[Federal Register Volume 61, Number 148 (Wednesday, July 31, 1996)]
[Rules and Regulations]
[Pages 39900-39901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-19413]
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DEPARTMENT OF DEFENSE
48 CFR Parts 219 and 252
[DFARS Case 96-D304]
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 amended the Defense
Federal Acquisition Regulation Supplement (DFARS) to reflect revisions
made to the DoD Test Program for Negotiation of Comprehensive Small
Business Subcontracting Plans. This action was subject to Office of
Management and Budget review under Executive Order 12866.
DATES: Effective Date: July 31, 1996.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before September 30, 1996, 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. Please cite DFARS Case 96-
D304 in all correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT:
Ms. Susan L. Schneider, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS Subpart 219.7 and the clause at
252.219-7004 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 811 of the National
Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-106). The
revised test plan is published elsewhere in this issue of the Federal
Register.
This rule also contains editorial revisions to reflect changes to
Part 19 of the Federal Acquisition Regulation, published as Item V of
Federal Acquisition Circular 90-32 on September 18, 1995 (60 FR 48206).
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 contractor's obligation 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
subparts will also be considered in accordance with Section 610 of the
Act. Such comments must be submitted separately and cite DFARS Case 96-
D304 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because this interim
rule does not impose any information collection requirements which
require 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 without prior opportunity for public
comment. This interim DFARS rule reflects changes to the Test Program
for Negotiation of Comprehensive Small Business Subcontracting Plans,
as required by Section 811 of the National Defense Authorization Act
for Fiscal Year 1996 (Pub. L. 104-106). Section 811, which amends
requirements that contractors must meet to participate in the test
program, was effective upon enactment on February 10, 1996. However,
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 Parts 219 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulation Council.
Therefore, 48 CFR Parts 219 and 252 are amended as follows:
1. The authority citation for 48 CFR Parts 219 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Part 219 heading is revised to read as follows:
PART 219--SMALL BUSINESS PROGRAMS
3. Section 219.702 is amended by revising the introductory text of
paragraph (a) to read as follows:
219.702 Statutory and requirements.
(a) Section 834 of Public Law 101-189, as amended, requires the DoD
to establish a test program to determine whether comprehensive
subcontracting plans on a corporate, division, or plant-wide basis will
reduce administrative burdens while enhancing subcontracting
opportunities for small and small disadvantaged business concerns.
* * * * *
[[Page 39901]]
4. Section 219.708 is amended by revising paragraphs (b)(1)(A),
(b)(1)(B), and (c)(1)(A) to read as follows:
219.708 Solicitation provisions and contract clauses.
(b)(1) (A) Use the clause at 252.219-7003, Small, Small
Disadvantaged and Women-Owned Small Business Subcontracting Plan (DoD
Contracts), in solicitation and contracts that contain the clause at
FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan.
(B) In contracts with contractors which have comprehensive
subcontracting plans approved under the test program described in
219.702(a), use the clause at 252.219-7004, Small, Small Disadvantaged
and Women-Owned Small Business Subcontracting Plan (Test Program),
instead of the clauses at 252.219-7003, Small, Small Disadvantaged and
Women-Owned Small Business Subcontracting Plan (DoD Contracts), and FAR
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan.
* * * * *
(c)(1) * * *
(A) When contracting by negotiation, use the clause at 252.219-
7005, Incentive for Subcontracting with Small Businesses, Small
Disadvantaged Businesses, Historically Black Colleges and Universities,
and Minority Institutions, in all solicitations and contracts that
contain the clause at FAR 52.219-9, Small, Small Disadvantaged and
Women-Owned Small Business Subcontracting Plan. Incentives for
exceeding SDB subcontracting goals shall be paid only if an SDB
subcontracting goal was exceeded as a result of actual subcontract
awards to SDBs, and not as a result of developmental assistant credit
under the Pilot Mentor-Protege Program (see subpart 219.71).
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 252.219-7004 is amended by revising the section heading,
the clause title and date and paragraph (b), (c), and (d) to read as
follows:
252.219-7004 Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan (Test Program).
* * * * *
Small, Small Disadvantaged and Women-Owned Small Business
Subcontracting Plan (Test Program) (Jul 1996)
(a) * * *
(b) The Offeror's comprehensive small business subcontracting
plan and its successors, which are authorized by and approved under
the test program of Section 834 of Pub. L. 101-189, as amended,
shall be included in and made a part of the resultant contract. Upon
expulsion from the test program or expiration of the test program,
the Contractor shall negotiate an individual subcontracting plan for
all future contracts that meet the requirements of Section 211 of
Pub. L. 95-507.
(c) The Contractor shall submit Standard Form 295, Summary
Subcontract Report, in accordance with the instructions on the form,
except Item 14, Remarks, shall be completed to include semi-annual
cumulative (1) small business, small disadvantaged business, and
women-owned small business goals, and (2) small business and small
disadvantaged business goals, actual accomplishments, and
percentages for each of the two designated industry categories.
(d) The failure of the Contractor or subcontractor to comply in
good faith with (1) the clause of this contract entitled
``Utilization of Small, Small Disadvantaged and Women-Owned Small
Business Concerns,'' or (2) an approved plan required by this
clause, shall be a material breach of the contract.
(End of clause)
[FR Doc. 96-19413 Filed 7-30-96; 8:45 am]
BILLING CODE 5000-04-M
