[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2637-2638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1024]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 19 and 52
[FAC 90-37; FAR Case 93-308; Item X]
RIN 9000-AG70
Federal Acquisition Regulation; Mentor Protege Program
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed to an interim rule to allow
mentor firms under the Department of Defense Pilot Mentor-Protege
Program to be granted credit toward subcontracting goals under small
business subcontracting plans entered into with any executive agency.
The rule also will permit mentor firms to award subcontracts on a
noncompetitive basis to protege firms under Department of Defense or
other contracts. This regulatory action was not subject to Office of
Management and Budget review under Executive Order 12866, dated
September 30, 1993.
DATES: Effective Date: January 26, 1996.
Comment Due Date: To be considered in the formulation of a final
rule, comments should be submitted to the address given below on or
before March 26, 1996.
ADDRESSES: Comments should be submitted to: General Services
Administration, FAR Secretariat, 18th & F Streets NW., Room 4037,
Washington, DC 20405.
FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 37, FAR
case 93-308.
SUPPLEMENTARY INFORMATION:
A. Background
This rule implements Section 814(c) of Public Law 102-190, which
amended the Small Business Act at 15 U.S.C. 637(d)(11) to authorize
certain costs incurred by a mentor firm under the Department of Defense
Mentor-Protege Program to be credited toward subcontracting goals for
awards to small disadvantaged businesses. This rule also further
implements Section 831(f)(2) of Public Law 101-510 which permits mentor
firms to award subcontracts on a noncompetitive basis to its proteges
under Department of Defense or other contracts.
B. Regulatory Flexibility Act
The interim rule is not expected to have 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 the
revisions apply to mentor firms under the DOD Pilot Mentor-Protege
Program, and these firms generally are not small entities. An Initial
Regulatory Flexibility Analysis has, therefore, not been performed.
Comments are invited from small businesses and other interested
parties. Comments from small entities concerning the affected FAR parts
will also be considered in accordance with 5 U.S.C. 610. Such comments
must be submitted separately and cite 5 U.S.C. 601, et seq. (FAC 90-
37, FAR case 93-308) in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any reporting or recordkeeping requirements which require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
D. Determination to Issue an Interim Rule
A determination has been made under authority of the Secretary of
Defense (DOD), the Administrator of General Services (GSA); and the
Administrator of the National Aeronautics and Space Administration
(NASA) that, pursuant to 41 U.S.C. 418b, urgent and compelling reasons
exist to publish an interim rule prior to affording the public an
opportunity to comment. However, public comments received in response
[[Page 2638]]
to this interim rule will be considered in formulating the final rule.
The rule is necessary to further implement Section 814(c) of Public Law
102-190, which amended the Small Business Act at 15 U.S.C. 637(d)(11)
to authorize certain costs incurred by a Department of Defense Mentor-
Protege Program firm to be credited toward subcontracting goals for
awards to small disadvantaged businesses, and Section 831(f)(2) of
Public Law 101-510 which permits mentor firms to award subcontracts on
a noncompetitive basis to its proteges under Department of Defense or
other contracts.
List of Subjects in 48 CFR Parts 19 and 52
Government procurement.
Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Parts 19 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 19 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 19--SMALL BUSINESS PROGRAMS
2. Section 19.702 is amended by adding paragraph (d) to read as
follows:
19.702 Statutory requirements.
* * * * *
(d) As authorized by 15 U.S.C. 637(d)(11), certain costs incurred
by a mentor firm in providing developmental assistance to a Protege
firm under the Department of Defense Pilot Mentor-Protege Program, may
be credited as subcontract awards to a small disadvantaged business for
the purpose of determining whether the mentor firm attains a small
disadvantaged business goal under any subcontracting plan entered into
with any executive agency. However, the mentor firms must have been
approved by the Office of Small and Disadvantaged Business Utilization,
Office of the Under Secretary of Defense for Acquisition and
Technology, OUSD (A&T)SADBU, Room 2A340, The Pentagon, Washington, DC
20301-3061, (703) 697-1688, before developmental assistance costs may
be credited against subcontract goals.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
3. 52.244-5 is amended by revising the clause to read as follows:
52.244-5 Competition in Subcontracting.
* * * * *
Competition in Subcontracting (Jan 1996)
(a) The Contractor shall select subcontractors (including
suppliers) on a competitive basis to the maximum practical extent
consistent with the objectives and requirements of the contract.
(b) If the Contractor is an approved mentor under the Department
of Defense Pilot Mentor-Protege Program (Pub. L. 101-510, section
831 as amended), the Contractor may award subcontracts under this
contract on a noncompetitive basis to its proteges.
(End of clause)
[FR Doc. 96-1024 Filed 1-25-96; 8:45 am]
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