[Federal Register Volume 84, Number 83 (Tuesday, April 30, 2019)]
[Rules and Regulations]
[Pages 18160-18161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08486]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 219
[Docket DARS-2018-0056]
RIN 0750-AK18
Defense Federal Acquisition Regulation Supplement: Small Business
Set-Asides for Architect-Engineer and Construction Design Contracts
(DFARS Case 2018-D057)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement a section of the
National Defense Authorization Act for Fiscal Year 2019 regarding set-
asides for architect-engineer and construction design contracts.
DATES: Effective April 30, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone
571-372-6100.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 83 FR
62554 on December 4, 2018, to implement section 2804 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L.
115-232). Section 2804 increases to $1 million the threshold at 10
U.S.C. 2855 for small business set-asides of acquisitions for
architect-engineer services, including construction design, in
connection with military construction projects or military family
housing projects. In addition, section 2804 removes the prohibition on
setting aside these acquisitions valued above the threshold. As a
result of these statutory changes, these acquisitions must be set aside
for small business, if valued below $1 million, and may be set aside
for small business, if valued at $1 million or more.
There were no public comments submitted in response to the proposed
rule. There are no changes made to the final rule, except to add a
reference to 10 U.S.C. 2855.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule does not create any new provisions or clauses or impact
any existing provisions or clauses.
III. 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 not a significant regulatory action and, therefore, was not
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.
IV. Executive Order 13771
This rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
V. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
DoD is issuing a final rule to amend the DFARS to implement section
2804 of the NDAA for FY 2019. Section 2804 increases to $1 million the
threshold at 10 U.S.C. 2855 for small business set-asides of
acquisitions for architect-engineer services, including construction
design, in connection with military construction projects or military
family housing projects. In addition, section 2804 removes the
prohibition on setting aside these acquisitions valued above the
threshold. As a result of these statutory changes, these acquisitions
must be set aside for small business, if valued below $1 million, and
may be set aside for small business, if valued at $1 million or more.
No public comments were received in response to the initial
regulatory flexibility analysis.
The rule applies to contract awards for architect-engineer
services,
[[Page 18161]]
including construction design. Data from the Federal Procurement Data
System shows that, during FY 2017 and FY 2018, DoD awarded an average
of 229 contracts per year for architect-engineer services to an average
of 190 unique small entities per year. In FY 2017 and FY 2018, DoD
awarded approximately 30 contracts per year for architect-engineer
services valued at more than the prior threshold of $400,000 and less
than the new threshold of $1 million. This rule requires future
contracts in this range to be awarded pursuant to FAR part 19 set-aside
procedures. DoD also awarded approximately 284 contracts per year for
architect-engineer services valued at more than $1 million. This rule
makes it possible for future contracts at those dollar values to be
awarded pursuant to FAR part 19 set-aside procedures. There are more
than 27,000 small entities listed in Small Business Administration's
Dynamic Small Business Search that provide architect-engineer services.
Of these entities, approximately 270 could benefit from this rule.
This rule does not impose any new reporting, recordkeeping, or
other compliance requirements for small entities.
There are no known, significant alternatives that would meet the
requirements of the applicable statute.
VI. 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 Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Part 219
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR part 219 is amended as follows:
PART 219--SMALL BUSINESS PROGRAMS
0
1. The authority citation for part 219 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Revise section 219.502-1 to read as follows:
219.502-1 Requirements for setting aside acquisitions.
Do not set aside acquisitions for supplies that were developed and
financed, in whole or in part, by Canadian sources under the U.S.-
Canadian Defense Development Sharing Program.
219.502-2 [Amended]
0
3. Amend section 219.502-2, in paragraph (a)(iii), by removing ``of
under $400,000'' and adding ``under $1 million (10 U.S.C. 2855)'' in
its place.
[FR Doc. 2019-08486 Filed 4-29-19; 8:45 am]
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