81_FR_17103 81 FR 17045 - Defense Federal Acquisition Regulation Supplement: Clauses With Alternates-Small Business Programs (DFARS Case 2015-D017)

81 FR 17045 - Defense Federal Acquisition Regulation Supplement: Clauses With Alternates-Small Business Programs (DFARS Case 2015-D017)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 58 (March 25, 2016)

Page Range17045-17047
FR Document2016-06722

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify clauses and their prescriptions for small business programs and to create basic and alternate clauses structured in a manner to facilitate use of automated contract writing systems.

Federal Register, Volume 81 Issue 58 (Friday, March 25, 2016)
[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Rules and Regulations]
[Pages 17045-17047]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06722]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 219, and 252

[Docket DARS-2015-0044]
RIN 0750-AI68


Defense Federal Acquisition Regulation Supplement: Clauses With 
Alternates--Small Business Programs (DFARS Case 2015-D017)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to clarify clauses and their 
prescriptions for small business programs and to create basic and 
alternate clauses structured in a manner to facilitate use of automated 
contract writing systems.

DATES: Effective March 25, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Jennifer Johnson, telephone 571-
372-6100.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 
58669 on September 30, 2015, to clarify, in the small business 
programs' clause prescriptions, the appropriate use of the basic clause 
and its alternate clause. This final rule provides the basic clause at 
252.219-7003, Small Business Subcontracting Plan (DoD Contracts), in 
full text as well as the alternate to the basic clause in full text, 
instead of only reflecting the paragraphs that are different. The 
clause at DFARS 252.219-7010, now titled ``Notification of Competition 
Limited to Eligible 8(a) Concerns--Partnership Agreement'' is modified 
to incorporate Federal Acquisition Regulation (FAR) clause 52.219-18 
and its two alternates into the existing clause at DFARS 252.219-7010. 
No public comments were received in response to the proposed rule. 
Three editorial changes were made to the proposed rule to (1) correct a 
typographical error, (2) update how the basic clause and alternate 
clause for 252.219-7003 are displayed at 212.301, and (3) spell out the 
acronym ``eSRS'' in the DFARS basic and alternate clause 252.219-7003.

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

    This rule does not change the prescription for DFAR clause 252.219-
7003, Small Business Subcontracting Plan (DoD Contracts); rather, the 
rule merely clarifies the use of the clause and the way it is displayed 
in the regulations. DFARS clause 252.219-7003 is used in conjunction 
with FAR clause 52.219-9, Small Business Subcontracting Plan, and 
applies to solicitations and contracts for commercial items, including 
commercially available off-the-shelf items. The clause is not 
applicable to acquisitions valued at or below the simplified 
acquisition threshold, because the FAR clause is only used in 
acquisitions expected to exceed $700,000.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    A final regulatory flexibility analysis has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
and is summarized as follows:
    This final rule clarifies: (1) DFARS clause, 252.219-7003, Small 
Business Subcontracting Plan (DoD Contracts), which has an alternate, 
and (2) DFARS clause 252.219-7010, now titled ``Notification of 
Competition Limited to Eligible 8(a) Concerns--Partnership Agreement,'' 
which is an alternate to a FAR clause. The basic and alternate clauses 
will be full, separate clauses for ease of use by the contracting 
officers. This rule also explains the appropriate

[[Page 17046]]

use of the affected basic and alternate clauses for the small business 
programs. No substantial changes are being made to the clauses.
    The objective of this rule is to clarify the use of each clause by 
giving the basic and alternate clauses a separate prescription 
describing when to use the clause for the small business programs. This 
does not change the applicability of the basic or alternate clause. The 
basic and alternate clauses will each appear in full text, which will 
facilitate use of the automated contract writing systems.
    No comments were received from the public in response to the 
initial regulatory flexibility analysis.
    DFARS 252.219-7003, Small Business Subcontracting Plan (DoD 
Contracts), and its alternate are prescribed to be used with FAR 
52.219-9 and its alternates. FAR 52.219-9 does not apply to small 
business concerns; therefore, there is no burden on any small business 
for this rule.
    DFARS 252.219-7010, now titled ``Notification of Competition 
Limited to Eligible 8(a) Concerns--Partnership Agreement,'' is the 
alternate for FAR 52.219-18, Notification of Competition Limited to 
Eligible 8(a) Concerns. This clause only affects 8(a) concerns when 
competing for an 8(a) award. Currently, there are approximately 5,217 
active concerns registered in SAM that are certified in the 8(a) 
program. Nothing substantive will change in solicitations or contracts 
for potential offerors; only the way the clause alternates are 
presented in solicitations and contracts will be changed. This rule 
will result in potential offerors, including small businesses, 
expending less time to review and understand the solicitation and 
contract. The rule anticipates saving contractors' time by making all 
paragraph substitutions from the basic clause and by not requiring 
offerors to read inapplicable paragraphs contained in the basic clauses 
where alternates are used in the solicitations and contracts.
    The rule does not impose any additional reporting, recordkeeping, 
or other compliance requirements.
    No alternatives were identified that will accomplish the objectives 
of the rule.

V. Paperwork Reduction Act

    The rule contains information collection requirements that require 
the approval of the Office of Management and Budget (OMB) under the 
Paperwork Reduction Act (44 U.S.C. chapter 35); however, these changes 
to the DFARS do not impose additional information collection 
requirement to the paperwork burden previously approved under OMB 
Control Number 0704-0386, entitled ``Small Business Programs and 
Associated Clauses in part 252.219.'' The rule merely clarifies the use 
of two DFARS clauses and the way the clauses are displayed in the 
regulation.

List of Subjects in 48 CFR Parts 212, 219, and 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 219, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 212, 219, and 252 continues 
to read as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
2. In section 212.301, revise paragraph (f)(vii)(A) to read as follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

* * * * *
    (f) * * *
    (vii) Part 219--Small Business Programs. (A) Use the clause at 
252.219-7003, Small Business Subcontracting Plan (DoD Contracts), to 
comply with 15 U.S.C. 637.
    (1) Use the basic clause as prescribed in 219.708(b)(1)(A)(1).
    (2) Use the alternate I clause as prescribed in 
219.708(b)(1)(A)(2).
* * * * *

PART 219--SMALL BUSINESS PROGRAMS

0
3. In section 219.708, revise paragraph (b)(1)(A) to read as follows:


219.708  Contract clauses.

    (b)(1)(A) Use the basic or alternate clause at 252.219-7003, Small 
Business Subcontracting Plan (DoD Contracts), in solicitations and 
contracts, including solicitations and contracts using FAR part 12 
procedures for the acquisition of commercial items, that contain the 
clause at FAR 52.219-9, Small Business Subcontracting Plan.
    (1) Use the basic clause at 252.219-7003, when using the basic, 
alternate I, or alternate II of FAR 52.219-9.
    (2) Use the alternate I clause at 252.219-7003, when using 
Alternate III of FAR 52.219-9.
* * * * *

0
4. In section 219.811-3, revise paragraph (2) to read as follows:


219.811-3  Contract clauses.

* * * * *
    (2) Use the clause at 252.219-7010, Notification of Competition 
Limited to Eligible 8(a) Concerns--Partnership Agreement, in lieu of 
the clause at FAR 52.219-18, Notification of Competition Limited to 
Eligible 8(a) Concerns, in competitive solicitations and contracts when 
the acquisition is accomplished using the procedures of FAR 19.805 and 
processed in accordance with the PA cited in 219.800.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Amend section 252.219-7003 by--
0
a. Revising the introductory text, clause title, and date;
0
b. Amending paragraph (a) by removing ``eSRS'' and adding ``the 
Electronic Subcontracting Reporting System (eSRS)'' in its place;
0
c. In paragraph (c)(2), removing ``Section'' and adding ``section'' in 
its place; and
0
c. Revising Alternate I.
    The revisions read as follows:


252.219-7003  Small Business Subcontracting Plan (DoD Contracts).

    Basic. As prescribed in 219.708(b)(1)(A) and (b)(1)(A)(1), use the 
following clause:

SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)--BASIC (MAR 2016)

* * * * *
    Alternate I. As prescribed in 219.708(b)(1)(A) and (b)(1)(A)(2), 
use the following clause, which uses a different paragraph (f) than the 
basic clause.

SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)--ALTERNATE I (MAR 
2016)

    This clause supplements the Federal Acquisition Regulation 
52.219-9, Small Business Subcontracting Plan, clause of this 
contract.
    (a) Definitions. Summary Subcontract Report (SSR) Coordinator, 
as used in this clause, means the individual at the department or 
agency level who is registered in the Electronic Subcontracting 
Reporting System (eSRS) and is responsible for acknowledging receipt 
or rejecting SSRs in eSRS for the department or agency.
    (b) Subcontracts awarded to workshops approved by the Committee 
for Purchase from People Who are Blind or Severely Disabled (41 
U.S.C. 8502-8504), may be counted toward the Contractor's small 
business subcontracting goal.
    (c) A mentor firm, under the Pilot Mentor-Protege Program 
established under section 831 of Public Law 101-510, as amended, may

[[Page 17047]]

count toward its small disadvantaged business goal, subcontracts 
awarded to--
    (1) Protege firms which are qualified organizations employing 
the severely disabled; and
    (2) Former protege firms that meet the criteria in section 
831(g)(4) of Public Law 101-510.
    (d) The master plan is approved by the Contractor's cognizant 
contract administration activity.
    (e) In those subcontracting plans which specifically identify 
small businesses, the Contractor shall notify the Administrative 
Contracting Officer of any substitutions of firms that are not small 
business firms, for the small business firms specifically identified 
in the subcontracting plan. Notifications shall be in writing and 
shall occur within a reasonable period of time after award of the 
subcontract. Contractor-specified formats shall be acceptable.
    (f)(1) For DoD, the Contractor shall submit reports in eSRS as 
follows:
    (i) The Standard Form 294, Subcontracting Report for Individual 
Contracts, shall be submitted in accordance with the instructions on 
that form.
    (ii) An SSR for other than a commercial subcontracting plan, or 
construction and related maintenance repair contracts, shall be 
submitted in eSRS to the department or agency within DoD that 
administers the majority of the Contractor's individual 
subcontracting plans. An example would be Defense Finance and 
Accounting Service or Missile Defense Agency.
    (2) For DoD, the authority to acknowledge receipt or reject 
reports in eSRS is as follows:
    (i) Except as provided in paragraph (f)(2)(ii) of this clause, 
the authority to acknowledge receipt or reject SSRs in eSRS resides 
with the SSR Coordinator at the department or agency that 
administers the majority of the Contractor's individual 
subcontracting plans.
    (ii) The authority to acknowledge receipt or reject SSRs for 
construction and related maintenance and repair contracts resides 
with the SSR Coordinator for each department or agency.


(End of clause)

0
6. Revise section 252.219-7010 to read as follows:


252.219-7010  Notification of Competition Limited to Eligible 8(a) 
Concerns--Partnership Agreement

    As prescribed in 219.811-3(2), use the following clause:

NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(A) CONCERNS--
PARTNERSHIP AGREEMENT (MAR 2016)

    (a) Offers are solicited only from small business concerns 
expressly certified by the Small Business Administration (SBA) for 
participation in the SBA's 8(a) Program and which meet the following 
criteria at the time of submission of offer:
    (1) The Offeror is in conformance with the 8(a) support 
limitation set forth in its approved business plan.
    (2) The Offeror is in conformance with the Business Activity 
Targets set forth in its approved business plan or any remedial 
action directed by the SBA.
    (3) If the competition is to be limited to 8(a) concerns within 
one or more specific SBA regions or districts, then the offeror's 
approved business plan is on the file and serviced by ____. 
[Contracting Officer completes by inserting the appropriate SBA 
District and/or Regional Office(s) as identified by the SBA.]
    (b) By submission of its offer, the Offeror represents that it 
meets all of the criteria set forth in paragraph (a) of this clause.
    (c) Any award resulting from this solicitation will be made 
directly by the Contracting Officer to the successful 8(a) offeror 
selected through the evaluation criteria set forth in this 
solicitation.
    (d)(1) Agreement. A small business concern submitting an offer 
in its own name shall furnish, in performing the contract, only end 
items manufactured or produced by small business concerns in the 
United States or its outlying areas, unless--
    (i) The SBA has determined that there are no small business 
manufacturers or processors in the Federal market place in 
accordance with FAR 19.502-2(c);
    (ii) The acquisition is processed under simplified acquisition 
procedures and the total amount of this contract does not exceed 
$25,000, in which case a small business concern may furnish the 
product of any domestic firm; or
    (iii) The acquisition is a construction or service contract.
    (2) The ____ [insert name of SBA's contractor] will notify the 
____ [insert name of contracting agency] Contracting Officer in 
writing immediately upon entering an agreement (either oral or 
written) to transfer all or part of its stock or other ownership 
interest to any other party.


(End of clause)
[FR Doc. 2016-06722 Filed 3-24-16; 8:45 am]
 BILLING CODE 5001-06-P



                                                                   Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations                                         17045

                                                 The rule will apply to DoD major                      ■  b. In paragraph (2) by removing                    252.219–7003 are displayed at 212.301,
                                               defense acquisition program contractors                 ‘‘September 30, 2014’’ and adding                     and (3) spell out the acronym ‘‘eSRS’’ in
                                               and subcontractors. Most major defense                  ‘‘September 30, 2019’’ in its place.                  the DFARS basic and alternate clause
                                               acquisition programs are awarded to                     [FR Doc. 2016–06721 Filed 3–24–16; 8:45 am]           252.219–7003.
                                               large concerns as they are of a scope too               BILLING CODE 5001–06–P
                                                                                                                                                             II. Applicability to Contracts at or
                                               large for any small business to perform.                                                                      Below the Simplified Acquisition
                                               As such, it is not expected that this rule                                                                    Threshold and for Commercial Items,
                                               will have a significant impact on a                     DEPARTMENT OF DEFENSE
                                                                                                                                                             Including Commercially Available Off-
                                               significant number of small entities.                                                                         the-Shelf Items
                                                                                                       Defense Acquisition Regulations
                                                 This rule does not impose new
                                                                                                       System                                                   This rule does not change the
                                               recordkeeping or reporting
                                                                                                                                                             prescription for DFAR clause 252.219–
                                               requirements. There are no known
                                                                                                       48 CFR Parts 212, 219, and 252                        7003, Small Business Subcontracting
                                               significant alternative approaches to the
                                                                                                       [Docket DARS–2015–0044]                               Plan (DoD Contracts); rather, the rule
                                               rule that would meet the requirements
                                                                                                                                                             merely clarifies the use of the clause
                                               of the statute.                                         RIN 0750–AI68                                         and the way it is displayed in the
                                               V. Paperwork Reduction Act                                                                                    regulations. DFARS clause 252.219–
                                                                                                       Defense Federal Acquisition                           7003 is used in conjunction with FAR
                                                 The rule does not contain any                         Regulation Supplement: Clauses With                   clause 52.219–9, Small Business
                                               information collection requirements that                Alternates—Small Business Programs                    Subcontracting Plan, and applies to
                                               require the approval of the Office of                   (DFARS Case 2015–D017)                                solicitations and contracts for
                                               Management and Budget under the                                                                               commercial items, including
                                               Paperwork Reduction Act (44 U.S.C.                      AGENCY:  Defense Acquisition
                                                                                                       Regulations System, Department of                     commercially available off-the-shelf
                                               chapter 35).                                                                                                  items. The clause is not applicable to
                                                                                                       Defense (DoD).
                                               List of Subjects in 48 CFR Parts 217 and                ACTION: Final rule.                                   acquisitions valued at or below the
                                               234                                                                                                           simplified acquisition threshold,
                                                                                                       SUMMARY:    DoD is issuing a final rule               because the FAR clause is only used in
                                                   Government procurement.                             amending the Defense Federal                          acquisitions expected to exceed
                                               Jennifer L. Hawes,                                      Acquisition Regulation Supplement                     $700,000.
                                               Editor, Defense Acquisition Regulations                 (DFARS) to clarify clauses and their
                                                                                                                                                             III. Executive Orders 12866 and 13563
                                               System.                                                 prescriptions for small business
                                                 Therefore, 48 CFR parts 217 and 234 are               programs and to create basic and                         Executive Orders (E.O.s) 12866 and
                                               amended as follows:                                     alternate clauses structured in a manner              13563 direct agencies to assess all costs
                                                                                                       to facilitate use of automated contract               and benefits of available regulatory
                                               ■ 1. The authority citation for 48 CFR                                                                        alternatives and, if regulation is
                                                                                                       writing systems.
                                               parts 217 and 234 continues to read as                                                                        necessary, to select regulatory
                                               follows:                                                DATES: Effective March 25, 2016.
                                                                                                                                                             approaches that maximize net benefits
                                                                                                       FOR FURTHER INFORMATION CONTACT: Ms.
                                                 Authority: 41 U.S.C. 1303 and 48 CFR                                                                        (including potential economic,
                                               chapter 1.                                              Jennifer Johnson, telephone 571–372–
                                                                                                                                                             environmental, public health and safety
                                                                                                       6100.
                                                                                                                                                             effects, distributive impacts, and
                                               PART 217—SPECIAL CONTRACTING                            SUPPLEMENTARY INFORMATION:                            equity). E.O. 13563 emphasizes the
                                               METHODS                                                                                                       importance of quantifying both costs
                                                                                                       I. Background
                                                                                                                                                             and benefits, of reducing costs, of
                                               ■ 2. Amend section 217.202 by revising                     DoD published a proposed rule in the               harmonizing rules, and of promoting
                                               paragraph (2) to read as follows:                       Federal Register at 80 FR 58669 on                    flexibility. This is not a significant
                                                                                                       September 30, 2015, to clarify, in the                regulatory action and, therefore, was not
                                               217.202    Use of options.
                                                                                                       small business programs’ clause                       subject to review under section 6(b) of
                                               *     *     *     *     *                               prescriptions, the appropriate use of the             E.O. 12866, Regulatory Planning and
                                                 (2) See 234.005–1 for limitations on                  basic clause and its alternate clause.                Review, dated September 30, 1993. This
                                               the use of contract options for the                     This final rule provides the basic clause             rule is not a major rule under 5 U.S.C.
                                               provision of advanced component                         at 252.219–7003, Small Business                       804.
                                               development, prototype, or initial                      Subcontracting Plan (DoD Contracts), in
                                               production of technology developed                      full text as well as the alternate to the             IV. Regulatory Flexibility Act
                                               under the contract or the delivery of                   basic clause in full text, instead of only               A final regulatory flexibility analysis
                                               initial or additional items.                            reflecting the paragraphs that are                    has been prepared consistent with the
                                                                                                       different. The clause at DFARS 252.219–               Regulatory Flexibility Act, 5 U.S.C. 601,
                                               PART 234—MAJOR SYSTEM                                   7010, now titled ‘‘Notification of                    et seq., and is summarized as follows:
                                               ACQUISITION                                             Competition Limited to Eligible 8(a)                     This final rule clarifies: (1) DFARS
                                               234.005–1    [Amended]                                  Concerns—Partnership Agreement’’ is                   clause, 252.219–7003, Small Business
                                                                                                       modified to incorporate Federal                       Subcontracting Plan (DoD Contracts),
                                               ■  3. Amend section 234.005–1—                          Acquisition Regulation (FAR) clause                   which has an alternate, and (2) DFARS
                                               ■  a. In paragraph (1) introductory text,               52.219–18 and its two alternates into the             clause 252.219–7010, now titled
srobinson on DSK5SPTVN1PROD with RULES3




                                               by removing ‘‘component development                     existing clause at DFARS 252.219–7010.                ‘‘Notification of Competition Limited to
                                               or prototype of technology’’ and adding                 No public comments were received in                   Eligible 8(a) Concerns—Partnership
                                               ‘‘component development, prototype, or                  response to the proposed rule. Three                  Agreement,’’ which is an alternate to a
                                               initial production of technology’’ in its               editorial changes were made to the                    FAR clause. The basic and alternate
                                               place, and removing ‘‘additional                        proposed rule to (1) correct a                        clauses will be full, separate clauses for
                                               prototype items’’ and adding                            typographical error, (2) update how the               ease of use by the contracting officers.
                                               ‘‘additional items’’ in its place; and                  basic clause and alternate clause for                 This rule also explains the appropriate


                                          VerDate Sep<11>2014   19:36 Mar 24, 2016   Jkt 238001   PO 00000   Frm 00005   Fmt 4701   Sfmt 4700   E:\FR\FM\25MRR3.SGM   25MRR3


                                               17046               Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations

                                               use of the affected basic and alternate                 OMB Control Number 0704–0386,                         219.811–3    Contract clauses.
                                               clauses for the small business programs.                entitled ‘‘Small Business Programs and                *      *    *     *     *
                                               No substantial changes are being made                   Associated Clauses in part 252.219.’’                    (2) Use the clause at 252.219–7010,
                                               to the clauses.                                         The rule merely clarifies the use of two              Notification of Competition Limited to
                                                  The objective of this rule is to clarify             DFARS clauses and the way the clauses                 Eligible 8(a) Concerns—Partnership
                                               the use of each clause by giving the                    are displayed in the regulation.                      Agreement, in lieu of the clause at FAR
                                               basic and alternate clauses a separate                                                                        52.219–18, Notification of Competition
                                               prescription describing when to use the                 List of Subjects in 48 CFR Parts 212,
                                                                                                       219, and 252                                          Limited to Eligible 8(a) Concerns, in
                                               clause for the small business programs.                                                                       competitive solicitations and contracts
                                               This does not change the applicability                      Government procurement.                           when the acquisition is accomplished
                                               of the basic or alternate clause. The                                                                         using the procedures of FAR 19.805 and
                                                                                                       Jennifer L. Hawes,
                                               basic and alternate clauses will each                                                                         processed in accordance with the PA
                                               appear in full text, which will facilitate              Editor, Defense Acquisition Regulations
                                                                                                       System.                                               cited in 219.800.
                                               use of the automated contract writing
                                                                                                                                                             *      *    *     *     *
                                               systems.                                                  Therefore, 48 CFR parts 212, 219, and
                                                  No comments were received from the                   252 are amended as follows:                           PART 252—SOLICITATION
                                               public in response to the initial                       ■ 1. The authority citation for 48 CFR                PROVISIONS AND CONTRACT
                                               regulatory flexibility analysis.                        parts 212, 219, and 252 continues to                  CLAUSES
                                                  DFARS 252.219–7003, Small Business                   read as follows:
                                               Subcontracting Plan (DoD Contracts),                                                                          ■  5. Amend section 252.219–7003 by—
                                               and its alternate are prescribed to be                    Authority: 41 U.S.C. 1303 and 48 CFR
                                                                                                       chapter 1.                                            ■  a. Revising the introductory text,
                                               used with FAR 52.219–9 and its                                                                                clause title, and date;
                                               alternates. FAR 52.219–9 does not apply                 PART 212—ACQUISITION OF                               ■ b. Amending paragraph (a) by
                                               to small business concerns; therefore,                  COMMERCIAL ITEMS                                      removing ‘‘eSRS’’ and adding ‘‘the
                                               there is no burden on any small                                                                               Electronic Subcontracting Reporting
                                               business for this rule.                                 ■  2. In section 212.301, revise paragraph            System (eSRS)’’ in its place;
                                                  DFARS 252.219–7010, now titled                       (f)(vii)(A) to read as follows:                       ■ c. In paragraph (c)(2), removing
                                               ‘‘Notification of Competition Limited to                                                                      ‘‘Section’’ and adding ‘‘section’’ in its
                                               Eligible 8(a) Concerns—Partnership                      212.301 Solicitation provisions and                   place; and
                                               Agreement,’’ is the alternate for FAR                   contract clauses for the acquisition of
                                                                                                                                                             ■ c. Revising Alternate I.
                                               52.219–18, Notification of Competition                  commercial items.
                                                                                                                                                                The revisions read as follows:
                                               Limited to Eligible 8(a) Concerns. This                 *     *     *    *     *
                                               clause only affects 8(a) concerns when                    (f) * * *                                           252.219–7003 Small Business
                                               competing for an 8(a) award. Currently,                   (vii) Part 219—Small Business                       Subcontracting Plan (DoD Contracts).
                                               there are approximately 5,217 active                    Programs. (A) Use the clause at                         Basic. As prescribed in
                                               concerns registered in SAM that are                     252.219–7003, Small Business                          219.708(b)(1)(A) and (b)(1)(A)(1), use
                                               certified in the 8(a) program. Nothing                  Subcontracting Plan (DoD Contracts), to               the following clause:
                                               substantive will change in solicitations                comply with 15 U.S.C. 637.
                                                                                                                                                             SMALL BUSINESS SUBCONTRACTING
                                               or contracts for potential offerors; only                 (1) Use the basic clause as prescribed              PLAN (DOD CONTRACTS)—BASIC (MAR
                                               the way the clause alternates are                       in 219.708(b)(1)(A)(1).                               2016)
                                               presented in solicitations and contracts                  (2) Use the alternate I clause as
                                                                                                                                                             *     *    *     *     *
                                               will be changed. This rule will result in               prescribed in 219.708(b)(1)(A)(2).
                                                                                                                                                               Alternate I. As prescribed in
                                               potential offerors, including small                     *     *     *    *     *                              219.708(b)(1)(A) and (b)(1)(A)(2), use
                                               businesses, expending less time to                                                                            the following clause, which uses a
                                               review and understand the solicitation                  PART 219—SMALL BUSINESS
                                                                                                                                                             different paragraph (f) than the basic
                                               and contract. The rule anticipates saving               PROGRAMS
                                                                                                                                                             clause.
                                               contractors’ time by making all
                                                                                                       ■ 3. In section 219.708, revise paragraph             SMALL BUSINESS SUBCONTRACTING
                                               paragraph substitutions from the basic
                                                                                                       (b)(1)(A) to read as follows:                         PLAN (DOD CONTRACTS)—ALTERNATE I
                                               clause and by not requiring offerors to                                                                       (MAR 2016)
                                               read inapplicable paragraphs contained                  219.708    Contract clauses.
                                               in the basic clauses where alternates are                                                                        This clause supplements the Federal
                                                                                                         (b)(1)(A) Use the basic or alternate                Acquisition Regulation 52.219–9, Small
                                               used in the solicitations and contracts.                clause at 252.219–7003, Small Business                Business Subcontracting Plan, clause of this
                                                  The rule does not impose any                         Subcontracting Plan (DoD Contracts), in               contract.
                                               additional reporting, recordkeeping, or                 solicitations and contracts, including                   (a) Definitions. Summary Subcontract
                                               other compliance requirements.                          solicitations and contracts using FAR                 Report (SSR) Coordinator, as used in this
                                                  No alternatives were identified that                                                                       clause, means the individual at the
                                                                                                       part 12 procedures for the acquisition of
                                               will accomplish the objectives of the                                                                         department or agency level who is registered
                                                                                                       commercial items, that contain the
                                               rule.                                                                                                         in the Electronic Subcontracting Reporting
                                                                                                       clause at FAR 52.219–9, Small Business                System (eSRS) and is responsible for
                                               V. Paperwork Reduction Act                              Subcontracting Plan.                                  acknowledging receipt or rejecting SSRs in
                                                 The rule contains information                           (1) Use the basic clause at 252.219–                eSRS for the department or agency.
                                               collection requirements that require the                7003, when using the basic, alternate I,                 (b) Subcontracts awarded to workshops
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                                               approval of the Office of Management                    or alternate II of FAR 52.219–9.                      approved by the Committee for Purchase
                                               and Budget (OMB) under the Paperwork                      (2) Use the alternate I clause at                   from People Who are Blind or Severely
                                                                                                       252.219–7003, when using Alternate III                Disabled (41 U.S.C. 8502–8504), may be
                                               Reduction Act (44 U.S.C. chapter 35);                                                                         counted toward the Contractor’s small
                                               however, these changes to the DFARS                     of FAR 52.219–9.
                                                                                                                                                             business subcontracting goal.
                                               do not impose additional information                    *     *     *      *   *                                 (c) A mentor firm, under the Pilot Mentor-
                                               collection requirement to the paperwork                 ■ 4. In section 219.811–3, revise                     Protege Program established under section
                                               burden previously approved under                        paragraph (2) to read as follows:                     831 of Public Law 101–510, as amended, may



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                                                                   Federal Register / Vol. 81, No. 58 / Friday, March 25, 2016 / Rules and Regulations                                          17047

                                               count toward its small disadvantaged                       (3) If the competition is to be limited to         statute or Balance of Payments Program
                                               business goal, subcontracts awarded to—                 8(a) concerns within one or more specific             applies.
                                                  (1) Protege firms which are qualified                SBA regions or districts, then the offeror’s
                                                                                                                                                             DATES: Effective March 25, 2016.
                                               organizations employing the severely                    approved business plan is on the file and
                                               disabled; and                                           serviced by llll. [Contracting Officer                FOR FURTHER INFORMATION CONTACT: Mr.
                                                  (2) Former protege firms that meet the               completes by inserting the appropriate SBA            Christopher Stiller, telephone 571–372–
                                               criteria in section 831(g)(4) of Public Law             District and/or Regional Office(s) as                 6176.
                                               101–510.                                                identified by the SBA.]                               SUPPLEMENTARY INFORMATION:
                                                  (d) The master plan is approved by the                  (b) By submission of its offer, the Offeror
                                               Contractor’s cognizant contract                         represents that it meets all of the criteria set      I. Background
                                               administration activity.                                forth in paragraph (a) of this clause.                   DoD published a proposed rule in the
                                                  (e) In those subcontracting plans which                 (c) Any award resulting from this
                                               specifically identify small businesses, the                                                                   Federal Register at 80 FR 72672 on
                                                                                                       solicitation will be made directly by the
                                               Contractor shall notify the Administrative                                                                    November 20, 2015, to revise the
                                                                                                       Contracting Officer to the successful 8(a)
                                               Contracting Officer of any substitutions of             offeror selected through the evaluation               DFARS to clarify when it is appropriate
                                               firms that are not small business firms, for            criteria set forth in this solicitation.              to omit DFARS clause 252.225–7001
                                               the small business firms specifically                      (d)(1) Agreement. A small business                 with regard to exceptions to the Buy
                                               identified in the subcontracting plan.                  concern submitting an offer in its own name           American statute and Balance of
                                               Notifications shall be in writing and shall             shall furnish, in performing the contract,            Payment Program. There were no public
                                               occur within a reasonable period of time after          only end items manufactured or produced by            comments submitted in response to the
                                               award of the subcontract. Contractor-                   small business concerns in the United States
                                               specified formats shall be acceptable.                                                                        proposed rule. There are no changes
                                                                                                       or its outlying areas, unless—                        from the proposed rule made in the final
                                                  (f)(1) For DoD, the Contractor shall submit
                                                                                                          (i) The SBA has determined that there are          rule.
                                               reports in eSRS as follows:
                                                                                                       no small business manufacturers or
                                                  (i) The Standard Form 294, Subcontracting
                                               Report for Individual Contracts, shall be
                                                                                                       processors in the Federal market place in             II. Applicability to Contracts at or
                                               submitted in accordance with the                        accordance with FAR 19.502–2(c);                      Below the Simplified Acquisition
                                               instructions on that form.                                 (ii) The acquisition is processed under            Threshold and for Commercial Items,
                                                  (ii) An SSR for other than a commercial              simplified acquisition procedures and the             Including Commercially Available Off-
                                               subcontracting plan, or construction and                total amount of this contract does not exceed         the-Shelf Items
                                               related maintenance repair contracts, shall be          $25,000, in which case a small business
                                               submitted in eSRS to the department or                  concern may furnish the product of any                   The clause at DFARS 252.225–7001,
                                               agency within DoD that administers the                  domestic firm; or                                     Buy American Act and Balance of
                                               majority of the Contractor’s individual                    (iii) The acquisition is a construction or         Payments Program, applies to
                                               subcontracting plans. An example would be               service contract.                                     acquisitions at or below the simplified
                                               Defense Finance and Accounting Service or                  (2) The llll [insert name of SBA’s                 acquisition threshold and for
                                               Missile Defense Agency.                                 contractor] will notify the llll [insert              commercial items, including
                                                  (2) For DoD, the authority to acknowledge            name of contracting agency] Contracting
                                                                                                                                                             commercially available off-the-shelf
                                               receipt or reject reports in eSRS is as follows:        Officer in writing immediately upon entering
                                                                                                       an agreement (either oral or written) to              items. This rule merely clarifies when it
                                                  (i) Except as provided in paragraph (f)(2)(ii)
                                               of this clause, the authority to acknowledge            transfer all or part of its stock or other            is appropriate to omit DFARS clause
                                               receipt or reject SSRs in eSRS resides with             ownership interest to any other party.                252.225–7001 in accordance with
                                               the SSR Coordinator at the department or                                                                      existing exceptions to the Buy American
                                               agency that administers the majority of the             (End of clause)                                       statute and Balance of Payment
                                               Contractor’s individual subcontracting plans.           [FR Doc. 2016–06722 Filed 3–24–16; 8:45 am]           Program.
                                                  (ii) The authority to acknowledge receipt or         BILLING CODE 5001–06–P
                                               reject SSRs for construction and related                                                                      III. Executive Orders 12866 and 13563
                                               maintenance and repair contracts resides                                                                         Executive Orders (E.O.s) 12866 and
                                               with the SSR Coordinator for each                       DEPARTMENT OF DEFENSE                                 13563 direct agencies to assess all costs
                                               department or agency.
                                                                                                                                                             and benefits of available regulatory
                                               (End of clause)                                         Defense Acquisition Regulations                       alternatives and, if regulation is
                                                                                                       System                                                necessary, to select regulatory
                                               ■ 6. Revise section 252.219–7010 to
                                               read as follows:                                                                                              approaches that maximize net benefits
                                                                                                       48 CFR Part 225                                       (including potential economic,
                                               252.219–7010 Notification of Competition                [Docket DARS–2015–0053]                               environmental, public health and safety
                                               Limited to Eligible 8(a) Concerns—                                                                            effects, distributive impacts, and
                                               Partnership Agreement                                   RIN 0750–AI77
                                                                                                                                                             equity). E.O. 13563 emphasizes the
                                                 As prescribed in 219.811–3(2), use the                                                                      importance of quantifying both costs
                                               following clause:                                       Defense Federal Acquisition
                                                                                                       Regulation Supplement: Buy American                   and benefits, of reducing costs, of
                                               NOTIFICATION OF COMPETITION                             and Balance of Payments Program—                      harmonizing rules, and of promoting
                                               LIMITED TO ELIGIBLE 8(A) CONCERNS—                      Clause Prescription (DFARS Case                       flexibility. This is not a significant
                                               PARTNERSHIP AGREEMENT (MAR 2016)
                                                                                                       2015–D037)                                            regulatory action and, therefore, was not
                                                 (a) Offers are solicited only from small                                                                    subject to review under section 6(b) of
                                               business concerns expressly certified by the            AGENCY:  Defense Acquisition                          E.O. 12866, Regulatory Planning and
                                               Small Business Administration (SBA) for                 Regulations System, Department of                     Review, dated September 30, 1993. This
                                               participation in the SBA’s 8(a) Program and             Defense (DoD).                                        rule is not a major rule under 5 U.S.C.
                                               which meet the following criteria at the time                                                                 804.
                                                                                                       ACTION: Final rule.
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                                               of submission of offer:
                                                 (1) The Offeror is in conformance with the            SUMMARY:   DoD is issuing a final rule                IV. Regulatory Flexibility Act
                                               8(a) support limitation set forth in its
                                               approved business plan.
                                                                                                       amending the Defense Federal                            A final regulatory flexibility analysis
                                                 (2) The Offeror is in conformance with the            Acquisition Regulation Supplement                     (FRFA) has been prepared consistent
                                               Business Activity Targets set forth in its              (DFARS) to clarify how the clause                     with the Regulatory Flexibility Act, 5
                                               approved business plan or any remedial                  prescription addresses applicability                  U.S.C. 601, et seq. The FRFA is
                                               action directed by the SBA.                             when an exception to the Buy American                 summarized as follows:


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Document Created: 2018-02-02 15:18:05
Document Modified: 2018-02-02 15:18:05
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
ActionFinal rule.
DatesEffective March 25, 2016.
ContactMs. Jennifer Johnson, telephone 571- 372-6100.
FR Citation81 FR 17045 
RIN Number0750-AI68
CFR Citation48 CFR 212
48 CFR 219
48 CFR 252

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