[Federal Register Volume 71, Number 75 (Wednesday, April 19, 2006)]
[Rules and Regulations]
[Pages 20304-20305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3683]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 19 and 52

[FAC 2005-09; FAR Case 2005-002; Item VI; Docket FAR-2006-0020]
RIN 9000-AK28


Federal Acquisition Regulation; FAR Case 2005-002; Expiration of 
the Price Evaluation Adjustment

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 to adopt as 
final, without change, the interim rule published in the Federal 
Register at 70 FR 57462, September 30, 2005, to cancel for civilian 
agencies (except NASA and Coast Guard) the Small Disadvantaged Business 
(SDB) price evaluation adjustment which was originally authorized under 
the Federal Acquisition Streamlining Act of 1994. Civilian agencies 
(except NASA and Coast Guard) are not authorized to apply the price 
evaluation adjustment to their acquisitions.

DATES: Effective Date: April 19, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Rhonda Cundiff, Procurement Analyst, at (202) 501-0044. Please cite 
FAC 2005-09, FAR case 2005-002. For information pertaining to status or 
publication schedules, contact the FAR Secretariat at (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    DoD, GSA, and NASA published an interim rule at 70 FR 57462 on 
September 30, 2005, to cancel for civilian agencies (except NASA and 
Coast Guard) the Small Disadvantaged Business (SDB) price evaluation 
adjustment which was originally authorized under the Federal 
Acquisition Streamlining Act of 1994. The Councils received no comments 
on the interim rule. Therefore, the Councils have adopted the interim 
rule as a final rule without change.
    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:

Final Regulatory Flexibility Analysis

    The small disadvantaged business price evaluation adjustment for 
civilian agencies other than National Aeronautics and Space 
Administration (NASA) and Coast Guard, originally authorized under 
the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355, 
Sec. 7102) expired. This provision, as implemented in Federal 
Acquisition Regulation, authorized agencies to apply the price 
evaluation adjustment to benefit certain small disadvantaged 
business concerns in competitive acquisitions. As a result of its 
expiration for civilian agencies with the exception of NASA and 
Coast Guard, these agencies have no statutory authority to apply the 
small disadvantaged business price evaluation adjustment to their 
acquisitions.
    This change will have a significant economic impact on a 
substantial number of

[[Page 20305]]

small entities within the meaning of the Regulatory Flexibility Act, 
5 U.S.C. 601 et seq, because civilian agencies (excluding NASA and 
Coast Guard) will no longer have the authority to apply the price 
evaluation adjustment to benefit certain small disadvantaged 
business concerns in competitive acquisitions. However, not all of 
these small disadvantaged businesses will be affected because the 
price evaluation adjustment is authorized only for specific NAICs 
codes. The price evaluation adjustment is still authorized for the 
Department of Defense, U.S. Coast Guard, and National Aeronautics 
and Space Administration. The rule will positively impact certain 
large and small entities in specific NAICS codes competing with 
certain small disadvantaged business concerns in competitive 
acquisitions wherein the price evaluation adjustment could have 
applied if the authority had not expired. There will be a negative 
impact on a number of small disadvantaged businesses in competitive 
acquisitions for certain NAICS codes wherein the price evaluation 
adjustment authority could have applied.
    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 19 and 52

    Government procurement.

    Dated: April 12, 2006.
Gerald Zaffos,
Director,Contract Policy Division.

Interim Rule Adopted as Final Without Change

0
Accordingly, the interim rule amending 48 CFR parts 19 and 52, which 
was published at 70 FR 57462, September 30, 2005, is adopted as a final 
rule without change.
[FR Doc. 06-3683 Filed 4-18-06; 8:45 am]
BILLING CODE 6820-EP-S