive for Subcontracting with Small Businesses, Small 
Disadvantaged Businesses, Historically Black Colleges and Universities, 
and Minority Institutions, in all solicitations and contracts that 
contain the clause at FAR 52.219-9, Small, Small Disadvantaged and 
Women-Owned Small Business Subcontracting Plan. Incentives for 
exceeding SDB subcontracting goals shall be paid only if an SDB 
subcontracting goal was exceeded as a result of actual subcontract 
awards to SDBs, and not as a result of developmental assistant credit 
under the Pilot Mentor-Protege Program (see subpart 219.71).
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 252.219-7004 is amended by revising the section heading, 
the clause title and date and paragraph (b), (c), and (d) to read as 
follows:


252.219-7004  Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan (Test Program).

* * * * *

Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan (Test Program) (Jul 1996)

    (a) * * *
    (b) The Offeror's comprehensive small business subcontracting 
plan and its successors, which are authorized by and approved under 
the test program of Section 834 of Pub. L. 101-189, as amended, 
shall be included in and made a part of the resultant contract. Upon 
expulsion from the test program or expiration of the test program, 
the Contractor shall negotiate an individual subcontracting plan for 
all future contracts that meet the requirements of Section 211 of 
Pub. L. 95-507.
    (c) The Contractor shall submit Standard Form 295, Summary 
Subcontract Report, in accordance with the instructions on the form, 
except Item 14, Remarks, shall be completed to include semi-annual 
cumulative (1) small business, small disadvantaged business, and 
women-owned small business goals, and (2) small business and small 
disadvantaged business goals, actual accomplishments, and 
percentages for each of the two designated industry categories.
    (d) The failure of the Contractor or subcontractor to comply in 
good faith with (1) the clause of this contract entitled 
``Utilization of Small, Small Disadvantaged and Women-Owned Small 
Business Concerns,'' or (2) an approved plan required by this 
clause, shall be a material breach of the contract.

(End of clause)

[FR Doc. 96-19413 Filed 7-30-96; 8:45 am]
BILLING CODE 5000-04-M