[Federal Register Volume 84, Number 62 (Monday, April 1, 2019)]
[Proposed Rules]
[Pages 12182-12187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06248]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 204, 215, 226, and 252
[Docket DARS-2019-0009]
RIN 0750-AK19
Defense Federal Acquisition Regulation Supplement: Demonstration
Project for Contractors Employing Persons With Disabilities (DFARS Case
2018-D058)
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 implement a section of the National
Defense Authorization Act for Fiscal Year 2019 that requires the DFARS
to be updated to include an instruction on a demonstration project for
contractors employing persons with disabilities.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before May 31, 2019, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2018-D058, using
any of the following methods:
[cir] Federal eRulemaking Portal: http://www.regulations.gov.
Search for ``DFARS Case 2018-D058.'' Select ``Comment Now'' and follow
the instructions provided to submit a comment. Please include ``DFARS
Case 2018-D058'' on any attached documents.
[cir] Email: [email protected]. Include DFARS Case 2018-D058 in
the subject line of the message.
[cir] Fax: 571-372-6094.
[cir] Mail: Defense Acquisition Regulations System, Attn: Jennifer
D. Johnson, OUSD(A&S)DPC/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: Jennifer D. Johnson, telephone 571-
372-6100.
SUPPLEMENTARY INFORMATION:
[[Page 12183]]
I. Background
This rule proposes to revise the DFARS to implement section 888 of
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019
(Pub. L. 115-232). Section 888 requires that the DFARS be updated to
include an instruction on the demonstration project authorized by
section 853 of the NDAA for FY 2004 (Pub. L. 108-136, 10 U.S.C. 2302
note), as amended by division H, section 110 of the Consolidated
Appropriations Act, 2004 (Pub. L. 108-199).
Section 853 of the NDAA for FY 2004 authorized a Demonstration
Project for Contractors Employing Persons with Disabilities in order to
provide defense contracting opportunities for entities employing
individuals who are severely disabled. To participate in the
Demonstration Project, an entity must meet the definition of ``eligible
contractor'' provided in the proposed rule. Specifically, individuals
with severe disabilities must comprise no less than 33 percent of the
entity's total workforce over the 12-month period prior to issuance of
the solicitation; this percentage must be one of the evaluation factors
used to evaluate offers for a contract under the Demonstration Project.
In addition, the entity must pay not less than the minimum wage to
those individuals and must provide for its employees' health insurance
and a retirement plan comparable to those provided by similar entities.
The entity may be operated on a for-profit or nonprofit basis.
Contracts awarded under the Demonstration Project will be credited
toward DoD's small business goals established pursuant to the Small
Business Act (15 U.S.C. 644(g)(1)). Subcontracts awarded to eligible
contractors under these contracts will be credited toward DoD's small
business subcontracting goals.
II. Discussion and Analysis
This rule proposes to add coverage of the Demonstration Project in
a new subpart in DFARS part 226, Other Socioeconomic Programs. The
proposed new subpart 226.7X, Demonstration Project for Contractors
Employing Persons with Disabilities, includes definitions and guidance
for the contracting workforce regarding the Demonstration Project.
Definitions are proposed for the terms ``eligible contractor'' and
``severely disabled individual,'' based on those provided in section
853 of the NDAA for FY 2004.
In addition, the new subpart provides a prescription for a new
solicitation provision, 252.226-7XXX, Representation for Demonstration
Project for Contractors Employing Persons with Disabilities. This
provision defines the terms ``eligible contractor'' and ``severely
disabled individual,'' explains the purpose of the Demonstration
Project, and requires the offeror to represent whether it is or is not
an eligible contractor.
Offerors will complete the representation as part of their annual
representations and certifications in the System for Award Management
(SAM). Therefore, the new provision 252.226-7XXX is added to DFARS
204.1202, Solicitation provision, in the list of provisions that are
not included separately in a solicitation when the provision at Federal
Acquisition Regulation (FAR) 52.204-7, System for Award Management, is
included in the solicitation. The new provision is also added to the
provision at DFARS 252.204-7007, Alternate A, Annual Representations
and Certifications. The contracting officer must check the appropriate
box when the new provision 252.226-7XXX applies to a solicitation.
Contractors under the Demonstration Project may be required to have
subcontracting plans per FAR 19.702. Therefore, this rule proposes to
amend the clause at DFARS 252.219-7003, Small Business Subcontracting
Plan (DoD Contracts), to define the term ``eligible contractor'' and to
specify that subcontracts awarded to subcontractors who also meet the
definition of eligible contractor under the Demonstration Project may
be counted toward the prime contractor's small disadvantaged business
subcontracting goal.
To increase the visibility of the Demonstration Project, this rule
proposes to add at DFARS 215.304, Evaluation factors and significant
subfactors, a reference to new section 226.7X02. This section contains
the requirement for contracting officers, when using the Demonstration
Project, to use an evaluation factor that is the percentage of the
offeror's total workforce consisting of severely disabled individuals.
III. Expected Impact of the Proposed Rule
The Demonstration Project gives DoD a way to provide additional
contracting opportunities to entities that employ individuals who are
severely disabled and that may not qualify for approval by the
Committee for Purchase From People Who Are Blind or Severely Disabled
due to their for-profit status or for other reasons. Procurements under
the Demonstration Project must be for products and services that are
not available from a mandatory source in FAR part 8, that are not on
the AbilityOne Procurement List maintained by the Committee, or that
are not available from AbilityOne participating nonprofit agencies in
the time required.
The Demonstration Project is modeled after the Small Business
Administration's set-aside program, but uniquely includes an incentive
for Federal contractors to hire people with disabilities, for whom the
unemployment rate is more than twice the rate for people without
disabilities. Such a demonstration project provides opportunities for
severely disabled individuals to become gainfully employed taxpayers.
Employing people with disabilities can be a way to offset the effects
of an aging and shrinking workforce. In addition, people with
disabilities bring different perspectives on solving problems and
adapting to different circumstances. The Demonstration Project provides
another incentive for both for-profit and nonprofit entities to
recruit, employ, and retain people with disabilities.
The authority provided for the Demonstration Project has been
available for use, at DoD's discretion, since the NDAA for FY 2004 was
signed into law. At the time, DoD considered the Demonstration Project
to be similar to a pilot program, in that it provided a way to try a
different approach without making broad changes in the way DoD buys
supplies and services in general. DoD usually does not amend the DFARS
to add guidance regarding pilot programs. Therefore, the DFARS was not
amended to include guidance on the Demonstration Project. As noted in
Section I of this preamble, DoD is proposing to amend the DFARS in
order to comply with section 888 of the NDAA for FY 2019.
DoD estimates that there may be approximately 549 procurements that
could be conducted under the Demonstration Project per year. This
estimate is based on data obtained from the Federal Procurement Data
System on the number of contracts awarded in Product Service Codes
(PSCs) that may be suitable for award under the Demonstration Project.
The selection of PSCs was informed by the Conference Report for the
NDAA for FY 2004, which authorized the Demonstration Project. The
Conference Report indicated that Congress expected opportunities to
exist for the Demonstration Project in aerospace end items and
components, as well as information technology products and services.
Therefore, DoD obtained data
[[Page 12184]]
for contracts awarded in the following PSCs:
------------------------------------------------------------------------
PSC Description
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1560................................... Airframe Structural Components.
All PSCs in Group 16................... Aerospace Craft Components and
Accessories.
All PSCs in Group 70................... Information Technology
Equipment (including
firmware), Software, Supplies,
and Support Equipment.
All PSCs in Category D3................ Information Technology and
Telecommunications.
------------------------------------------------------------------------
In certain PSCs, there is some overlap with the Procurement List
maintained by the Committee for Purchase From People Who Are Blind or
Severely Disabled. The areas of overlap generally included a few items
within a specific PSC, not the entire PSC. Therefore, relevant PSCs
were included regardless of possible overlap with the Procurement List.
DoD also used awards to nonprofits as an indicator of suitability
for the Demonstration Project because of its similarities to the
AbilityOne Program, in terms of employment of individuals with severe
disabilities. From FY 2016 through 2018, an average of 0.16% of those
contracts (approximately 90 each year) were awarded to nonprofits.
Since the Demonstration Project applies to both for-profit and
nonprofit entities, DoD conservatively estimated that up to 1% of
contracts (approximately 549 each year) awarded in those PSCs may be
suitable for the Demonstration Project.
However, since 2004, DoD is aware of only one DoD contract issued
pursuant to the Demonstration Project. The contract was awarded in
2006; Congress had provided funds specifically for this use. This
limited use makes it difficult to predict the impact of the
Demonstration Project. Depending on the extent to which it is used, it
could create additional contract opportunities for entities employing
people with severe disabilities, including service-disabled veterans.
DoD invites public comment regarding whether more contractors and
contracting officers will take advantage of the Demonstration Project
if it is added to the DFARS.
This rule proposes to require offerors for procurements conducted
under the Demonstration Project to represent whether they are or are
not eligible contractors as defined in the rule. Public costs are
expected to be de minimis since offerors will complete the
representation in the System for Award Management.
IV. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
DoD intends to apply the requirements of section 853 of the NDAA
for FY 2004, as amended by division H, section 110 of the Consolidated
Appropriations Act, 2004 (Pub. L. 108-199), to contracts at or below
the SAT and to contracts for the acquisition of commercial items,
including COTS items.
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
41 U.S.C. 1905 governs the applicability of laws to contracts or
subcontracts in amounts not greater than the simplified acquisition
threshold. It is intended to limit the applicability of laws to such
contracts or subcontracts. 41 U.S.C. 1905 provides that if a provision
of law contains criminal or civil penalties, or if the FAR Council
makes a written determination that it is not in the best interest of
the Federal Government to exempt contracts or subcontracts at or below
the SAT, the law will apply to them. The Principal Director, Defense
Pricing and Contracting (DPC), is the appropriate authority to make
comparable determinations for regulations to be published in the DFARS,
which is part of the FAR system of regulations.
Therefore, given that the requirements of section 853 of the NDAA
for FY 2004 were enacted to provide defense contracting opportunities
for contractors employing persons with disabilities and since many
contracts that could be awarded under the Demonstration Project are
likely to be at or below the SAT, DoD has determined that it is in the
best interest of the Federal Government to apply the rule to contracts
at or below the SAT. An exception for contracts at or below the SAT
would exclude contracts intended to be covered by the law, thereby
undermining the overarching public policy purpose of the law.
B. Applicability to Contracts for the Acquisition of Commercial Items,
Including COTS Items
10 U.S.C. 2375 governs the applicability of laws to DoD contracts
and subcontracts for the acquisition of commercial items (including
commercially available off-the-shelf items) and is intended to limit
the applicability of laws to contracts for the acquisition of
commercial items, including COTS items. 10 U.S.C. 2375 provides that if
a provision of law contains criminal or civil penalties, or if the
Under Secretary of Defense for Acquisition and Sustainment (USD(A&S))
makes a written determination that it is not in the best interest of
the Federal Government to exempt commercial item contracts, the
provision of law will apply to contracts for the acquisition of
commercial items. Due to delegations of authority from USD(A&S), the
Principal Director, DPC, is the appropriate authority to make this
determination.
Therefore, given that the requirements of section 853 of the NDAA
for FY 2004 were enacted to provide defense contracting opportunities
for contractors employing persons with disabilities, and since many of
the products and services offered by these contractors are commercial
items, including COTS items, DoD has determined that it is in the best
interest of the Federal Government to apply the rule to contracts for
the acquisition of commercial items, including COTS items, as defined
at FAR 2.101. An exception for contracts for the acquisition of
commercial items, including COTS items, would exclude contracts
intended to be covered by the law, thereby undermining the overarching
public policy purpose of the law.
V. 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.
VI. Executive Order 13771
This proposed rule is not expected to be subject to the
requirements of E.O. 13771, because it is expected to result in no more
than de minimis costs.
VII. Regulatory Flexibility Act
DoD does not expect this proposed 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,
[[Page 12185]]
et seq. However, an initial regulatory flexibility analysis has been
performed and is summarized as follows:
DoD is proposing to amend the DFARS to include an instruction on
the Demonstration Project for Contractors Employing Persons with
Disabilities. The Demonstration Project allows DoD to provide defense
contracting opportunities to entities that employ individuals who are
severely disabled, even though those entities may not qualify for
approval by the Committee for Purchase From People Who Are Blind or
Severely Disabled. Procurements under the Demonstration Project must be
for products and services that are not available from a mandatory
source in Federal Acquisition Regulation part 8, that are not on the
AbilityOne Procurement List maintained by the Committee, or that are
not available from AbilityOne participating nonprofit agencies in the
time required.
The objective of the rule is to implement section 888 of the NDAA
for FY 2019 (Pub. L. 115-232) by including in the DFARS an instruction
on the Demonstration Project described above. The Demonstration Project
was authorized by section 853 of the NDAA for FY 2004 (Pub. L. 108-136,
as amended; 10 U.S.C. 2302 note). The legal basis is section 888 of the
NDAA for FY 2019 and 10 U.S.C. 2302 note.
The rule will apply to entities, including small entities, that
meet the definition of ``eligible contractor'' in the rule and that are
interested in competing for contracts under the Demonstration Project.
Specifically, an eligible contractor employs severely disabled
individuals at a rate of no less than 33 percent of the contractor's
workforce over the 12-month period prior to issuance of the
solicitation; pays not less than the minimum wage to those individuals;
and provides for its employees' health insurance and a retirement plan
comparable to those provided by similar entities. The entity may
operate on a for-profit or nonprofit basis. According to data in the
Federal Procurement Data System (FPDS), DoD awarded contracts to
approximately 4,065 small entities each year from FY 2016 to FY 2018 in
Product and Service Codes (PSCs) that may be suitable for award under
the Demonstration Project, such as aerospace components and accessories
and information technology equipment and services. DoD conservatively
estimates that approximately 21 percent, or 870 small entities, may
meet the definition of ``eligible contractor'' and be interested in
competing for contracts under the Demonstration Project.
This rule proposes to require offerors to represent whether they
are or are not eligible contractors under the Demonstration Project.
This representation will be available for completion in the System for
Award Management (SAM) and will be completed on an annual basis. This
rule does not impose any new recordkeeping or other compliance
requirements for small entities.
This rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known alternative approaches to the proposed rule that
would accomplish the stated objectives of the applicable statute.
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 2018-D058), in
correspondence.
VIII. Paperwork Reduction Act
The rule affects the information collection requirements in the
provision at FAR 52.204-7, System for Award Management, and in the
clause at FAR 52.204-13, System for Award Management Maintenance,
currently approved under OMB Control Number 9000-0159, entitled System
for Award Management Registration, in accordance with the Paperwork
Reduction Act (44 U.S.C. chapter 35). The impact, however, is
negligible, because the cost of providing the additional representation
in the System for Award Management is de minimis and is within the
estimate of public burden approved for OMB Control Number 9000-0159.
List of Subjects in 48 CFR Parts 204, 215, 226, and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 204, 215, 226, and 252 are proposed to be
amended as follows:
0
1. The authority citation for 48 CFR parts 204, 215, 226, and 252
continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 204--ADMINISTRATIVE MATTERS
0
2. Amend section 204.1202 by
0
a. Redesignating paragraphs (2)(xi), (xii), and (xiii) as paragraphs
(2)(xii), (xiii), and (xiv), respectively; and
0
b. Adding new paragraph (xi).
The addition reads as follows:
204.1202 Solicitation provision.
* * * * *
(2) * * *
(xi) 252.226-7XXX, Representation for Demonstration Project for
Contractors Employing Persons with Disabilities.
* * * * *
PART 215--CONTRACTING BY NEGOTIATION
0
3. Amend section 215.304 by adding paragraph (c)(vi) to read as
follows:
215.304 Evaluation factors and significant subfactors.
(c) * * *
(vi) See 226.7X02 for an additional evaluation factor required in
solicitations when using the Demonstration Project for Contractors
Employing Persons with Disabilities.
PART 226--OTHER SOCIOECONOMIC PROGRAMS
0
4. Add subpart 226.7X, consisting of 226.7X00 through 226.7X03, to read
as follows:
SUBPART 226.7X--DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING PERSONS
WITH DISABILITIES
Sec.
226.7X00 Scope of subpart.
226.7X01 Definitions.
226.7X02 Policy and procedures.
226.7X03 Solicitation provision.
SUBPART 226.7X--DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING
PERSONS WITH DISABILITIES
226.7X00 Scope of subpart.
This subpart implements section 853 of the National Defense
Authorization Act for Fiscal Year 2004 (Pub. L. 108-136, 10 U.S.C. 2302
note), as amended.
226.7X01 Definitions.
As used in this subpart--
Eligible contractor means a business entity operated on a for-
profit or nonprofit basis that--
(1) Employs severely disabled individuals at a rate that averages
not less than 33 percent of its total workforce over the 12-month
period prior to issuance of the solicitation;
(2) Pays not less than the minimum wage prescribed pursuant to 29
U.S.C. 206 to the employees who are severely disabled individuals; and
(3) Provides for its employees' health insurance and a retirement
plan
[[Page 12186]]
comparable to those provided for employees by business entities of
similar size in its industrial sector or geographic region.
Severely disabled individual means an individual with a disability
(as defined in 42 U.S.C. 12102) who has a severe physical or mental
impairment that seriously limits one or more functional capacities.
226.7X02 Policy and procedures.
(a) Contracting officers may use this demonstration project to
award one or more contracts to an eligible contractor for the purpose
of providing defense contracting opportunities for entities that employ
severely disabled individuals. To determine if there are eligible
contractors capable of fulfilling the agency's requirement, conduct
market research as described in 210.002 and FAR 10.002. For services,
see also PGI 210.070.
(b) When using this demonstration project, one of the evaluation
factors shall be the percentage of the offeror's total workforce that
consists of severely disabled individuals employed by the offeror.
Contracting officers may use a rating method in which a higher
percentage of the offeror's total workforce consisting of severely
disabled individuals would result in a higher rating for this
evaluation factor.
(c) Contracts awarded to eligible contractors under this
demonstration project may be counted toward DoD's small disadvantaged
business goal.
226.7X03 Solicitation provision.
Use the provision at 252.226-7XXX, Representation for Demonstration
Project for Contractors Employing Persons with Disabilities, in
solicitations when using this demonstration project.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Amend section 252.204-7007 by--
0
a. Removing clause date ``(DEC 2018)'' and adding ``(DATE)''; and
0
b. Adding paragraph (d)(2)(vi).
The addtion reads as follows:
252.204-7007 Alternate A, Annual Representations and Certifications.
* * * * *
(d) * * *
(2) * * *
(vi) 252.226-7XXX, Representation for Demonstration Project for
Contractors Employing Persons with Disabilities.
* * * * *
0
6. Amend section 252.219-7003 by--
0
a. Removing clause date ``(DEC 2018)'' and adding ``(DATE)'' in its
place;
0
b. Revising paragraph (a);
0
c. Redesignating paragraph (b) as paragraph (b)(1);
0
d. In the newly redesignated paragraph (b)(1), adding ``(section 8025
of Pub. L. 108-87)'' at the end of the paragraph, before the period;
0
e. Adding paragraph (b)(2); and
0
f. In the Alternate I clause--
0
i. Removing the clause date of ``(APR 2018)'' and adding ``(DATE)'' in
its place;
0
ii. Revising paragraph (a);
0
iii. Redesignating paragraph (b) as paragraph (b)(1);
0
iv. In the newly redesignated paragraph (b)(1), adding ``(section 8025
of Pub. L. 108-87)'' at the end of the paragraph, before the period;
and
0
v. Adding paragraph (b)(2).
The revisions and additions read as follows:
252.219-7003 Small Business Subcontracting Plan (DoD Contracts).
* * * * *
(a) Definitions. As used in this clause--
Eligible contractor means a business entity operated on a for-
profit or nonprofit basis that--
(1) Employs severely disabled individuals at a rate that averages
not less than 33 percent of its total workforce over the 12-month
period prior to issuance of the solicitation;
(2) Pays not less than the minimum wage prescribed pursuant to 29
U.S.C. 206 to the employees who are severely disabled individuals; and
(3) Provides for its employees' health insurance and a retirement
plan comparable to those provided for employees by business entities of
similar size in its industrial sector or geographic region.
Summary Subcontract Report (SSR) Coordinator means the individual
who is registered in the Electronic Subcontracting Reporting System
(eSRS) at the Department of Defense level and is responsible for
acknowledging receipt or rejecting SSRs submitted under an individual
subcontracting plan in eSRS for the Department of Defense.
(b) * * *
(2) Subcontracts awarded to eligible contractors under the
Demonstration Project for Contractors Employing Persons with
Disabilities (see DFARS 226.7X) may be counted toward the Contractor's
small disadvantaged business subcontracting goal (section 853 of Pub.
L. 108-136, as amended by division H, section 110 of Pub. L. 108-199).
* * * * *
Alternate I. * * *
* * * * *
(a) Definitions. As used in this clause--
Eligible contractor means a business entity operated on a for-
profit or nonprofit basis that--
(1) Employs severely disabled individuals at a rate that averages
not less than 33 percent of its total workforce over the 12-month
period prior to issuance of the solicitation;
(2) Pays not less than the minimum wage prescribed pursuant to 29
U.S.C. 206 to the employees who are severely disabled individuals; and
(3) Provides for its employees' health insurance and a retirement
plan comparable to those provided for employees by business entities of
similar size in its industrial sector or geographic region.
Summary Subcontract Report (SSR) Coordinator means the individual
who is registered in the Electronic Subcontracting Reporting System
(eSRS) at the Department of Defense level and is responsible for
acknowledging receipt or rejecting SSRs submitted under an individual
subcontracting plan in eSRS for the Department of Defense.
(b) * * *
(2) Subcontracts awarded to eligible contractors under the
Demonstration Project for Contractors Employing Persons with
Disabilities (see DFARS 226.7X) may be counted toward the Contractor's
small disadvantaged business subcontracting goal (section 853 of Pub.
L. 108-136, as amended by division H, section 110 of Pub. L. 108-199).
* * * * *
0
7. Add section 252.226-7XXX to read as follows:
252.226-7XXX Representation for Demonstration Project for Contractors
Employing Persons with Disabilities.
As prescribed in 226.7X03, use the following provision:
Representation for Demonstration Project for Contractors Employing
Persons with Disabilities (Date)
(a) Definitions. As used in this provision--
``Eligible contractor'' means a business entity operated on a
for-profit or nonprofit basis that--
(1) Employs severely disabled individuals at a rate that
averages not less than 33 percent of its total workforce over the
12-month period prior to issuance of the solicitation;
(2) Pays not less than the minimum wage prescribed pursuant to
29 U.S.C. 206 to the employees who are severely disabled
individuals; and
(3) Provides for its employees' health insurance and a
retirement plan comparable to those provided for employees by
business
[[Page 12187]]
entities of similar size in its industrial sector or geographic
region.
``Severely disabled individual'' means an individual with a
disability (as defined in 42 U.S.C. 12102) who has a severe physical
or mental impairment that seriously limits one or more functional
capacities.
(b) Demonstration Project. This solicitation is issued pursuant
to the Demonstration Project for Contractors Employing Persons with
Disabilities. The purpose of the Demonstration Project is to provide
defense contracting opportunities for entities that employ severely
disabled individuals. To be eligible for award, an offeror must be
an eligible contractor as defined in paragraph (a) of this
provision.
(c) Representation. The offeror represents that it [square] is
[square] is not an eligible contractor as defined in paragraph (a)
of this provision.
(End of provision)
[FR Doc. 2019-06248 Filed 3-29-19; 8:45 am]
BILLING CODE 5001-06-P