[Federal Register: June 8, 2005 (Volume 70, Number 109)]
[Rules and Regulations]
[Page 33661-33662]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn05-33]
[[Page 33661]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 19 and 52
[FAC 2005-04; FAR Case 2003-015; Item V]
RIN 9000-AK02
Federal Acquisition Regulation; Applicability of SDB and HUBZone
Price Evaluation Factor
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 (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to remove some of the
exceptions to the applicability of the Small Disadvantaged Business
(SDB) and HUBZone price evaluation factor.
DATES: Effective Date: July 8, 2005.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755
for information pertaining to status or publication schedules. For
clarification of content, contact Ms. Kimberly Marshall, Procurement
Analyst, at (202) 219-0986. Please cite FAC 2005-04, FAR case 2003-015.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR 19.1103(a) and FAR 19.1307(b) in order
to remove the exceptions to the Small Disadvantaged Business (SDB) and
HUBZone preference programs that direct the contracting officer not to
apply a price evaluation adjustment to offers of eligible products in
acquisitions subject to the Trade Agreements Act (19 U.S.C. 2501, et
seq.) or where application of the factor would be inconsistent with a
Memorandum of Understanding (MOU) or other international agreement.
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 69 FR 53780, September 2, 2004. We received one response,
which was entirely favorable to the rule. Therefore, we are converting
the proposed rule to a final rule without change.
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
This rule is expected to have a significant (beneficial) 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 it will
reduce the exceptions to the preference for small disadvantaged
businesses and HUBZone small businesses. A Final Regulatory Flexibility
Analysis (FRFA) has been prepared and is summarized as follows:
This rule was initiated at the request of the Small Business
Administration in order to remove preferential treatment for certain
offers of foreign products in acquisitions intending to provide a
preference for small disadvantaged business concerns or HUBZone
small business concerns. The objective of this rule is to remove
exceptions to the Small Disadvantaged Business (SDB) and HUBZone
preference programs that direct the contracting officer not to apply
a price evaluation adjustment to offers of eligible products in
acquisitions subject to the Trade Agreements Act or where
application of the factor would be inconsistent with a Memorandum of
Understanding (MOU) or other international agreement. The rule
applies to all offerors in acquisitions that provide a preference
for small disadvantaged business concerns or HUBZone small business
concerns. Because of the reduced exceptions to the preferences, this
rule will have a beneficial impact on all domestic concerns,
especially small entities that are small disadvantaged business
concerns or HUBZone small business concerns.
The FAR Secretariat has submitted a copy of the FRFA 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
19 and 52 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 2005-04, FAR Case 2003-015), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that require
the approval of the Office of Management and Budget under 44 U.S.C.
3501, et seq.
List of Subjects in 48 CFR Parts 19 and 52
Government procurement.
Dated: May 27, 2005
Julia B. Wise,
Director,Contract Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 19 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 19 and 52 is revised to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 19--SMALL BUSINESS PROGRAMS
19.1103 [Amended]
0
2. Amend section 19.1103 by--
0
a. Adding ``or'' to the end of paragraph (a)(1);
0
b. Removing paragraphs (a)(2), (a)(3), and (a)(5); and redesignating
paragraph (a)(4) as (a)(2); and
0
c. Removing ``; or'' from the end of newly redesignated paragraph
(a)(2) and adding a period in its place.
19.1307 [Amended]
0
3. Amend section 19.1307 by--
0
a. Adding ``or'' to the end of paragraph (b)(1);
0
b. Removing the semicolon from the end of paragraph (b)(2) and adding a
period in its place; and
0
c. Removing paragraphs (b)(3) and (b)(4).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.212-5 [Amended]
0
4. Amend section 52.212-5 by--
0
a. Revising the date of the clause to read ``(JUL 2005)'';
0
b. Removing ``(Jan 1999)'' from paragraph (b)(3) of the clause and
adding ``(JUL 2005)'' in its place; and
0
c. Removing ``(June 2003)'' from paragraph (b)(10)(i) of the clause and
adding ``(JUL 2005)'' in its place.
52.219-4 [Amended]
0
5. Amend section 52.219-4 by--
0
a. Revising the date of the clause to read ``(JUL 2005)''; and
0
b. Adding ``and'' to the end of paragraph (b)(1)(i) of the clause;
removing the semicolon from the end of paragraph (b)(1)(ii) of the
clause and adding a period in its place; and removing paragraphs
(b)(1)(iii) and (b)(1)(iv) of the clause.
0
6. Amend section 52.219-23 by revising the date of the clause and
paragraph (b)(1) to read as follows:
52.219-23 Notice of Price Evaluation Adjustment for Small
Disadvantaged Business Concerns.
* * * * *
[[Page 33662]]
NOTICE OF PRICE EVALUATION ADJUSTMENT FOR SMALL DISADVANTAGED BUSINESS
CONCERNS (JUL 2005)
* * * * *
(b) Evaluation adjustment. (1) The Contracting Officer will
evaluate offers by adding a factor of ------------------------
[Contracting Officer insert the percentage] percent to the price of
all offers, except--
(i) Offers from small disadvantaged business concerns that have
not waived the adjustment; and
(ii) For DoD, NASA, and Coast Guard acquisitions, an otherwise
successful offer from a historically black college or university or
minority institution.
* * * * *
[FR Doc. 05-11187 Filed 6-7-05; 8:45 am]