[Federal Register Volume 64, Number 222 (Thursday, November 18, 1999)]
[Proposed Rules]
[Pages 63003-63004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29983]


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DEPARTMENT OF DEFENSE

48 CFR Part 226

[DFARS Case 99-D300]


Defense Federal Acquisition Regulation Supplement; Utilization of 
Indian Organizations and Indian-Owned Economic Enterprises

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to revise 
procedures pertaining to the Indian Incentive Program. The Program 
provides for incentive payments to Government contractors that use 
Indian organizations and Indian-owned economic enterprises as 
subcontractors. This proposed rule reflects new statutory provisions 
that permit small business concerns to participate in the Indian 
Incentive Program.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before January 18, 2000, to be 
considered in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms. 
Susan Schneider, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telefax (703) 602-0350. Please 
cite DFARS Case 99-D300.
    E-mail comments submitted via the Internet should be addressed to: 
dfarsacq.osd.mil
    Please cite DFARS Case 99-D300 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 99-
D300 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, (703) 602-0326. 
Please cite DFARS Case 99-D300.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends DFARS Subpart 226.1 to update procedures 
pertaining to the Indian Incentive Program. Section 504 of the Indian 
Financing Act of 1974 (25 U.S.C. 1544) established the Indian Incentive 
Program, which provides for payment of incentives to Government 
contractors that use Indian organizations and Indian-owned economic 
enterprises as subcontractors. Prior to fiscal year 1999, annual 
appropriations acts restricted DoD payments under the Program to those 
contractors that submitted small business subcontracting plans pursuant 
to 15 U.S.C. 637(d) or section 854 of Public Law 101-89 (15 U.S.C. 637 
note). Since small business concerns are not required to submit 
subcontracting plans, small businesses were excluded from participation 
in the Indian Incentive Program under DoD contracts. Section 8024 of 
the DoD Appropriations Act for Fiscal Year 1999 (Public Law 105-262) 
and section 8024 of the DoD Appropriations Act for Fiscal Year 2000 
(Public Law 106-79) eliminated the requirement for a DoD contractor to 
submit a subcontracting plan before it may participate in the Indian 
Incentive Program.
    DoD implements the Indian Incentive Program through use of the 
clause at Federal Acquisition Regulation (FAR) 52.226-1, Utilization of 
Indian Organizations and Indian-Owned Economic Enterprises. The FAR and 
DFARS presently prescribe use of the clause in only those DoD contracts 
that contain subcontracting plan requirements. On October 27, 1999, a 
proposed FAR rule was published in the Federal Register (64 FR 57964) 
to remove the FAR requirements for DoD use of the clause; these 
proposed DFARS amendments would replace the FAR requirements.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The proposed rule may 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. An Initial Regulatory 
Flexibility Analysis has been prepared and is summarized as follows:
    The legal basis for the proposed rule is Section 504 of the Indian 
Financing

[[Page 63004]]

Act of 1974 (25 U.S.C. 1544); Section 8024 of the DoD Appropriations 
Act for Fiscal Year 1999 (Public Law 105-262); and Section 8024 of the 
DoD Appropriations Act for Fiscal Year 2000 (Public Law 106-79). This 
rule will apply to all DoD contractors that have the clause at FAR 
52.226-1 incorporated into their contracts. The proposed rule does not 
impose any new reporting, recordkeeping, or other compliance 
requirements, and does not duplicate, overlap, or conflict with any 
other Federal rules. The rule is expected to have a beneficial effect 
on small business concerns, because small businesses are now eligible 
to receive incentive payments for the use of Indian organizations and 
Indian-owned economic enterprises as subcontractors.
    DoD has submitted a copy of the analysis to the Chief Counsel for 
Advocacy of the Small Business Administration. Interested parties may 
obtain a copy of the analysis from the address specified herein. 
Comments are invited. Comments from small entities concerning the 
affected DFARS subpart also will be considered in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 99-D300 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 226

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 226 is proposed to be amended as follows:
    1. The authority citation for 48 CFR Part 226 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 226--OTHER SOCIOECONOMIC PROGRAMS

    2. Sections 226.103 and 226.104 are revised to read as follows:


226.103  Procedures.

    (f) The contracting officer must submit a request for funding of 
the Indian incentive to the Office of Small and Disadvantaged Business 
Utilization, Office of the Under Secretary of Defense (Acquisition, 
Technology and Logistics) (OUSD (AT&L) SADBU), 1777 North Kent Street, 
Suite 9100, Arlington, VA 22209. Upon receipt of funding from OUSD 
(AT&L) SADBU, the contracting officer must issue a contract 
modification to add the Indian incentive funding for payment of the 
contractor's request for adjustment as described at FAR 52.226-1, 
Utilization of Indian Organizations and Indian-Owned Economic 
Enterprises.


226.104  Contract clause.

    (1) The contracting officer must use the clause at FAR 52.226-1, 
Utilization of Indian Organizations and Indian-Owned Economic 
Enterprises, in solicitations and contracts that--
    (i) Do not use FAR part 12 procedures; and
    (ii) (A) Are for supplies or services valued at $500,000 or more; 
or
    (B) Are for construction valued at $1,000,000 or more.
    (2) The contracting officer may use the clause at FAR 52.226-1 in 
any solicitation or contract if, in the opinion of the contracting 
officer, subcontracting possibilities exist for Indian organizations or 
Indian-owned economic enterprises.

[FR Doc. 99-29983 Filed 11-17-99; 8:45 am]
BILLING CODE 5000-04-M