[Federal Register Volume 69, Number 79 (Friday, April 23, 2004)]
[Proposed Rules]
[Pages 21996-21997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9270]



48 CFR Parts 217 and 219

[DFARS Case 2003-D092]

Defense Federal Acquisition Regulation Supplement; Small 
Disadvantaged Businesses and Leader Company Contracting

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to revise text pertaining to DoD review 
of small business subcontracting plans, and to remove text pertaining 
to leader company contracting. This proposed rule is a result of a 
transformation initiative undertaken by DoD to dramatically change the 
purpose and content of the DFARS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before June 22, 2004, to be considered in 
the formation of the final rule.

ADDRESSES: Respondents may submit comments via the Internet at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, 
respondents may e-mail comments to: [email protected]. Please cite DFARS 
Case 2003-D092 in the subject line of e-mailed comments.
    Respondents that cannot submit comments using either of the above 
methods may submit comments to: Defense Acquisition Regulations 
Council, Attn: Ms. Karen Fischetti, OUSD(AT&L)DPAP(DAR), IMD 3C132, 
3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-
0350. Please cite DFARS Case 2003-D092.
    At the end of the comment period, interested parties may view 
public comments on the Internet at http://emissary.acq.osd.mil/dar/dfars.nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Karen Fischetti, (703) 602-0288.


A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
    This proposed rule is a result of the DFARS Transformation 
initiative. The proposed changes--
     Remove DFARS Subpart 217.4, which addresses the 
participation of small disadvantaged business concerns

[[Page 21997]]

in leader company contracting. DoD rarely uses leader company 
contracting. Incentives for major DoD contractors to assist small 
disadvantaged business concerns are provided through the DoD Pilot 
Mentor-Prot[eacute]g[eacute] Program, in accordance with DFARS Subpart 
219.71 and Appendix I.
     Lower the approval level at DFARS 219.705-4(d), 
from two levels above the contracting officer to one level above the 
contracting officer, for small business subcontracting plans that 
contain a small disadvantaged business goal of less than five percent.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule to 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., because the rule 
deletes text that is seldom used and revises review procedures that are 
internal to DoD. Therefore, DoD has not performed an initial regulatory 
flexibility analysis. DoD invites comments from small businesses and 
other interested parties. DoD also will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2003-D092.

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 Parts 217 and 219

    Government procurement.

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

    Therefore, DoD proposes to amend 48 CFR parts 217 and 219 as 
    1. The authority citation for 48 CFR parts 217 and 219 continues to 
read as follows:

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


Subpart 217.4--[Removed]

    2. Subpart 217.4 is removed.


    3. Section 219.705-4 is amended in paragraph (d) by revising the 
second sentence to read as follows:

219.705-4  Reviewing the subcontracting plan.

    (d) * * * A small disadvantaged business goal of less than five 
percent must be approved one level above the contracting officer.

[FR Doc. 04-9270 Filed 4-22-04; 8:45 am]