[Federal Register Volume 64, Number 61 (Wednesday, March 31, 1999)]
[Rules and Regulations]
[Pages 15306-15307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7828]


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GENERAL SERVICES ADMINISTRATION

48 CFR Part 552

[APD 2800.12A, CHGE 82]
RIN 3090-AG96


General Services Administration Acquisition Regulation; Small 
Business Subcontracting Program

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to make the GSAR clauses consistent with FAC 97-10 of 
the Federal Acquisition Regulation (FAR).

DATES: Effective March 31, 1999.

FOR FURTHER INFORMATION CONTACT:
Rhonda Cundiff, GSA Acquisition Policy Division, (202) 501-0044.

SUPPLEMENTARY INFORMATION:

A. Background

    This change updates GSAR clauses to include HUBZone small business 
concerns in subcontracting plan requirements.

B. Executive Order 12886

    This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993, 
and is not a major rule under 5 U.S.C. 804. The impact on small 
businesses derives from the changes made to the FAR rule, and the 
impacts were discussed in that rule's Final Regulatory Flexibility 
Analysis.

C. Regulatory Flexibility Act

    This final rule will not 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.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping or information collection 
requirements, or otherwise collect information from offerors, 
contractors, or members of the public that require approval of the 
Office of Management and Budget under 44 U.S.C. 3501 et seq.

List of Subjects in 48 CFR Part 552

    Government procurement.
    Accordingly, 48 CFR 552 is amended as follows:
    1. The authority citation for 48 CFR Part 552 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c).

PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    2. Section 552.219-72 is revised to read as follows:


552.219-72  Notice to offerers of subcontracting plan requirements.

    As prescribed in 519.708(a), insert the following provision:

Notice to Offerers of Subcontracting Plan Requirements (Mar 1999)

    The General Services Administration (GSA) is committed to 
assuring that maximum practicable opportunity is provided to small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns to participate in the performance of this contract 
consistent with its efficient performance. GSA expects any 
subcontracting plan submitted pursuant to FAR 52.219-9, Small 
Business Subcontracting Plan, to reflect this commitment. 
Consequently, an offeror, other than a small business concern, 
before being awarded a contract exceeding $500,000 ($1,000,000 for 
construction), must demonstrate that its subcontracting plan 
represents a creative and innovative program for involving small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns as subcontractors in the performance of this contract.

(End of Provision)

    3. Section 552.219-73 is revised to read as follows:


552.219-73   Preparation, submission, and negotiation of subcontracting 
plans.

    As prescribed in 519.708(b), insert the following provision:

Preparation, Submission, and Negotiation of Subcontracting Plans (Mar 
1999)

    (a) An offeror, other than a small business concern, submitting 
an offer that exceeds $500,000 ($1,000,000 for construction) shall 
submit a subcontracting plan with its initial offer. The 
subcontracting plan will be negotiated concurrently with price and 
any required technical and management proposals, unless the offeror 
submits a

[[Page 15307]]

previously-approved commercial products plan.
    (b) Maximum practicable utilization of small, HUBZone small, 
small disadvantaged, and women-owned small business concerns as 
subcontractors is a matter of national interest with both social and 
economic benefits. The General Services Administration (GSA) expects 
that an offeror's subcontracting plan will reflect a commitment to 
assuring that small, HUBZone small, small disadvantaged, and women-
owned small business concerns are provided the maximum practicable 
opportunity, consistent with efficient contract performance, to 
participate as subcontractors in the performance of the resulting 
contract. An offeror submitting a commercial products plan can 
reflect this commitment through subcontracting opportunities it 
provides that relate to the offeror's production generally; i.e., 
for both its commercial and Government business.
    (c) GSA believes that this potential contract provides 
significant opportunities for the use of small, HUBZone small, small 
disadvantaged, and women-owned small business concerns as 
subcontractors. Consequently, in addressing the eleven elements 
described at FAR 52.219-9(d) of the clause in this contract entitled 
Small Business Subcontracting Plan, the offeror shall:
    (1) Demonstrate that its subcontracting plan represents a 
creative and innovative program for involving small, HUBZone small, 
small disadvantaged, and women-owned small business concerns in 
performing the contract.
    (2) Include a description of the offeror's subcontracting 
strategies used in any previous contracts, significant achievements, 
and how this plan will build upon those earlier achievements.
    (3) Demonstrate through its plan that it understands the small 
business subcontracting program's objectives and GSA's expectations, 
and it is committed to taking those actions necessary to meet these 
goals or objectives.
    (d) In determining the acceptability of any subcontracting plan, 
the Contracting Officer will take each of the following actions:
    (1) Review the plan to verify that the offeror demonstrates an 
understanding of the small business subcontracting program's 
objectives and GSA's expectations with respect to the program and 
has included all the information, goals, and assurances required by 
FAR 52.219-9.
    (2) Consider previous goals and achievements of contractors in 
the same industry.
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and 
other advocacy groups in evaluating whether the goals stated in the 
plan adequately reflect the anticipated potential for subcontracting 
to small, HUBZone small, small disadvantaged, and women-owned small 
business concerns.
    (4) Review the offeror's description of its strategies, 
historical performance and significant achievements in placing 
subcontracts for the same or similar products or services with 
small, HUBZone small, small disadvantaged, and women-owned small 
business concerns. The offeror's description can apply to commercial 
as well as previous Government contracts.
    (e) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies in a plan within the time specified by the 
Contracting Officer shall make the offeror ineligible for award.

(End of Provision)

    4. Section 552.219-74 is revised to read as follows:


552.219-74   Goals for subcontracting plan.

    As prescribed in 519.708(c), insert the following provision:

Goals for Subcontracting Plan (Mar 1999)

    (a) Maximum practicable utilization of small, HUBZone small, 
small disadvantaged, and women-owned small business concerns as 
subcontractors is a matter of national interest with both social and 
economic benefits.
    (1) The General Services Administration's (GSA's) commitment to 
ensuring that maximum practicable opportunity is provided to small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns to participate as subcontractors in the performance of this 
contract, consistent with its efficient performance, must be 
reflected in the offeror's subcontracting plan submitted pursuant to 
the clause of this contract at FAR 52.219-9, Small Business 
Subcontracting Plan.
    (2) In addressing the eleven elements described at FAR 52.219-
9(d), the offeror shall demonstrate that its subcontracting plan 
represents a creative and innovative program for involving small, 
HUBZone small, small disadvantaged, and women-owned small business 
concerns in performing this contract. An offeror submitting a 
commercial products plan can demonstrate its commitment in providing 
maximum practicable opportunities through subcontracting 
opportunities it provides to small, HUBZone small, small 
disadvantaged, and women-owned small business concerns that relate 
to the offeror's production generally; i.e., for both its commercial 
and Government business.
    (3) The subcontracting plan shall include a description of the 
offeror's subcontracting strategies used in previous contracts and 
significant achievements, with an explanation of how this plan will 
build upon those earlier achievements. Additionally, the offeror 
shall demonstrate through its plan that it understands the small 
business subcontracting program's objectives, GSA's expectations, 
and is committed to taking those actions necessary to meet these 
goals or objectives.
    (b) GSA believes that this contract provides significant 
opportunities for the use of small HUBZone small, small 
disadvantaged, and women-owned small business concerns and 
subcontractors. Accordingly, it is anticipated that an acceptable 
subcontracting plan will contain at least the following goals:

Small Business: ______percent
HUBZone Small Business: ______ percent
Small Disadvantaged Business: ______ percent
Women-Owned Small Business: ______ percent

    Note: Target goals are expressed as a percentage of planned 
subcontracting dollars.
    (c) In determining the acceptability of any subcontracting plan, 
the Contracting Officer will--
    (1) Review the plan to verify that the offeror has demonstrated 
an understanding of the small business subcontracting program's 
objectives and GSA's expectations with respect to the programs and 
has included all the information, goals, and assurances required by 
FAR 52.219-9;
    (2) Consider previous goals and achievements of contractors in 
the same industry;
    (3) Consider information and potential sources obtained from 
agencies administering national and local preference programs and 
other advocacy groups in evaluating whether the goals stated in the 
plan adequately reflect the anticipated potential for subcontracting 
to small, HUBZone small, small disadvantaged, and women-owned small 
business concerns; and
    (4) Review the offeror's description of its strategies, 
historical performance and significant achievements in placing 
subcontracts for the same or similar products or services with 
small, HUBZone small, small disadvantaged, and women-owned small 
business concerns. The offeror's description can apply to commercial 
as well as previous Government contracts.
    (d) Failure to submit an acceptable subcontracting plan and/or 
correct deficiencies in a plan within the time specified by the 
Contracting Officer shall make the offeror ineligible for award.

(End of Provision)

Alternate I (DEC 1995)

    As prescribed in 519.708(c), delete paragraph (b) of the basic 
provision and redesignate paragraphs (c) and (d) as paragraphs (b) 
and (c).

    Dated: March 25, 1999.
Les Davison,
Acting Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 99-7828 Filed 3-30-99; 8:45 am]
BILLING CODE 6820-61-M