[Federal Register Volume 71, Number 1 (Tuesday, January 3, 2006)]
[Rules and Regulations]
[Pages 220-221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24550]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 5, 12, 19, and 52

[FAC 2005-07; FAR Case 2005-013; Item V]
RIN 9000-AK36


Federal Acquisition Regulation; Deletion of the Very Small 
Business Pilot Program

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to delete the Very 
Small Business Pilot Program. Under the pilot program, contracting 
officers were required to set-aside for very small business concerns 
certain acquisitions with an anticipated dollar value between $2,500 
and $50,000. The Councils removed the FAR provisions because the 
legislative authority for the program terminated on September 30, 2003.

DATES: Effective Date: January 3, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Rhonda Cundiff, Procurement Analyst, at (202) 501-0044. Please cite 
FAC 2005-07, FAR case 2005-013. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    The Very Small Business Pilot Program was established by Section 
304 of the Small Business Administration Reauthorization and Amendments 
Act of 1994 (Public Law 103-403). Very small business concern means a 
small business concern whose headquarters is located within the 
geographic area served by a designated SBA district and which, together 
with its affiliates, has no more than 15 employees and has average 
annual receipts that do not exceed $1 million. The purpose of the 
program was to improve access to Government contract opportunities for 
concerns that were substantially below the Small Business 
Administration's size standards by reserving certain acquisitions for 
competition among such concerns. The Councils are removing the FAR 
provisions because the legislative authority for the program terminated 
on September 30, 2003.
    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 Very Small Business Pilot Program was established by section 
304 of Public Law 103-403, codified as a Note to the Small Business 
Act, ``15 USC 644 Note'' and was extended by Section 503 of Public 
Law 106-554 until September 30, 2003. The program has expired. 
Therefore, the Federal Acquisition Regulation is amended to reserve 
Subpart 19.9, Very Small Business Pilot Program, and delete other 
references to the program throughout the FAR. The changes will have 
an economic impact on a small number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., 
because the law required contracting officers to set-aside for very 
small business concerns acquisitions with an anticipated dollar 
value exceeding $2,500 but not greater than $50,000 if the 
contracting office is located within the geographical area served by 
a designated SBA district (for supplies), or in the case of an 
acquisition for services, the contract will be performed within the 
geographical area served by a designated SBA district; and there is 
a reasonable expectation of obtaining offers from two or more 
responsible very small business concerns in the designated areas.

    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 under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 5, 12, 19, and 52

    Government procurement.

    Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 5, 12, 19, and 52 as 
set forth below:
0
1. The authority citation for 48 CFR parts 5, 12, 19, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 5--PUBLICIZING CONTRACT ACTIONS


5.207  [Amended]

0
2. Amend section 5.207 by removing paragraph (c)(18) and redesignating 
paragraph (c)(19) as (c)(18); and by removing from paragraph (d) ``very 
small business set-aside,''.

PART 12--ACQUISITION OF COMMERCIAL ITEMS


12.303  [Amended]

0
3. Amend section 12.303 by removing from paragraph (b)(1) ``, or set-
aside for very small business concerns''.

PART 19--SMALL BUSINESS PROGRAMS


19.000  [Amended]

0
4. Amend section 19.000 by removing from paragraph (a)(10) ``The Very 
Small

[[Page 221]]

Business Pilot Program;'' and adding ``[Reserved]'' in its place.


19.001  [Amended]

0
5. Amend section 19.001 by removing the definition ``Very small 
business concern''.


19.102  [Amended]

0
6. Amend section 19.102 by removing paragraph (g) and redesignating 
paragraph (h) as paragraph (g).


19.502-2  [Amended]

0
7. Amend section 19.502-2 by removing from the first sentence of 
paragraph (a) ``Except for those acquisitions set aside for very small 
business concerns (see Subpart 19.9), each'' and adding ``Each'' in its 
place.

Subpart 19.9--[Removed]

0
8. Subpart 19.9 is removed and reserved.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
9. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(4) of the clause to read as follows:


52.212-5  Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *
    CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR 
EXECUTIVE ORDERS--COMMERCIAL ITEMS (JAN 2006)
* * * * *
    (b) * * *
    (4) [Removed]
* * * * *


52.219-5  [Removed]

0
10. Section 52.219-5 is removed and reserved.
[FR Doc. 05-24550 Filed 12-30-05; 8:45 am]
BILLING CODE 6820-EP-S