[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-4389] [[Page Unknown]] [Federal Register: March 10, 1994] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE 48 CFR Part 19 [FAC 90-20; FAR Case 91-97; Item VIII] RIN 9000-AF30 Federal Acquisition Regulation; Small Business Competitiveness Demonstration Program AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have agreed on a final rule to amend the Federal Acquisition Regulation (FAR) to clarify how to proceed when there is not a reasonable expectation of offers from two or more responsible emerging small businesses (ESB), or when it is necessary to cancel an ESB set-aside and the emerging small business reserve amount established by the Office of Federal Procurement Policy (OFPP) is greater than $25,000. The FAR has also been amended to extend the Small Business Competitiveness Demonstration Program through September 30, 1996. EFFECTIVE DATE: May 9, 1994. FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 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 90-20, FAR case 91-97. SUPPLEMENTARY INFORMATION: A. Background The Small Business Competitiveness Demonstration Program, FAR 19.10, is based on the OFPP Policy Directive and Test Plan, dated August 31, 1989. As part of this program, acquisitions in designated industry groups, with an estimated value equal to or less than a specified reserve amount, are set aside for emerging small businesses. OFPP may set a higher reserve amount in the event that emerging small business concerns are not receiving 15 percent of the total dollar value of contract awards in one or more of the designated industry groups. OFPP published a notice in the Federal Register at 56 FR 46656, September 13, 1991, which increased the reserve amount for the architectural and engineering services industry from $25,000 to $50,000. The increase of an emerging small business reserve amount above $25,000 makes this final rule necessary to clarify the internal Government procedures for proceeding with an acquisition when there is not a reasonable expectation of offers from two or more responsible ESB's or when it is necessary to cancel an ESB set-aside. Section 201 of the Small Business Credit and Business Opportunity Enhancement Act of 1992 extended the Small Business Competitiveness Demonstration Program through September 20, 1996. B. Regulatory Flexibility Act The Department of Defense, the General Services Administration, and the National Aeronautics and Space Administration certify that this final rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because the rule clarifies internal Government procedures for proceeding with an acquisition when (1) the emerging small business (ESB) reserve amount is increased by OFPP above $25,000, (2) there is not a reasonable expectation of offers from two or more responsible ESB's, or (3) it is necessary to cancel an ESB set-aside. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the changes to the FAR do not impose recordkeeping or information collection requirements, or collections of information from offerors, contractors, or members of the public which 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 19 Government procurement. Dated: February 15, 1994. Albert A. Vicchiolla, Director, Office of Federal Acquisition Policy. Therefore, 48 CFR part 19 is amended as set forth below: PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS 1. The authority citation for 48 FR part 19 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). 2. Section 19.1001 is amended in paragraph (b) by revising the second sentence to read as follows: 19.1001 General. * * * * * (b) * * * The program will be conducted over the period from January 1, 1989, through September 30, 1996. * * * 2. Section 19.1006 is amended in paragraph (b)(1) by removing the date ``December 31, 1992'', and inserting ``September 30, 1996'' in its place; removing the words ``subparagraph (b)(2)'' and inserting ``subparagraphs (b)(2) and (c)(1)'' in its place; and by revising paragraphs (c)(1) and (c)(2) to read as follows: 19.1006 Procedures. * * * * * (c) Emerging small business set-aside. (1) All acquisitions in the four designated industry groups with an estimated value equal to or less than the emerging small business reserve amount established by the Office of Federal Procurement Policy shall be set aside for ESB's; provided that the contracting officer determines that there is a reasonable expectation of obtaining offers from two or more responsible ESB's that will be competitive in terms of market price, quality, and delivery. If no such reasonable expectation exists, the contracting officer shall-- (i) For acquisitions $25,000 or less, proceed in accordance with 13.105 or subpart 19.5; or (ii) For acquisitions over $25,000, proceed in accordance with paragraph (b) of this section. (2) If the contracting officer proceeds with the ESB set-aside and receives a quotation from only one ESB at a reasonable price, the contracting officer shall make the award. If there is no quote from an ESB, or the quote is not at a reasonable price, then the contracting officer shall cancel the ESB set-aside and proceed in accordance with (c)(1) (i) or (ii) of this section. * * * * * [FR Doc. 94-4389 Filed 3-9-94; 8:45 am] BILLING CODE 6820-34-M
