[Federal Register Volume 59, Number 51 (Wednesday, March 16, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5818]
[[Page Unknown]]
[Federal Register: March 16, 1994]
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DEPARTMENT OF DEFENSE
48 CFR Parts 219 and 226
Defense Federal Acquisition Regulation Supplement; Preference for
Local and Small Business
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with respect for public comments.
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SUMMARY: The Department of Defense has amended the Defense Federal
Acquisition Regulation Supplement to ensure that businesses located in
the vicinity of a military installation that is being closed or
realigned have the maximum practicable opportunity to participate in
acquisitions that support the closure or realignment, including
acquisitions for environmental restoration and mitigation.
DATES: Effective Date: March 8, 1994.
Comment Date: Comments on the interim DFARS rule should be
submitted in writing to the address shown below on or before May 16,
1994 to be considered in the formulation of a final rule. Please cite
DFARS Case 93-D324 in all correspondence related to this issue.
ADDRESSES: Interested parties should submit written comments to The
Defense Acquisition Regulations Council, Attn: Mrs. Alyce Sullivan,
OUSD (A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC
20301-3062. Telefax number (703) 697-9845.
FOR FURTHER INFORMATION CONTACT:
Mrs. Alyce Sullivan, (703) 697-7266.
SUPPLEMENTARY INFORMATION:
A. Background
Section 2912 of the Fiscal Year 1994 Defense Authorization Act,
Public Law 103-160, requires that qualified businesses located in the
vicinity of a military installation, that is being closed or realigned
under a base closure law, and small and small disadvantaged businesses
(SDBs) be provided a preference, to the greatest extent practicable, in
contracts that support the closure or realignment. This includes
contracts awarded to carry out activities for the environmental
restoration and mitigation at military installations to be closed or
realigned.
The Director, Defense Procurement, issued Departmental Letter 94-
004, March 8, 1994, to implement section 2912.
B. Regulatory Flexibility Act
The interim rule may 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 rule
revises the current set aside order of precedence for the Department of
Defense to ensure that businesses located in the vicinity of a military
installation that is being closed or realigned have maximum practicable
opportunity to participate in acquisitions that support the closure or
realignment. An Initial Regulatory Flexibility Analysis (IRFA) has been
prepared and will be provided to the Chief Counsel for Advocacy for the
Small Business Administration. Comments from small entities concerned
the affected DFARS subparts will be considered in accordance with 5
U.S.C. 610. Such comments must be submitted separately and cite DFARS
Case 94-610 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the revisions in
this rulemaking notice do not contain and/or affect information
collection requirements which require the approval of OMB 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. Urgent and compelling
reasons exist to promulgate this rule before affording the public an
opportunity to comment. This action is necessary because section 2912
became effective upon enactment of the Fiscal Year 1994 Defense
Authorization Act (Pub. L. 103-160), on November 30, 1993. However,
pursuant to Public Law 98-577 and Federal Acquisition Regulation 1.501,
public comments received in response to this interim rule will be
considered in formulating the final rule.
List of Subjects in 48 CFR Parts 219 and 226
Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.
1. The authority for 48 CFR parts 219 and 226 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR part 1.
PART 219--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
2. Section 219.504(b) introductory text is revised to read as
follows:
219.504 Set-aside order of precedence.
(b) The order of precedence for DoD is (except see 219.803(c) and
226.71)--
* * * * *
PART 226--OTHER SOCIOECONOMIC PROGRAMS
3. A new subpart 226.71 is added to read as follows:
Subpart 226.71--Preference for Local and Small Businesses
Sec.
226.7100 Scope of subpart.
226.7101 Definition.
226.7102 Policy.
226.7103 Procedure.
226.7100 Scope of subpart.
This subpart implements section 1912 of the fiscal year 1994
Defense Authorization Act, Public Law 103-160.
226.7101 Definition.
Vicinity, as used in this subpart, means the county or counties in
which the military installation to be closed or realigned is located
and all adjacent counties.
226.7102 Policy.
Businesses located in the vicinity of a military installation that
is being closed or realigned under a base closure law, including 10
U.S.C. 2687, and small and small disadvantaged businesses shall be
provided maximum practicable opportunity to participate in acquisitions
that support the closure or realignment, including acquisitions for
environmental restoration and mitigation.
226.7103 Procedure.
In making set-aside decisions under subpart 219.5 and FAR Subpart
19.5 for acquisitions in support of a base closure or realignment, the
contracting officer shall--
(a) Determine whether there is a reasonable expectation that offers
will be received from responsible business concerns located in the
vicinity of the military installation that is being closed or
realigned.
(b) If offers can not be expected from business concerns in the
vicinity, proceed with section 8(a) or set-aside consideration as
otherwise indicated in part 219 and FAR part 19.
(c) If offers can be expected from business concerns in the
vicinity--
(1) Set aside the acquisition for small disadvantaged business only
if one of the expected offers is from a small disadvantaged business
located in the vicinity.
(2) Set aside the acquisition for small business only if one of the
expected offers is from a small located in the vicinity.
[FR Doc. 94-5818 Filed 3-15-94; 8:45 am]
BILLING CODE 3810-01-M
