[Federal Register: October 11, 2000 (Volume 65, Number 197)]
[Rules and Regulations]
[Page 60542-60552]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11oc00-22]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 4, 5, 7, 19, 52, and 53
[FAC 97-20; FAR Case 2000-302; Item I]
RIN 9000-AI93
Federal Acquisition Regulation; Veterans Entrepreneurship and
Small Business Development Act of 1999
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to implement
portions of the Veterans Entrepreneurship and Small Business
Development Act of 1999 (Pub. L. 106-50). The Act established new
assistance programs for veterans and service-disabled veterans who own
and operate small businesses.
DATES: Effective Date: October 11, 2000.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before December 11, 2000
to be considered in the formulation of a final rule.
[[Page 60543]]
ADDRESSES: Submit written comments to: General Services Administration,
FAR Secretariat (MVR), 1800 F Street, NW, Room 4035, Attn: Ms. Laurie
Duarte, Washington, DC 20405
Submit electronic comments via the Internet to: farcase.2000-
302@gsa.gov. Please submit comments only and cite FAC 97-20, FAR case
2000-302 in all correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 97-20, FAR case 2000-302.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends the FAR to implement sections 501(c),
502(a)(2), and 604(d) of the Veterans Entrepreneurship and Small
Business Development Act of 1999 (Pub. L. 106-50). This Act established
new assistance programs for veterans and service-disabled veterans who
own and operate small businesses. Specifically, the Act--
1. Defined the terms ``small business concern owned and controlled
by veterans'' and ``small business concern owned and controlled by
service-disabled veterans;''
2. Established that veteran-owned and service-disabled veteran-
owned small businesses be afforded maximum practical opportunity to
participate in the performance of contracts and subcontracts awarded by
any Federal agency;
3. Established a requirement to include a goal for veteran-owned
small businesses in subcontracting plans under FAR 52.219-9;
4. Established a 3 percent Governmentwide goal (based on the total
value of all prime contract and subcontract awards) for participation
by service-disabled veteran-owned small businesses; and
5. Added data collection requirements for prime and subcontract
awards to veteran-owned small businesses and service-disabled veteran-
owned small business concerns.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The changes 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., because the rule now expands the
small business program by identifying new subgroups of small entities
(i.e., veteran-owned small businesses and service-disabled veteran-
owned small businesses) for prime contracting and subcontracting
opportunities. An Initial Regulatory Flexibility Analysis (IRFA) has
been prepared and is summarized as follows:
This interim rule amends the Federal Acquisition Regulation in
order to comply with recently enacted legislation concerning small
business concerns owned and controlled by veterans and service-
disabled veterans. It implements section 501(c), section 502(a)(2),
and section 604(d) of the Veterans Entrepreneurship and Small
Business Development Act of 1999 (Pub. L. 106-50). It is estimated
that there are 4 to 5.5 million small businesses owned and
controlled by veterans and 100,000 to 300,000 small businesses owned
and controlled by service-disabled veterans. Section 604(d) of Title
VI of the Act adds data collection requirements to the Federal
Procurement Data System for prime contracts and subcontracts awarded
to small business concerns owned and controlled by veterans and
small business concerns owned and controlled by service-disabled
veterans. This rule does not duplicate, overlap, or conflict with
other relevant Federal rules. There are no significant alternatives
to the interim rule that would accomplish the stated beneficial
objectives.
The FAR Secretariat has submitted a copy of the IRFA to the Chief
Counsel for Advocacy of the Small Business Administration. Interested
parties may obtain a copy from the FAR Secretariat. The Councils will
consider comments from small entities concerning the affected FAR Parts
in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C 601, et seq. (FAC 97-20,
FAR case 2000-302), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 104-13) applies because the
interim rule contains information collection requirements. Two existing
OMB clearances are affected by this rule as follows:
Annual Reporting Burden for OMB Clearance 9000-0006
We estimate the public reporting burden for this collection of
information to average 50.54 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
We estimate the annual reporting burden is as follows:
Respondents: 4,253.
Responses per respondent: 3.44.
Total annual responses: 14,631.
Preparation hours per response: 50.54.
Total response burden hours: 739,389.
Annual Reporting Burden for OMB Clearance 9000-0007
We estimate the public reporting burden for this collection of
information to average 15.9 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information.
We estimate the annual reporting burden is as follows:
Respondents: 4,253.
Responses per respondent: 1.67.
Total annual responses: 7,098.
Preparation hours per response: 15.9.
Total response burden hours: 112,864.
D. Request for Comments Regarding Paperwork Burden
Submit comments, including suggestions for reducing this burden,
not later than December 11, 2000 to: FAR Desk Officer, OMB, Room 10102,
NEOB, Washington, DC 20503, and a copy to the General Services
Administration, FAR Secretariat (MVR), 1800 F Street, NW, Room 4035,
Washington, DC 20405.
We particularly invite public comments on: whether this collection
of information is necessary for the proper performance of functions of
the FAR, and will have practical utility; whether our estimate of the
public burden of this collection of information is accurate, and based
on valid assumptions and methodology; ways to enhance the quality,
utility, and clarity of the information to be collected; and ways in
which we can minimize the burden of the collection of information on
those who are to respond, through the use of appropriate technological
collection techniques or other forms of information technology.
Requester may obtain a copy of the justifications from the General
Services Administration, FAR Secretariat (MVR), Room 4035, Washington,
DC 20405, telephone (202) 208-7312. Please cite OMB Control Numbers
9000-0006 or 9000-0007 in all correspondence.
E. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator
[[Page 60544]]
of the National Aeronautics and Space Administration (NASA) that urgent
and compelling reasons exist to promulgate this interim rule without
prior opportunity for public comment. This action is necessary in order
to implement portions of the Veterans Entrepreneurship and Small
Business Development Act of 1999 (Pub. L. 106-50). However, pursuant to
Public Law 98-577 and FAR 1.501, the Councils will consider public
comments received in response to this interim rule in the formation of
the final rule.
List of Subjects in 48 CFR Parts 2, 4, 5, 7, 19, 52, and 53
Government procurement.
Dated: October 3, 2000.
Al Matera,
Acting Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 4, 5, 7, 19,
52, and 53 as set forth below:
1. The authority citation for 48 CFR parts 2, 4, 5, 7, 19, 52, and
53 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).
PART 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by adding, in alphabetical order, the
definitions ``Service-disabled veteran-owned small business concern''
and ``Veteran-owned small business concern'' to read as follows:
2.101 Definitions.
* * * * *
Service-disabled veteran-owned small business concern--
(1) Means a small business concern--
(i) Not less than 51 percent of which is owned by one or more
service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by
one or more service-disabled veterans; and
(ii) The management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case of
a veteran with permanent and severe disability, the spouse or permanent
caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38
U.S.C. 101(2), with a disability that is service-connected, as defined
in 38 U.S.C. 101(16).
* * * * *
Veteran-owned small business concern means a small business
concern--
(1) Not less than 51 percent of which is owned by one or more
veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any
publicly owned business, not less than 51 percent of the stock of which
is owned by one or more veterans; and
(2) The management and daily business operations of which are
controlled by one or more veterans.
* * * * *
PART 4--ADMINISTRATIVE MATTERS
3. Amend section 4.602 by revising paragraph (a)(2); and in
paragraph (d) by removing ``shall'' each time it is used (three times)
and adding ``must'' in its place. The revised text reads as follows:
4.602 Federal Procurement Data System.
(a) * * *
(2) A means of measuring and assessing the impact of Federal
contracting on the Nation's economy and the extent to which small,
veteran-owned small, service-disabled veteran-owned small, HUBZone
small, small disadvantaged, and women-owned small business concerns are
sharing in Federal contracts; and
* * * * *
PART 5--PUBLICIZING CONTRACT ACTIONS
4. Amend section 5.002 in the introductory paragraph by removing
``shall'' and adding ``must'' in its place; and by revising paragraph
(c) to read as follows:
5.002 Policy.
* * * * *
(c) Assist small business concerns, veteran-owned small business
concerns, service-disabled veteran-owned small business concerns,
HUBZone small business concerns, small disadvantaged business concerns,
and women-owned small business concerns in obtaining contracts and
subcontracts.
PART 7--ACQUISITION PLANNING
5. Amend section 7.105 in the introductory paragraph by removing
``shall'' each time it is used (four times) and adding ``must'' in its
place; and by revising the third sentence of paragraph (b)(1) to read
as follows:
7.105 Contents of written acquisition plans.
* * * * *
(b) Plan of action--(1) Sources. * * * Include consideration of
small business, veteran-owned small business, service-disabled veteran-
owned small business, HUBZone small business, small disadvantaged
business, and women-owned small business concerns (see part 19), and
the impact of any bundling that might affect their participation in the
acquisition (see 7.107) (15 U.S.C. 644(e)). * * *
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
6. Amend section 19.000 in paragraph (a)(9) by removing ``and''; in
paragraph (a)(10) by removing the period and adding ``; and'' in its
place; and by adding paragraph (a)(11) to read as follows:
19.000 Scope of part.
(a) * * *
(11) The use of veteran-owned small business concerns and service-
disabled veteran-owned small business concerns.
* * * * *
19.001 [Amended]
7. Amend section 19.001 in the definition ``Small disadvantaged
business concern'' by removing ``52.212-3(c)(2)'' and adding ``52.212-
3(c)(4)'' in its place; and by removing ``52.212-3(c)(7)(ii)'' and
adding ``52.212-3(c)(9)(ii)'' in its place.
19.201 [Amended]
8. Amend section 19.201 in the first sentence of paragraph (a) by
adding ``veteran-owned small business, service-disabled veteran-owned
small business,'' before the word ``HUBZone''; and in the second
sentence by removing ``shall'' and adding ``must'' in its place.
19.202-2 [Amended]
9. Amend section 19.202-2 in the introductory paragraph by removing
``shall'' and adding ``must'' in its place; and by adding ``veteran-
owned small business, service-disabled veteran-owned small business,''
before the word ``HUBZone''.
19.202-4 [Amended]
10. Amend section 19.202-4 in the introductory paragraph by
removing ``shall'' and adding ``must'' in its place; and by adding
``veteran-owned small business, service-disabled veteran-owned small
business,'' before the word ``HUBZone''.
19.202-5 [Amended]
11. Amend section 19.202-5 in the introductory paragraph by
removing ``shall'' and adding ``must'' in its place; and in paragraphs
(a) and (b) by adding ``veteran-owned small business, service-disabled
veteran-owned small business,'' before the word ``HUBZone''.
[[Page 60545]]
Subpart 19.3--Determination of Small Business Status for Small
Business Programs
12. The heading of subpart 19.3 is revised to read as set forth
above.
19.301 [Amended]
13. Amend section 19.301 in the first sentence of paragraph (d) by
adding ``veteran-owned small business,'' before the word ``HUBZone''.
19.304 [Amended]
14. Amend section 19.304 in paragraph (b) by removing ``52.212-
3(c)(2)'' and adding ``52.212-3(c)(4)'' in its place; and in paragraph
(c) by removing ``52.212-3(c)(7)'' and adding ``52.212-3(c)(9)'' in its
place.
19.402 [Amended]
15. Amend section 19.402 in paragraph (c)(1)(ii) by adding
``veteran-owned small, service-disabled veteran-owned small,'' before
the word ``HUBZone''.
16. Amend section 19.702 by revising the introductory paragraph to
read as follows:
19.702 Statutory requirements.
Any contractor receiving a contract for more than the simplified
acquisition threshold must agree in the contract that small business,
veteran-owned small business, service-disabled veteran-owned small
business, HUBZone small business, small disadvantaged business, and
women-owned small business concerns will have the maximum practicable
opportunity to participate in contract performance consistent with its
efficient performance. It is further the policy of the United States
that its prime contractors establish procedures to ensure the timely
payment of amounts due pursuant to the terms of their subcontracts with
small business, veteran-owned small business, service-disabled veteran-
owned small business, HUBZone small business, small disadvantaged
business, and women-owned small business concerns.
* * * * *
17. Amend section 19.703 by revising the introductory text of
paragraph (a), paragraph (a)(1) and the first sentence of paragraph
(b); in the fifth sentence of paragraph (b) by removing ``shall'' and
adding ``must'' in its place; and adding a sixth sentence to paragraph
(b). The revised and added text reads as follows:
19.703 Eligibility requirements for participating in the program.
(a) To be eligible as a subcontractor under the program, a concern
must represent itself as a small business, veteran-owned small
business, service-disabled veteran-owned small business, HUBZone small
business, small disadvantaged business, or woman-owned small business
concern.
(1) To represent itself as a small business, veteran-owned small
business, service-disabled veteran-owned small business, HUBZone small
business, or woman-owned small business concern, a concern must meet
the appropriate definition in 2.101 or 19.001.
* * * * *
(b) A contractor acting in good faith may rely on the written
representation of its subcontractor regarding the subcontractor's
status as a small business, veteran-owned small business, service-
disabled veteran-owned small business, HUBZone small business, or a
woman-owned small business concern. * * * Protests challenging HUBZone
small business concerns status must be filed in accordance with 13 CFR
126.800.
18. Amend section 19.704 by revising paragraph (a)(1); and in
paragraphs (a)(2), (a)(3), (a)(6), (a)(8), and (a)(11) by adding
``veteran-owned small business,'' before the word ``HUBZone''. The
revised text reads as follows:
19.704 Subcontracting plan requirements.
(a) * * *
(1) Separate percentage goals for using small business, veteran-
owned small business, HUBZone small business, small disadvantaged
business, and women-owned small business concerns as subcontractors.
Service-disabled veteran-owned small business concerns meet the
definition of veteran-owned small business concerns, and offerors may
include them within the subcontracting plan goal for veteran-owned
small business concerns. A separate goal for service-disabled veteran-
owned small business concerns is not required;.
* * * * *
19.705-2 [Amended]
19. Amend section 19.705-2 in the introductory paragraph by
removing ``shall'' and adding ``must'' in its place; and in the last
sentence of paragraph (d) by removing ``shall'' and adding ``must'' in
its place, and adding ``veteran-owned small business (including
service-disabled veteran-owned small business),'' before the word
``HUBZone''.
20. Amend section 19.705-4 by--
a. Removing from the introductory paragraph ``shall'' and adding
``must'' in its place;
b. Adding in the second and last sentences of paragraph (c), and
paragraphs (d)(1) and (d)(5) ``veteran-owned small business,'' before
the word ``HUBZone''; and
c. Revising paragraph (d)(6) to read as follows:
19.705-4 Reviewing the subcontracting plan.
* * * * *
(d) * * *
(6) Advise the offeror of available sources of information on
potential small business, veteran-owned small business, service-
disabled veteran-owned small business, HUBZone small business, small
disadvantaged business, and women-owned small business subcontractors,
as well as any specific concerns known to be potential subcontractors.
If the offerors proposed goals are questionable, the contracting
officer must emphasize that the information should be used to develop
realistic and acceptable goals. The contracting officer should ensure
that the contractor has considered the use of service-disabled veteran-
owned small businesses in developing its veteran-owned small business
goal (see 19.704(a)(1) and 52.219-9(d)(1)).
* * * * *
19.705-7 [Amended]
21. Amend section 19.705-7 in paragraph (a) by adding in the first
sentence ``veteran-owned small business (including service-disabled
veteran-owned small business),'' before the word ``HUBZone''; and in
the third and fourth sentences of paragraph (d) by adding ``veteran-
owned small business (including service-disabled veteran-owned small
business),'' before the word ``HUBZone''.
19.706 [Amended]
22. Amend section 19.706 in paragraphs (b) and (c) by adding
``veteran-owned small business (including service-disabled veteran-
owned small business),'' before the word ``HUBZone''.
19.708 [Amended]
23. Amend section 19.708 in paragraphs (c)(1), (c)(2), and (c)(3)
by adding ``veteran-owned small business (including service-disabled
veteran-owned small business),'' before the word ``HUBZone''.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
24. Amend section 52.212-3 by--
a. Revising the date of the provision;
b. Adding in paragraph (a), in alphabetical order, the definitions
``Service-disabled veteran-owned small
[[Page 60546]]
business concern'' and ``Veteran-owned small business concern'';
c. Redesignating paragraphs (c)(2) through (c)(7) as (c)(4) through
(c)(9), respectively, and adding new paragraphs (c)(2) and (c)(3);
d. Removing from the ``Note'' paragraph in newly designated
paragraph (c)(5), ``(c)(4) and (c)(5)'' and adding ``(c)(6) and
(c)(7)'' in its place;
e. Removing from Alternate I ``(Oct 1998)'' and adding ``(Oct
2000)'' in its place, and removing ``(c)(8)'' and adding ``(c)(10)'' in
its place; redesignating paragraph ``(8)'' as ``(10)'' and removing
``(c)(7)'' and adding ``(c)(9)'' in its place;
f. Removing from Alternate II ``(Oct 1998)'' and adding ``(Oct
2000)'' in its place, and removing ``(c)(7)(iii)'' and adding
``(c)(9)(iii)'' in its place; and
g. Removing from Alternate III ``(Jan 1999)'' and adding ``(Oct
2000)'' in its place, and removing ``(c)(9)'' and adding ``(c)(11)'' in
its place; designating the second paragraph of Alternate III as
paragraph (c)(11); and removing from newly designated paragraph
(c)(11)(ii) ``(c)(9)(i)'' and adding ``(c)(11)(i)'' in its place.
The revised text reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
Offeror Representations and Certifications--Commercial Items (Oct.
2000)
(a) * * *
* * * * *
Service-disabled veteran-owned small business concern--
(1) Means a small business concern--
(i) Not less than 51 percent of which is owned by one or more
service--disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by
one or more service-disabled veterans; and
(ii) The management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case
of a veteran with permanent and severe disability, the spouse or
permanent caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38
U.S.C. 101(2), with a disability that is service-connected, as
defined in 38 U.S.C. 101(16).
* * * * *
Veteran-owned small business concern means a small business
concern--
(1) Not less than 51 percent of which is owned by one or more
veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any
publicly owned business, not less than 51 percent of the stock of
which is owned by one or more veterans; and
(2) The management and daily business operations of which are
controlled by one or more veterans.
* * * * *
(c) * * *
(2) Veteran-owned small business concern. [Complete only if the
offeror represented itself as a small business concern in paragraph
(c)(1) of this provision.] The offeror represents as part of its
offer that it [ ] is, [ ] is not a veteran-owned small business
concern.
(3) Service-disabled veteran-owned small business concern.
[Complete only if the offeror represented itself as a veteran-owned
small business concern in paragraph (c)(2) of this provision.] The
offeror represents as part of its offer that it [ ] is, [ ] is not
a service-disabled veteran-owned small business concern.
* * * * *
25. Amend section 52.219-1 by--
a. Revising the date of the provision;
b. Adding paragraphs (b)(4) and (b)(5);
c. Revising the heading of paragraph (c) and adding, in
alphabetical order, the definitions ``Service-disabled veteran-owned
small business concern'' and ``Veteran-owned small business concern'';
d. Removing ``, as used in this provision,'' from the definitions
``Small business concern'' and ``Women-owned small business concern'';
e. Adding in the introductory text of paragraph (d)(2) ``HUBZone
small,'' after the word ``small,'' the first time it appears;
f. Removing from Alternate I ``(Nov 1999)'' and adding ``(Oct
2000)'' in its place, removing ``(b)(4)'' and adding ``(b)(6)'' in its
place; redesignating paragraph (4) as paragraph (b)(6); removing from
newly designated paragraph (b)(6)(ii) ``(b)(4)(i)'' and adding
``(b)(6)(i)'' in its place; and
g. Removing from Alternate II ``(Nov 1999)'' and adding ``(Oct
2000)'' in its place, and removing ``(b)(5)'' and adding ``(b)(7)'' in
its place; and redesignating paragraph (5) of Alternate II as paragraph
(b)(7). The revised text reads as follows:
52.219-1 Small Business Program Representations.
* * * * *
Small Business Program Representations (Oct. 2000)
* * * * *
(b) * * *
(4) [Complete only if the offeror represented itself as a small
business concern in paragraph (b)(1) of this provision.] The offeror
represents as part of its offer that it [ ] is, [ ] is not a
veteran-owned small business concern.
(5) [Complete only if the offeror represented itself as a
veteran-owned small business concern in paragraph (b)(4) of this
provision.] The offeror represents as part of its offer that it [ ]
is, [ ] is not a service-disabled veteran-owned small business
concern.
(c) Definitions. As used in this provision--
Service-disabled veteran-owned small business concern--
(1) Means a small business concern--
(i) Not less than 51 percent of which is owned by one or more
service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by
one or more service-disabled veterans; and
(ii) The management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case
of a veteran with permanent and severe disability, the spouse or
permanent caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38
U.S.C. 101(2), with a disability that is service-connected, as
defined in 38 U.S.C. 101(16).
* * * * *
Veteran-owned small business concern means a small business
concern--
(1) Not less than 51 percent of which is owned by one or more
veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any
publicly owned business, not less than 51 percent of the stock of
which is owned by one or more veterans; and
(2) The management and daily business operations of which are
controlled by one or more veterans.
* * * * *
26. Amend section 52.219-8 by revising the date of the clause and
paragraphs (a), (c), and (d) to read as follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (Oct. 2000)
(a) It is the policy of the United States that small business
concerns, veteran-owned small business concerns, service-disabled
veteran-owned small business concerns, HUBZone small business
concerns, small disadvantaged business concerns, and women-owned
small business concerns shall have the maximum practicable
opportunity to participate in performing contracts let by any
Federal agency, including contracts and subcontracts for subsystems,
assemblies, components, and related services for major systems. It
is further the policy of the United States that its prime
contractors establish procedures to ensure the timely payment of
amounts due pursuant to the terms of their subcontracts with small
business concerns, veteran-owned small business concerns, service-
disabled veteran-owned small business concerns, HUBZone small
business concerns, small disadvantaged business concerns, and women-
owned small business concerns.
* * * * *
(c) Definitions. As used in this contract--
HUBZone small business concern means a small business concern
that appears on the List of Qualified HUBZone Small Business
Concerns maintained by the Small Business Administration.
Service-disabled veteran-owned small business concern--
(1) Means a small business concern--
[[Page 60547]]
(i) Not less than 51 percent of which is owned by one or more
service-disabled veterans or, in the case of any publicly owned
business, not less than 51 percent of the stock of which is owned by
one or more service-disabled veterans; and
(ii) The management and daily business operations of which are
controlled by one or more service-disabled veterans or, in the case
of a veteran with permanent and severe disability, the spouse or
permanent caregiver of such veteran.
(2) Service-disabled veteran means a veteran, as defined in 38
U.S.C. 101(2), with a disability that is service-connected, as
defined in 38 U.S.C. 101(16).
Small business concern means a small business as defined
pursuant to Section 3 of the Small Business Act and relevant
regulations promulgated pursuant thereto.
Small disadvantaged business concern means a small business
concern that represents, as part of its offer that--
(1) It has received certification as a small disadvantaged
business concern consistent with 13 CFR part 124, subpart B;
(2) No material change in disadvantaged ownership and control
has occurred since its certification;
(3) Where the concern is owned by one or more individuals, the
net worth of each individual upon whom the certification is based
does not exceed $750,000 after taking into account the applicable
exclusions set forth at 13 CFR 124.104(c)(2); and
(4) It is identified, on the date of its representation, as a
certified small disadvantaged business in the database maintained by
the Small Business Administration (PRO-Net).
Veteran-owned small business concern means a small business
concern--
(1) Not less than 51 percent of which is owned by one or more
veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any
publicly owned business, not less than 51 percent of the stock of
which is owned by one or more veterans; and
(2) The management and daily business operations of which are
controlled by one or more veterans.
Women-owned small business concern means a small business
concern--
(1) That is at least 51 percent owned by one or more women, or,
in the case of any publicly owned business, at least 51 percent of
the stock of which is owned by one or more women; and
(2) Whose management and daily business operations are
controlled by one or more women.
(d) Contractors acting in good faith may rely on written
representations by their subcontractors regarding their status as a
small business concern, a veteran-owned small business concern, a
service-disabled veteran-owned small business concern, a HUBZone
small business concern, a small disadvantaged business concern, or a
women-owned small business concern.
(End of clause)
27. Amend section 52.219-9 by--
a. Revising the date of the clause;
b. Adding to the first and second sentences of paragraph (c)
``veteran-owned small business,'' before the word ``HUBZone'';
c. Revising paragraph (d)(1);
d. Redesignating paragraphs (d)(2)(iii) through (d)(2)(v) as
(d)(2)(iv) through (d)(2)(vi), and adding a new (d)(2)(iii);
e. Redesignating paragraphs (d)(3)(ii) through (d)(3)(iv) as
(d)(3)(iii) through (d)(3)(v), and adding a new paragraph (d)(3)(ii);
f. Revising paragraph (d)(5);
g. Redesignating paragraphs (d)(6)(ii) through (d)(6)(iv) as
(d)(6)(iii) through (d)(6)(v), and adding a new paragraph (d)(6)(ii);
h. Adding to paragraph (d)(8) ``veteran-owned small business,''
before the word ``HUBZone'';
i. Revising paragraph (d)(10)(iii);
j. Adding to the introductory text of paragraph (d)(11),
(d)(11)(i), and (d)(11)(ii) ``veteran-owned small business,'' before
the word ``HUBZone'';
k. Redesignating paragraphs (d)(11)(iii)(B) through (d)(11)(iii)(E)
as (d)(11)(iii)(C) through (d)(11)(iii)(F), and adding a new paragraph
(d)(11)(iii)(B);
l. Removing from paragraph (d)(11)(iv)(B) the word ``and'';
removing the period at the end of (d)(11)(iv)(C) and adding ``; and''
in its place; and adding new paragraph (d)(11)(iv)(D);
m. Adding in paragraphs (e)(1) (twice), (e)(2), (e)(3), and (e)(4)
``veteran-owned small business,'' before the word ``HUBZone'';
n. Removing from Alternate I ``(Jan 1999)'' and adding ``(Oct
2000)'' in its place; and by adding ``veteran-owned small business,''
before the word ``HUBZone'' (twice) in paragraph (c) of the Alternate;
and
o. Removing from Alternate II ``(Jan 1999)'' and adding ``(Oct
2000)'' in its place; and by adding ``veteran-owned small business,''
before the word ``HUBZone'' (twice) in paragraph (c) of the Alternate.
The revised text reads as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (Oct. 2000)
(d) * * *
(1) Goals, expressed in terms of percentages of total planned
subcontracting dollars, for the use of small business, veteran-owned
small business, HUBZone small business, small disadvantaged
business, and women-owned small business concerns as subcontractors.
Service-disabled veteran-owned small business concerns meet the
definition of veteran-owned small business concerns, and offerors
may include them within the subcontracting plan goal for veteran-
owned small business concerns. A separate goal for service-disabled
veteran-owned small business concerns is not required. The offeror
shall include all subcontracts that contribute to contract
performance, and may include a proportionate share of products and
services that are normally allocated as indirect costs.
(2) * * *
(iii) Total dollars planned to be subcontracted to veteran-owned
small business concerns;
* * * * *
(3) * * *
(ii) Veteran-owned small business concerns;
* * * * *
(5) A description of the method used to identify potential
sources for solicitation purposes (e.g., existing company source
lists, the Procurement Marketing and Access Network (PRO-Net) of the
Small Business Administration (SBA), veterans service organizations,
the National Minority Purchasing Council Vendor Information Service,
the Research and Information Division of the Minority Business
Development Agency in the Department of Commerce, or small, HUBZone,
small disadvantaged, and women-owned small business trade
associations). A firm may rely on the information contained in PRO-
Net as an accurate representation of a concern's size and ownership
characteristics for the purposes of maintaining a small, veteran-
owned small, HUBZone small, small disadvantaged, and women-owned
small business source list. Use of PRO-Net as its source list does
not relieve a firm of its responsibilities (e.g., outreach,
assistance, counseling, or publicizing subcontracting opportunities)
in this clause.
(6) * * *
(ii) Veteran-owned small business concerns;
* * * * *
(10) * * *
(iii) Submit Standard Form (SF) 294, Subcontracting Report for
Individual Contracts, and/or SF 295, Summary Subcontract Report, in
accordance with paragraph (j) of this clause. The reports shall
provide information on subcontract awards to small business
concerns, veteran-owned small business concerns, service-disabled
veteran-owned small business concerns, small disadvantaged business
concerns, women-owned small business concerns, and Historically
Black Colleges and Universities and Minority Institutions. Reporting
shall be in accordance with the instructions on the forms or as
provided in agency regulations.
* * * * *
(11) * * *
(iii) * * *
(B) Whether veteran-owned small business concerns were solicited
and, if not, why not;
* * * * *
(iv) * * *
(D) Veterans service organizations.
* * * * *
(End of clause)
52.219-10 [Amended]
28. Amend section 52.219-10 by revising the date of the clause to
read ``(Oct 2000)''; by adding in paragraph (a)
[[Page 60548]]
``veteran-owned small business (including service-disabled veteran-
owned small business),'' before the word ``HUBZone''; and by adding in
paragraph (b) ``veteran-owned small business (including service-
disabled veteran-owned small business),'' before the word ``HUBZone'',
and adding a comma following ``goals for small business''.
PART 53--FORMS
53.219 [Amended]
29. Amend section 53.219 in paragraphs (a) and (b) by removing
``(Rev. 12/98)'' and adding ``(Rev. 10/00)'' in their place.
30. Revise sections 53.301-294 and 53.301-295 to read as follows:
BILLING CODE 6820-EP-P
[[Page 60549]]
53.301-294 Subcontracting Report for Individual Contracts.
[GRAPHIC] [TIFF OMITTED] TR11OC00.015
[[Page 60550]]
[GRAPHIC] [TIFF OMITTED] TR11OC00.016
[[Page 60551]]
53.301-295 Summary Subcontract Report.
[GRAPHIC] [TIFF OMITTED] TR11OC00.017
[[Page 60552]]
[GRAPHIC] [TIFF OMITTED] TR11OC00.018
[FR Doc. 00-25874 Filed 10-10-00; 8:45 am]
BILLING CODE 6820-EP-C