[Federal Register Volume 64, Number 20 (Monday, February 1, 1999)]
[Notices]
[Pages 4847-4848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2234]


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DEPARTMENT OF DEFENSE


Suspension of the Price Evaluation Adjustment for Small 
Disadvantaged Businesses

AGENCY: Department of Defense (DoD).

ACTION: Notice of 1-year suspension of the price evaluation adjustment 
for small disadvantaged businesses.

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SUMMARY: The Director of Defense Procurement has suspended the use of 
the price evaluation adjustment for small disadvantaged businesses 
(SDBs) in DoD procurements as required by 10 U.S.C. 2323(e)(2), as 
amended by section 801 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999, because DoD exceeded its 5 
percent contract goal for awards to SDBs in fiscal year 1998. The 
suspension will be in effect for 1 year and will be reevaluated based 
on the

[[Page 4848]]

level of DoD contract awards to SDBs achieved in fiscal year 1999.

DATES: Effective Date: February 24, 1999.

    Applicability Date: This suspension applies to all solicitations 
issued during the period from February 24, 1999, to February 23, 2000.

FOR FURTHER INFORMATION CONTACT:
Ms. Susan Schneider, PDUSD (A&T), Director of Defense Procurement, 
Defense Acquisition Regulations Council, 3060, Defense Pentagon, 
Washington, DC 20301-30962, telephone (703) 602-0131.

SUPPLEMENTARY INFORMATION: Pursuant to the authority granted in 10 
U.S.C. 2323(e), DoD has previously granted SDBs a 10 percent price 
preference in certain acquisitions. This price preference was initially 
implemented in the Defense Federal Acquisition Regulation Supplement, 
Subpart 219.70. Beginning October 1, 1998, the price preference program 
was removed from the Defense Federal Acquisition Regulation Supplement 
and was implemented, in revised form, for all agencies subject to the 
Federal Acquisition Regulation in Subpart 19.11 of that regulation.
    Section 801 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (Public Law 105-261) amended 10 U.S.C. 
2323(e)(3) to prohibit DoD from granting such a price preference for a 
1-year period following a fiscal year in which DoD achieved the 5 
percent goal for contract awards established in 10 U.S.C. 2323(a). 
Since, in fiscal year 1998, DoD exceeded this 5 percent goal, use of 
this price preference in DoD acquisitions must be suspended for a 1-
year period.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 99-2234 Filed 1-29-99; 8:45 am]
BILLING CODE 5000-04-M