[Federal Register Volume 70, Number 23 (Friday, February 4, 2005)]
[Notices]
[Page 5969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2174]


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DEPARTMENT OF DEFENSE


Suspension of the Price Evaluation Adjustment for Small 
Disadvantaged Businesses

AGENCY: Department of Defense (DoD).

ACTION: Notice of 1-year suspension of the price evaluation adjustment 
for small disadvantaged businesses.

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SUMMARY: The Director of Defense Procurement and Acquisition Policy has 
suspended the use of the price evaluation adjustment for small 
disadvantaged businesses (SDBs) in DoD procurements, as required by 10 
U.S.C. 2323(e)(3), because DoD exceeded its 5 percent goal for contract 
awards to SDBs in fiscal year 2004. The suspension will be in effect 
for 1 year and will be reevaluated based on the level of DoD contract 
awards to SDBs achieved in fiscal year 2005.

DATES: Effective Date: February 24, 2005.
    Applicability Date: This suspension applies to all solicitations 
issued during the period from February 24, 2005, to February 23, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, Defense 
Procurement and Acquisition Policy, OUSD(AT&L)DPAP(P), 3015 Defense 
Pentagon, Washington, DC 20301-3015, telephone (703) 614-4840; 
facsimile (703) 614-1254.

SUPPLEMENTARY INFORMATION: Pursuant to the authority granted in 10 
U.S.C. 2323(e), DoD has previously granted SDBs a 10 percent price 
preference in certain acquisitions. This price preference is 
implemented in Subpart 19.11 of the Federal Acquisition Regulation. 
Section 801 of the Strom Thurmond National Defense Authorization Act 
for Fiscal Year 1999 (Pub. L. 105-261) amended 10 U.S.C. 2323(e)(3) to 
prohibit DoD from granting such a price preference for a 1-year period 
following a fiscal year in which DoD achieved the 5 percent goal for 
contract awards established in 10 U.S.C. 2323(a). Since, in fiscal year 
2004, DoD exceeded this 5 percent goal, use of this price preference in 
DoD acquisitions must be suspended for a 1-year period, from February 
24, 2005, to February 23, 2006.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
[FR Doc. 05-2174 Filed 2-3-05; 8:45 am]
BILLING CODE 5001-08-P