[Federal Register Volume 64, Number 222 (Thursday, November 18, 1999)]
[Proposed Rules]
[Pages 63003-63004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29983]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Part 226
[DFARS Case 99-D300]
Defense Federal Acquisition Regulation Supplement; Utilization of
Indian Organizations and Indian-Owned Economic Enterprises
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to revise
procedures pertaining to the Indian Incentive Program. The Program
provides for incentive payments to Government contractors that use
Indian organizations and Indian-owned economic enterprises as
subcontractors. This proposed rule reflects new statutory provisions
that permit small business concerns to participate in the Indian
Incentive Program.
DATES: Comments on the proposed rule should be submitted in writing to
the address specified below on or before January 18, 2000, to be
considered in the formation of the final rule.
ADDRESSES: Interested parties should submit written comments on the
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms.
Susan Schneider, PDUSD (AT&L) DP (DAR), IMD 3D139, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telefax (703) 602-0350. Please
cite DFARS Case 99-D300.
E-mail comments submitted via the Internet should be addressed to:
dfarsacq.osd.mil
Please cite DFARS Case 99-D300 in all correspondence related to
this proposed rule. E-mail correspondence should cite DFARS Case 99-
D300 in the subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, (703) 602-0326.
Please cite DFARS Case 99-D300.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends DFARS Subpart 226.1 to update procedures
pertaining to the Indian Incentive Program. Section 504 of the Indian
Financing Act of 1974 (25 U.S.C. 1544) established the Indian Incentive
Program, which provides for payment of incentives to Government
contractors that use Indian organizations and Indian-owned economic
enterprises as subcontractors. Prior to fiscal year 1999, annual
appropriations acts restricted DoD payments under the Program to those
contractors that submitted small business subcontracting plans pursuant
to 15 U.S.C. 637(d) or section 854 of Public Law 101-89 (15 U.S.C. 637
note). Since small business concerns are not required to submit
subcontracting plans, small businesses were excluded from participation
in the Indian Incentive Program under DoD contracts. Section 8024 of
the DoD Appropriations Act for Fiscal Year 1999 (Public Law 105-262)
and section 8024 of the DoD Appropriations Act for Fiscal Year 2000
(Public Law 106-79) eliminated the requirement for a DoD contractor to
submit a subcontracting plan before it may participate in the Indian
Incentive Program.
DoD implements the Indian Incentive Program through use of the
clause at Federal Acquisition Regulation (FAR) 52.226-1, Utilization of
Indian Organizations and Indian-Owned Economic Enterprises. The FAR and
DFARS presently prescribe use of the clause in only those DoD contracts
that contain subcontracting plan requirements. On October 27, 1999, a
proposed FAR rule was published in the Federal Register (64 FR 57964)
to remove the FAR requirements for DoD use of the clause; these
proposed DFARS amendments would replace the FAR requirements.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
The proposed rule may 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. An Initial Regulatory
Flexibility Analysis has been prepared and is summarized as follows:
The legal basis for the proposed rule is Section 504 of the Indian
Financing
[[Page 63004]]
Act of 1974 (25 U.S.C. 1544); Section 8024 of the DoD Appropriations
Act for Fiscal Year 1999 (Public Law 105-262); and Section 8024 of the
DoD Appropriations Act for Fiscal Year 2000 (Public Law 106-79). This
rule will apply to all DoD contractors that have the clause at FAR
52.226-1 incorporated into their contracts. The proposed rule does not
impose any new reporting, recordkeeping, or other compliance
requirements, and does not duplicate, overlap, or conflict with any
other Federal rules. The rule is expected to have a beneficial effect
on small business concerns, because small businesses are now eligible
to receive incentive payments for the use of Indian organizations and
Indian-owned economic enterprises as subcontractors.
DoD has submitted a copy of the analysis to the Chief Counsel for
Advocacy of the Small Business Administration. Interested parties may
obtain a copy of the analysis from the address specified herein.
Comments are invited. Comments from small entities concerning the
affected DFARS subpart also will be considered in accordance with 5
U.S.C. 610. Such comments should be submitted separately and should
cite DFARS Case 99-D300 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Part 226
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Part 226 is proposed to be 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. Sections 226.103 and 226.104 are revised to read as follows:
226.103 Procedures.
(f) The contracting officer must submit a request for funding of
the Indian incentive to the Office of Small and Disadvantaged Business
Utilization, Office of the Under Secretary of Defense (Acquisition,
Technology and Logistics) (OUSD (AT&L) SADBU), 1777 North Kent Street,
Suite 9100, Arlington, VA 22209. Upon receipt of funding from OUSD
(AT&L) SADBU, the contracting officer must issue a contract
modification to add the Indian incentive funding for payment of the
contractor's request for adjustment as described at FAR 52.226-1,
Utilization of Indian Organizations and Indian-Owned Economic
Enterprises.
226.104 Contract clause.
(1) The contracting officer must use the clause at FAR 52.226-1,
Utilization of Indian Organizations and Indian-Owned Economic
Enterprises, in solicitations and contracts that--
(i) Do not use FAR part 12 procedures; and
(ii) (A) Are for supplies or services valued at $500,000 or more;
or
(B) Are for construction valued at $1,000,000 or more.
(2) The contracting officer may use the clause at FAR 52.226-1 in
any solicitation or contract if, in the opinion of the contracting
officer, subcontracting possibilities exist for Indian organizations or
Indian-owned economic enterprises.
[FR Doc. 99-29983 Filed 11-17-99; 8:45 am]
BILLING CODE 5000-04-M
