[Federal Register Volume 63, Number 177 (Monday, September 14, 1998)]
[Notices]
[Page 49094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24507]


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DEPARTMENT OF DEFENSE


Reinstatement of Small Business Set-asides for Certain 
Acquisitions Under the Small Business Competitiveness Demonstration 
Program

AGENCY: Department of Defense (DoD).

ACTION: Notice of reinstatement of small business set-asides under the 
Small Business Competitiveness Demonstration Program.

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SUMMARY: The Director of Defense Procurement has reinstated the use of 
small business set-aside procedures for certain non-nuclear ship repair 
and construction acquisitions conducted by the Departments of the Navy 
and Army. Included in the reinstatement are solicitations issued under 
Standard Industrial Classification (SIC) Code 3731 (Service Codes J998 
and J999) (Navy only), SIC Code 1791 (Navy only), and SIC Code 1629 
(Army only; note, however, that use of small business set-asides in 
this SIC Code was previously reinstated for the Navy and that 
reinstatement remains in effect).

EFFECTIVE DATE: September 2, 1998.

FOR FURTHER INFORMATION CONTACT:
Mr. Michael Sipple, OUSD (A&T), Director of Defense Procurement, 
Contract Policy and Administration, Room 3C838, 3060 Defense Pentagon, 
Washington, DC 20301-3060, telephone (703) 695-8567.

SUPPLEMENTARY INFORMATION: The Office of Federal Procurement Policy 
(OFPP) implemented Title VII of Pub. L. 100-656 (15 U.S.C. 644 note) by 
issuance of the ``Small Business Competitiveness Demonstration Program 
Test Plan'' on August 31, 1989, amended April 16, 1993. The program was 
further implemented in Subpart 19.10 of the Federal Acquisition 
Regulation (FAR) and Subpart 219.10 of the Defense FAR Supplement 
(DFARS).
    Under the program, small business set-asides were initially 
suspended for certain designated industry groups. Agencies are required 
by paragraphs III.D.2.a. and IV.A.4. of the OFPP test plan to reinstate 
the use of small business set-asides whenever the small business awards 
under any designated industry group falls below 40 percent or whenever 
small business awards under an individual SIC Code or Service Code 
within the designated industry group falls below 35 percent. 
Reinstatement is to be limited to the organizational elements (in the 
case of DoD, the individual military departments or other components) 
that failed to meet the small business participation goals.
    For the 12 months ending June 1998, DoD awards in the industries 
shown below fell below the 40 percent (SIC Code 3731 (Service Codes 
J998 and J999)) or 35 percent (SIC Codes 1629 and 1791) thresholds. 
Accordingly, pursuant to DFARs 219.1006(b)(2), the Director of Defense 
Procurement has directed reinstatement of small business set-aside 
procedures for solicitations that involve the industry categories shown 
below. The reinstatement applies to solicitations issued by the 
applicable buying activities on or after September 2, 1998, or as soon 
thereafter as practicable:

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                  Industry                          Applicable to       
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Non-Nuclear Ship Repair, SIC Code 3731       All Navy                   
 (Service Codes J998 and J999).              Activities.                
Construction, Major Group 17--SIC Code 1791  All Navy                   
 only.                                       Activities.                
Construction Major Group 16--SIC Code 1629   All Army                   
 only.                                       Activities.                
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    Consistent with the OFPP test plan, this reinstatement of set-
asides will be periodically reviewed for continuation. The 
reinstatement of small business set-aside procedures for Construction 
Major Group 15 for all Army and Navy contracting activities and SIC 
Code 1629 for all Navy contracting activities remains in effect 
(memorandum dated June 17, 1998; 63 FR 37096, July 9, 1998). Also, the 
departmentwide reinstatement of small business set-aside procedures for 
the designated industry group titled ``Architectural and Engineering 
Services'' remains in effect (memorandum dated September 30, 1991).
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council
[FR Doc. 98-24507 Filed 9-11-98; 8:45 am]
BILLING CODE 5000-04-M