[Federal Register: March 23, 2005 (Volume 70, Number 55)]
[Rules and Regulations]
[Page 14950-14962]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23mr05-27]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 5, 13, 15, 19, 42, 44, and 53
[FAC 2005-02; FAR Case 2004-002]
RIN 9000-AJ92
Federal Acquisition Regulation; Procurement Program for Service-
Disabled Veteran-Owned Small Business Concerns
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) governing the
procurement program for Service-Disabled Veteran-Owned Small Business
Concerns (SDVOSB). The final rule retains the interim rule with
changes. The final rule deletes commissary or exchange resale items
from a list of actions excluded from the SDVOSB program and modifies
protest procedures. The final rule also includes technical corrections
adding service-disabled veteran-owned small, veteran-owned small, and
HUBZone small business concerns to the list of socioeconomic programs,
and makes changes to the Optional Form 347, Order for Supplies and
Services, Standard Form 1447, Solicitation/Contract, and Standard Form
1449,
[[Page 14951]]
Solicitation/Contract/Order for Commercial Items.
DATES: Effective Date: March 23, 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. Rhonda Cundiff, Procurement
Analyst, at (202) 501-0044. Please cite FAC 2005-02, FAR case 2004-002.
SUPPLEMENTARY INFORMATION:
A. Background
This FAR case was opened to implement section 308 of the Veterans
Benefit Act of 2003 (Public Law 108-183, 15 U.S.C. 657f), ``Procurement
Program for Small Business Concerns Owned and Controlled by Service-
Disabled Veterans.'' The law provides that contracting officers may:
award contracts on the basis of competition restricted to service-
disabled veteran-owned small businesses (SDVOSB) if there is a
reasonable expectation that two or more SDVOSBs will submit offers and
that the award can be made at a fair market price; or award a sole
source contract to a responsible SDVOSB when there is not a reasonable
expectation that two or more SDVOSBs would submit offers, the
anticipated contract price (including options) will not exceed $5
million (for manufacturing) or $3 million otherwise, and the contract
award can be made at a fair and reasonable price. The rule also limited
use of SDVOSB procurement authority to procurements that would not
otherwise be made from Federal Prison Industries (section 4124 or 4125
of Title 18.
An interim rule was published in the Federal Register at 69 FR
25274, May 5, 2004, and invited comments by July 6, 2004. The rule
amended the Federal Acquisition Regulation (FAR) to implement Pub. L.
108-183, 15 U.S.C. 657f. Thirty-five (35) comments from 17 respondents
were received. The Small Business Administration (SBA) published an
interim rule in the Federal Register at 69 FR 25262, May 5, 2004. The
SBA's final rule revises protest procedures as a result of public
comments it received. Additionally, on February 24, 2005, SBA published
an interim rule detailing the appeal procedures, as a result of a
public comment it received. Therefore, in order to avoid any potential
conflict between the FAR and SBA's final rule on appeals and to
streamline the regulations, FAR 19.307 is revised by shortening the
protest appeal discussion to be a cross reference to 13 CFR part 134.
The Councils considered all of the public comments and recommendations
on the FAR rule in developing this final rule. The specific FAR
comments and the corresponding response are summarized below.
a. Exclusions at FAR 19.1404. Three commenters expressed concern
that the exclusions from the SDVOSB procurement program specified in
paragraphs (b), (c), (d) and (e) of FAR 19.1404 go beyond those
contained in Pub. L. 108-183, 15 U.S.C. 657f.
Disposition. Partially accepted. The Councils have removed the
exclusion in paragraph (e) for commissary or exchange resale items, as
these items are subject to separate statutes and regulations. The
Councils determined that the remaining exclusions are appropriate. The
exclusions at FAR 19.1404(b) and (c) address orders placed against
indefinite delivery contracts and Federal Supply Schedules. The SDVOSB
procurement program applies to the award of a contract; therefore, the
program will have been already considered in the award of the
underlying contracts and is not applicable to the placement of orders
under those contracts.
The exclusion in 19.1404(d) for the 8(a) program is consistent with
Small Business Administration (SBA) regulations. Under these
regulations, requirements are offered by Agencies and accepted by the
SBA for performance under the 8(a) Business Development Program. To
ensure the integrity of the business development aspects of the
program, normally the requirement is retained for exclusive 8(a)
participation, but may be released by the SBA as indicated in FAR
19.1404(d).
b. Delay implementation until FPDS-NG is updated. One commenter
questioned whether the effective date of the rule was premature given
that the background section of the rule stated that the Federal
Procurement Data System-Next Generation (FPDS-NG) has not yet been
updated to capture information regarding awards under the program.
Disposition. Not accepted. The SDVOSB program was mandated by
statute. The benefits under this program cannot be delayed because of
underlying Government data reporting systems. The Councils anticipate
and expect that contracting officers will pursue their SDVOSB goals,
notwithstanding the need for the FPDS-NG to be updated to reflect the
SDVOSB procurement authorities.
c. Rule establishes unauthorized prerequisite to sole source awards
to SDVOSB. Three commenters expressed concern that the interim rule
changed the intent of Pub. L. 108-183, 15 U.S.C. 657f, by establishing
in FAR 19.1405 set aside procedures for SDVOSB that must be satisfied
before a sole-source award to a SDVOSB can be made. The commenters
recommend that FAR 19.1405 be deleted.
Disposition. Not accepted. The rule is consistent with the statute.
It does not establish a requirement that a contracting officer satisfy
the set-aside requirement before being able to award a sole source
contract. If market research indicates that there is only one SDVOSB
source capable of satisfying the requirement at a fair and reasonable
price, the contracting officer may award on a sole-source basis. If
market research indicates two or more SDVOSBs are capable of fulfilling
the requirement, the contracting officer may set-aside the requirement.
In the event where only one acceptable SDVOSB offer is received in
response to the set-aside, the contracting officer may make award to
that offeror.
d. No prohibition against SDVOSB sole source awards below the
Simplified Acquisition Threshold (SAT). One commenter expressed concern
that there is no explicit prohibition against use of a SDVOSB sole
source below the SAT similar to the HUBZone coverage at FAR
19.1306(a)(4). This commenter notes that since the statutory language
for both the HUBZone and SDVOSB programs is silent regarding whether
sole-source can be used below the SAT and the other criteria for use
are the same in both statutes, SDVOSB sole-source awards below the SAT
should be prohibited as they are for HUBZones.
Disposition. Not accepted. To ensure that agencies have the
broadest set of options to aggressively pursue the statutory 3%
contracting goal for SDVOSBs, the Councils did not include in the
interim rule a prohibition on sole source awards under the SAT. This is
consistent with the SBA interim rule that provides for SDVOSB sole
source awards under the SAT. As the commenter notes, there is nothing
in the statute that prohibits sole source awards under the SAT, and the
Councils do not believe that there is any compelling justification for
revising the final rules in this respect since such a change would only
limit opportunities for SDVOSBs. The Councils recognize the different
regulatory treatment of HUBZone sole source awards under the SAT, but
changes to the HUBZone program are outside the scope of the current
case.
e. Require SDVOSB Certification. Two commenters recommended that
SDVOSB status be certified by the Department of Veterans Affairs (DVA)
or
[[Page 14952]]
the Department of Defense (DoD) to avoid fraud and abuse.
Disposition. Not accepted. The SBA, which has the statutory
authority to administer the SDVOSB program, has determined that SDVOSB
status should be on a self-representation basis. If the disability
status of the owner of a firm is challenged, the SBA will rely on
existing Department of Veteran Affairs or DoD determinations regarding
the owner's status as a veteran or service-disabled veteran (see FAR
19.307).
f. Establish a SDVOSB Mentor-Prot[eacute]g[eacute] Program. One
commenter recommended that the final rule establish guidelines for a
SDVOSB Mentor-Prot[eacute]g[eacute] Program similar to the SBA's 8(a)
regulations (13 CFR 124.520). The same commenter recommended that the
final rule establish provisions to award SDVOSB set-aside contracts to
SDVOSB Mentor-Prot[eacute]g[eacute] joint ventures very similar to
SBA's 8(a) Mentor-Prot[eacute]g[eacute] joint ventures (13 CFR
124.513).
Disposition. Not accepted. The SBA has authority under the Small
Business Act to administer the 8(a) Mentor-Prot[eacute]g[eacute]
Program. SBA current regulations do not provide for an SDVOSB Mentor-
Prot[eacute]g[eacute] program. Therefore, this recommendation falls
outside the scope of this rule.
g. Change the threshold for the nonmanufacturer rule. One commenter
recommended changes to the ``nonmanufacturing rule'' to either exclude
SDVOSBs from the $25,000 restriction at 19.102(f)(7)(i)(B) or raise the
threshold to $1 million.
Disposition. Not accepted. The SBA has exclusive authority to
establish the threshold, which is set at $25,000. Therefore, the
recommendation falls outside of the scope of this rule.
h. Monitoring of Subcontracting SDVOSB goal. Two commenters
recommended SBA take the following steps to improve compliance with
SDVOSB subcontracting plans.
Base SBA contractor reviews on compliance risks, such as
size of the contract, date of the last review, and previous ratings and
send the results of the reviews to contracting officers, especially
when the ratings are marginal. SBA should produce an annual list of
prime contractors who meet their small business plans by category.
The primes who fail to meet their plans for two
consecutive years should be barred from federal contracting until a
suitable corrective action plan is received and approved. Or, if this
is not feasible, enforce FAR 52.219-16, ``Liquidated Damages--
Subcontracting Plan.''
Prime contractors who consistently meet their
subcontracting plans should be rewarded by receiving priority in future
contracts. FAR 52.219-10, Incentive Subcontracting Program should be
vigorously used where applicable.
Disposition. Partially accepted. SBA has taken action to implement
the first recommendation. The Councils do not believe that the
debarment action is feasible, since debarment is a severe sanction
taken only when no other remedy is available to protect the
Government's interests. Liquidated damages are assessed under FAR
52.219-16, which establishes a standard of willful or intentional
actions to frustrate the contract's subcontracting plan before the
damages can be assessed. Regarding affording priority to contractors
who consistently meet goals, a contractor who receives a positive past
performance evaluation for achieving its subcontracting goals has a
better chance of receiving future contracts. Conversely, a contractor
who fails to make good faith efforts is subject to negative past
performance evaluations (which could affect its ability to receive
future contracts). The Councils agree that the Incentive Subcontracting
Program should be vigorously used where applicable, but no change to
the rule for this, or the other recommendations in the comment, is
necessary.
i. 8(a)/SDB program.
Allow Migration of work from 8(a) to SDVOSB. One commenter
recommended that the final rule allow business concerns in the 8(a) SDB
Program to migrate work from that program to the SDVOSB Procurement
Program if eligible, and allow SDVOSB concerns to migrate work to the
8(a) SDB Program if eligible.
Disposition. Not accepted. The two programs have different
purposes. The 8(a) program is a business development program. The
SDVOSB program is a procurement mechanism to enhance Federal
contracting opportunities for SDVOSBs. Given the different purposes of
these two programs, allowing migration from one program into another
would adversely impact both programs by limiting business development
opportunities available for 8(a) firms and procurement opportunities
for SDVOSB firms.
Provide equal consideration as 8(a) SDB Program including
goals. Two commenters suggested that SDVOSB concerns be provided equal
consideration as those business concerns in the 8(a) Business
Development Program, including equivalent government-wide procurement
goals.
Disposition. Not accepted. It is important to note that
the 8(a) Program is a business development program. While the 8(a)
Program offers a broad scope of assistance to socially and economically
disadvantaged small businesses, the SDVOSB Program strictly pertains to
benefits in Federal contracting. Congress authorized sole source awards
to 8(a) firms, even when multiple firms can satisfy the requirement, as
a business development tool. Further, Congress established separate
Governmentwide goals for participation by Small Disadvantaged
Businesses and SDVOSBs. Although Congress did not establish a mandatory
goal for 8(a) small businesses, as a matter of policy, the SBA
negotiates an 8(a) goal with each Federal Agency. Consequently, the
comments are outside the scope of this rule.
j. Expand authority for sole source awards. Three commenters
recommended that the final rule allow a sole source award to an SDVOSB
up to the 8(a) sole-source dollar thresholds regardless of whether
there are two or more SDVOSB competitors capable of satisfying the
requirement.
Disposition. Not accepted. The statute specifically states that a
sole source award is allowed only when market research establishes that
only one SDVOSB is capable of meeting the Government's requirements at
a fair and reasonable price, and only when the award price will not
exceed $3 million ($5 million for manufacturing.)
k. Establish an Order of Precedence. Two commenters expressed
concern that the interim rule did not establish the order of precedence
for SDVOSB set-asides relative to the 8(a) and HUBZone set-aside
programs.
Disposition. Not accepted. The FAR rule implements Pub. L. 108-183,
15 U.S.C. 657f, as written. The statute established a discretionary
set-aside and sole-source authority for SDVOSBs. The statute did not
establish a preference for SDVOSBs relative to the 8(a) or HUBZone
programs.
l. Provide for a Price Evaluation Adjustment. Four commenters
recommended that SDVOSB concerns be entitled to the same 10% price
evaluation adjustment when competing for Government opportunities as
established in the 8(a) program under the FAR clause at 52.219-23,
Notice of Price Evaluation Adjustment for Small Disadvantaged Business
Concerns. One commenter recommended that a SDVOSB should be considered
a Small Disadvantaged Business (SDB).
[[Page 14953]]
Disposition. Not accepted. There is no statutory authority to
afford SDVOSBs the same price evaluation adjustment as certain SDBs,
whereas the price evaluation adjustment for certain SDBs was authorized
by section 7102 of Pub. L. 103-355. An SDVOSB can be certified as an
SDB if it meets the eligibility criteria established by SBA.
m. Replace ``may'' with ``shall''. Four commenters expressed
concern that the order of precedence established in 19.800(e),
19.501(c), 19.1305(a) and the ``may set aside'' and ``shall set-aside''
language make the Service-Disabled Veteran Owned Small Business
(SDVOSB) the lesser priority relative to the other set-aside programs.
These commenters request change in language at 19.1405 and that the
words ``shall set-aside'' be used in every place that ``may set-aside''
is found.
Disposition. Not accepted. The FAR rule implements Pub. L. 108-183,
15 U.S.C. 657f, as written. The statute established a discretionary,
not mandatory, set-aside authority for SDVOSBs.
n. Apply a citizenship restriction. One commenter suggested that
the Public Law should be written to state that it is restricted to
those U.S. Veterans that are also citizens of the United States and not
dual citizenship individuals living abroad.
Disposition. Not accepted. The Council must implement the law as
written. Pub. L. 108-183, 15 U.S.C. 657f, does not include a residency
or citizenship requirement to qualify for SDVOSB status.
o. Reassign Advocacy Responsibility for the Regulatory Flexibility
Act. One commenter suggested replacing the Chief Counsel at SBA with
the Office of Management and Budget (OMB) as the senior reporting
agency for advocacy responsibility under the Regulatory Flexibility
Act.
Disposition. Partially accepted. Under the authority of the
Regulatory Flexibility Act, SBA's Chief Counsel for Advocacy reviews
Regulatory Flexibility Act analyses. In addition, OMB reviews as a
matter of course the analyses prior to publication of any rule.
Accordingly, existing procedure already implements the intent of this
suggestion, and no further action is required. The Chief Counsel for
Advocacy's authority is statutory and cannot be changed by this
regulation.
p. Reserve 25% of all procurement actions for SDVOSB.One commenter
suggested that the rule be changed to encourage agencies to set aside
25% of their procurements for competition among SDVOSB. To ensure
achievement of this goal, the commenter recommended that the rule
provide for--
1. Including in all contracts over $15 million a requirement that a
contractor set aside a portion of the work for an SDVOSB;
2. GSA notification to agencies that fail to meet the goal;
3. Publication in the Federal Register of a list of agencies that
fail to meet the goal during the fiscal year and the corrective actions
those agencies will take during the following fiscal year to meet the
goal;
4. Establishment of an Office of Economic Advocacy in OMB to
monitor, along with SBA and GSA, compliance with agency achievement of
the goal and to report to the President and Congress on the climate in
America for small businesses;
5. Debarment of any contractor that fails to meet the 25% goal for
two consecutive fiscal years; and
6. Suspension of the contracting officer warrant of any contracting
officer responsible for awarding a contract that results in an agency
not meeting the goal.
Disposition. Not accepted. The Councils are unclear as to whether
the commenter is advocating establishing goals based on dollars or
actions. If the commenter is advocating dollar goal changes, a
Governmentwide goal for each small business category is established
pursuant to the Small Business Act. The goal for small business
concerns in general is 23% of the total value of all prime contracts
awarded each fiscal year. A goal of not less than 3% of the total value
of all prime contract and subcontract awards for each fiscal year has
been established for SDVOSB concerns. It is beyond the scope of this
rule, and impracticable, to establish a 25% goal of procurements for
SDVOSB.
If the commenter is advocating goals for actions, the Councils
believe that such a change would not result in a meaningful measure of
contracting opportunities given the high volume of actions at small-
dollar amounts. We do note that the rule provides contracting officers
the authority to make sole source awards or set aside procurements in
order to meet the Governmentwide goal of awarding 3% of the procurement
dollars to SDVOSBs.
The Councils believe that the recommended oversight and remedial
actions are outside the scope of the case. However, agency and
contractor achievement of goals is already being monitored by SBA,
which is already required to report agency achievement of small
business goals, established by the President pursuant to the Small
Business Act, on an annual basis to Congress and OMB.
q. Include SDVOSB as an Evaluation Point. One commenter suggested
that FAR 19.1406, Sole source awards for service-disabled veteran-owned
small business concerns, be revised to require that RFPs include SDVOSB
as an evaluation point for procurements in excess of $15M during the
contract award period; ``where the procurement is in excess of
$15,000,000 a copy of the source selection evaluation guidance will be
made public for inspection and review by GSA, SBA;'' and ``notification
to the Office of Economic Advocacy in OMB.''
Disposition. Not accepted. Although the commenter refers to FAR
19.1406, which pertains to sole-source SDVOSB awards, the Councils
believe the commenter is recommending a source selection evaluation
factor for SDVOSB subcontracting be required in all competitive
procurements above $15 million. General evaluation factors are
identified in the FAR. Although there is no specific requirement to
include SDVOSB participation as an evaluation factor, past performance
is required to be evaluated in virtually all source selections. This
past performance data used is derived from FAR 42.1502(a), which
requires an assessment of contractor performance against, and efforts
to achieve, the goals identified in the small business subcontracting
plan when the contract includes the FAR clause at 52.219-9, Small
Business Subcontracting Plan, which includes goals for SDVOSB
participation. In addition, all solicitations that require a
subcontracting plan will require agencies to negotiate acceptable goals
for each small business category, including SDVOSBs. Accordingly,
existing regulations already accommodate evaluation of past and
proposed SDVOSB participation.
All evaluation factors are included in the solicitation; there are
no factors that are not identified. Involvement of GSA in the review of
these factors would be duplicative and inefficient. SBA representatives
and Agency small business specialists review and make recommendations
on solicitations and source selection plans. GSA has no oversight
authority on Agency acquisitions.
With regard to establishing a new Office of Economy Advocacy in
OMB, the comment is beyond the scope of the rule.
This is a significant regulatory action and, therefore, was subject
to review under Section 6(b) of Executive Order 12866, Regulatory
Planning and Review,
[[Page 14954]]
dated September 30, 1993. This rule is not a major rule under 5 U.S.C.
804.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., applies to
this final rule. The Councils prepared a Final Regulatory Flexibility
Analysis (FRFA), and it is summarized as follows.
This final rule revises the Federal Acquisition Regulation in
order to comply with recently enacted Public Law 108-183, Veterans
Benefits Act of 2003 (Dec. 16, 2003), Section 308, Procurement
Program for Small Business Concerns Owned and Controlled by Service-
Disabled Veterans to allow for discretionary set-aside and sole
source procurement authority for service-disabled veteran-owned
small business (SDVOSB) concerns. The objective is to provide
Federal contracting officials a means to improve their performance
toward the statutorily mandated 3% government-wide goal for
procurement from SDVOSBs. 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 law provides that the contracting officer may use the
set-aside and sole source procurement authority when contracting
with SDVOSB concerns. Although the percentage of service-disabled
veteran-owned small businesses is small, the set aside and sole
source procurement authority will have a small impact on other small
businesses.
Interested parties may obtain a copy of the FRFA from the FAR
Secretariat. The FAR Secretariat has submitted a copy of the FRFA to
the Chief Counsel for Advocacy of the Small Business Administration.
C. Paperwork Reduction Act
The Paperwork Reduction Act does apply; however, the changes to FAR
do not impose additional 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 4, 5, 13, 15, 19, 42, 44,and 53
Government procurement.
Dated: March 16, 2005.
Rodney P. Lantier
Director, Contract Policy Division.
Interim Rule Adopted as Final With Changes
0
Accordingly, DoD, GSA, and NASA adopt the interim rule amending 48 CFR
parts 4, 5, 13, 15, 19, 42, 44, and 53, which was published in the
Federal Register at 69 FR 25274, May 5, 2004, as a final rule with the
following changes:
0
1. The authority citation for 48 CFR parts 4, 5, 13, 15, 19, 42, 44,
and 53 is revised to read as follows:
Authority: Authority. 40 U.S.C. 121(c); 10 U.S.C. chapter 137;
and 42 U.S.C. 2473(c):
PART 4--ADMINISTRATIVE MATTERS
0
2. Amend section 4.502 by revising paragraph (b)(3) to read as follows:
4.502 Policy.
* * * * *
(b) * * *
(3) Facilitate access to Government acquisition opportunities by
small business concerns, small disadvantaged business concerns, women-
owned, veteran-owned, HUBZone, and service-disabled veteran-owned small
business concerns;
* * * * *
PART 5--PUBLICIZING CONTRACT ACTIONS
0
3. Amend section 5.503 by revising the second sentence in paragraph
(a)(1) to read as follows:
5.503 Procedures.
(a) * * *
(1) * * * Contracting officers shall give small, small
disadvantaged, women-owned, veteran-owned, HUBZone, and service-
disabled veteran-owned small business concerns maximum opportunity to
participate in these acquisitions.
* * * * *
PART 13--SIMPLIFIED ACQUISITION PROCEDURES
0
4. Amend section 13.002 by revising paragraph (b) to read as follows:
13.002 Purpose.
* * * * *
(b) Improve opportunities for small, small disadvantaged, women-
owned, veteran-owned, HUBZone, and service-disabled veteran-owned small
business concerns to obtain a fair proportion of Government contracts;
* * * * *
PART 15--CONTRACTING BY NEGOTIATION
0
5. Amend section 15.404-4 by revising the first sentence in paragraph
(d)(1)(iii) to read as follows:
15.404-4 Profit.
(d) * * *
(1) * * *
(iii) Federal socioeconomic programs. This factor measures the
degree of support given by the prospective contractor to Federal
socioeconomic programs, such as those involving small business
concerns, small business concerns owned and controlled by socially and
economically disadvantaged individuals, women-owned small business
concerns, veteran-owned, HUBZone, service-disabled veteran-owned small
business concerns, handicapped sheltered workshops, and energy
conservation. * * *
* * * * *
0
6. Amend section 15.407-2 by revising paragraph (d)(2) to read as
follows:
15.407-2 Make or buy programs.
* * * * *
(d) * * *
(2) A description of factors to be used in evaluating the proposed
program, such as capability, capacity, availability of small, small
disadvantaged, women-owned, veteran-owned, HUBZone, and service-
disabled veteran-owned small business concerns for subcontracting,
establishment of new facilities in or near labor surplus areas,
delivery or performance schedules, control of technical and schedule
interfaces, proprietary processes, technical superiority or
exclusiveness, and technical risks involved.
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
0
7. Amend section 19.307 by--
0
a. Removing from paragraph (e) ``Contracting, U.S.'' and adding
``Contracting AA/GC, U.S.'' in its place;
0
b. Revising paragraph (f);
0
c. Revising the second sentence of paragraph (h);
0
d. Revising paragraph (i); and
0
e. Removing paragraphs (j) through (m).
The revised text read as follows:
19.307 Protesting a firm's status as a service-disabled veteran-owned
small business concern.
* * * * *
(f) The referral letter must include information pertaining to the
solicitation that may be necessary for SBA to determine timeliness and
standing, including the solicitation number; the name, address,
telephone number and facsimile number of the contracting officer;
whether the contract was sole-source or set-aside; whether the
protestor submitted an offer; whether the protested concern was the
apparent successful offeror; when the protested concern submitted its
offer (i.e., made the self-representation that it was a service-
disabled veteran-owned small business concern); whether the procurement
was conducted using sealed bid or negotiated procedures; the bid
opening date, if applicable; when
[[Page 14955]]
the protest was submitted; when the protester received notification
about the apparent successful offeror, if applicable; and whether a
contract has been awarded.
* * * * *
(h) * * * When making its determinations of veteran, service-
disabled veteran, or service-disabled veteran with a permanent and
severe disability status, the SBA will rely upon determinations made by
the Department of Veteran's Affairs, Department of Defense
determinations, or such determinations identified by documents provided
by the U.S. National Archives and Records Administration. * * *
(i) SBA will notify the contracting officer, the protester, and the
protested concern of its determination. The determination is effective
immediately and is final unless overturned on appeal by SBA's Office of
Hearings and Appeals (OHA) pursuant to 13 CFR part 134.
19.1404 [Amended]
0
8. Amend section 19.1404 by--
0
a. Adding at the end of paragraph (c) ``or'';
0
b. Removing from paragraph (d) ``; or'' and adding a period at the end
of the sentence; and
0
c. Removing paragraph (e).
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
9. Amend section 42.302 by revising paragraphs (a)(52) through (a)(55)
to read as follows:
42.302 Contract administration functions.
(a) * * *
(52) Review, evaluate, and approve plant or division-wide small,
small disadvantaged, women-owned, veteran-owned, HUBZone, and service-
disabled veteran-owned small business master subcontracting plans.
(53) Obtain the contractor's currently approved company- or
division-wide plans for small, small disadvantaged, women-owned,
veteran-owned, HUBZone, and service-disabled veteran-owned small
business subcontracting for its commercial products, or, if there is no
currently approved plan, assist the contracting officer in evaluating
the plans for those products.
(54) Assist the contracting officer, upon request, in evaluating an
offeror's proposed small, small disadvantaged women-owned, veteran-
owned, HUBZone, and service-disabled veteran-owned small business
subcontracting plans, including documentation of compliance with
similar plans under prior contracts.
(55) By periodic surveillance, ensure the contractor's compliance
with small, small disadvantaged, women-owned, veteran-owned, HUBZone,
and service-disabled veteran-owned small business subcontracting plans
and any labor surplus area contractual requirements; maintain
documentation of the contractor's performance under and compliance with
these plans and requirements; and provide advice and assistance to the
firms involved, as appropriate.
* * * * *
0
10. Amend section 42.501 by revising paragraph (b) to read as follows:
42.501 General.
* * * * *
(b) Postaward orientation is encouraged to assist small business,
small disadvantaged, women-owned, veteran-owned, HUBZone, and service-
disabled veteran-owned small business concerns (see Part 19).
* * * * *
0
11. Amend section 42.502 by revising paragraphs (i) and (j) to read as
follows:
42.502 Selecting contracts for postaward orientation.
* * * * *
(i) Contractor's status, if any, as a small business, small
disadvantaged, women-owned, veteran-owned, HUBZone, or service-disabled
veteran-owned small business concern;
(j) Contractor's performance history with small, small
disadvantaged, women-owned, veteran-owned, HUBZone, and service-
disabled veteran-owned small business subcontracting programs;
* * * * *
PART 44--SUBCONTRACTING POLICIES AND PROCEDURES
0
12. Amend section 44.303 by revising paragraph (e) to read as follows:
44.303 Extent of review.
* * * * *
(e) Policies and procedures pertaining to small business concerns,
including small disadvantaged, women-owned, veteran-owned, HUBZone, and
service-disabled veteran-owned small business concerns;
* * * * *
PART 53--Forms
53.212 [Amended]
0
13. Amend section 53.212 by removing ``(APR 2002)'' and adding ``(Rev.
3/2005)'' in its place.
53.213 [Amended]
0
14. Amend section 53.213 by--
0
a. Removing from paragraph (a) ``(Rev. 4/02)'' and adding ``(Rev. 3/
2005)'' in its place; and
0
b. Removing from paragraph (f) ``(Rev. 4/02)'' and adding ``(Rev. 3/
2005)'' in its place; and removing ``(Rev. 6/95)'' and adding ``(Rev.
3/2005)'' in its place.
53.214 [Amended]
0
15. Amend section 53.214 by removing from paragraph (d) ``(5/88)'' and
adding ``(Rev. 3/2005)'' in its place.
53.236-1 [Amended]
0
16. Amend section 53.236-1 by removing from paragraph (e) ``(Rev. 6/
95)'' and adding ``(Rev. 3/2005)'' in its place.
0
17. Revise section 53.301-1447 to read as follows:
[[Page 14956]]
53.301-1447 Solicitation/Contract.
[GRAPHIC] [TIFF OMITTED] TR23MR05.000
[[Page 14957]]
[GRAPHIC] [TIFF OMITTED] TR23MR05.001
[[Page 14958]]
0
18. Revise section 53.301-1449 to read as follows:
53.301-1449 Solicitation/Contract/Order for Commercial Items.
[GRAPHIC] [TIFF OMITTED] TR23MR05.002
[[Page 14959]]
[GRAPHIC] [TIFF OMITTED] TR23MR05.003
[[Page 14960]]
0
19. Revise section 53.302-347 to read as follows:
53.302-347 Order for Supplies or Services.
[GRAPHIC] [TIFF OMITTED] TR23MR05.004
[[Page 14961]]
[GRAPHIC] [TIFF OMITTED] TR23MR05.005
[[Page 14962]]
[FR Doc. 05-5656 Filed 3-22-05; 8:45 am]