[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-491]
[[Page Unknown]]
[Federal Register: January 14, 1994]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 519 and 552
[GSAR Notice 5-384]
General Services Administration Acquisition Regulation; Small
Business Subcontracting Program
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Proposed rule.
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SUMMARY: This notice invites written comments on a proposed revision
which expresses GSA's expectation that offerors under GSA procurements,
in submitting required subcontracting plans, will do more than merely
restate minimum plan requirements described at FAR 52.219-9. GSA also
expects subcontracting plans to demonstrate aggressiveness, creativity,
and innovation in involving small, small disadvantaged, and women-owned
small business concerns in subcontracting opportunities and an
understanding of the requirement that these concerns be afforded the
maximum practicable opportunity to perform as subcontractors in the
offeror's procurements. In negotiated solicitations, the subcontracting
plan will be negotiated with price and any technical and management
proposal required by the solicitation. In sealed bid solicitations,
target goals may be stated by GSA in the solicitation. GSA understands,
however, that offerors' subcontracting circumstances may vary greatly.
The proposed revision also deletes various sections because they
concern nonregulatory material.
DATES: Comments are due in writing on or before March 15, 1994.
ADDRESSES: Comments should be addressed to the GSA Desk Officer, room
3235, NEOB, Washington, DC 20503 and Marjorie Ashby, Office of GSA
Acquisition Policy, 18th and F Streets, NW., room 4006, Washington, DC
20405.
FOR FURTHER INFORMATION CONTACT:
Paul Linfield, Office of GSA Acquisition Policy, (202) 501-1224.
SUPPLEMENTARY INFORMATION:
A. Executive Order 12866
This rule was not submitted to the Office of Management and Budget
(OMB) for review because the rule is not a significant regulatory
action as defined in Executive Order 12866, Regulatory Planning and
Review, and, therefore, was not required to be submitted.
B. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.),
the GSA certifies that the proposed rule will not have significant
impact on a substantial number of small entities, since the revised
subcontracting plan requirements in the proposed regulation will not
apply to small business concerns. Accordingly, an initial regulatory
flexibility analysis has not been prepared.
C. Paperwork Reduction Act
The retitled provision at 552.219-73 contains an information
collection requirement that is subject to the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.), and it has been submitted to OMB for approval
under the Act. Comments on the information collection may be submitted
to the Office of Information and Regulatory Affairs of OMB, Attention:
Desk Officer for GSA, Washington, DC 20503. The title of the
information collection is ``GSAR 552.219-73 Preparation, Submission,
and Negotiation of Subcontracting Plans.'' The provision requires all
offerors, other than small business concerns, responding to a
negotiated solicitation to submit a subcontracting plan with their
respective offers so that a plan can be negotiated concurrently with
other parts of the proposal. The respondents are potential GSA
contractors. The contracting officer will use the information to
evaluate whether GSA's expectation that subcontracting opportunities
exist for small, small disadvantaged and women-owned small business is
reasonable under the circumstances; negotiate goals consistent with
statutory requirements and acquisition objectives; and expedite the
award process. The estimated annual burden for this additional
collection is 14,690 hours. This is based on an estimated burden per
response of 11.3 hours, a proposed frequency of one response per
respondent, and an estimated number of likely respondents of 1,300.
List of Subjects in 48 CFR Parts 519 and 552
Government procurement.
Accordingly, it is proposed that 48 CFR parts 519 and 552 be
amended to read as follows:
1. The authority citation for 48 CFR parts 519 and 552 continues to
read as follows:
Authority: 40 U.S.C. 486(c).
PART 519--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
519.701, 519.702 and 519.704 [Removed]
2. Sections 519.701, 519.702, and 519.704 are removed.
3. Section 519.705-2 is revised to read as follows:
519.705-2 Determining the need for a subcontracting plan.
The requirement at FAR 19.702(a)(1) for submission of a
subcontracting plan by only the apparently successful offeror does not
apply to GSA negotiated solicitations when the contract is expected to
exceed $500,000 ($1,000,000 for construction). Except for acquisitions
of leasehold interests in real property using expedited procedures and
those offering minimal subcontracting opportunities, negotiated
solicitations shall require submission with the initial offer of a
subcontracting plan in the format described in FAR 52.219-9 by all
offerors that are not small business concerns. Where price is the basis
for award, such as multiple award schedule contracts, the plan will be
evaluated and negotiated along with price. In solicitations requiring
technical and management proposals, the subcontracting plan will be
included as an evaluation factor or subfactor and negotiated
concurrently with the technical, management, and price proposals.
519.705-4, 519.705-6, 519.706, and 519.706-70 [Removed]
4. Section 519.705-4, 519.705-6, 519.706, and 519.706-70 are
removed.
5. Section 519.708 is revised to read as follows:
519.708 Solicitation provisions and contract clauses.
(a) The contracting officer shall insert the provision at 552.219-
72, Notice to Offerors of Subcontracting Plan Requirements, on the
cover page of the solicitation if the contract amount is expected to
exceed $500,000 ($1,000,000 for construction) except for:
(1) Acquisitions set aside for small business;
(2) Solicitations for personal services;
(3) Solicitations for work to be performed outside any state,
territory, or possession of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico; and
(4) Acquisitions of leasehold interests in real property using
expedited procedures.
(b) The contracting officer shall insert the provision at 552.219-
73, Preparation, Submission, and Negotiation of Subcontracting Plans,
in negotiated solicitations if the contract amount is expected to
exceed $500,000 ($1,000,000 for construction) except for:
(1) Acquisitions set aside for small business;
(2) Solicitations for personal services;
(3) Solicitations for work to be performed outside any state,
territory, or possession of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico;
(4) Acquisitions of leasehold interests in real property using
expedited procedures; and
(5) Solicitations where, in the judgment of the contracting
officer, subcontracting opportunities are minimal.
(c) The contracting officer shall insert the provision at 552.219-
74, Goals for Subcontracting Plan, in sealed bid solicitations if the
contract amount is expected to exceed $500,000 ($1,000,000 for
construction) except for:
(1) Acquisitions set aside for small business;
(2) Solicitations for personal services;
(3) Solicitations for work to be performed outside any state,
territory, or possession of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
The basic provision should be used when the contracting officer is able
to realistically establish target goals. Alternate I should be used
when the contracting officer cannot establish realistic target goals.
519.770, 519.770-1, and 519.770-3 [Removed]
6. Sections 519.770, 519.770-1, and 519.770-3 are removed.
7. Section 552.219-72 is revised to read as follows:
552.219-72 Notice to offerors of subcontracting plan requirements.
As prescribed in 519.708(a), insert the following provision:
Notice to Offerors of Subcontracting Plan Requirements (XXX 1993)
The General Services Administration (GSA) is committed to
assuring that maximum practicable opportunity is provided to small,
small disadvantaged, and women-owned small business concerns to
participate in the performance of this contract consistent with its
efficient performance. GSA expects any subcontracting plan submitted
pursuant to FAR 52.219-9 to reflect this commitment. Consequently,
an offeror, other than a small business concern, before being
awarded a contract exceeding $500,000 ($1,000,000 for construction)
will be required to demonstrate that its subcontracting plan
represents an aggressive program for involving small, small
disadvantaged, and women-owned small business concerns as
subcontractors in the performance of this contract.
(End of Provision)
8. Section 552.219-73 is revised to read as follows:
552.219-73 Preparation, submission, and negotiation of subcontracting
plans.
As prescribed in 519.708(b), insert the following provision:
Preparation, Submission, and Negotiation of Subcontracting Plans (XXX
1993)
(a) An offeror, other than a small business concern, submitting
an offer that exceeds $500,000 ($1,000,000 for construction) shall
submit a subcontracting plan with its initial offer. The
subcontracting plan will be negotiated concurrently with price and
any required technical and management proposals, unless the offeror
submits a previously-approved commercial products plan. Maximum
practicable utilization of small, small disadvantaged, and women-
owned small business concerns as subcontractors is a matter of
national interest with both social and economic benefits. It is the
General Services Administration's (GSA's) expectation that an
offeror's subcontracting plan will reflect a commitment to assuring
that small, small disadvantaged, and women-owned small business
concerns are provided the maximum practicable opportunity,
consistent with efficient contract performance, to participate as
subcontractors in the performance of the resulting contract.
(b) GSA believes that this potential contract provides
significant opportunities for the use of small, small disadvantaged,
and women-owned small business concerns as subcontractors.
Consequently, in addressing the eleven elements described at FAR
52.219-9(d), the offeror shall demonstrate that its subcontracting
plan represents an aggressive program for involving small, small
disadvantaged, and women-owned small business concerns in performing
the contract. The subcontracting plan shall include a description of
the offeror's subcontracting strategies used in any previous
contracts, significant achievements, and how this plan will build
upon those earlier achievements. Additionally, the offeror shall
demonstrate through its plan that it understands the small business
subcontracting program's objectives, GSA's expectations, and actions
necessary to meet these goals and expectations.
(c) In determining the acceptability of any subcontracting plan,
the Contracting Officer will--
(1) Review the plan to verify that the offeror has demonstrated
an understanding of the small business subcontracting program's
objectives and GSA's expectations with the respect to the program
and has included all the information, goals, and assurances required
by FAR 52.219-9;
(2) Consider previous goals and achievements of contractors in
the same industry;
(3) Consider information and potential sources obtained from
agencies administering national and local preference programs and
other advocacy groups in evaluating whether the goals stated in the
plan adequately reflect the anticipated potential for subcontracting
to small, small disadvantaged, and women-owned small business
concerns; and
(4) Review, when applicable, the offeror's description of its
strategies, historical performance and significant achievements in
placing subcontracts for the same or similar products or services
with small, small disadvantaged, and women-owned small business
concerns.
(d) Failure to submit to subcontracting plan and/or correct
deficiencies in the plan within the time specified by the
Contracting Officer shall make the offeror ineligible for award.
(End of Provision)
9. Section 552.219-74 is added to read as follows:
552.219-74 Goals for subcontracting plan.
As prescribed in 519.708(c), insert the following provision:
Goals for Subcontracting Plan (XXX 1993)
(a) Maximum practicable utilization of small, small
disadvantaged, and women-owned small business concerns as
subcontractors is a matter of national interest with both social and
economic benefits. The General Services Administration's (GSA's)
commitment to ensuring that maximum practicable opportunity is
provided to small, small disadvantaged, and women-owned small
business concerns to participate as subcontractors in the
performance of this contract, consistent with its efficient
performance, must be reflected in the offeror's subcontracting plan
submitted pursuant to FAR 52.219-9. In addressing the eleven
elements described at FAR 52.219-9(d), the offeror shall demonstrate
that its subcontracting plan represents an aggressive program for
involving small, small disadvantaged, and women-owned small business
concerns in performing this contract. The subcontracting plan shall
include a description of the offeror's subcontracting strategies
used in previous contracts, significant achievements, and how this
plan will build upon those earlier achievements. Additionally, the
offeror shall demonstrate through its's plan that it understands the
small business subcontracting program's objectives, GSA's
expectations, and actions necessary to meet these goals and
expectations.
(b) GSA believes that this contract provides significant
opportunities for the use of small, small disadvantaged, and women-
owned small business concerns as subcontractors. Accordingly, it is
anticipated that an acceptable subcontracting plan will contain at
least the following goals:
Small Business: ____ percent
Small Disadvantaged Business: ____ percent
Women-Owned Small Business: ____ percent
Note: Target goals are expressed as a percentage of planned
subcontracting dollars.
(c) In determining the acceptability of a subcontracting plan,
the Contracting Officer will--
(1) Review the plan to verify that the offeror has demonstrated
an understanding of the small business subcontracting program's
objectives and GSA's expectations with respect to the program and
has included all the information, goals, and assurances required by
FAR 52.219-9;
(2) Consider previous goals and achievements of contractors in
the same industry;
(3) Consider information and potential sources obtained from
agencies administering national and local preference programs and
other advocacy groups in evaluating whether the goals stated in the
plan adequately reflect the anticipated potential for subcontracting
to small, small disadvantaged, and women-owned small business
concerns; and
(4) Review, when applicable, the offeror's description of
strategies, historical performance and significant achievements in
placing subcontracts for the same or similar products or services
with small, small disadvantaged, and women-owned small business
concerns.
(d) Failure to submit an acceptable subcontracting plan and/or
correct deficiencies in the plan within the time specified by the
Contracting Officer shall make the offeror ineligible for award.
(End of Provision)
Alternate I (XXX 1993)
The Contracting Officer, as prescribed in 519.708(c) shall
delete paragraph (b) of the basic provision and redesignate
paragraphs (c) and (d) as paragraphs (b) and (c).
Dated: December 21, 1993.
Richard H. Hopf, III,
Associate Administrator for Acquisition Policy.
[FR Doc. 94-491 Filed 1-13-94; 8:45 am]
BILLING CODE 6820-61-M
