[Federal Register Volume 66, Number 243 (Tuesday, December 18, 2001)]
[Rules and Regulations]
[Pages 65367-65368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30541]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 44, and 52

[FAC 2001-02; FAR Case 1999-017; Item IV]
RIN 9000-AI82


Federal Acquisition Regulation; Javits-Wagner-O'Day Act 
Subcontract Preference Under Service Contracts

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation to implement changes in 41 
CFR 51-5.2(e) relating to preferences for award of subcontracts under 
service contracts to nonprofit workshops designated by the Committee 
for Purchase From People Who Are Blind or Severely Disabled (Javits-
Wagner-O'Day Act (JWOD) (41 U.S.C. 48)).

DATES: Effective Date: February 19, 2002.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 2001-02, FAR case 1999-017.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 65 FR 41266 on July 3, 2000. This final rule amends FAR 
Part 8 to extend the priority for award of service contracts that will 
satisfy agency requirements that are available from the Committee for 
Purchase From People Who Are Blind or Severely Disabled to subcontracts 
when contractors purchase the services for Government use. The rule 
also amends FAR Part 44 to add purchase from nonprofit workshops 
designated by the Committee for Purchase From People Who Are Blind or 
Severely Disabled to the list of items a contracting officer must 
consider when reviewing a subcontract that is subject to the procedures 
at FAR Subpart 44.2, Consent to Subcontracts. The rule also amends the 
clause at FAR 52.208-9, Contractor Use of Mandatory Sources of Supply, 
to inform offerors and contractors that certain services to be provided 
for use by the Government are required by law to be obtained from the 
Committee for Purchase From People Who Are Blind or Severely Disabled. 
We received comments from three respondents in response to publication 
of the proposed rule. All comments were considered in the development 
of the final rule.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to 
this final rule. The Councils prepared a Final Regulatory Flexibility 
Analysis (FRFA), and it is summarized as follows:

    The rule implements 41 CFR 51-5.2(e) relating to preferences for 
award of subcontracts under service contracts to nonprofit workshops 
designated by the Committee for Purchase From People Who Are Blind 
or Severely Disabled (Javits-Wagner-O'Day Act (JWOD) (41 U.S.C. 
48)). The rule will apply to all large and small entities that seek 
award of a subcontract under Government services contract. Although 
awards of subcontracts to certain small entities may decrease as a 
result of the rule, the decrease will be offset by an increase in 
awards to nonprofit workshops. Nonprofit workshops meet the size 
standards for most acquisitions. Therefore, we do not expect the 
total number of subcontract awards to small entities to change as a 
result of this rule.

    Interested parties may obtain a copy of the FRFA from the FAR 
Secretariat. The FAR Secretariat has submitted a copy of the FRFA to 
the Chief Counsel for Advocacy of the Small Business Administration.

C. Paperwork Reduction Act

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

List of Subjects in 48 CFR Parts 8, 44, and 52

    Government procurement.

    Dated: December 5, 2001.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 8, 44, and 52 as 
set forth below:
    1. The authority citation for 48 CFR parts 8, 44, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and42 U.S.C. 
2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Amend section 8.001 by revising paragraph (c) to read as 
follows:


8.001  Priorities for use of Government supply sources.

* * * * *
    (c) The statutory obligation for Government agencies to satisfy 
their requirements for supplies or services available from the 
Committee for

[[Page 65368]]

Purchase From People Who Are Blind or Severely Disabled also applies 
when contractors purchase the supplies or services for Government use.

    3. Revise section 8.003 to read as follows:


8.003  Contract clause.

    Insert the clause at 52.208-9, Contractor Use of Mandatory Sources 
of Supply and Services, in solicitations and contracts that require a 
contractor to provide supplies or services for Government use that are 
available from the Committee for Purchase From People Who Are Blind or 
Severely Disabled. The contracting officer must identify in the 
contract schedule the supplies or services that must be purchased from 
a mandatory source and the specific source.

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

    4. Amend section 44.202-2 by removing from the introductory text of 
paragraph (a) ``shall'' and adding ``must'' in its place; and by 
revising paragraph (a)(4) to read as follows:


44.202-2  Considerations.

    (a) * * *
    (4) Has the contractor complied with the prime contract 
requirements regarding--
    (i) Small business subcontracting, including, if applicable, its 
plan for subcontracting with small, veteran-owned, service-disabled 
veteran-owned, HUBZone, small disadvantaged and women-owned small 
business concerns (seepart 19); and
    (ii) Purchase from nonprofit agencies designated by the Committee 
for Purchase From People Who Are Blind or Severely Disabled (Javits-
Wagner-O'Day Act (JWOD) (41 U.S.C. 48))(see part 8)?
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. In section 52.208-9, revise the section and clause headings, 
paragraphs (a) and (b), and the second sentence in paragraph (c) to 
read as follows:


52.208-9  Contractor Use of Mandatory Sources of Supply or Services.

* * * * *

Contractor Use of Mandatory Sources of Supply or Services (Feb 2002)

    (a) Certain supplies or services to be provided under this 
contract for use by the Government are required by law to be 
obtained from the Committee for Purchase From People Who Are Blind 
or Severely Disabled (the Committee) under the Javits-Wagner-O'Day 
Act (JWOD) (41 U.S.C. 48). Additionally, certain of these supplies 
are available from the Defense Logistics Agency (DLA), the General 
Services Administration (GSA), or the Department of Veterans Affairs 
(VA). The Contractor shall obtain mandatory supplies or services to 
be provided for Government use under this contract from the specific 
sources indicated in the contract schedule.
    (b) The Contractor shall immediately notify the Contracting 
Officer if a mandatory source is unable to provide the supplies or 
services by the time required, or if the quality of supplies or 
services provided by the mandatory source is unsatisfactory. The 
Contractor shall not purchase the supplies or services from other 
sources until the Contracting Officer has notified the Contractor 
that the Committee or a JWOD central nonprofit agency has authorized 
purchase from other sources.
    (c) * * * For mandatory supplies or services that are not 
available from DLA/GSA/VA, price and delivery information is 
available from the appropriate central nonprofit agency. * * *
* * * * *

(End of clause)
[FR Doc. 01-30541 Filed 12-17-01; 8:45 am]
BILLING CODE 6820-EP-P