[Federal Register Volume 63, Number 58 (Thursday, March 26, 1998)]
[Rules and Regulations]
[Page 14640]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7708]
[[Page 14640]]
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DEPARTMENT OF DEFENSE
48 CFR Part 219
[DFARS Case 97-D323]
Defense Federal Acquisition Regulation Supplement; Comprehensive
Subcontracting Plans
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 reflect revisions made to the DoD Test Program for Negotiation of
Comprehensive Small Business Subcontracting Plans. The revisions to the
test program implement Section 822 of the National Defense
Authorization Act for Fiscal Year 1998.
DATES: Effective Date: March 26, 1998.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before May 26, 1998, to be
considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, Attn: Ms. Susan L. Schneider,
PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC
20301-3062. Telefax number (703) 602-0350.
E-mail comments submitted over the Internet should be addressed to:
dfars@acq.osd.mil
Please cite DFARS Case 97-D323 in all correspondence related to
this issue. E-mail comments should cite DFARS Case 97-D323 in the
subject line.
FOR FURTHER INFORMATION CONTACT:
Ms. Susan L. Schneider, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS 219.702 to reflect revisions made to
the DoD Test Program for Negotiation of Comprehensive Small Business
Subcontracting Plans. The revisions to the test program implement
Section 822 of the National Defense Authorization Act for Fiscal Year
1998 (Pub. L. 105-85). Section 822 extends, from September 30, 1998, to
September 30, 2000, the expiration date for the test program; and
provides for use of comprehensive subcontracting plans by participating
contractors that are performing as subcontractors under DoD contracts.
The revised DoD test plan is published in the Notices section of
this issue of the Federal Register.
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 small
businesses are exempt from subcontracting plan requirements, and the
rule does not change the obligation of large business concerns to
maximize subcontracting opportunities for small business concerns. 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 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 97-D323 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the interim rule
does not impose any information collection requirements that require
Office of Management and Budget approval 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 that urgent and compelling reasons exist to publish this
interim rule prior to affording the public an opportunity to comment.
This interim DFARS rule reflects changes to the Test Program for
Negotiation of Comprehensive Small Business Subcontracting Plans, as
required by Section 822 of the National Defense Authorization Act for
Fiscal Year 1998 (Pub. L. 105-85). Section 822 was effective upon
enactment on November 18, 1997. Comments received in response to the
publication of this interim rule will be considered in formulating the
final rule.
List of Subjects in 48 CFR Part 219
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Part 219 is amended as follows:
1. The authority citation for 48 CFR Part 219 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 219--SMALL BUSINESS PROGRAMS
2. Section 219.702 is amended by revising paragraphs (a)(i) and
(ii) to read as follows:
219.702 Statutory requirements.
(a) * * *
(i) The test program--
(A) Will be conducted--
(1) From October 1, 1990, through September 30, 2000;
(2) In accordance with the DoD test plan, ``Test Program for
Negotiation of Comprehensive Small Business Subcontracting Plans''; and
(3) By the military departments and defense agencies through
specifically designated contracting activities; and
(B) Permits contractors selected for participation in the test
program by the designated contracting activities to--
(1) Negotiate plant, division, or company-wide comprehensive
subcontracting plans instead of individual contract subcontracting
plans; and
(2) Use the comprehensive plans when performing any DoD contract or
subcontract that requires a subcontracting plan.
(ii) During the test period, comprehensive subcontracting plans
will--
(A) Be negotiated on an annual basis by the designated contracting
activities;
(B) Be incorporated by the contractors' cognizant contract
administration activity into all of the contractors' active DoD
contracts that require a plan;
(C) Be accepted for use by contractors participating in the test,
whether performing at the prime or subcontract level; and
(D) Not be subject to application of liquidated damages during the
period of the test program (Section 402, Pub. L. 101-574).
[FR Doc. 98-7708 Filed 3-25-98; 8:45 am]
BILLING CODE 5000-04-M
