[Federal Register Volume 63, Number 247 (Thursday, December 24, 1998)]
[Notices]
[Pages 71272-71273]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34153]


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DEPARTMENT OF DEFENSE


Reinstatement of Small Business Set-Asides and Unrestricted 
Competition for Certain Acquisitions Under the Small Business 
Competitiveness Demonstration Program

AGENCY: Department of Defense (DoD).

ACTION: Notice of reinstatement of small business set-asides and 
unrestricted competition 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 construction 
acquisitions conducted by the Departments of the Army and Navy. 
Included in the reinstatement are solicitations issued under Standard 
Industrial Classification (SIC) Major Group 16 (Army and Navy) and SIC 
Code 1791 (Navy only). The Director of Defense Procurement has also 
reinstated the use of unrestricted competition for certain construction 
acquisitions conducted by the Departments of the Army and Navy and non-
nuclear ship repair acquisitions conducted by the Navy. Included in the 
reinstatement are solicitations issued under SIC Major Group 15 (Army 
and Navy) and SIC Code 3731 (Navy only).

EFFECTIVE DATE: December 11, 1998.

FOR FURTHER INFORMATION CONTACT:
Mr. Michael Sipple, PDUSD (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 and 
the Small Business Administration issued a revised interim policy 
directive and test plan on September 29, 1998 (63 FR 51981), for the 
Small Business Competitiveness Demonstration Program. The program is 
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.3. of the interim policy directive 
and test plan to reinstate the use of small business set-asides 
whenever the small business awards under any designated industry group 
fall below 40 percent or whenever small business awards under an 
individual SIC Code or Service Code within the designated industry 
group fall below 35 percent. Reinstatement is to be limited to the 
organizational elements that failed to meet the small business 
participation goals. Agencies are required by paragraphs III.D.2.b. and 
IV.A.3. of the interim policy directive and test plan to reinstate the 
use of unrestricted competition upon determining, after an annual 
review, that their contract awards to small business concerns again 
meet the required goals.
    For the 12 months ending September 1998, DoD awards in SIC Major 
Group 16 fell below the 40 percent goal. Accordingly, pursuant to DFARS 
219.1006(b)(2), the Director of Defense Procurement has directed the 
reinstatement of small business set-aside procedures pursuant to FAR 
Subpart 19.5 for all solicitations issued on or after December 11, 
1998, or as soon thereafter as practicable, for:

Construction, SIC Major Group 16--All Army and Navy Activities

    For the 12 months ending September 1998, DoD awards in SIC Major 
Group 15 and SIC Code 3731 meet the required small business goal of 40 
percent. Accordingly, the Director of Defense Procurement has directed 
the reinstatement of unrestricted competition for all solicitations 
issued on or after December 11, 1998, or as soon thereafter as 
practicable, for:

Construction, SIC Major Group 15--All Army and Navy Activities

Non-Nuclear Ship Repair, SIC Code 3731--All Navy Activities

    Consistent with the revised interim policy directive and test plan, 
this reinstatement of set-asides and unrestricted competition will be 
reviewed annually for continuation. The reinstatement of small business 
set-asides for SIC code 1791 for all Navy activities remains in effect 
(memorandum dated September 2, 1998; 63 FR 49094, September 14, 1998). 
The departmentwide reinstatement of small business set-aside procedures 
for the designated industry group titled ``Architectural and 
Engineering Services'' remains in effect

[[Page 71273]]

(memorandum dated September 30, 1991).
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 98-34153 Filed 12-23-98; 8:45 am]
BILLING CODE 5000-04-M