80 FR 60300 - Credit for Lower Tier Small Business Subcontracting
SMALL BUSINESS ADMINISTRATION Federal Register Volume 80, Issue 193 (October 6, 2015)
Federal Register Volume 80, Issue 193 (October 6, 2015)
| Page Range | 60300-60303 | |
| FR Document | 2015-25234 |
[Federal Register Volume 80, Number 193 (Tuesday, October 6, 2015)] [Proposed Rules] [Pages 60300-60303] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-25234] ======================================================================= ----------------------------------------------------------------------- SMALL BUSINESS ADMINISTRATION 13 CFR Parts 121 and 125 RIN 3245-AG71 Credit for Lower Tier Small Business Subcontracting AGENCY: U.S. Small Business Administration. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The U.S. Small Business Administration (SBA or Agency) is proposing to amend its regulations to implement Section 1614 of the National Defense Authorization Act for Fiscal Year 2014. The proposed amendments authorized by this statute would allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier. The prime contractor shall incorporate the lower tier subcontracting performance into its subcontracting plan goals. Currently, other than small business prime contractors establish small business subcontracting goals at the first tier level, and receive credit toward their subcontracting plan goal performance at the first tier level. The rule also proposes to implement the statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors' performance and compliance towards reaching the goals set out in those plans as well as their compliance with subcontracting reporting requirements. SBA is also proposing to clarify that the size standard for a particular subcontract must appear in the solicitation for the subcontract. DATES: Comments must be received on or before December 7, 2015. ADDRESSES: You may submit comments, identified by RIN: 3245-AG71, by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. For mail, paper, disk, or CD/ROM submissions: Brenda Fernandez, U.S. Small Business Administration, Office of Policy, Planning and Liaison, 409 Third Street SW., 8th Floor, Washington, DC 20416. Hand Delivery/Courier: Brenda Fernandez, U.S. Small Business Administration, Office of Policy, Planning and Liaison, 409 Third Street SW., 8th Floor, Washington, DC 20416. SBA will post all comments on www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at www.regulations.gov, please submit the information to Brenda Fernandez, U.S. Small Business Administration, Office of Policy, Planning and Liaison, 409 Third Street SW., 8th Floor, Washington, DC 20416, or send an email to [email protected]. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination on whether it will publish the information. FOR FURTHER INFORMATION CONTACT: Brenda Fernandez, U.S. Small Business Administration, Office of Policy, Planning and Liaison, 409 Third Street SW., Washington, DC 20416; (202) 207-7337; [email protected]. SUPPLEMENTARY INFORMATION: The proposed rule implements Section 1614 of the National Defense Authorization Act for Fiscal Year 2014, Public Law 113-66, December 26, 2013 (hereinafter NDAA 2014). Section 1614 amended section 8(d)(6)(D) of the Small Business Act, 15 U.S.C. 637(d)(6)(d), to provide that where a prime contractor has a subcontracting plan for a specific prime contract with an executive agency, as required by Section 8(d) of the Small Business Act, the prime contractor will receive credit towards its subcontracting plan goals for awards made to small business concerns at any tier under the contract. When a prime contractor awards a subcontract to a firm it is generally considered a first tier subcontract. That subcontractor may award a subcontract, which would be considered a second tier subcontract, and so on. Currently, a prime contractor generally receives credit towards its small business subcontracting plan goals for awards made at the first tier level. Other than small business prime contractors report on their small business subcontracting activity in [[Page 60301]] various ways. Some firms have individual subcontracting plans for each and every Federal prime contract that meets certain threshold requirements. Other firms have commercial plans, which is a plan that covers a firm's entire fiscal year and the firm's entire commercial production sold by either the entire company or a portion thereof (e.g., division, plant, or product line). See Federal Acquisition Regulation (FAR) Sec. 19.701. Some firms that do business with the Department of Defense have comprehensive subcontracting plans, where the firms' negotiate goals and report on a plant, division or company- wide basis, instead on each individual Federal contract. See Defense Federal Acquisition Regulation Sec. 219.702. Section 1614 further provides that lower tier reporting credit shall not apply where a subcontracting plan applies to more than one contract or to one contract with more than one executive agency. Section 1614 applies only when determining whether or not a prime contractor has met its individual subcontracting plan goals. Thus, Section 1614 does not apply where the prime contractor has a commercial plan or comprehensive subcontracting plan. Section 1614 does not alter the requirement that lower tier subcontractors have subcontracting plans when the subcontracting threshold amounts are met. Section 1614 must be implemented so that subcontracting dollars are only reported once for the same award to avoid double and triple counting the dollars, notwithstanding the fact that a small business subcontract may be reported under more than one subcontracting plan. Section 1614 further provides that where a prime contractor or subcontractor is required to have an individual subcontracting plan, the prime contractor or the subcontractor will review and approve subcontracting plans submitted by their subcontractors, monitor their subcontractors' compliance with the subcontracting plans, ensure that reports are submitted by their subcontractors, acknowledge receipt of subcontractors' reports, monitor subcontractor performance, and discuss subcontractor performance with subcontractors where necessary. Section 1614 also requires that a subcontracting plan must contain a recitation of the types of records the prime contractor will maintain to demonstrate the procedures which have been adopted to ensure that subcontractors at all tiers comply with the requirements and goals in their respective subcontracting plans, including the establishment of source lists to identify small business concerns, small business concerns owned and controlled by veterans, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women, and efforts to identify and award subcontracts to such concerns. SBA is also proposing to clarify that the NAICS code and corresponding size standard for a particular subcontract must appear in the solicitation for the subcontract. The current regulations only reference the subcontract itself. However, the solicitation for the subcontract must contain the size standard that a firm must represent that it meets at the time of its offer for the subcontract in order to be considered a small business concern for that subcontract. In addition, SBA is proposing to allow prime contractors and subcontractors to accept electronic size and socioeconomic representations provided the solicitation and/or subcontract require the firm making the electronic representations to verify the accuracy of the representations. Compliance with Executive Orders 12866, 13563, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601-612). Executive Order 12866 The Office of Management and Budget (OMB) has determined that this proposed rule is a significant regulatory action for the purposes of Executive Order 12866. Accordingly, the next section contains SBA's Regulatory Impact Analysis. This is not a major rule, however, under the Congressional Review Act. Regulatory Impact Analysis 1. Is there a need for the regulatory action? The proposed regulations implement Section 1614 of the National Defense Authorization Act for Fiscal Year 2014. Section 1614(c)(3) requires the Administrator to promulgate regulations necessary to implement the Act. 2. What are the potential benefits and costs of this regulatory action? The benefits and costs of the proposed regulations are minimal. Other than small business prime contractors and subcontractors already establish individual subcontracting plan goals and report on their achievements if the subcontracting plan thresholds are met. Under Section 1614, a prime contractor with an individual subcontracting plan will receive credit towards its goals for small business performance at lower tiers. Thus, there will be some costs to the prime contractor to propose subcontracting plan goals that incorporate small business performance at lower tiers, and there will also be costs to the Government to evaluate whether the prime contractor's goals adequately address maximum practicable small business subcontracting opportunity at all tiers. There may also be costs to the Government as eSRS may have to be modified to allow large business prime contractors to receive small business credit at any tier towards their subcontracting plan goals. There should not be any costs imposed on small business concerns. 3. What are the alternatives to this final rule? Many of the proposed regulations are required to implement specific statutory provisions which require promulgation of implementing regulations. There are no other alternatives that would meet the statutory requirements. Executive Order 13563 As part of its ongoing efforts to engage stakeholders in the development of its regulations, SBA has solicited comments and suggestions from procuring agencies on how to best implement Section 1614. SBA has incorporated those comments and suggestions to the extent feasible. SBA intends to incorporate, where feasible, public input into the final rule. Executive Order 12988 For purposes of Executive Order 12988, SBA has drafted this proposed rule, to the extent practicable, in accordance with the standards set forth in section 3(a) and 3(b)(2) of that Executive Order, to minimize litigation, eliminate ambiguity, and reduce burden. This rule has no preemptive or retroactive effect. Executive Order 13132 For the purpose of Executive Order 13132, SBA has determined that this proposed rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various layers of government. Therefore, SBA has determined that this proposed rule has no federalism implications [[Page 60302]] warranting preparation of a federalism assessment. Paperwork Reduction Act, 44 U.S.C. Ch. 35 For purposes of the Paperwork Reduction Act (PRA), SBA has determined that this proposed rule, if adopted in final form, would not impose new government-wide reporting and record keeping requirements on other than small prime contractors and subcontractors. When this rule is implemented in the FAR, there may be a requirement to amend or create an information collection. Thus, any PRA implications as part of any proposed rulemaking implementing an SBA final rule in the FAR will be addressed in the FAR rule. Regulatory Flexibility Act, 5 U.S.C. 601-612 According to the Regulatory Flexibility Act (RFA), 5 U.S.C. 601, when an agency issues a rulemaking, it must prepare a regulatory flexibility analysis to address the impact of the rule on small entities. However, section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an analysis, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. The RFA defines ``small entity'' to include ``small businesses,'' ``small organizations,'' and ``small governmental jurisdictions.'' This proposed rule concerns various aspects of SBA's contracting programs. As such, the rule relates to small business concerns, but would not affect ``small organizations'' or ``small governmental jurisdictions'' because those programs generally apply only to ``business concerns'' as defined by SBA regulations, in other words, to small businesses organized for profit. ``Small organizations'' or ``small governmental jurisdictions'' are non-profits or governmental entities and do not generally qualify as ``business concerns'' within the meaning of SBA's regulations. There are approximately 290,000 concerns registered as small business concerns in the System for Award Management (SAM) that could potentially be impacted by the implementation of Section 1614. However, we cannot say with any certainty how many will be impacted because we do not know how many of these concerns participate in government contracting as subcontractors. A firm is required to register in SAM in order to participate in Federal contracting as a prime contractor, but not for purposes of subcontracting. However, as discussed elsewhere in this proposed rule, there are no new compliance or other costs imposed by the proposed rule on small business concerns. In sum, the proposed amendments would not have a disparate impact on small businesses and would increase their opportunities to participate in federal government contracting as subcontractors without imposing any additional costs. For the reasons discussed, SBA certifies that this proposed rule would not have a significant economic impact on a substantial number of small business concerns. List of Subjects 13 CFR Part 121 Government contracts, Government procurement, Small businesses, Size standards. 13 CFR Part 125 Government contracts, Government procurement, Reporting and recordkeeping requirements, Small businesses, Small business subcontracting. For the reasons stated in the preamble, SBA proposes to amend 13 CFR parts 121 and 125 as follows: PART 121--SMALL BUSINESS SIZE REGULATIONS 0 1. The authority citation for 13 CFR part 121 continues to read as follows: Authority: 15 U.S.C. 632, 634(b)(6), 662, and 694a(9). 0 2. Amend Sec. 121.411 by removing the second sentence in paragraph (b) and adding two sentences in its place to read as follows: Sec. 121.411 What are the size procedures for SBA's Section 8(d) Subcontracting Program? * * * * * (b) * * * Prime contractors may accept a subcontractor's electronic self-certification as to size, if the solicitation for the subcontract contains a clause which provides that the subcontractor verifies by submission of the offer that the size representations and certifications are accurate and complete. Electronic submission may include any method acceptable to the prime contractor including, but not limited to, size representations and certifications made in SAM (or any successor system). * * *. * * * * * PART 125--GOVERNMENT CONTRACTING PROGRAMS 0 3. The authority citation for 13 CFR part 125 continues to read as follows: Authority: 15 U.S.C. 632(p), (q); 634(b)(6), 637, 644, 657f, and 657q. 0 4. Amend Sec. 125.3 as follows: 0 a. Revise paragraph (a)(1) introductory text; 0 b. Add paragraph (a)(1)(i)(C); 0 c. Revise the heading for paragraph (c); 0 d. Revise the first sentence of paragraph (c)(1)(i); 0 e. Revise paragraph (c)(1)(v); 0 f. Remove the word ``and'' at the end of paragraph (c)(1)(viii); 0 g. Add new paragraphs (c)(1)(x) and (c)(1)(xi). Sec. 125.3 What types of subcontracting assistance are available to small businesses? (a) * * * (1) Subcontract--under this section the term `subcontract' means a legally binding agreement between a contractor that is already under contract to another party to perform work and a third party (other than one involving an employer-employee relationship), hereinafter referred to as the subcontractor, for the subcontractor to perform a part or all of the work that the contractor has undertaken. (i) * * * (C) Where the subcontracting goals pertain only to an individual subcontracting plan, the contractor may receive credit for small business concerns performing as first tier subcontractors or subcontractors at any tier pursuant to the subcontracting plans required under paragraph (c) of this section in an amount equal to the dollar value of work awarded to such small business concerns. Prime contractors must incorporate the subcontracting plan goals of their lower tier subcontractors in their individual subcontracting plans. Lower tier subcontractors must have their own individual subcontracting plans if the subcontract is at or above the subcontracting plan threshold, and are required to meet their subcontracting plan goals. The actual subcontracting dollars are only reported once for the same award to avoid double counting the dollars, notwithstanding the fact that a small business subcontract may be reported under more than one subcontracting plan. * * * * * (c) Additional responsibilities of other than small contractors. (1) * * * (i) Submitting and negotiating before award an acceptable subcontracting [[Page 60303]] plan that reflects maximum practicable opportunities for small businesses in the performance of the contract as subcontractors or suppliers at all tiers of performance. * * * * * * * * (v) The contractor must assign to the solicitation and the resulting subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract (see Sec. 121.410 of this chapter). The prime contractor may rely on a subcontractor's electronic representations and certifications, if the solicitation for the subcontract contains a clause which provides that the subcontractor verifies by submission of the offer that the size or socioeconomic representations and certifications are current, accurate and complete as of the date of the offer for the subcontract. Electronic submission may include any method acceptable to the prime contractor including, but not limited to, size or socioeconomic representations and certifications made in SAM (or any successor system). A prime contractor or subcontractor may not require the use of SAM (or any successor system) for purposes of representing size or socioeconomic status in connection with a subcontract; * * * * * (x) The prime contractor must require all subcontractors (except small business concerns) who receive subcontracts in excess of $1,500,000 in the case of a subcontract for the construction of any public facility, or in excess of $650,000 in the case of all other subcontracts, and which offer further subcontracting possibilities, to adopt a subcontracting plan of its own consistent with this section, and must ensure at a minimum that all subcontractors required to maintain subcontracting plans pursuant to this paragraph, will review and approve subcontracting plans submitted by their subcontractors; monitor subcontractor compliance with their approved subcontracting plans; ensure that subcontracting reports are submitted by their subcontractors when required; acknowledge receipt of their subcontractors' reports; compare the performance of their subcontractors to subcontracting plans and goals; and discuss performance with subcontractors when necessary to ensure their subcontractors make a good faith effort to comply with their subcontracting plans; and (xi) The prime contractor must recite the types of records the prime will maintain to demonstrate procedures which have been adopted to ensure subcontractors at all tiers comply with the requirements and goals set forth in the plan established in accordance with paragraph (c)(1)(x) of this section, including the establishment of source lists of small business concerns, small business concerns owned and controlled by veterans, small business concerns owned and controlled by service-disabled veterans, qualified HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women, and the efforts to identify and award subcontracts to such small business concerns. * * * * * Dated: September 28, 2015. Maria Contreras-Sweet, Administrator. [FR Doc. 2015-25234 Filed 10-5-15; 8:45 am] BILLING CODE 8025-01-P
![60300 Federal Register / Vol. 80, No. 193 / Tuesday, October 6, 2015 / Proposed Rules
any redemption period, whichever is calendar days of receiving the appraisal. • Federal eRulemaking Portal: http://
later, will be the responsibility of the Late claims made beyond this period of www.regulations.gov. Follow the
lender and not covered by the time, or submitted with an appraisal not instructions for submitting comments.
guarantee. completed within the timeframes • For mail, paper, disk, or CD/ROM
* * * * * described in paragraphs (b)(1)(i) and (ii) submissions: Brenda Fernandez, U.S.
of this section, will be rejected. Small Business Administration, Office
Subpart H—Collecting on the * * * * * of Policy, Planning and Liaison, 409
Guarantee Third Street SW., 8th Floor,
Dated: September 3, 2015.
Washington, DC 20416.
3. Section 3555.352 is amended by Tony Hernandez,
■ • Hand Delivery/Courier: Brenda
revising paragraph (e) to read as follows: Administrator, Rural Housing Service. Fernandez, U.S. Small Business
[FR Doc. 2015–25324 Filed 10–5–15; 8:45 am] Administration, Office of Policy,
§ 3555.352 Loss covered by the guarantee.
BILLING CODE 3410–XV–P Planning and Liaison, 409 Third Street
* * * * *
SW., 8th Floor, Washington, DC 20416.
(e) Liquidation costs. Reasonable and
SBA will post all comments on
customary liquidation costs, such as SMALL BUSINESS ADMINISTRATION www.regulations.gov. If you wish to
attorney fees, liquidation value
submit confidential business
appraisals, and foreclosure costs. 13 CFR Parts 121 and 125 information (CBI) as defined in the User
Annual fees advanced by the lender to
RIN 3245–AG71 Notice at www.regulations.gov, please
the Agency are ineligible for
submit the information to Brenda
reimbursement when calculating the Credit for Lower Tier Small Business Fernandez, U.S. Small Business
loss payment, as otherwise provided by Subcontracting Administration, Office of Policy,
the Agency.
AGENCY: U.S. Small Business Planning and Liaison, 409 Third Street
■ 4. Section 3555.353 is amended by
Administration. SW., 8th Floor, Washington, DC 20416,
revising paragraph (b)(1) to read as
or send an email to brenda.fernandez@
follows: ACTION: Proposed rule.
sba.gov. Highlight the information that
§ 3555.353 Net recovery value. SUMMARY: The U.S. Small Business you consider to be CBI and explain why
* * * * * Administration (SBA or Agency) is you believe SBA should hold this
(b) * * * proposing to amend its regulations to information as confidential. SBA will
(1) The value of the property as implement Section 1614 of the National review the information and make the
determined by a liquidation value Defense Authorization Act for Fiscal final determination on whether it will
appraisal. The value should be Year 2014. The proposed amendments publish the information.
determined as if the property would be authorized by this statute would allow FOR FURTHER INFORMATION CONTACT:
sold without the market exposure it an other than small prime contractor Brenda Fernandez, U.S. Small Business
would ordinarily receive in a normal that has an individual subcontracting Administration, Office of Policy,
transaction, or within 90 days, minus; plan for a contract to receive credit Planning and Liaison, 409 Third Street
* * * * * towards its small business SW., Washington, DC 20416; (202) 207–
■ 5. Section 3555.354 is amended by
subcontracting goals for subcontract 7337; brenda.fernandez@sba.gov.
revising paragraphs (b)(1) and (2) to read awards made to small business concerns SUPPLEMENTARY INFORMATION: The
as follows: at any tier. The prime contractor shall proposed rule implements Section 1614
incorporate the lower tier of the National Defense Authorization
§ 3555.354 Loss claim procedures. subcontracting performance into its Act for Fiscal Year 2014, Public Law
* * * * * subcontracting plan goals. Currently, 113–66, December 26, 2013 (hereinafter
(b) * * * other than small business prime NDAA 2014). Section 1614 amended
(1) The lender must submit a loss contractors establish small business section 8(d)(6)(D) of the Small Business
claim request that includes a completed subcontracting goals at the first tier Act, 15 U.S.C. 637(d)(6)(d), to provide
liquidation value appraisal within 30 level, and receive credit toward their that where a prime contractor has a
calendar days of the period ending: subcontracting plan goal performance at subcontracting plan for a specific prime
(i) Nine (9) months after either the first tier level. The rule also contract with an executive agency, as
foreclosure or the end of any applicable proposes to implement the statutory required by Section 8(d) of the Small
redemption period, whichever is later, if requirements related to the Business Act, the prime contractor will
the property remains unsold and is not subcontracting plans of all receive credit towards its subcontracting
located on American Indian restricted subcontractors that are required to plan goals for awards made to small
land; or maintain such plans, including the business concerns at any tier under the
(ii) Twelve (12) months after either requirement to monitor subcontractors’ contract. When a prime contractor
foreclosure or the end of any applicable performance and compliance towards awards a subcontract to a firm it is
redemption period, whichever is later, if reaching the goals set out in those plans generally considered a first tier
the property remains unsold and is as well as their compliance with subcontract. That subcontractor may
located on American Indian restricted subcontracting reporting requirements. award a subcontract, which would be
land. Late claims made beyond this SBA is also proposing to clarify that the considered a second tier subcontract,
rmajette on DSK7SPTVN1PROD with PROPOSALS
period of time, or submitted with a size standard for a particular and so on. Currently, a prime contractor
liquidation value appraisal not subcontract must appear in the generally receives credit towards its
completed within the timeframes solicitation for the subcontract. small business subcontracting plan
described in parts paragraphs (b)(1)(i) DATES: Comments must be received on goals for awards made at the first tier
and (ii) of this section, will be rejected. or before December 7, 2015. level.
(2) The lender must submit a loss ADDRESSES: You may submit comments, Other than small business prime
claim that includes the completed identified by RIN: 3245–AG71, by any of contractors report on their small
liquidation value appraisal within 30 the following methods: business subcontracting activity in
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![Federal Register / Vol. 80, No. 193 / Tuesday, October 6, 2015 / Proposed Rules 60303
plan that reflects maximum practicable subcontractors at all tiers comply with replacement inspections and corrective
opportunities for small businesses in the the requirements and goals set forth in action if necessary; and post-
performance of the contract as the plan established in accordance with replacement repetitive inspections and
subcontractors or suppliers at all tiers of paragraph (c)(1)(x) of this section, repair if necessary. We are proposing
performance. * * * including the establishment of source this AD to detect and correct fatigue
* * * * * lists of small business concerns, small cracking of the upper chords of the
(v) The contractor must assign to the business concerns owned and upper deck floor beams. Undetected
solicitation and the resulting controlled by veterans, small business cracking could result in large deflection
subcontract the NAICS code and concerns owned and controlled by or deformation of the upper deck floor
corresponding size standard that best service-disabled veterans, qualified beams, resulting in damage to wire
describes the principal purpose of the HUBZone small business concerns, bundles and control cables for the flight
subcontract (see § 121.410 of this small business concerns owned and control system, and reduced
chapter). The prime contractor may rely controlled by socially and economically controllability of the airplane. Multiple
on a subcontractor’s electronic disadvantaged individuals, and small adjacent severed floor beams could
representations and certifications, if the business concerns owned and result in rapid decompression of the
solicitation for the subcontract contains controlled by women, and the efforts to airplane.
a clause which provides that the identify and award subcontracts to such DATES: We must receive comments on
subcontractor verifies by submission of small business concerns. this proposed AD by November 20,
the offer that the size or socioeconomic * * * * * 2015.
representations and certifications are Dated: September 28, 2015. ADDRESSES: You may send comments,
current, accurate and complete as of the
Maria Contreras-Sweet, using the procedures found in 14 CFR
date of the offer for the subcontract.
Administrator. 11.43 and 11.45, by any of the following
Electronic submission may include any
[FR Doc. 2015–25234 Filed 10–5–15; 8:45 am] methods:
method acceptable to the prime
• Federal eRulemaking Portal: Go to
contractor including, but not limited to, BILLING CODE 8025–01–P
http://www.regulations.gov. Follow the
size or socioeconomic representations
instructions for submitting comments.
and certifications made in SAM (or any • Fax: 202–493–2251.
successor system). A prime contractor or DEPARTMENT OF TRANSPORTATION • Mail: U.S. Department of
subcontractor may not require the use of Transportation, Docket Operations, M–
SAM (or any successor system) for Federal Aviation Administration
30, West Building Ground Floor, Room
purposes of representing size or W12–140, 1200 New Jersey Avenue SE.,
socioeconomic status in connection 14 CFR Part 39
Washington, DC 20590.
with a subcontract; [Docket No. FAA–2015–3983; Directorate • Hand Delivery: Deliver to Mail
* * * * * Identifier 2015–NM–141–AD] address above between 9 a.m. and 5
(x) The prime contractor must require p.m., Monday through Friday, except
all subcontractors (except small RIN 2120–AA64
Federal holidays.
business concerns) who receive Airworthiness Directives; The Boeing For service information identified in
subcontracts in excess of $1,500,000 in Company Airplanes this proposed AD, contact Boeing
the case of a subcontract for the Commercial Airplanes, Attention: Data
construction of any public facility, or in AGENCY: Federal Aviation & Services Management, P.O. Box 3707,
excess of $650,000 in the case of all Administration (FAA), DOT. MC 2H–65, Seattle, WA 98124–2207;
other subcontracts, and which offer ACTION: Notice of proposed rulemaking telephone 206–544–5000, extension 1;
further subcontracting possibilities, to (NPRM). fax 206–766–5680; Internet https://
adopt a subcontracting plan of its own www.myboeingfleet.com. You may view
consistent with this section, and must SUMMARY: We propose to adopt a new this referenced service information at
ensure at a minimum that all airworthiness directive (AD) for certain the FAA, Transport Airplane
subcontractors required to maintain The Boeing Company Model 747–100, Directorate, 1601 Lind Avenue SW.,
subcontracting plans pursuant to this 747–100B, 747–100B SUD, 747–200B, Renton, WA. For information on the
paragraph, will review and approve 747–300, 747SR, and 747SP series availability of this material at the FAA,
subcontracting plans submitted by their airplanes. This proposed AD was call 425–227–1221. It is also available
subcontractors; monitor subcontractor prompted by an evaluation by the on the Internet at http://
compliance with their approved design approval holder (DAH) www.regulations.gov by searching for
subcontracting plans; ensure that indicating that the upper chords of the and locating Docket No. FAA–2015–
subcontracting reports are submitted by upper deck floor beams are subject to 3983.
their subcontractors when required; widespread fatigue damage (WFD). This
acknowledge receipt of their proposed AD would require repetitive Examining the AD Docket
subcontractors’ reports; compare the inspections for cracks at the floor panel You may examine the AD docket on
performance of their subcontractors to attachment fastener holes; repetitive the Internet at http://
subcontracting plans and goals; and inspections for cracks in the upper and www.regulations.gov by searching for
discuss performance with lower chords of the upper deck floor and locating Docket No. FAA–2015–
rmajette on DSK7SPTVN1PROD with PROPOSALS
subcontractors when necessary to beams at permanent fastener locations; 3983; or in person at the Docket
ensure their subcontractors make a good repetitive inspections for cracks in Management Facility between 9 a.m.
faith effort to comply with their certain repaired and modified areas; and and 5 p.m., Monday through Friday,
subcontracting plans; and related investigative and corrective except Federal holidays. The AD docket
(xi) The prime contractor must recite actions if necessary. This proposed AD contains this proposed AD, the
the types of records the prime will would also require repetitive regulatory evaluation, any comments
maintain to demonstrate procedures replacement of the upper chords of the received, and other information. The
which have been adopted to ensure upper deck floor beams, including pre- street address for the Docket Office
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Document Created: 2015-12-15 08:51:02
Document Modified: 2015-12-15 08:51:02
| 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 | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments must be received on or before December 7, 2015. | |
| Contact | Brenda Fernandez, U.S. Small Business Administration, Office of Policy, Planning and Liaison, 409 Third Street SW., Washington, DC 20416; (202) 207-7337; [email protected] | |
| FR Citation | 80 FR 60300 | |
| RIN Number | 3245-AG71 | |
| CFR Citation | 13
CFR
121 13 CFR 125 | |
| CFR Associated | Government Contracts; Government Procurement; Small Businesses; Size Standards; Reporting and Recordkeeping Requirements and Small Business Subcontracting |
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