[Federal Register Volume 79, Number 215 (Thursday, November 6, 2014)]
[Proposed Rules]
[Pages 65917-65918]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26268]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 219, and 252
RIN 0750-AI42
Defense Federal Acquisition Regulation Supplement: Advancing
Small Business Growth (DFARS Case 2014-D009)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to clarify that entering into a contract
award may cause a small business to eventually exceed the applicable
small business size standard.
DATES: Comment Date: Comments on the proposed rule should be submitted
in writing to the address shown below on or before January 5, 2015, to
be considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2014-D009, using
any of the following methods:
[cir] Regulations.gov: http://www.regulations.gov. Submit comments
via the Federal eRulemaking portal by entering ``DFARS Case 2014-D009''
under the heading ``Enter keyword or ID'' and selecting ``Search.''
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case
2014-D009.'' Follow the instructions provided at the ``Submit a
Comment'' screen. Please include your name, company name (if any), and
``DFARS Case 2014-D009'' on your attached document.
[cir] Email: [email protected]. Include DFARS Case 2014-D009 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Lee
Renna, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon,
Washington, DC 20301-3060.
Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check www.regulations.gov,
approximately two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Lee Renna, Defense Acquisition
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6095.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to revise the DFARS to implement policy to ensure
a small business contractor is made aware that entering into a covered
contract conveys its acknowledgement that doing so may cause it to
eventually exceed the small business size standard of the North
American Industry Classification System (NAICS) code identified in the
solicitation and contract. This clarification is required by section
1611 of the National Defense Authorization Act for Fiscal Year 2014,
(10 U.S.C. 2419).
A ``covered'' contract within the context of this rule means a
contract that was awarded to a qualified small business concern, as
defined in section 3(a) of the Small Business Act, Public Law 85-536 as
amended, (15 U.S.C. 632(a)), with an estimated annual dollar value
that--
Will exceed the small business size standard (if expressed
in dollars) for the North American Industry System (NAICS) code
assigned by the contracting officer; or
Will exceed $70,000,000, if the small business standard is
expressed in number of employees, for the NAICS code assigned by the
contracting officer.
Should this occur, the company will no longer qualify as a small
business in that and other similar NAICS codes.
Section 1611 further stipulates that new language shall be added to
the DFARS to encourage these companies to develop the capabilities and
characteristics typically sought by DoD from contractors that are
competitive as other than small businesses. To this end, small business
contractors may seek out the training and counseling services available
from the Procurement Technical Assistance Program (PTAP). The PTAP,
through its network of over 300 Procurement Technical Assistance
Centers located across the United States as well as the territories of
Puerto Rico and Guam, offers a wide range of Government contracting
assistance. The PTAP is administered by the Defense Logistics Agency
and funded through cooperative agreements between DoD and state and
local non-profit entities.
To incorporate this guidance, the rule proposes to revise
212.301(f); add a new section 219.309 entitled Solicitation provisions
and contract clauses; and add a new solicitation provision at 252.219.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action and, therefore, was subject to
review under section 6(b) of E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
III. 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 it does not
create or alleviate any financial burden on small entities. The purpose
of the rule is to advise small businesses that by entering into a DoD
contract, they may eventually cause the company to exceed the size
standard associated with the NAICS code identified in the contract. The
rule further encourages these contractors to develop the competencies
typically desired of other than small businesses. Therefore, an initial
regulatory flexibility analysis has not been performed.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2014-D009), in
correspondence.
IV. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the
[[Page 65918]]
Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 212, 219, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 212, 219, and 252 are proposed to be
amended as follows:
0
1. The authority citation for parts 212 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
2. Amend section 212.301 by--
0
a. Redesignating paragraphs (f)(xxii) through (lxxiv) as (f)(xxiii)
through (lxxv); and
0
b. Adding a new paragraph (f)(xxii) to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(xxii) Use the provision at 252.219-XXXX, Advancing Small Business
Growth, as prescribed in 219.309, to comply with 10 U.S.C. 2419.
PART 219--SMALL BUSINESS PROGRAMS
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3. The authority citation for part 219 is revised to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
4. Add section 219.309 to subpart 219.3 to read as follows:
219.309 Solicitation provisions and contract clauses.
(a) Use the provision at 252.219-XXXX, Advancing Small Business
Growth, as required by 10 U.S.C. 2419, in solicitations, including
solicitations using FAR part 12 procedures for acquisition of
commercial items, when the estimated annual value of the contract is
expected to exceed--
(1) The small business size standard, if expressed in dollars, for
the North American Industry Classification System (NAICS) code assigned
by the contracting officer; or
(2) $70,000,000, if the small business size standard is expressed
as number of employees for the NAICS code assigned by the contracting
officer.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Add section 252.219-XXXX to read as follows:
252.219-XXXX Advancing Small Business Growth.
As prescribed in 219.309, use the following provision:
Advancing Small Business Growth (Date)
(a) This provision implements 10 U.S.C. 2419.
(b) The Offeror acknowledges that by acceptance of this
contract, it may exceed the applicable small business size standard
of the NAICS code assigned to the contract and would no longer
qualify as a small business concern for that NAICS code. (Small
business size standards matched to industry NAICS codes are
published by the Small Business Administration and are available at
http://www.sba.gov/content/table-small-business-size-standards.) The
Offeror is therefore encouraged to develop the capabilities and
characteristics typically desired in contractors that are
competitive as other-than-small contractors in this industry.
(c) For technical assistance in this regard, the Offeror may
contact the nearest Procurement Technical Assistance Center (PTAC).
PTAC locations are available at http://www.aptac-us.org.
(End of provision)
[FR Doc. 2014-26268 Filed 11-5-14; 8:45 am]
BILLING CODE 5001-06-P