[Federal Register Volume 87, Number 221 (Thursday, November 17, 2022)]
[Notices]
[Pages 69050-69051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25055]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

[Notice 22-092]


Requirement for NASA Recipients of Financial Assistance Awards To 
Obtain a Quotation From Small and/or Minority Businesses, Women's 
Business Enterprises and Labor Surplus Area Firms

AGENCY: National Aeronautics and Space Administration.

ACTION: Final notice of a new NASA term and condition.

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SUMMARY: NASA has published, in final form in its Grant and Cooperative 
Agreement Manual (GCAM), a new term and condition regarding 
requirements for NASA recipients of financial assistance awards to 
obtain quotation from a small and/or minority business, women's 
business enterprise, or labor surplus area firm.

FOR FURTHER INFORMATION CONTACT: For any questions, comments, or 
concerns regarding this term and condition, please contact Christiane 
S. Diallo, email: [email protected], telephone (202) 358-5179.

SUPPLEMENTARY INFORMATION:

Background

    On January 25, 2021, President Biden issued Executive Order (E.O.) 
13985, Advancing Racial Equity and Support for Underserved Communities 
Through the Federal Government, outlining a comprehensive approach to 
advancing equity for all, including people of color and others who have 
been historically underserved, marginalized, and adversely affected by 
persistent poverty and inequality. Given that advancing equity requires 
a systematic approach to embedding fairness in the decision-making 
process, the E.O. instructs agencies to recognize and work to redress 
inequities in their policies and programs that serve as barriers to 
equal opportunity.
    In response to E.O. 13985, NASA has taken a few actions, including 
implementing a new term and condition, that ensure entities funded by 
NASA are compliant with the procurement standards in the uniform 
guidance 2 CFR 200.321, Contracting with small and minority businesses, 
women's business enterprises, and labor surplus area firms.

Public Comments Discussion

    NASA published a request for public comment in the Federal Register 
at 87 FR 10257 on February 23, 2022, on proposed implementation of a 
new term and condition that requires recipients of NASA financial 
assistance to obtain a quotation from a small and/or minority business, 
women's business enterprise, or labor surplus area firm when the 
acquisition of goods or services exceeds the simplified acquisition 
threshold. NASA received 36 comments from individual citizens, large 
and small businesses, colleges and universities, and other non-profit 
organizations. All comments were carefully reviewed and considered 
prior to finalizing the term and condition.
    NASA received five comments in support of the term and condition 
where commenters commended NASA for their effort to diversify, promote 
equality and social responsibility associated with NASA, while 
inspiring future generations to pursue their passions in Science, 
Technology, Engineering and Math research. Response: NASA recognizes 
and supports the importance of diversity in its policies and programs 
and continues to work to identify and overcome barriers that hinder 
equitable, inclusive access by individuals or communities to the 
resources and opportunities that make all of NASA's work possible.
    NASA received six comments/questions, including one duplicate, 
regarding applicability and waivers for businesses who may not be able 
to meet this new requirement. Response: The new term and condition 
applies to ALL NASA grant and cooperative agreement award recipients, 
regardless of the business types. Furthermore, NASA will not extend 
waivers for this requirement. Recipients are required to maintain 
documentation on file indicating why it is impossible to obtain a quote 
from a small/minority owned business, women's business enterprise, or 
labor surplus area firm. NASA received two comments/questions regarding 
partnership and contracting with NASA. Response: The NASA Office of 
Small Business programs (https://www.nasa.gov/osbp) provides resource 
information on how to do business with NASA. Also, NASA's notice of 
funding opportunities are accessible on the NASA Solicitation and 
Proposal Integrated Review and Evaluation System (NSPIRES) (https://nspires.nasaprs.com/external/) and www.grants.gov. NASA received 15 
comments from commenters who are opposed to the implementation of the 
term and condition, citing that this new requirement would place an 
administrative burden on NASA grant recipients and an unfair advantage 
to certain business owners. Response: NASA's proposed term and 
condition aligns with 2 CFR 200.321, Contracting with small and 
minority businesses, women's business enterprises, and labor surplus 
area firms, which requires non-federal entities to take all necessary 
steps to ensure the use of minority businesses, women's business 
enterprises, and labor surplus area firms. Furthermore, 2 CFR 
200.318(i), General procurement standards, requires non-Federal 
entities ``to maintain records sufficient to detail the history of 
their procurements. The records include but are not limited to the 
rationale for the method of procurement, selection of contract type, 
contractor selection or rejection, and the basis for the contract 
price''. NASA received four comments with proposed recommendations for 
ensuring that the new term and condition is effectively implemented. 
Response: NASA will consider the proposed recommendations as it 
develops its advanced monitoring plan, which is intended to provide an 
oversight of NASA grants as well as ensure recipients' compliance with 
NASA grant policy requirements. NASA received four comments from 
commenters expressing views outside of the proposed term and condition. 
Response: These comments are outside the scope of the Federal Register 
Notice and do not relate to the proposed term and condition.
    The full text of the new term and condition is provided below:

Requirement To Obtain a Quotation From Small and/or Minority 
Businesses, Women's Business Enterprises or Labor Surplus Area Firms

    Pursuant to the requirements in 2 CFR 200.321, Contracting with 
small and minority businesses, women's business enterprises, and labor 
surplus area firms, grant and cooperative agreement recipients shall, 
to the extent practicable, obtain at least one quotation in response to 
a recipient-issued Request for Quotation (RFQ) from a small and/or 
minority business, women's business enterprise or labor surplus area 
firms when the acquisition of goods or services exceeds the simplified 
acquisition threshold (SAT) as defined in the Federal Acquisition 
Regulation (FAR) part 2.101, Definitions (currently the SAT is 
$250,000). In the

[[Page 69051]]

event that recipients are unable to obtain at least one quote from a 
small and/or minority business women's business enterprise or labor 
surplus area firm, a written justification indicating why this was not 
possible must be maintained in the recipient's records.

End of Term and Condition Implementation

    NASA has implemented the new term and condition through revision of 
the NASA GCAM, which became effective on October 31, 2022, and is 
accessible at https://www.nasa.gov/centers/nssc/grants. The new term 
and condition will be applied to all new NASA awards and funding 
amendments to existing awards made on or after the effective date.

Cheryl Parker,
Federal Register Liaison Officer.
[FR Doc. 2022-25055 Filed 11-16-22; 8:45 am]
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