95-2398. Defense Federal Acquisition Regulation Supplement; Preference for Local Residents

[Federal Register Volume 60, Number 20 (Tuesday, January 31, 1995)]
[Rules and Regulations]
[Page 5870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2398]



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DEPARTMENT OF DEFENSE

48 CFR Part 226


Defense Federal Acquisition Regulation Supplement; Preference for 
Local Residents

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to permit contracting officers to consider, as a factor in source 
selection, the extent to which offerors plan to hire local residents in 
the performance of contracts that support the closure or alignment of a 
military installation.

DATES: Effective date: January 26, 1995.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before April 3, 1995, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: LTC Edward King, PDUSD 
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington DC 20301-
3062. Telefax number [phone]. Please cite DFARS Case 94-D315 in 
all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT: LTC Edward King, [phone].

SUPPLEMENTARY INFORMATION:

A. Background

    Section 817 of the Fiscal Year 1995 Defense Authorization Act (Pub. 
L. 103-337) authorizes the Secretary of Defense to give preference to 
entities that plan to hire local residents, when entering into 
contracts for services to be performed at a military installation that 
is affected by closure or alignment under a base closure law. DFARS 
Subpart 226.71 is amended to permit contracting officers to use this 
preference in the award of contracts for base closure activities.

B. Regulatory Flexibility Act

    The interim rule is not expected 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, et seq., because the rule 
only applies to acquisitions that support the closure or realignment of 
a military installation. 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 subpart will be considered in accordance with 
Section 610 of the Act. Such comments must be submitted separately and 
cite DFARS Case 94-D315 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection 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 the authority of the Secretary 
of Defense to issue this rule as an interim rule. Compelling reasons 
exist to promulgate this rule as an interim rule without prior 
opportunity for public comment because it is necessary to authorize 
contracting officers to use the preference permitted by Section 817 of 
Pub. L. 103-337. However, comments received in response to this interim 
rule will be considered in formulating the final rule.

List of Subjects in 48 CFR Part 226

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, 48 CFR part 226 is amended as follows:
    1. The authority citation for 48 CFR part 226 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

PART 226--OTHER SOCIOECONOMIC PROGRAMS

    2. Section 226.7100 is revised to read as follows:


226.7100  Scope of subpart.

    This subpart implements Section 2912 of the Fiscal Year 1994 
Defense Authorization Act (Pub. L. 103-160) and Section 817 of the 
Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337).
    3. Section 226.7104 is added to read as follows:


226.7104  Other considerations.

    Contracting officers shall consider including, as a factor in 
source selection, the extent to which offerors specifically identify 
and commit, in their proposals, to a plan to hire residents of the 
vicinity of the military installation that is being closed or 
realigned.

[FR Doc. 95-2398 Filed 1-30-95; 8:45 am]
BILLING CODE 5000-04-M