80 FR 30116 - Defense Federal Acquisition Regulation Supplement: Advancing Small Business Growth (DFARS Case 2014-D009)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 80, Issue 100 (May 26, 2015)
Defense Acquisition Regulations System
Federal Register Volume 80, Issue 100 (May 26, 2015)
| Page Range | 30116-30117 | |
| FR Document | 2015-12338 |
[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)] [Rules and Regulations] [Pages 30116-30117] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-12338] [[Page 30115]] Vol. 80 Tuesday, No. 100 May 26, 2015 Part II Department of Defense ----------------------------------------------------------------------- Defense Acquisition Regulations System ----------------------------------------------------------------------- 48 CFR Parts 212, 213, 219 et al. Defense Federal Acquisition Regulation Supplement; Final Rules and Proposed Rule Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations [[Page 30116]] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Parts 212, 219, and 252 RIN 0750-A142 Defense Federal Acquisition Regulation Supplement: Advancing Small Business Growth (DFARS Case 2014-D009) AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify that entering into a contract award may cause a small business to eventually exceed the applicable small business size standard. DATES: Effective May 26, 2015. FOR FURTHER INFORMATION CONTACT: Ms. Lee Renna, telephone 571-372-6095. SUPPLEMENTARY INFORMATION: I. Background DoD published a proposed rule in the Federal Register at 79 FR 65917 on November 6, 2014, to implement policy to ensure that a small business contractor is made aware that entering into a covered contract conveys its acknowledgement that doing so may cause it to eventually exceed the small business size standard of the North American Industry Classification System (NAICS) code identified in the solicitation and contract. This clarification is required by section 1611 of the National Defense Authorization Act for Fiscal Year 2014, Public Law 113-66, (10 U.S.C. 2419). There were no public comments submitted in response to the proposed rule. II. Discussion and Analysis Minor editorial changes have been made from the proposed rule as follows: (1) In the heading at 219.303, the acronym ``(NAICS) was removed; (2) At DFARS 219.309, paragraph (a) was renumbered as paragraph (1), and a reference was changed from ``$70,000,000'' to read ``$70 million''; and (3) DFARS 252.219-7000, paragraph (b), was revised slightly in the first sentence to reflect more standardized provision language and to spell out ``NAICS'' to reflect the North American Industry Classification System. III. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. IV. Regulatory Flexibility Act DoD has certified that this rule will not 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. This conclusion is based on the following: This rule does not create or alleviate any financial burden on small businesses. The purpose of the rule is only to advise small businesses that entering into a DoD contract may eventually cause such businesses to exceed the small business size standard associated with the applicable NAICS code, and to encourage these businesses to develop the competencies typically desired of other than small businesses. V. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). List of Subjects in 48 CFR Parts 212, 219, and 252 Government procurement. Amy G. Williams, Editor, Defense Acquisition Regulations System. Therefore, 48 CFR parts 212, 219, and 252 are amended as follows: 0 1. The authority citation for 48 CFR parts 212 and 252 continues to read as follows: Authority: 41. U.S.C. 1303 and 48 CFR chapter 1. PART 212--ACQUISITION OF COMMERCIAL ITEMS 0 2. Amend section 212.301 by adding a new paragraph (f)(vi)(C) to read as follows: 212.301 Solicitation provisions and contract clauses for the acquisition of commercial items. (f) * * * (vi) * * * (C) Use the provision at 252.219-7000, Advancing Small Business Growth, as prescribed in 219.309(1), to comply with 10 U.S.C. 2419. * * * * * PART 219--SMALL BUSINESS PROGRAMS 0 3. The authority citation for 48 CFR part 219 is revised to read as follows: Authority: 41. U.S.C. 1303 and 48 CFR chapter 1. 0 4. Amend section 219.303 by revising the section heading to read as follows: 219.303 Determining North American Industry Classification System codes and size standards. * * * * * 0 5. Add section 219.309 to subpart 219.3 to read as follows: 219.309 Solicitation provisions and contract clauses. (1) Use the provision at 252.219-7000, Advancing Small Business Growth, in solicitations, including solicitations using FAR part 12 procedures for acquisition of commercial items, when the estimated annual value of the contract is expected to exceed-- (i) The small business size standard, if expressed in dollars, for the North American Industry Classification System (NAICS) code assigned by the contracting officer; or (ii) $70 million, if the small business size standard is expressed as number of employees for the NAICS code assigned by the contracting officer. PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 0 6. Add section 252.219-7000 to read as follows: 252.219-7000 Advancing Small Business Growth. As prescribed in 219.309(1), use the following provision: Advancing Small Business Growth (May 2015) (a) This provision implements 10 U.S.C. 2419. [[Page 30117]] (b) The Offeror acknowledges by submission of its offer that by acceptance of the contract resulting from this solicitation, the Offeror may exceed the applicable small business size standard of the North American Industry Classification System (NAICS) code assigned to the contract and would no longer qualify as a small business concern for that NAICS code. (Small business size standards matched to industry NAICS codes are published by the Small Business Administration and are available at http://www.sba.gov/content/table-small-business-size-standards.) The Offeror is therefore encouraged to develop the capabilities and characteristics typically desired in contractors that are competitive as other-than-small contractors in this industry. (c) For procurement technical assistance, the Offeror may contact the nearest Procurement Technical Assistance Center (PTAC). PTAC locations are available at www.dla.mil/SmallBusiness/Pages/ptac.aspx. (End of provision) [FR Doc. 2015-12338 Filed 5-22-15; 8:45 am] BILLING CODE 5001-06-P
![Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 30117
(b) The Offeror acknowledges by 252.213–7000, Notice to Prospective IV. Regulatory Flexibility Act
submission of its offer that by acceptance of Suppliers on the Use of Past
the contract resulting from this solicitation, Performance Information Retrieval A final regulatory flexibility analysis
the Offeror may exceed the applicable small System—Statistical Reporting in Past has been prepared consistent with the
business size standard of the North American Regulatory Flexibility Act, 5 U.S.C. 601,
Industry Classification System (NAICS) code
Performance Evaluations, for use in
competitive solicitations for supplies et seq., and is summarized as follows:
assigned to the contract and would no longer
qualify as a small business concern for that using FAR part 13 simplified This rule amends the Defense Federal
NAICS code. (Small business size standards acquisition procedures, including those Acquisition Regulation Supplement
matched to industry NAICS codes are for acquisitions valued at less than or (DFARS) to require contracting officers
published by the Small Business equal to $1 million under FAR 13.5. to consider information available in Past
Administration and are available at http:// One respondent submitted a public
www.sba.gov/content/table-small-business- Performance Information Retrieval
comment in response to the proposed System-Statistical Reporting (PPIRS–SR)
size-standards.) The Offeror is therefore rule.
encouraged to develop the capabilities and when evaluating the past performance
characteristics typically desired in II. Discussion and Analysis of offerors under competitive
contractors that are competitive as other- solicitations for supplies using FAR part
than-small contractors in this industry. DoD reviewed the public comment in
the development of the final rule. A 13 simplified acquisition procedures
(c) For procurement technical assistance,
the Offeror may contact the nearest discussion of the comment and the (including acquisitions under the
Procurement Technical Assistance Center changes made to the rule is provided authority of FAR subpart 13.5 valued at
(PTAC). PTAC locations are available at below: less than or equal to $1 million).
www.dla.mil/SmallBusiness/Pages/ This rule will help fill the gap
ptac.aspx. A. Analysis of Public Comment
between the higher DoD threshold for
Comment: A respondent commented the collection and evaluation of past
(End of provision)
that streamlining a formal and performance information and the
[FR Doc. 2015–12338 Filed 5–22–15; 8:45 am] systematic process will improve the
thresholds at FAR 15.304(c)(3)(i).
BILLING CODE 5001–06–P opportunities for small businesses and
PPIRS–SR collects quantifiable delivery
reduce bias in the award of Government
contracts. and quality data from existing systems
DEPARTMENT OF DEFENSE Response: No changes were made a and uses that data to classify each
result of this comment. supplier’s performance by Federal
Defense Acquisition Regulations supply class and product service code.
System B. Other Changes Contracting officers will use this
The final rule includes a clarification objective data to help make better-
48 CFR Parts 212, 213, and 252 in the prescription at DFARS 213.106– informed best value award decisions for
RIN 0750–AI40 2–70 that the provision is applicable for supply contracts valued at less than or
use in competitive solicitations using equal to $1 million.
Defense Federal Acquisition FAR part 12 procedures for the
No comments were received from the
Regulation Supplement: Past acquisition of commercial items. A
Performance Information Retrieval public regarding the initial regulatory
minor editorial change is also made at
System—Statistical Reporting (PPIRS– 212.301(f)(v) to address the reference to flexibility analysis.
SR) (DFARS Case 2014–D015) the DFARS provision 252.213–7000, This rule will apply to small
Notice to Prospective Suppliers on Use businesses submitting offers on
AGENCY: Defense Acquisition
of Past Performance Information competitive solicitations for supplies
Regulations System, Department of
Retrieval System—Statistical Reporting issued using simplified acquisition
Defense (DoD).
in Past Performance Evaluations, in the procedures valued at less than $1
ACTION: Final rule. same manner as the other content of this million. According to a report generated
SUMMARY: DoD is issuing a final rule section. in the Federal Procurement Data
amending the Defense Federal III. Executive Orders 12866 and 13563 System, in fiscal year 2013, DoD made
Acquisition Regulation Supplement 15,258 new competitive awards for
Executive Orders (E.O.s) 12866 and commercial supplies valued at less than
(DFARS) to require contracting officers
13563 direct agencies to assess all costs
to consider information in the Statistical or equal to $1 million to 4,018 unique
and benefits of available regulatory
Reporting module of the Past small businesses.
alternatives and, if regulation is
Performance Information Retrieval The rule creates no new reporting,
necessary, to select regulatory
System when evaluating past recordkeeping, or other compliance
approaches that maximize net benefits
performance of offerors under requirements. There are no known
(including potential economic,
competitive solicitations for supplies significant alternatives to the rule. The
environmental, public health and safety
using simplified acquisition procedures.
effects, distributive impacts, and impact of this rule on small business is
DATES: Effective May 26, 2015. equity). E.O. 13563 emphasizes the not expected to be significant.
FOR FURTHER INFORMATION CONTACT: Ms. importance of quantifying both costs
Jennifer Hawes, telephone 571–372– and benefits, of reducing costs, of V. Paperwork Reduction Act
asabaliauskas on DSK5VPTVN1PROD with RULES
6115. harmonizing rules, and of promoting The rule does not contain any
SUPPLEMENTARY INFORMATION: flexibility. This is not a significant information collection requirements that
regulatory action and, therefore, was not require the approval of the Office of
I. Background subject to review under section 6(b) of Management and Budget under the
DoD published a proposed rule in the E.O. 12866, Regulatory Planning and
Paperwork Reduction Act (44 U.S.C.
Federal Register at 80 FR 4848 on Review, dated September 30, 1993. This
chapter 35).
January 29, 2015, to revise the DFARS rule is not a major rule under 5 U.S.C.
to add a new provision at DFARS 804.
VerDate Sep<11>2014 18:33 May 22, 2015 Jkt 235001 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 E:\FR\FM\26MYR2.SGM 26MYR2](https://thefederalregister.org/doc/80_FR_30216/page/2.svg)
Document Created: 2018-02-21 10:31:41
Document Modified: 2018-02-21 10:31:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective May 26, 2015. | |
| Contact | Ms. Lee Renna, telephone 571-372-6095. | |
| FR Citation | 80 FR 30116 | |
| RIN Number | 0750-A142 | |
| CFR Citation | 48
CFR
212 48 CFR 219 48 CFR 252 |
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