[Federal Register Volume 64, Number 189 (Thursday, September 30, 1999)]
[Notices]
[Pages 52806-52809]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25444]
[[Page 52806]]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy Small Disadvantaged Business
Procurement: Reform of Affirmative Action in Federal Procurement
AGENCY: Office of Federal Procurement Policy (OFPP), OMB.
ACTION: Notice of Determination Concerning the Price Evaluation
Adjustment Program and the Small Disadvantaged Business (SDB)
Participation Program.
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SUMMARY: The Federal Acquisition Regulation (FAR), 48 CFR subparts
19.11 and 19.12 contain procurement mechanisms applicable to the SDB
reform program. FAR subpart 19.11 permits eligible SDBs to receive
price evaluation adjustments in Federal procurement programs. FAR
subpart 19.12 provides for an SDB participation program that evaluates
the extent of participation of SDB concerns in contract performance.
The FAR provides further that the Department of Commerce will determine
on an annual basis the price evaluation adjustment by standard
industrial classification (SIC) major groups for the price evaluation
adjustment program and the authorized SIC major groups for the SDB
participation program.
The Commerce Department, in the attached memorandum, determines
that for fiscal year 2000 the price evaluation adjustment and the
authorized SIC major groups are the same as used in fiscal year 1999.
The OFPP notice of June 30, 1998 (63 Fed. Reg. 35714) includes the
Commerce determination for fiscal year 1999 of the price evaluation
adjustment by SIC major groups for the price evaluation adjustment
program. Subsequently, OFPP published on December 29, 1998 (63 Fed.
Reg. 71724) the Commerce determination of authorized SIC major groups
for the SDB participation program which were the same SIC major groups
applicable to the price evaluation adjustment program.
EFFECTIVE DATE: October 1, 1999.
FOR FURTHER INFORMATION CONTACT: Michael Gerich, Deputy Associate
Administrator, Office of Federal Procurement Policy, Telephone, 202-
395-3501. For information on the Commerce determination, contact
Jeffrey Mayer, Director of Policy Development, Economics and Statistics
Administration, U.S. Department of Commerce, Telephone 202-482-1728.
SUPPLEMENTARY INFORMATION:
Procurement Mechanisms and Factors
FAR subparts 19.11 and 19.12 contain procurement mechanisms
applicable to the SDB reform program. FAR subpart 19.11 provides for
the use of a price evaluation adjustment for eligible SDBs. FAR subpart
19.12 provides for an SDB participation program that consists of two
mechanisms: (1) An evaluation factor or subfactor for evaluating the
extent of participation of SDBs in performance of the contract; and (2)
an incentive subcontracting program for exceeding SDB participation
targets. OFPP gives notice that the attached memorandum from the
Commerce Department determines that for fiscal year 2000 the price
evaluation adjustment and the authorized SIC major groups are the same
as used in fiscal year 1999. (See 63 FR 35714 (June 30, 1998) for the
price evaluation adjustment and the listing of the eligible SIC major
groups applicable in fiscal year 1999.) This determination affects
solicitations issued on or after October 1, 1999.
Deidre A. Lee,
Administrator.
Attachment.
MEMORANDUM FOR OFFICE OF FEDERAL PROCUREMENT POLICY
From: Jeffrey L. Mayer, Director of Policy Development.
Subject: Determination on the Price Evaluation Adjustment for
Small Disadvantaged Business Concerns and the Small Disadvantaged
Business Participation Program for FY 2000.
Pursuant to Federal Acquisition Regulation paragraph 19.201(b)
and subparts 19.11 and 19.12, transmitted herein is the Department
of Commerce (DOC) determination on the Price Evaluation Adjustments
for Small Disadvantaged Business Concerns and the Small
Disadvantaged Business Participation Program for use in Federal
procurements in FY 2000.
DOC transmitted a Notice of Determination Concerning Price
Evaluation Adjustments to the Office of Federal Procurement Policy,
which was published in the Federal Register on June 30, 1998 (see 63
FR 35714 (1998)). The Notice identified the standard industrial
classification (SIC) major industry groups in which offers by small
disadvantaged businesses on certain federal prime contracts would be
eligible for ten percent price evaluation adjustments in FY 1999. In
addition, DOC transmitted a Notice of Determination Concerning the
Small Disadvantaged Business Participation Program to the Office of
Federal Procurement Policy, which was published in the Federal
Register on December 29, 1998 (see 63 FR 71724 (1998)). In both
cases, the determinations were based on DOC's benchmark and
utilization estimates derived from FY 1996 data.
In order to develop new benchmarks and utilization estimates for
its FY 2001 determination, DOC plans to collect and analyze FY 1999
data along the lines of the methodology outlined in the June 30,
1998 Notice. The determination based on the resulting estimates will
be published in June 2000 and will take effect on October 1, 2000.
Based on its assessment of the consistency in recent federal
procurement patterns, DOC proposes to develop new benchmarks and
utilization estimates every three years. DOC will monitor
procurement annually to see if benchmarks and utilization estimates
should be updated more frequently than every three years.
DOC's determination of industries eligible for both the Price
Evaluation Adjustment for Small Disadvantaged Business Concerns and
the Small Disadvantaged Business Participation Program for FY 2000
is the same as its determination for FY 1999 and is reproduced in
the table below.
Industries Eligible for a Ten Percent Price Evaluation Adjustment and the Small Disadvantaged Business
Participation Program
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Eligibility
SIC major industry group (*) Description of Industry Grouping
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Agriculture, Forestry, and Fishing
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01................................. .............. Agricultural production--crops.
02................................. .............. Agricultural production--livestock.
07................................. .............. Agricultural services.
08................................. .............. Forestry.
09................................. .............. Fishing, hunting, & trapping.
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Mining
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10................................. * Metal mining.
12................................. * Coal mining.
13................................. * Oil & gas extraction.
14................................. * Extraction of nonmetallic minerals, ex. Fuels
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Construction
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15................................. .............. Building construction--general contractors.
15................................. * East North Central.
15................................. * East South Central.
15................................. * Middle Atlantic.
15................................. .............. Mountain.
15................................. .............. New England.
15................................. .............. Pacific.
15................................. .............. South Atlantic.
15................................. .............. West North Central.
15................................. * West South Central.
16................................. .............. Heavy construction other than buildings--contractors.
16................................. .............. East North Central.
16................................. * East South Central.
16................................. .............. Middle Atlantic.
16................................. .............. Mountain.
16................................. .............. New England.
16................................. .............. Pacific.
16................................. .............. South Atlantic.
16................................. .............. West North Central.
16................................. * West South Central.
17................................. .............. Construction--special trade contractors.
17................................. .............. East North Central.
17................................. .............. East South Central.
17................................. .............. Middle Atlantic.
17................................. .............. Mountain.
17................................. * New England.
17................................. .............. Pacific.
17................................. .............. South Atlantic.
17................................. * West North Central.
17................................. .............. West South Central.
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Manufacturing
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20................................. .............. Food & kindred products.
21................................. .............. Tobacco products.
22................................. * Textile mill products.
23................................. * Apparel & other finished products made from fabrics.
24................................. * Lumber & wood products, ex. Furniture.
25................................. * Furniture & fixtures.
26................................. * Paper & allied products.
27................................. * Printing, publishing, & allied industries.
28................................. * Chemicals & allied products.
29................................. * Petroleum refining & related industries.
30................................. * Rubber & miscellaneous plastics products.
31................................. * Leather & leather products.
32................................. .............. Stone, clay, glass, & concrete products.
33................................. .............. Primary metal industries.
34................................. * Fabricated metal products.
35................................. .............. Industrial & commercial machinery & computer equipment.
36................................. * Electronic & other electrical equipment & components, ex.
Computers.
37................................. * Transportation equipment.
38................................. * Measuring, analyzing, & controlling instruments;
photographic, medical & optical goods; watches & clocks.
39................................. * Miscellaneous manufacturing industries.
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Transportation, Communications, Electric, Gas, Sanitary Services
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40................................. .............. Railroad transportation.
41................................. * Local & suburban transit & interurban highway passenger
transportation.
42................................. * Motor freight transportation & warehousing.
44................................. * Water transportation.
45................................. .............. Transportation by air.
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46................................. * Pipelines, exc. natural gas.
47................................. * Transportation services.
48................................. * Communications.
49................................. * Electric, gas, & sanitary services
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Wholesale Trade
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50................................. * Wholesale trade--durable goods.
51................................. * Wholesale trade--nondurable goods.
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Retail Trade
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52................................. * Building materials, hardware, garden supply, & mobile home
dealers.
53................................. * General Merchandise stores.
54................................. * Food stores.
55................................. * Automotive dealers & gasoline service stations.
56................................. * Apparel & accessory stores.
57................................. * Home furniture, furnishings, & equipment stores.
58................................. * Eating & drinking places.
59................................. * Miscellaneous retail.
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Finance, Insurance, and Real Estate
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60................................. * Depository institutions.
61................................. * Nondepository adjustment institutions.
62................................. * Security & commodity brokers, dealers, exchanges, &
services.
63................................. * Insurance carriers.
64................................. * Insurance agents, brokers, & services.
65................................. * Real estate.
67................................. * Holding & other investment offices.
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Services
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70................................. * Hotels, rooming houses, camps, & other lodging places.
72................................. .............. Personal services.
73................................. * Business services.
75................................. * Automotive repair, services, & parking.
76................................. * Miscellaneous repair services.
78................................. .............. Motion pictures.
79................................. .............. Amusement & recreation services.
80................................. * Health services.
81................................. .............. Legal services.
82................................. * Educational services.
83................................. .............. Social services.
84................................. .............. Museums, art galleries, & botanical & zoological gardens.
86................................. .............. Membership organizations.
87................................. * Engineering, accounting, research, management, & related
services.
88................................. .............. Private households.
89................................. * Miscellaneous services.
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Recommendations specific to major industry groups (and combinations
thereof) apply nation-wide for all industry groupings except the major
construction industry groups (SIC Major Industry Groups 15, 16, and
17). Determinations in these three major groups apply regionally rather
than nationally. Regional definitions are based on the nine multi-state
Divisions used by the Bureau of the Census when it reports certain sub-
national data. DOC augmented the Bureau's basic definitions for the
Divisions by including Guam in the Pacific Region and Puerto Rico and
the Virgin Islands in the South Atlantic Region. A complete list of the
states and outlying areas that comprise each of the nine regions used
by DOC follows:
East North Central: Illinois, Indiana, Michigan, Ohio, Wisconsin.
East South Central: Alabama, Kentucky, Mississippi, Tennessee.
Middle Atlantic: New Jersey, New York, Pennsylvania.
Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico,
Utah, Wyoming.
New England: Connecticut, Maine, Massachusetts, New Hampshire,
Rhode Island, Vermont.
Pacific: Alaska, California, Guam, Hawaii, Oregon, Washington.
South Atlantic: Delaware, District of Columbia, Florida, Georgia,
Maryland, North Carolina, Puerto Rico, South Carolina, Virgin Islands,
Virginia, West Virginia.
West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska,
North Dakota, South Dakota.
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West South Central: Arkansas, Louisiana, Oklahoma, Texas.
[FR Doc. 99-25444 Filed 9-29-99; 8:45 am]
BILLING CODE 3110-01-P