80_FR_82139 80 FR 81888 - Federal Acquisition Regulation; Sole Source Contracts for Women-Owned Small Businesses

80 FR 81888 - Federal Acquisition Regulation; Sole Source Contracts for Women-Owned Small Businesses

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 251 (December 31, 2015)

Page Range81888-81892
FR Document2015-32428

DoD, GSA, and NASA are issuing an interim rule amending the Federal Acquisition Regulation (FAR) to implement regulatory changes made by the Small Business Administration (SBA) that provide for authority to award sole source contracts to economically disadvantaged women-owned small business concerns and to women-owned small business concerns eligible under the Women-Owned Small Business (WOSB) Program.

Federal Register, Volume 80 Issue 251 (Thursday, December 31, 2015)
[Federal Register Volume 80, Number 251 (Thursday, December 31, 2015)]
[Rules and Regulations]
[Pages 81888-81892]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32428]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 4, 6, 18, 19, and 52

[FAC 2005-86; FAR Case 2015-032; Item II; Docket No. 2015-0032; 
Sequence No. 1]
RIN 9000-AN13


Federal Acquisition Regulation; Sole Source Contracts for Women-
Owned Small Businesses

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and the National Aeronautics and Space Administration (NASA).

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the 
Federal Acquisition Regulation (FAR) to implement regulatory changes 
made by the Small Business Administration (SBA) that provide for 
authority to award sole source contracts to economically disadvantaged 
women-owned small business concerns and to women-owned small business 
concerns eligible under the Women-Owned Small Business (WOSB) Program.

DATES: Effective: December 31, 2015.
    Comment date: Interested parties should submit written comments to 
the Regulatory Secretariat Division at one of the addresses shown below 
on or before February 29, 2016 to be considered in the formation of the 
final rule.

ADDRESSES: Submit comments identified by FAC 2005-86, FAR Case 2015-
032, by any of the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2015-032.'' Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2015-032.'' Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2015-032'' on 
your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-86, FAR 
Case 2015-032, in all correspondence related to this case. All comments 
received will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check 
www.regulations.gov, approximately two to three days after submission 
to verify posting (except allow 30 days for posting of comments 
submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Mahruba Uddowla, Procurement 
Analyst, at 703-605-2868 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAC 2005-86, FAR Case 
2015-032.

SUPPLEMENTARY INFORMATION: 

I. Background

    This interim rule revises the FAR to implement regulatory changes 
that the SBA has made in its final rule published in the Federal 
Register at 80 FR 55019, on September 14, 2015, concerning sole source 
award authority under the WOSB Program. SBA's final rule implements the 
statutory requirements of paragraph (a)(3) of section 825 of the Carl 
Levin and Howard P. ``Buck'' McKeon National Defense Authorization Act 
(NDAA) for Fiscal Year (FY) 2015, Public Law 113-291, granting 
contracting officers the authority to award sole source contracts to 
both economically disadvantaged women-owned small business (EDWOSB) 
concerns and to WOSB concerns eligible under the WOSB Program.
    The WOSB Program, as set forth in section 8(m) of the Small 
Business Act (15 U.S.C. 637(m)), authorizes contracting officers to 
restrict competition to EDWOSB concerns and to WOSB concerns eligible 
under the WOSB Program for Federal contracts, in certain industries 
that SBA has determined to be underrepresented or substantially 
underrepresented by small business concerns owned and controlled by 
women. DoD, GSA, and NASA published an interim rule for FAR Case 2010-
015 in the Federal Register at 76 FR 18304, on April 1, 2011, providing 
guidance to contracting officers for the set-asides and implementing 
SBA's final rule, published in the Federal Register at 75 FR 62258, on 
October 7, 2010. The FAR rule was finalized with changes and published 
in the Federal Register at 77 FR 12913, on March 2, 2012. The 
establishment of a set-aside mechanism exclusively for women-owned 
small businesses was the first step towards leveling the playing field 
among the socioeconomic programs covered by the Small Business Act, 
i.e., the HUBZone, service-disabled veteran-owned small-business, 8(a), 
and WOSB programs.
    The WOSB Program was subsequently amended in section 825 of the 
NDAA for FY2015, which granted contracting officers the authority to 
award sole source contracts to EDWOSB concerns and WOSB concerns 
eligible under the WOSB Program. SBA established procedures for this 
new statutory authority in its final rule published in the Federal 
Register at 80 FR 55019, on September 14, 2015. As in SBA's earlier 
WOSB Program set-aside rule, sole source awards under the WOSB program 
are only permitted in the industries that SBA has determined to be 
underrepresented or substantially underrepresented by WOSB concerns. 
Implementation of these sole source procedures in the FAR ensures that 
contracting officers will have the tools necessary to maximize Federal 
procurement opportunities for WOSB concerns.

II. Discussion and Analysis

    In keeping with the tenets of the WOSB Program, the sole source 
authority may only be used in industry sectors that SBA has determined 
to be underrepresented or substantially underrepresented by WOSB 
concerns. The same eligibility requirements for participating in set-
asides under the WOSB Program, set forth in SBA's regulations at 13 CFR 
127.100 through 127.509, also apply to sole source acquisitions. In 
general, an award under the WOSB program may be pursued on a sole 
source basis when the contracting officer does not have a reasonable 
expectation, through market research, that two or more eligible EDWOSB 
or WOSB concerns will submit offers at a fair and reasonable price, but 
identifies one responsible EDWOSB or WOSB that can perform at a fair 
and reasonable price. The dollar thresholds for sole source awards are 
equal to or less than $6.5 million for manufacturing requirements and 
equal to or less than $4 million for all other requirements, including 
all options.
    This rule amends FAR subparts 2.1, 4.8, 6.3, 18.1, 19.0, 19.1, 
19.3, 19.15, and 52.2. These changes are summarized in the following 
paragraphs:

[[Page 81889]]

A. Subpart 2.1, Definitions of Words and Terms

     2.101, Definitions. This section is amended to revise the 
definitions of the WOSB Program to include contracts awarded using the 
sole source authority.

B. Subpart 4.8, Government Contract Files

     4.803, Contents of contract files. This section is amended 
to include acquisitions awarded on a sole source basis under the WOSB 
Program.

C. Subpart 6.3, Other Than Full and Open Competition

     6.302-5, Authorized or required by statute. This section 
is amended to add the statutory authority to make sole source awards 
under the WOSB program (15 U.S.C. 637(m)).

D. Subpart 18.1, Available Acquisition Flexibilities

     18.117, Awards to economically disadvantaged women-owned 
small business concerns and women-owned small business concerns 
eligible under the Women-Owned Small Business Program. This section is 
amended to add the statutory authority to make sole source awards under 
the WOSB Program.

PART 19--Small Business Programs

E. 19.000, Scope of Part.

    This section is amended to include the authority for sole source 
awards to EDWOSB concerns and WOSB concerns eligible under the WOSB 
program.

F. Subpart 19.1--Size Standards

     19.102, Size standards. This section is amended to make 
conforming changes.

G. Subpart 19.3--Determination of Small Business Status for Small 
Business Programs

     19.308, Protesting a firm's status as an economically 
disadvantaged women-owned small business concern or women-owned small 
business concern eligible under the Women-Owned Small Business Program. 
This section is amended to include protests of sole source 
acquisitions.

H. Subpart 19.15, Women-Owned Small Business Program

     19.1505, Set-aside procedures. This section is amended for 
editorial changes.
     19.1506, Women-Owned Small Business Program sole source 
awards. This section replaces the current FAR 19.1506, Contract 
clauses, and discusses the conditions under which a contracting officer 
may award a sole source contract to an EDWOSB concern or to a WOSB 
concern eligible under the WOSB Program.
     FAR 19.1507, Contract clauses. This section is renumbered 
(from 19.1506 to 19.1507) and amended to make conforming changes.

I. Subpart 52.2, Text of Provisions and Clauses

     FAR 52.212-5, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders--Commercial Items. This clause 
is amended to make conforming changes.
     FAR 52.219-29, Notice of Set-Aside for Economically 
Disadvantaged Women-Owned Small Business Concerns. This clause is 
amended to add sole source awards.
     FAR 52.219-30 Notice of Set-Aside for Women-Owned Small 
Business Concerns. This clause is amended to add sole source awards.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule amends the FAR clauses at 52.219-29, Notice of Set-Aside 
for Economically Disadvantaged Women-owned Small Business Concerns, and 
52.219-30, Notice of Set-Aside for Women-Owned Small Business Concerns 
Eligible Under the Women-Owned Small Business Program, in order to 
implement paragraph (a)(3) of section 825 of the NDAA for FY 2015. The 
Federal Acquisition Regulatory Council, pursuant to the authority 
granted in 41 U.S.C. 1905 and 1906, and the Administrator, Office of 
Federal Procurement Policy, pursuant to the authority granted in 41 
U.S.C. 1907, have determined that the application of this statutory 
authority to contracts at or below the simplified acquisition threshold 
and to contracts for commercial items and commercially available off-
the-shelf items, is in the best interests of the Federal Government.

IV. 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 a significant regulatory action and, therefore, was 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.

V. Regulatory Flexibility Act

    The changes may have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act 5 U.S.C. 601, et seq. The Initial Regulatory 
Flexibility Analysis (IRFA) is summarized as follows:

    DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement paragraph (a)(3) of 
section 825 of the Carl Levin and Howard P. `Buck' McKeon National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2015, Public 
Law 113-291. Section 825 of the NDAA for FY 2015 included language 
granting contracting officers the authority to award sole source 
contracts to Women-Owned Small Businesses (WOSBs) and Economically 
Disadvantaged Women-Owned Small Businesses (EDWOSBs) under the WOSB 
Program.
    The objectives of this interim rule are to put the WOSB Program 
on a level playing field with other SBA Government contracting 
programs that have sole source authority, and to provide an 
additional, needed tool for agencies to meet the statutorily 
mandated goal of 5 percent of the total value of all prime contract 
and subcontract awards for WOSBs. The authorizing legislation is 
paragraph (a)(3) of section 825 of the NDAA for Fiscal Year 2015.
    This rule may have a positive economic impact on WOSB concerns. 
The Dynamic Small Business Supplemental Search (DSBS) lists 
approximately 41,500 firms as either WOSBs or EDWOSBs under the WOSB 
Program. An analysis of the Federal Procurement Data System from 
April 1, 2011 (the implementation date of the WOSB Program), through 
September 1, 2015, revealed that there were approximately 44,053 
women-owned small business concerns, including 332 EDWOSBs and 1,063 
WOSBs eligible under the WOSB Program, that received obligated funds 
from Federal contract awards, task or delivery orders, and 
modifications to existing contracts. This rule could affect a 
smaller number of EDWOSBs and WOSBs than those eligible under the 
WOSB Program since the sole source authority can only be used where 
a contracting officer does not have a reasonable expectation, 
through market research, that two or more eligible EDWOSB or WOSB 
concerns will submit offers at a fair and reasonable price; in 
addition, the sole source authority for WOSBs and EDWOSBs is limited 
to contracts valued at $6.5 million or less for manufacturing 
contracts and $4 million or less for all other contracts.
    This interim rule does not impose any new reporting, 
recordkeeping or other compliance requirements for small businesses. 
This rule

[[Page 81890]]

does not duplicate, overlap, or conflict with any other Federal 
rules.

    The Regulatory Secretariat has submitted a copy of the IRFA to the 
Chief Counsel for Advocacy of the SBA. A copy of the IRFA may be 
obtained from the Regulatory Secretariat Division. DoD, GSA, and NASA 
invite comments from small business concerns and other interested 
parties on the expected impact of this rule on small entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the rule 
consistent with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2015-032), 
in correspondence.

VI. Paperwork Reduction Act

    The interim 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).

VII. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary to meet the Congressional intent of leveling the playing 
field between the Women-Owned Small Business (WOSB) Program and SBA's 
other socioeconomic contracting programs. Prior to passage of section 
825 of the National Defense Authorization Act for Fiscal Year 2015, the 
WOSB Program was the only socioeconomic small business program that did 
not provide contracting officials the authority to make sole source 
awards to its intended beneficiaries.
    WOSBs are an important growth area in the U.S. economy and yet the 
Federal Government has consistently failed to achieve the minimum five 
percent annual women-owned small business participation goal set forth 
in statute. As a result, women entrepreneurs continue to struggle to 
gain access to the Federal marketplace. This situation will persist, 
and women-owned small businesses will be excluded from valuable Federal 
procurement opportunities on a daily basis unless the sole source 
authority for EDWOSBs and WOSBs is implemented as quickly as possible. 
The new sole source authority allows contracting officers to implement 
the preferences accorded under the WOSB Program to the fullest extent 
possible, and serves as an additional, needed tool to increase 
procurement opportunities for WOSBs.
    The statute went into effect on the date of enactment, December 19, 
2014. The SBA final rule went into effect October 14, 2015. Pursuant to 
41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and NASA will consider 
public comments received in response to this interim rule in the 
formation of the final rule.

List of Subjects in 48 CFR Parts 2, 4, 6, 18, 19, and 52

    Government procurement.

    Dated: December 17, 2015.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 4, 6, 18, 19, 
and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 2, 4, 6, 18, 19, and 52 
continues to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101, paragraph (b)(2), the definition ``Women-Owned 
Small Business (WOSB) Program'' by--
0
a. Revising the introductory text of paragraph (1) and paragraph 
(1)(i);
0
b. Removing from paragraph (1)(ii) ``Eligible'' and adding to the end 
of the paragraph ``in Federal procurement''; and
0
c. Removing from the last sentence in paragraph (2) ``business 
concern'' and adding ``business (WOSB) concern'' in its place.
    The revisions read as follows:


2.101   Definitions.

* * * * *
    (b) * * *
    Women-Owned Small Business (WOSB) Program. (1) Women-Owned Small 
Business (WOSB) Program means a program that authorizes contracting 
officers to limit competition, including award on a sole source basis, 
to--
    (i) Economically disadvantaged women-owned small business (EDWOSB) 
concerns eligible under the WOSB Program for Federal contracts assigned 
a North American Industry Classification Systems (NAICS) code in an 
industry in which the Small Business Administration (SBA) has 
determined that WOSB concerns are underrepresented in Federal 
procurement; and
* * * * *

PART 4--ADMINISTRATIVE MATTERS

0
3. Amend section 4.803 by revising the introductory text of paragraph 
(a)(42) and paragraphs (a)(42)(ii)(A) and (B) to read as follows:


4.803   Contents of contract files.

* * * * *
    (a) * * *
    (42) When limiting competition, or awarding on a sole source basis, 
to economically disadvantaged women-owned small business (EDWOSB) 
concerns or women-owned small business (WOSB) concerns eligible under 
the WOSB Program in accordance with subpart 19.15, include 
documentation--
* * * * *
    (ii) * * *
    (A) Underrepresented for EDWOSB concerns; or
    (B) Substantially underrepresented for WOSB concerns.
* * * * *

PART 6--COMPETITION REQUIREMENTS

0
4. Amend section 6.302-5 by adding paragraph (b)(7) to read as follows:


6.302-5   Authorized or required by statute.

* * * * *
    (b) * * *
    (7) Sole source awards under the WOSB Program-15 U.S.C. 637(m) (see 
19.1506).
* * * * *

PART 18--EMERGENCY ACQUISITIONS

0
5. Revise section 18.117 to read as follows:


18.117   Awards to economically disadvantaged women-owned small 
business concerns and women-owned small business concerns eligible 
under the Women-Owned Small Business Program.

    Contracts may be awarded to economically disadvantaged women-owned 
small business (EDWOSB) concerns and women-owned small business (WOSB) 
concerns eligible under the WOSB Program on a competitive or sole 
source basis. (See subpart 19.15.)

PART 19--SMALL BUSINESS PROGRAMS

0
6. Amend section 19.000 by--
0
a. Revising paragraph (a)(3);

[[Page 81891]]

0
b. Removing paragraph (a)(7);
0
c. Redesignating paragraphs (a)(8) through (10) as paragraphs (a)(7) 
through (9), respectively; and
0
d. Revising newly redesignated paragraph (a)(9).
    The revisions read as follows:


19.000   Scope of part.

    (a) * * *
    (3) Setting acquisitions aside for exclusive competitive 
participation by small business, 8(a) business development 
participants, HUBZone small business concerns, service-disabled 
veteran-owned small business concerns, and economically disadvantaged 
women-owned small business (EDWOSB) concerns and women-owned small 
business (WOSB) concerns eligible under the WOSB Program;
* * * * *
    (9) Sole source awards to HUBZone small business concerns, service-
disabled veteran-owned small business concerns, and EDWOSB concerns and 
WOSB concerns eligible under the WOSB Program.
* * * * *


0
7. Amend section 19.102 by revising the last sentence of paragraph 
(f)(1) to read as follows:


19.102   Size standards.

* * * * *
    (f) * * *
    (1) * * * However, see the limitations on subcontracting at 52.219-
14 that apply to any small business offeror other than a 
nonmanufacturer for purposes of set-asides and 8(a) awards, 52.219-3 
for HUBZone set-asides and HUBZone sole source awards, 52.219-27 for 
SDVOSB set-asides and SDVOSB sole source awards, 52.219-29 for 
economically disadvantaged women-owned small business (EDWOSB) set-
asides and EDWOSB sole source awards, and 52.219-30 for set-asides and 
sole source awards to women-owned small business (WOSB) concerns 
eligible under the WOSB Program.
* * * * *


0
8. Amend section 19.308 by revising the section heading and paragraph 
(b)(1) to read as follows:


19.308   Protesting a firm's status as an economically disadvantaged 
women-owned small business concern or women-owned small business 
concern eligible under the Women-Owned Small Business Program.

* * * * *
    (b)(1) For sole source acquisitions, the contracting officer or SBA 
may protest the offeror's status as an economically disadvantaged 
women-owned small business (EDWOSB) concern or as a WOSB concern 
eligible under the WOSB Program. For all other acquisitions, an 
interested party (see 13 CFR 127.102) may protest the apparent 
successful offeror's EDWOSB or WOSB status.
* * * * *


0
9. Revise the heading of subpart 19.15 to read as follows:

Subpart 19.15--Women-Owned Small Business Program

* * * * *


0
10. Amend section 19.1505 by revising paragraph (a)(2) to read as 
follows:


19.1505   Set-aside procedures.

    (a) * * *
    (2) May set aside acquisitions exceeding the micro-purchase 
threshold for competition restricted to EDWOSB concerns or WOSB 
concerns eligible under the WOSB Program when the acquisition--
    (i) Is assigned a NAICS code in which SBA has determined that WOSB 
concerns are underrepresented in Federal procurement; or
    (ii) Is assigned a NAICS code in which SBA has determined that WOSB 
concerns are substantially underrepresented in Federal procurement, as 
specified on SBA's Web site at http://www.sba.gov/WOSB.
* * * * *


19.1506   [Redesignated as 19.1507]

0
11. Redesignate section 19.1506 as section 19.1507.
0
12. Add section 19.1506 to read as follows:


19.1506   Women-Owned Small Business Program sole source awards.

    (a) A contracting officer shall consider a contract award to an 
EDWOSB concern on a sole source basis (see 6.302-5(b)(7)) before 
considering small business set-asides (see 19.203 and subpart 19.5) 
provided none of the exclusions at 19.1504 apply and--
    (1) The acquisition is assigned a NAICS code in which SBA has 
determined that WOSB concerns are underrepresented in Federal 
procurement;
    (2) The contracting officer does not have a reasonable expectation 
that offers would be received from two or more EDWOSB concerns; and
    (3) The conditions in paragraph (c) of this section exist.
    (b) A contracting officer shall consider a contract award to a WOSB 
concern (including EDWOSB concerns) eligible under the WOSB Program on 
a sole source basis (see 6.302-5(b)(7)) before considering small 
business set-asides (see 19.203 and subpart 19.5) provided none of the 
exclusions at 19.1504 apply and--
    (1) The acquisition is assigned a NAICS code in which SBA has 
determined that WOSB concerns are substantially underrepresented in 
Federal procurement;
    (2) The contracting officer does not have a reasonable expectation 
that offers would be received from two or more WOSB concerns (including 
EDWOSB concerns); and
    (3) The conditions in paragraph (c) of this section exist.
    (c)(1) The anticipated award price of the contract, including 
options, will not exceed--
    (i) $6.5 million for a requirement within the NAICS codes for 
manufacturing; or
    (ii) $4 million for a requirement within any other NAICS codes.
    (2) The EDWOSB concern or WOSB concern has been determined to be a 
responsible contractor with respect to performance.
    (3) The award can be made at a fair and reasonable price.
    (d) The SBA has the right to appeal the contracting officer's 
decision not to make a sole source award to either an EDWOSB concern or 
WOSB concern eligible under the WOSB program.
    12. Revise newly redesignated section 19.1507 to read as follows:
    19.1507 Contract clauses.
    (a) The contracting officer shall insert the clause 52.219-29, 
Notice of Set-Aside for, or Sole Source Award to, Economically 
Disadvantaged Women-owned Small Business Concerns, in solicitations and 
contracts for acquisitions that are set aside or reserved for, or 
awarded on a sole source basis to, EDWOSB concerns under 19.1505(b) or 
19.1506(a). This includes multiple-award contracts when orders may be 
set aside for EDWOSB concerns as described in 8.405-5 and 
16.505(b)(2)(i)(F).
    (b) The contracting officer shall insert the clause 52.219-30, 
Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small 
Business Concerns Eligible Under the Women-Owned Small Business 
Program, in solicitations and contracts for acquisitions that are set 
aside or reserved for, or awarded on a sole source basis to WOSB 
concerns under 19.1505(c) or 19.1506(b). This includes multiple-award 
contracts when orders may be set aside for WOSB concerns eligible under 
the WOSB Program as

[[Page 81892]]

described in 8.405-5 and 16.505(b)(2)(i)(F).

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
13. Amend section 52.212-5 by revising the date of the clause and 
paragraphs (b)(23) and (24) to read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (Dec 2015)

* * * * *
    (b)* * *
    ___(23) 52.219-29, Notice of Set-Aside for, or Sole Source Award 
to, Economically Disadvantaged Women-Owned Small Business Concerns (Dec 
2015) (15 U.S.C. 637(m)).
    ___(24) 52.219-30, Notice of Set-Aside for, or Sole Source Award 
to, Women-Owned Small Business Concerns Eligible Under the Women-Owned 
Small Business Program (Dec 2015) (15 U.S.C. 637(m)).
* * * * *


0
14. Amend section 52.219-29 by revising the section heading, the 
introductory paragraph, the title and date of the clause, and paragraph 
(b)(1) to read as follows:


52.219-29  Notice of Set-Aside for, or Sole Source Award to, 
Economically Disadvantaged Women-Owned Small Business Concerns.

    As prescribed in 19.1507, insert the following clause:

Notice of Set-Aside for, or Sole Source Award to, Economically 
Disadvantaged Women-Owned Small Business Concerns (Dec 2015)

* * * * *
    (b) * * *
    (1) Contracts that have been set aside or reserved for, or awarded 
on a sole source basis to, EDWOSB concerns;
* * * * *


0
15. Amend section 52.219-30 by revising the section heading, the 
introductory paragraph, the title and date of clause, and paragraph 
(b)(1) to read as follows:


52.219-30  Notice of Set-Aside for, or Sole Source Award to, Women-
Owned Small Business Concerns Eligible Under the Women-Owned Small 
Business Program.

    As prescribed in 19.1507, insert the following clause:

Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small 
Business Concerns Eligible Under the Women-Owned Small Business Program 
(Dec 2015)

* * * * *
    (b) * * *
    (1) Contracts that have been set aside or reserved for, or awarded 
on a sole source basis to, WOSB concerns eligible under the WOSB 
Program;
* * * * *
[FR Doc. 2015-32428 Filed 12-30-15; 8:45 am]
 BILLING CODE 6820-EP-P



                                             81888            Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

                                             with two or more sources pursuant to                     1800 F Street NW., 2nd Floor,                         published in the Federal Register at 77
                                             the same solicitation.                                   Washington, DC 20405.                                 FR 12913, on March 2, 2012. The
                                             *     *    *     *     *                                    Instructions: Please submit comments               establishment of a set-aside mechanism
                                             [FR Doc. 2015–32427 Filed 12–30–15; 8:45 am]
                                                                                                      only and cite FAC 2005–86, FAR Case                   exclusively for women-owned small
                                                                                                      2015–032, in all correspondence related               businesses was the first step towards
                                             BILLING CODE 6820–EP–P
                                                                                                      to this case. All comments received will              leveling the playing field among the
                                                                                                      be posted without change to http://                   socioeconomic programs covered by the
                                             DEPARTMENT OF DEFENSE                                    www.regulations.gov, including any                    Small Business Act, i.e., the HUBZone,
                                                                                                      personal and/or business confidential                 service-disabled veteran-owned small-
                                             GENERAL SERVICES                                         information provided. To confirm                      business, 8(a), and WOSB programs.
                                             ADMINISTRATION                                           receipt of your comment(s), please
                                                                                                      check www.regulations.gov,                              The WOSB Program was subsequently
                                                                                                      approximately two to three days after                 amended in section 825 of the NDAA
                                             NATIONAL AERONAUTICS AND
                                                                                                      submission to verify posting (except                  for FY2015, which granted contracting
                                             SPACE ADMINISTRATION
                                                                                                      allow 30 days for posting of comments                 officers the authority to award sole
                                                                                                      submitted by mail).                                   source contracts to EDWOSB concerns
                                             48 CFR Parts 2, 4, 6, 18, 19, and 52
                                                                                                                                                            and WOSB concerns eligible under the
                                                                                                      FOR FURTHER INFORMATION CONTACT: Ms.
                                             [FAC 2005–86; FAR Case 2015–032; Item                                                                          WOSB Program. SBA established
                                                                                                      Mahruba Uddowla, Procurement
                                             II; Docket No. 2015–0032; Sequence No. 1]                                                                      procedures for this new statutory
                                                                                                      Analyst, at 703–605–2868 for
                                                                                                      clarification of content. For information             authority in its final rule published in
                                             RIN 9000–AN13                                                                                                  the Federal Register at 80 FR 55019, on
                                                                                                      pertaining to status or publication
                                                                                                      schedules, contact the Regulatory                     September 14, 2015. As in SBA’s earlier
                                             Federal Acquisition Regulation; Sole
                                                                                                      Secretariat Division at 202–501–4755.                 WOSB Program set-aside rule, sole
                                             Source Contracts for Women-Owned
                                                                                                      Please cite FAC 2005–86, FAR Case                     source awards under the WOSB
                                             Small Businesses
                                                                                                      2015–032.                                             program are only permitted in the
                                             AGENCY:  Department of Defense (DoD),                                                                          industries that SBA has determined to
                                                                                                      SUPPLEMENTARY INFORMATION:
                                             General Services Administration (GSA),                                                                         be underrepresented or substantially
                                             and the National Aeronautics and Space                   I. Background                                         underrepresented by WOSB concerns.
                                             Administration (NASA).                                      This interim rule revises the FAR to               Implementation of these sole source
                                             ACTION: Interim rule.                                    implement regulatory changes that the                 procedures in the FAR ensures that
                                                                                                      SBA has made in its final rule published              contracting officers will have the tools
                                             SUMMARY:   DoD, GSA, and NASA are                        in the Federal Register at 80 FR 55019,               necessary to maximize Federal
                                             issuing an interim rule amending the                     on September 14, 2015, concerning sole                procurement opportunities for WOSB
                                             Federal Acquisition Regulation (FAR) to                  source award authority under the WOSB                 concerns.
                                             implement regulatory changes made by                     Program. SBA’s final rule implements
                                             the Small Business Administration                                                                              II. Discussion and Analysis
                                                                                                      the statutory requirements of paragraph
                                             (SBA) that provide for authority to                      (a)(3) of section 825 of the Carl Levin                  In keeping with the tenets of the
                                             award sole source contracts to                           and Howard P. ‘‘Buck’’ McKeon                         WOSB Program, the sole source
                                             economically disadvantaged women-                        National Defense Authorization Act                    authority may only be used in industry
                                             owned small business concerns and to                     (NDAA) for Fiscal Year (FY) 2015,                     sectors that SBA has determined to be
                                             women-owned small business concerns                      Public Law 113–291, granting
                                             eligible under the Women-Owned Small                                                                           underrepresented or substantially
                                                                                                      contracting officers the authority to                 underrepresented by WOSB concerns.
                                             Business (WOSB) Program.                                 award sole source contracts to both                   The same eligibility requirements for
                                             DATES: Effective: December 31, 2015.                     economically disadvantaged women-                     participating in set-asides under the
                                                Comment date: Interested parties                      owned small business (EDWOSB)                         WOSB Program, set forth in SBA’s
                                             should submit written comments to the                    concerns and to WOSB concerns eligible                regulations at 13 CFR 127.100 through
                                             Regulatory Secretariat Division at one of                under the WOSB Program.                               127.509, also apply to sole source
                                             the addresses shown below on or before                      The WOSB Program, as set forth in                  acquisitions. In general, an award under
                                             February 29, 2016 to be considered in                    section 8(m) of the Small Business Act                the WOSB program may be pursued on
                                             the formation of the final rule.                         (15 U.S.C. 637(m)), authorizes                        a sole source basis when the contracting
                                             ADDRESSES: Submit comments                               contracting officers to restrict                      officer does not have a reasonable
                                             identified by FAC 2005–86, FAR Case                      competition to EDWOSB concerns and                    expectation, through market research,
                                             2015–032, by any of the following                        to WOSB concerns eligible under the                   that two or more eligible EDWOSB or
                                             methods:                                                 WOSB Program for Federal contracts, in                WOSB concerns will submit offers at a
                                                • Regulations.gov: http://                            certain industries that SBA has                       fair and reasonable price, but identifies
                                             www.regulations.gov. Submit comments                     determined to be underrepresented or
                                                                                                                                                            one responsible EDWOSB or WOSB that
                                             via the Federal eRulemaking portal by                    substantially underrepresented by small
                                                                                                                                                            can perform at a fair and reasonable
                                             searching for ‘‘FAR Case 2015–032.’’                     business concerns owned and
                                                                                                                                                            price. The dollar thresholds for sole
                                             Select the link ‘‘Comment Now’’ that                     controlled by women. DoD, GSA, and
                                                                                                                                                            source awards are equal to or less than
                                             corresponds with ‘‘FAR Case 2015–                        NASA published an interim rule for
                                                                                                                                                            $6.5 million for manufacturing
                                             032.’’ Follow the instructions provided                  FAR Case 2010–015 in the Federal
                                             on the screen. Please include your                       Register at 76 FR 18304, on April 1,                  requirements and equal to or less than
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                                             name, company name (if any), and                         2011, providing guidance to contracting               $4 million for all other requirements,
                                             ‘‘FAR Case 2015–032’’ on your attached                   officers for the set-asides and                       including all options.
                                             document.                                                implementing SBA’s final rule,                           This rule amends FAR subparts 2.1,
                                                • Mail: General Services                              published in the Federal Register at 75               4.8, 6.3, 18.1, 19.0, 19.1, 19.3, 19.15, and
                                             Administration, Regulatory Secretariat                   FR 62258, on October 7, 2010. The FAR                 52.2. These changes are summarized in
                                             Division (MVCB), ATTN: Ms. Flowers,                      rule was finalized with changes and                   the following paragraphs:


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                                                              Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations                                          81889

                                             A. Subpart 2.1, Definitions of Words                     contracting officer may award a sole                  harmonizing rules, and of promoting
                                             and Terms                                                source contract to an EDWOSB concern                  flexibility. This is a significant
                                               • 2.101, Definitions. This section is                  or to a WOSB concern eligible under the               regulatory action and, therefore, was
                                             amended to revise the definitions of the                 WOSB Program.                                         subject to review under section 6(b) of
                                                                                                        • FAR 19.1507, Contract clauses. This               E.O. 12866, Regulatory Planning and
                                             WOSB Program to include contracts
                                                                                                      section is renumbered (from 19.1506 to                Review, dated September 30, 1993. This
                                             awarded using the sole source authority.
                                                                                                      19.1507) and amended to make                          rule is not a major rule under 5 U.S.C.
                                             B. Subpart 4.8, Government Contract                      conforming changes.                                   804.
                                             Files
                                                                                                      I. Subpart 52.2, Text of Provisions and               V. Regulatory Flexibility Act
                                               • 4.803, Contents of contract files.                   Clauses                                                 The changes may have a significant
                                             This section is amended to include                          • FAR 52.212–5, Contract Terms and                 economic impact on a substantial
                                             acquisitions awarded on a sole source                    Conditions Required to Implement                      number of small entities within the
                                             basis under the WOSB Program.                            Statutes or Executive Orders—                         meaning of the Regulatory Flexibility
                                             C. Subpart 6.3, Other Than Full and                      Commercial Items. This clause is                      Act 5 U.S.C. 601, et seq. The Initial
                                             Open Competition                                         amended to make conforming changes.                   Regulatory Flexibility Analysis (IRFA) is
                                                                                                         • FAR 52.219–29, Notice of Set-Aside               summarized as follows:
                                               • 6.302–5, Authorized or required by                   for Economically Disadvantaged
                                             statute. This section is amended to add                                                                           DoD, GSA, and NASA are proposing to
                                                                                                      Women-Owned Small Business                            amend the Federal Acquisition Regulation
                                             the statutory authority to make sole                     Concerns. This clause is amended to
                                             source awards under the WOSB                                                                                   (FAR) to implement paragraph (a)(3) of
                                                                                                      add sole source awards.                               section 825 of the Carl Levin and Howard P.
                                             program (15 U.S.C. 637(m)).                                 • FAR 52.219–30 Notice of Set-Aside                ‘Buck’ McKeon National Defense
                                             D. Subpart 18.1, Available Acquisition                   for Women-Owned Small Business                        Authorization Act (NDAA) for Fiscal Year
                                             Flexibilities                                            Concerns. This clause is amended to                   (FY) 2015, Public Law 113–291. Section 825
                                                                                                      add sole source awards.                               of the NDAA for FY 2015 included language
                                               • 18.117, Awards to economically                                                                             granting contracting officers the authority to
                                             disadvantaged women-owned small                          III. Applicability to Contracts at or                 award sole source contracts to Women-
                                             business concerns and women-owned                        Below the Simplified Acquisition                      Owned Small Businesses (WOSBs) and
                                             small business concerns eligible under                   Threshold and for Commercial Items,                   Economically Disadvantaged Women-Owned
                                             the Women-Owned Small Business                           Including Commercially Available Off-                 Small Businesses (EDWOSBs) under the
                                                                                                      the-Shelf Items                                       WOSB Program.
                                             Program. This section is amended to
                                                                                                                                                               The objectives of this interim rule are to
                                             add the statutory authority to make sole                    This rule amends the FAR clauses at                put the WOSB Program on a level playing
                                             source awards under the WOSB                             52.219–29, Notice of Set-Aside for                    field with other SBA Government contracting
                                             Program.                                                 Economically Disadvantaged Women-                     programs that have sole source authority, and
                                                                                                      owned Small Business Concerns, and                    to provide an additional, needed tool for
                                             PART 19—Small Business Programs                                                                                agencies to meet the statutorily mandated
                                                                                                      52.219–30, Notice of Set-Aside for
                                             E. 19.000, Scope of Part.                                                                                      goal of 5 percent of the total value of all
                                                                                                      Women-Owned Small Business                            prime contract and subcontract awards for
                                                This section is amended to include                    Concerns Eligible Under the Women-                    WOSBs. The authorizing legislation is
                                             the authority for sole source awards to                  Owned Small Business Program, in                      paragraph (a)(3) of section 825 of the NDAA
                                             EDWOSB concerns and WOSB concerns                        order to implement paragraph (a)(3) of                for Fiscal Year 2015.
                                             eligible under the WOSB program.                         section 825 of the NDAA for FY 2015.                     This rule may have a positive economic
                                                                                                      The Federal Acquisition Regulatory                    impact on WOSB concerns. The Dynamic
                                             F. Subpart 19.1—Size Standards                           Council, pursuant to the authority                    Small Business Supplemental Search (DSBS)
                                                • 19.102, Size standards. This section                granted in 41 U.S.C. 1905 and 1906, and               lists approximately 41,500 firms as either
                                                                                                                                                            WOSBs or EDWOSBs under the WOSB
                                             is amended to make conforming                            the Administrator, Office of Federal                  Program. An analysis of the Federal
                                             changes.                                                 Procurement Policy, pursuant to the                   Procurement Data System from April 1, 2011
                                                                                                      authority granted in 41 U.S.C. 1907,                  (the implementation date of the WOSB
                                             G. Subpart 19.3—Determination of
                                                                                                      have determined that the application of               Program), through September 1, 2015,
                                             Small Business Status for Small
                                                                                                      this statutory authority to contracts at or           revealed that there were approximately
                                             Business Programs                                                                                              44,053 women-owned small business
                                                                                                      below the simplified acquisition
                                                • 19.308, Protesting a firm’s status as               threshold and to contracts for                        concerns, including 332 EDWOSBs and 1,063
                                             an economically disadvantaged women-                     commercial items and commercially                     WOSBs eligible under the WOSB Program,
                                             owned small business concern or                          available off-the-shelf items, is in the              that received obligated funds from Federal
                                                                                                                                                            contract awards, task or delivery orders, and
                                             women-owned small business concern                       best interests of the Federal                         modifications to existing contracts. This rule
                                             eligible under the Women-Owned Small                     Government.                                           could affect a smaller number of EDWOSBs
                                             Business Program. This section is                                                                              and WOSBs than those eligible under the
                                             amended to include protests of sole                      IV. Executive Orders 12866 and 13563
                                                                                                                                                            WOSB Program since the sole source
                                             source acquisitions.                                        Executive Orders (E.O.s) 12866 and                 authority can only be used where a
                                                                                                      13563 direct agencies to assess all costs             contracting officer does not have a reasonable
                                             H. Subpart 19.15, Women-Owned Small                      and benefits of available regulatory                  expectation, through market research, that
                                             Business Program                                         alternatives and, if regulation is                    two or more eligible EDWOSB or WOSB
                                               • 19.1505, Set-aside procedures. This                  necessary, to select regulatory                       concerns will submit offers at a fair and
                                             section is amended for editorial                         approaches that maximize net benefits                 reasonable price; in addition, the sole source
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                                                                                                                                                            authority for WOSBs and EDWOSBs is
                                             changes.                                                 (including potential economic,
                                                                                                                                                            limited to contracts valued at $6.5 million or
                                               • 19.1506, Women-Owned Small                           environmental, public health and safety               less for manufacturing contracts and $4
                                             Business Program sole source awards.                     effects, distributive impacts, and                    million or less for all other contracts.
                                             This section replaces the current FAR                    equity). E.O. 13563 emphasizes the                       This interim rule does not impose any new
                                             19.1506, Contract clauses, and discusses                 importance of quantifying both costs                  reporting, recordkeeping or other compliance
                                             the conditions under which a                             and benefits, of reducing costs, of                   requirements for small businesses. This rule



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                                             81890            Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

                                             does not duplicate, overlap, or conflict with            officers to implement the preferences                 underrepresented in Federal
                                             any other Federal rules.                                 accorded under the WOSB Program to                    procurement; and
                                                The Regulatory Secretariat has                        the fullest extent possible, and serves as            *    *    *    *     *
                                             submitted a copy of the IRFA to the                      an additional, needed tool to increase
                                             Chief Counsel for Advocacy of the SBA.                   procurement opportunities for WOSBs.                  PART 4—ADMINISTRATIVE MATTERS
                                             A copy of the IRFA may be obtained                         The statute went into effect on the
                                             from the Regulatory Secretariat                          date of enactment, December 19, 2014.                 ■ 3. Amend section 4.803 by revising
                                             Division. DoD, GSA, and NASA invite                      The SBA final rule went into effect                   the introductory text of paragraph
                                             comments from small business concerns                    October 14, 2015. Pursuant to 41 U.S.C.               (a)(42) and paragraphs (a)(42)(ii)(A) and
                                             and other interested parties on the                      1707 and FAR 1.501–3(b), DoD, GSA,                    (B) to read as follows:
                                             expected impact of this rule on small                    and NASA will consider public                         4.803    Contents of contract files.
                                             entities.                                                comments received in response to this
                                                DoD, GSA, and NASA will also                          interim rule in the formation of the final            *      *   *     *    *
                                             consider comments from small entities                    rule.                                                   (a) * * *
                                             concerning the existing regulations in                                                                           (42) When limiting competition, or
                                             subparts affected by the rule consistent                 List of Subjects in 48 CFR Parts 2, 4, 6,             awarding on a sole source basis, to
                                             with 5 U.S.C. 610. Interested parties                    18, 19, and 52                                        economically disadvantaged women-
                                             must submit such comments separately                         Government procurement.                           owned small business (EDWOSB)
                                             and should cite 5 U.S.C. 610 (FAR Case                                                                         concerns or women-owned small
                                                                                                        Dated: December 17, 2015.                           business (WOSB) concerns eligible
                                             2015–032), in correspondence.                            William F. Clark,                                     under the WOSB Program in accordance
                                             VI. Paperwork Reduction Act                              Director, Office of Government-wide                   with subpart 19.15, include
                                               The interim rule does not contain any                  Acquisition Policy, Office of Acquisition             documentation—
                                                                                                      Policy, Office of Government-wide Policy.
                                             information collection requirements that                                                                       *      *   *     *    *
                                             require the approval of the Office of                      Therefore, DoD, GSA, and NASA                         (ii) * * *
                                             Management and Budget under the                          amend 48 CFR parts 2, 4, 6, 18, 19, and                 (A) Underrepresented for EDWOSB
                                             Paperwork Reduction Act (44 U.S.C.                       52 as set forth below:                                concerns; or
                                             chapter 35).                                             ■ 1. The authority citation for 48 CFR                  (B) Substantially underrepresented for
                                             VII. Determination To Issue an Interim                   parts 2, 4, 6, 18, 19, and 52 continues               WOSB concerns.
                                             Rule                                                     to read as follows:                                   *      *   *     *    *
                                                A determination has been made under                     Authority: 40 U.S.C. 121(c); 10 U.S.C.
                                                                                                      chapter 137; and 51 U.S.C. 20113.                     PART 6—COMPETITION
                                             the authority of the Secretary of Defense                                                                      REQUIREMENTS
                                             (DoD), the Administrator of General                      PART 2—DEFINITIONS OF WORDS
                                             Services (GSA), and the Administrator                    AND TERMS                                             ■ 4. Amend section 6.302–5 by adding
                                             of the National Aeronautics and Space                                                                          paragraph (b)(7) to read as follows:
                                             Administration (NASA) that urgent and                    ■  2. Amend section 2.101, paragraph
                                             compelling reasons exist to promulgate                   (b)(2), the definition ‘‘Women-Owned                  6.302–5    Authorized or required by statute.
                                             this interim rule without prior                          Small Business (WOSB) Program’’ by—                   *     *     *    *    *
                                             opportunity for public comment. This                     ■ a. Revising the introductory text of                  (b) * * *
                                             action is necessary to meet the                          paragraph (1) and paragraph (1)(i);                     (7) Sole source awards under the
                                             Congressional intent of leveling the                     ■ b. Removing from paragraph (1)(ii)                  WOSB Program-15 U.S.C. 637(m) (see
                                             playing field between the Women-                         ‘‘Eligible’’ and adding to the end of the             19.1506).
                                             Owned Small Business (WOSB)                              paragraph ‘‘in Federal procurement’’;                 *     *     *    *    *
                                             Program and SBA’s other socioeconomic                    and
                                             contracting programs. Prior to passage of                ■ c. Removing from the last sentence in               PART 18—EMERGENCY
                                             section 825 of the National Defense                      paragraph (2) ‘‘business concern’’ and                ACQUISITIONS
                                             Authorization Act for Fiscal Year 2015,                  adding ‘‘business (WOSB) concern’’ in
                                             the WOSB Program was the only                            its place.                                            ■ 5. Revise section 18.117 to read as
                                             socioeconomic small business program                        The revisions read as follows:                     follows:
                                             that did not provide contracting officials
                                                                                                      2.101    Definitions.                                 18.117 Awards to economically
                                             the authority to make sole source                                                                              disadvantaged women-owned small
                                             awards to its intended beneficiaries.                    *     *      *     *   *                              business concerns and women-owned
                                                WOSBs are an important growth area                      (b) * * *                                           small business concerns eligible under the
                                             in the U.S. economy and yet the Federal                    Women-Owned Small Business                          Women-Owned Small Business Program.
                                             Government has consistently failed to                    (WOSB) Program. (1) Women-Owned                         Contracts may be awarded to
                                             achieve the minimum five percent                         Small Business (WOSB) Program means                   economically disadvantaged women-
                                             annual women-owned small business                        a program that authorizes contracting                 owned small business (EDWOSB)
                                             participation goal set forth in statute. As              officers to limit competition, including              concerns and women-owned small
                                             a result, women entrepreneurs continue                   award on a sole source basis, to—                     business (WOSB) concerns eligible
                                             to struggle to gain access to the Federal                  (i) Economically disadvantaged                      under the WOSB Program on a
                                             marketplace. This situation will persist,                women-owned small business                            competitive or sole source basis. (See
                                             and women-owned small businesses                         (EDWOSB) concerns eligible under the
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                                                                                                                                                            subpart 19.15.)
                                             will be excluded from valuable Federal                   WOSB Program for Federal contracts
                                             procurement opportunities on a daily                     assigned a North American Industry                    PART 19—SMALL BUSINESS
                                             basis unless the sole source authority for               Classification Systems (NAICS) code in                PROGRAMS
                                             EDWOSBs and WOSBs is implemented                         an industry in which the Small Business
                                             as quickly as possible. The new sole                     Administration (SBA) has determined                   ■   6. Amend section 19.000 by—
                                             source authority allows contracting                      that WOSB concerns are                                ■   a. Revising paragraph (a)(3);


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                                                              Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations                                        81891

                                             ■ b. Removing paragraph (a)(7);                          business (EDWOSB) concern or as a                     under the WOSB Program on a sole
                                             ■ c. Redesignating paragraphs (a)(8)                     WOSB concern eligible under the                       source basis (see 6.302–5(b)(7)) before
                                             through (10) as paragraphs (a)(7)                        WOSB Program. For all other                           considering small business set-asides
                                             through (9), respectively; and                           acquisitions, an interested party (see 13             (see 19.203 and subpart 19.5) provided
                                             ■ d. Revising newly redesignated                         CFR 127.102) may protest the apparent                 none of the exclusions at 19.1504 apply
                                             paragraph (a)(9).                                        successful offeror’s EDWOSB or WOSB                   and—
                                               The revisions read as follows:                         status.                                                  (1) The acquisition is assigned a
                                             19.000   Scope of part.                                  *     *    *     *     *                              NAICS code in which SBA has
                                                                                                                                                            determined that WOSB concerns are
                                               (a) * * *                                              ■ 9. Revise the heading of subpart 19.15              substantially underrepresented in
                                               (3) Setting acquisitions aside for                     to read as follows:                                   Federal procurement;
                                             exclusive competitive participation by
                                                                                                                                                               (2) The contracting officer does not
                                             small business, 8(a) business                            Subpart 19.15—Women-Owned Small                       have a reasonable expectation that offers
                                             development participants, HUBZone                        Business Program                                      would be received from two or more
                                             small business concerns, service-
                                                                                                      *      *      *      *       *                        WOSB concerns (including EDWOSB
                                             disabled veteran-owned small business
                                                                                                                                                            concerns); and
                                             concerns, and economically                               ■ 10. Amend section 19.1505 by
                                             disadvantaged women-owned small                                                                                   (3) The conditions in paragraph (c) of
                                                                                                      revising paragraph (a)(2) to read as                  this section exist.
                                             business (EDWOSB) concerns and                           follows:
                                             women-owned small business (WOSB)                                                                                 (c)(1) The anticipated award price of
                                             concerns eligible under the WOSB                         19.1505    Set-aside procedures.                      the contract, including options, will not
                                             Program;                                                                                                       exceed—
                                                                                                         (a) * * *
                                                                                                                                                               (i) $6.5 million for a requirement
                                             *     *     *    *     *                                    (2) May set aside acquisitions
                                                                                                                                                            within the NAICS codes for
                                               (9) Sole source awards to HUBZone                      exceeding the micro-purchase threshold
                                                                                                                                                            manufacturing; or
                                             small business concerns, service-                        for competition restricted to EDWOSB
                                                                                                      concerns or WOSB concerns eligible                       (ii) $4 million for a requirement
                                             disabled veteran-owned small business
                                                                                                      under the WOSB Program when the                       within any other NAICS codes.
                                             concerns, and EDWOSB concerns and
                                                                                                      acquisition—                                             (2) The EDWOSB concern or WOSB
                                             WOSB concerns eligible under the
                                                                                                         (i) Is assigned a NAICS code in which              concern has been determined to be a
                                             WOSB Program.
                                                                                                      SBA has determined that WOSB                          responsible contractor with respect to
                                             *     *     *    *     *                                                                                       performance.
                                                                                                      concerns are underrepresented in
                                             ■ 7. Amend section 19.102 by revising                    Federal procurement; or                                  (3) The award can be made at a fair
                                             the last sentence of paragraph (f)(1) to                    (ii) Is assigned a NAICS code in which             and reasonable price.
                                             read as follows:                                         SBA has determined that WOSB                             (d) The SBA has the right to appeal
                                                                                                      concerns are substantially                            the contracting officer’s decision not to
                                             19.102   Size standards.                                                                                       make a sole source award to either an
                                                                                                      underrepresented in Federal
                                             *      *     *   *    *                                  procurement, as specified on SBA’s Web                EDWOSB concern or WOSB concern
                                                (f) * * *                                             site at http://www.sba.gov/WOSB.                      eligible under the WOSB program.
                                                (1) * * * However, see the limitations                                                                         12. Revise newly redesignated section
                                             on subcontracting at 52.219–14 that                      *       *     *    *    *                             19.1507 to read as follows:
                                             apply to any small business offeror                      19.1506    [Redesignated as 19.1507]                     19.1507 Contract clauses.
                                             other than a nonmanufacturer for                         ■ 11. Redesignate section 19.1506 as                     (a) The contracting officer shall insert
                                             purposes of set-asides and 8(a) awards,                  section 19.1507.                                      the clause 52.219–29, Notice of Set-
                                             52.219–3 for HUBZone set-asides and                      ■ 12. Add section 19.1506 to read as                  Aside for, or Sole Source Award to,
                                             HUBZone sole source awards, 52.219–                      follows:                                              Economically Disadvantaged Women-
                                             27 for SDVOSB set-asides and SDVOSB                                                                            owned Small Business Concerns, in
                                             sole source awards, 52.219–29 for                        19.1506 Women-Owned Small Business                    solicitations and contracts for
                                             economically disadvantaged women-                        Program sole source awards.                           acquisitions that are set aside or
                                             owned small business (EDWOSB) set-                          (a) A contracting officer shall consider           reserved for, or awarded on a sole
                                             asides and EDWOSB sole source                            a contract award to an EDWOSB                         source basis to, EDWOSB concerns
                                             awards, and 52.219–30 for set-asides                     concern on a sole source basis (see                   under 19.1505(b) or 19.1506(a). This
                                             and sole source awards to women-                         6.302–5(b)(7)) before considering small               includes multiple-award contracts when
                                             owned small business (WOSB) concerns                     business set-asides (see 19.203 and                   orders may be set aside for EDWOSB
                                             eligible under the WOSB Program.                         subpart 19.5) provided none of the                    concerns as described in 8.405–5 and
                                             *      *     *   *    *                                  exclusions at 19.1504 apply and—                      16.505(b)(2)(i)(F).
                                                                                                         (1) The acquisition is assigned a                     (b) The contracting officer shall insert
                                             ■ 8. Amend section 19.308 by revising                    NAICS code in which SBA has                           the clause 52.219–30, Notice of Set-
                                             the section heading and paragraph (b)(1)                 determined that WOSB concerns are                     Aside for, or Sole Source Award to,
                                             to read as follows:                                      underrepresented in Federal                           Women-Owned Small Business
                                             19.308 Protesting a firm’s status as an                  procurement;                                          Concerns Eligible Under the Women-
                                             economically disadvantaged women-owned                      (2) The contracting officer does not               Owned Small Business Program, in
                                             small business concern or women-owned                    have a reasonable expectation that offers             solicitations and contracts for
                                             small business concern eligible under the                would be received from two or more                    acquisitions that are set aside or
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                                             Women-Owned Small Business Program.                      EDWOSB concerns; and                                  reserved for, or awarded on a sole
                                             *     *     *     *     *                                   (3) The conditions in paragraph (c) of             source basis to WOSB concerns under
                                               (b)(1) For sole source acquisitions, the               this section exist.                                   19.1505(c) or 19.1506(b). This includes
                                             contracting officer or SBA may protest                      (b) A contracting officer shall consider           multiple-award contracts when orders
                                             the offeror’s status as an economically                  a contract award to a WOSB concern                    may be set aside for WOSB concerns
                                             disadvantaged women-owned small                          (including EDWOSB concerns) eligible                  eligible under the WOSB Program as


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                                             81892            Federal Register / Vol. 80, No. 251 / Thursday, December 31, 2015 / Rules and Regulations

                                             described in 8.405–5 and                                 Notice of Set-Aside for, or Sole Source               discriminatory provisions for eligible
                                             16.505(b)(2)(i)(F).                                      Award to, Women-Owned Small                           products from countries that have
                                                                                                      Business Concerns Eligible Under the                  signed an international trade agreement
                                             PART 52—SOLICITATION PROVISIONS                          Women-Owned Small Business                            with the United States (such as the
                                             AND CONTRACT CLAUSES                                     Program (Dec 2015)                                    WTO GPA). The President has delegated
                                                                                                                                                            this authority to the U.S. Trade
                                             ■ 13. Amend section 52.212–5 by                          *     *    *      *    *
                                                                                                        (b) * * *                                           Representative.
                                             revising the date of the clause and                                                                              Effective July 15, 2015, because
                                             paragraphs (b)(23) and (24) to read as                     (1) Contracts that have been set aside
                                                                                                      or reserved for, or awarded on a sole                 Montenegro became a party to the WTO
                                             follows:                                                                                                       GPA, and because the U.S. Trade
                                                                                                      source basis to, WOSB concerns eligible
                                             52.212–5 Contract Terms and Conditions                   under the WOSB Program;                               Representative has determined that
                                             Required To Implement Statutes or                                                                              Montenegro will provide appropriate
                                                                                                      *     *    *      *    *                              reciprocal competitive Government
                                             Executive Orders—Commercial Items.
                                                                                                      [FR Doc. 2015–32428 Filed 12–30–15; 8:45 am]
                                             *      *     *        *      *                                                                                 procurement opportunities to United
                                                                                                      BILLING CODE 6820–EP–P
                                                                                                                                                            States products and services, the U.S.
                                             Contract Terms and Conditions                                                                                  Trade Representative published a notice
                                             Required To Implement Statutes or                                                                              in the Federal Register at 80 FR 39829
                                             Executive Orders—Commercial Items                        DEPARTMENT OF DEFENSE                                 on July 10, 2015, waiving the Buy
                                             (Dec 2015)                                               GENERAL SERVICES                                      American Act and other discriminatory
                                             *     *     *    *    *                                  ADMINISTRATION                                        provisions for eligible products from
                                               (b)* * *                                                                                                     Montenegro.
                                               ___(23) 52.219–29, Notice of Set-                                                                              Effective August 12, 2015, because
                                                                                                      NATIONAL AERONAUTICS AND
                                             Aside for, or Sole Source Award to,                                                                            New Zealand became a party to the
                                                                                                      SPACE ADMINISTRATION
                                             Economically Disadvantaged Women-                                                                              WTO GPA, and because the U.S. Trade
                                             Owned Small Business Concerns (Dec                                                                             Representative has determined that New
                                                                                                      48 CFR Parts 22, 25, and 52
                                             2015) (15 U.S.C. 637(m)).                                                                                      Zealand will provide appropriate
                                               ___(24) 52.219–30, Notice of Set-                      [FAC 2005–86; FAR Case 2015–034; Item                 reciprocal competitive Government
                                                                                                      III; Docket No. 2015–0034; Sequence No.               procurement opportunities to United
                                             Aside for, or Sole Source Award to,                      1]
                                             Women-Owned Small Business                                                                                     States products and services, the U.S.
                                             Concerns Eligible Under the Women-                       RIN 9000–AN15                                         Trade Representative published a notice
                                             Owned Small Business Program (Dec                                                                              in the Federal Register at 80 FR 48386
                                             2015) (15 U.S.C. 637(m)).                                Federal Acquisition Regulation; New                   on August 12, 2015, waiving the Buy
                                                                                                      Designated Countries—Montenegro                       American Act and other discriminatory
                                             *     *     *    *    *                                  and New Zealand                                       provisions for eligible products from
                                             ■ 14. Amend section 52.219–29 by                                                                               New Zealand.
                                                                                                      AGENCIES: Department of Defense (DoD),                  In addition, the Office of the U.S.
                                             revising the section heading, the                        General Services Administration (GSA),
                                             introductory paragraph, the title and                                                                          Trade Representative has also indicated
                                                                                                      and National Aeronautics and Space                    that Montenegro is a party to the
                                             date of the clause, and paragraph (b)(1)                 Administration (NASA).
                                             to read as follows:                                                                                            Agreement on Trade in Civil Aircraft.
                                                                                                      ACTION: Final rule.                                   The U.S. Trade Representative has
                                             52.219–29 Notice of Set-Aside for, or Sole                                                                     waived the Buy American Act for civil
                                             Source Award to, Economically                            SUMMARY:   DoD, GSA, and NASA are
                                                                                                      issuing a final rule amending the                     aircraft and related articles from
                                             Disadvantaged Women-Owned Small
                                             Business Concerns.                                       Federal Acquisition Regulation (FAR) to               countries that are parties to the
                                                                                                      add Montenegro and New Zealand as                     Agreement on Trade in Civil Aircraft.
                                               As prescribed in 19.1507, insert the
                                             following clause:                                        new designated countries under the                    II. Discussion and Analysis
                                                                                                      World Trade Organization Government                      Therefore, this rule adds Montenegro
                                             Notice of Set-Aside for, or Sole Source                  Procurement Agreement (WTO GPA)
                                             Award to, Economically Disadvantaged                                                                           and New Zealand to the list of World
                                                                                                      and update the list of parties to the                 Trade Organization Government
                                             Women-Owned Small Business                               Agreement on Trade in Civil Aircraft.
                                             Concerns (Dec 2015)                                                                                            Procurement Agreement countries
                                                                                                      DATES: Effective: February 1, 2016.                   wherever it appears in the FAR, whether
                                             *     *    *      *    *                                 FOR FURTHER INFORMATION CONTACT: Ms.                  as a separate definition, part of the
                                               (b) * * *                                              Cecelia L. Davis, Procurement Analyst,                definition of ‘‘designated country’’ or
                                               (1) Contracts that have been set aside                 at 202–219–0202, for clarification of                 ‘‘Recovery Act designated country,’’ or
                                             or reserved for, or awarded on a sole                    content. For information pertaining to                as part of the list of countries exempt
                                             source basis to, EDWOSB concerns;                        status or publication schedules, contact              from the prohibition of acquisition of
                                             *     *    *      *    *                                 the Regulatory Secretariat Division at                products produced by forced or
                                                                                                      202–501–4755. Please cite FAC 2005–                   indentured child labor (FAR 22.1503,
                                             ■ 15. Amend section 52.219–30 by
                                                                                                      86, FAR Case 2015–034.                                25.003, 52.222–19, 52.225–5, 52.225–11,
                                             revising the section heading, the
                                             introductory paragraph, the title and                    SUPPLEMENTARY INFORMATION:                            and 52.225–23).
                                                                                                                                                               This rule also updates FAR 25.407
                                             date of clause, and paragraph (b)(1) to                  I. Background                                         and 52.225–7 to reflect that Montenegro
                                             read as follows:
                                                                                                         On July 15, 2015, Montenegro became                is already a party to the Agreement on
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                                             52.219–30 Notice of Set-Aside for, or Sole               a party to the WTO GPA. New Zealand                   Trade in Civil Aircraft.
                                             Source Award to, Women-Owned Small                       became a party to the WTO GPA on                         Conforming changes were required to
                                             Business Concerns Eligible Under the                     August 12, 2015. The Trade Agreements                 FAR 52.212–5, Contract Terms and
                                             Women-Owned Small Business Program.                      Act (19 U.S.C. 2501 et seq.) provides the             Conditions Required to Implement
                                               As prescribed in 19.1507, insert the                   authority for the President to waive the              Statute or Executive Orders—
                                             following clause:                                        Buy American Act and other                            Commercial Items, and 52.213–4, Terms


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Document Created: 2015-12-31 02:15:07
Document Modified: 2015-12-31 02:15:07
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim rule.
DatesEffective: December 31, 2015.
ContactMs. Mahruba Uddowla, Procurement Analyst, at 703-605-2868 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202-501-4755. Please cite FAC 2005-86, FAR Case 2015-032.
FR Citation80 FR 81888 
RIN Number9000-AN13
CFR Citation48 CFR 18
48 CFR 19
48 CFR 2
48 CFR 4
48 CFR 52
48 CFR 6

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