83 FR 62554 - Defense Federal Acquisition Regulation Supplement: Small Business Set-Asides for Architect-Engineer and Construction Design Contracts (DFARS Case 2018-D057)
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System Federal Register Volume 83, Issue 233 (December 4, 2018)
Defense Acquisition Regulations System
Federal Register Volume 83, Issue 233 (December 4, 2018)
| Page Range | 62554-62555 | |
| FR Document | 2018-26308 |
[Federal Register Volume 83, Number 233 (Tuesday, December 4, 2018)] [Proposed Rules] [Pages 62554-62555] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26308] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Defense Acquisition Regulations System 48 CFR Part 219 [Docket DARS-2018-0056] RIN 0750-AK18 Defense Federal Acquisition Regulation Supplement: Small Business Set-Asides for Architect-Engineer and Construction Design Contracts (DFARS Case 2018-D057) AGENCY: Defense Acquisition Regulations System, Department of Defense (DoD). ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2019 regarding set-asides for architect-engineer and construction design contracts. DATES: Comments on the proposed rule should be submitted in writing to the address shown below on or before February 4, 2019, to be considered in the formation of a final rule. ADDRESSES: Submit comments identified by DFARS Case 2018-D057, using any of the following methods: [cir] Federal eRulemaking Portal: http://www.regulations.gov. Search for ``DFARS Case 2018-D057.'' Select ``Comment Now'' and follow the instructions provided to submit a Comment. Please include ``DFARS Case 2018-D057'' on any attached documents. [cir] Email: [email protected]. Include DFARS Case 2018-D057 in the subject line of the message. [cir] Fax: 571-372-6094. [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Jennifer D. Johnson, OUSD(A&S)DPC/DARS, Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060. Comments received generally will be posted without change to http://www.regulations.gov, including any personal 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. Jennifer D. Johnson, telephone 571-372-6100. SUPPLEMENTARY INFORMATION: I. Background DoD is proposing to revise the DFARS to implement section 2804 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232), which amends the thresholds at 10 U.S.C. 2855 for small business set-asides of acquisitions for architect-engineer services, including construction design, in connection with military construction projects or military family housing projects. Section 2804 requires these acquisitions to be set aside for small business if valued at less than $1,000,000. Section 2804 also removes the prohibition on setting aside these acquisitions; as a result, these acquisitions may now be set aside for small business, if valued at $1,000,000 or more. II. Discussion and Analysis This rule proposes to delete paragraph (2) at DFARS 219.502-1. This paragraph prohibits small business set-asides of acquisitions for architect-engineer services for military construction or family housing projects valued at $400,000 or more. The remaining paragraphs would be combined into a single unnumbered paragraph. In addition, this rule proposes to revise the dollar value at DFARS 219.502-2, paragraph (a)(iii), from $400,000 to $1,000,000. This paragraph requires acquisitions for architect-engineer services for military construction or family housing projects to be set aside for small business below a certain dollar value. III. 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 propose to create any new provisions or clauses or impact any existing provisions or clauses. [[Page 62555]] 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 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. V. Executive Order 13771 This proposed rule is not expected to be an E.O. 13771 regulatory action, because this rule is not significant under E.O. 12866. VI. Regulatory Flexibility Act DoD does not expect this proposed rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule impacts a small number of small entities. However, an initial regulatory flexibility analysis has been performed and is summarized as follows: DoD is proposing to revise the DFARS to implement section 2804 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232), which amends the thresholds at 10 U.S.C. 2855 for small business set-asides of acquisitions for architect-engineer services, including construction design, in connection with military construction projects or military family housing projects. The objective of this rule is to implement statutory changes to 10 U.S.C. 2855 by removing the restriction on small business set-asides for these acquisitions and increasing the threshold for small business set-aside to $1,000,000. The legal basis for the rule is section 2804 of the NDAA for FY 2019. The rule applies to contract awards for architect-engineer services, including construction design. Data from the Federal Procurement Data System shows that, during FY 2017, DoD awarded 232 contracts for architect-engineer services to 187 unique small entities. In FY 2017, DoD awarded 41 contracts for architect-engineer services valued at more than the prior threshold of $400,000 and less than the new threshold of $1,000,000. This rule proposes to require future contracts in this range to be awarded pursuant to FAR part 19 set-aside procedures. DoD also awarded 290 contracts for architect-engineer services valued at more than $1,000,000. This rule proposes to make it possible for future contracts at those dollar values to be awarded pursuant to part 19 set-aside procedures. There are more than 33,000 small entities listed in the Small Business Administration's Dynamic Small Business Search that provide architect-engineer services. Of these entities, approximately 300 could benefit from this rule. This rule does not impose any new reporting, recordkeeping, or other compliance requirements for small entities. This rule does not duplicate, overlap, or conflict with any other Federal rules. There are no known alternatives that would meet the requirements of the applicable statute. DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities. DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C 610 (DFARS Case 2018-D057), in correspondence. VII. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). List of Subjects in 48 CFR Part 219 Government procurement. Jennifer Lee Hawes, Regulatory Control Officer, Defense Acquisition Regulations System. Therefore, 48 CFR part 219 is proposed to be amended as follows: PART 219--SMALL BUSINESS PROGRAMS 0 1. The authority citation for 48 CFR part 219 continues to read as follows: Authority: 41 U.S.C. 1303 and 48 CFR chapter 1. 0 2. Revise section 219.502-1 to read as follows: 219.502-1 Requirements for setting aside acquisitions. Do not set aside acquisitions for supplies which were developed and financed, in whole or in part, by Canadian sources under the U.S.- Canadian Defense Development Sharing Program. 219.502-2 [Amended] 0 3. Amend section 219.502-2, in paragraph (a)(iii), by removing ``of under $400,000'' and adding ``under $1,000,000'' in its place. [FR Doc. 2018-26308 Filed 12-3-18; 8:45 am] BILLING CODE 5001-06-P
![62554 Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Proposed Rules
■ e. Adding new paragraph (b)(1). ■ a. Redesignating paragraph (a)(2) as Room 3B941, 3060 Defense Pentagon,
The additions read as follows: paragraph (a)(3); and Washington, DC 20301–3060.
■ b. Adding new paragraph (a)(2) to read Comments received generally will be
216.505 Ordering.
as follows: posted without change to http://
(a) General.
237.270 Acquisition of audit services. www.regulations.gov, including any
* * * * *
(b) Orders under multiple-award personal information provided. To
(a) * * *
contracts—(1) Fair opportunity. confirm receipt of your comment(s),
(2) See 215.101–2–70(b)(3) for the
(A) See 215.101–2–70 for the please check www.regulations.gov,
prohibition on the use of the lowest
limitations and prohibitions on the use approximately two to three days after
price technically acceptable source
of the lowest price technically submission to verify posting (except
selection process when acquiring audit
acceptable source selection process, allow 30 days for posting of comments
services.
which are applicable to orders placed submitted by mail).
* * * * *
against multiple award indefinite [FR Doc. 2018–26306 Filed 12–3–18; 8:45 am] FOR FURTHER INFORMATION CONTACT: Ms.
delivery contracts. BILLING CODE 5001–06–P Jennifer D. Johnson, telephone 571–
(B) See 217.7XXX for the prohibition 372–6100.
on the use of reverse auctions for
personal protective equipment and SUPPLEMENTARY INFORMATION:
DEPARTMENT OF DEFENSE
aviation critical safety items. I. Background
* * * * * Defense Acquisition Regulations
System DoD is proposing to revise the DFARS
PART 217—SPECIAL CONTRACTING to implement section 2804 of the
METHODS 48 CFR Part 219 National Defense Authorization Act
■ 8. Add new subpart 217.7X, to read as [Docket DARS–2018–0056]
(NDAA) for Fiscal Year (FY) 2019 (Pub.
follows: L. 115–232), which amends the
RIN 0750–AK18 thresholds at 10 U.S.C. 2855 for small
217.7X—REVERSE AUCTIONS business set-asides of acquisitions for
Sec. Defense Federal Acquisition architect-engineer services, including
7XXX Prohibition. Regulation Supplement: Small construction design, in connection with
Business Set-Asides for Architect- military construction projects or
217.7X—REVERSE AUCTIONS Engineer and Construction Design military family housing projects.
Contracts (DFARS Case 2018–D057) Section 2804 requires these acquisitions
217.7XXX Prohibition.
In accordance with section 814 of the AGENCY: Defense Acquisition to be set aside for small business if
National Defense Authorization Act for Regulations System, Department of valued at less than $1,000,000. Section
Fiscal Year 2017 (Pub. L. 114–328) as Defense (DoD). 2804 also removes the prohibition on
amended by section 882 of the National ACTION: Proposed rule.
setting aside these acquisitions; as a
Defense Authorization Act for Fiscal result, these acquisitions may now be
Year 2018 (Pub. L. 115–91) (see 10 SUMMARY: DoD is proposing to amend set aside for small business, if valued at
U.S.C. 2302 note), contracting officers the Defense Federal Acquisition $1,000,000 or more.
shall not use reverse auctions when Regulation Supplement (DFARS) to II. Discussion and Analysis
procuring items designated by the implement a section of the National
requiring activity as personal protective Defense Authorization Act for Fiscal This rule proposes to delete paragraph
equipment or an aviation critical safety Year 2019 regarding set-asides for (2) at DFARS 219.502–1. This paragraph
item, when the requiring activity architect-engineer and construction prohibits small business set-asides of
advises the contracting officer that the design contracts. acquisitions for architect-engineer
level of quality or failure of the DATES: Comments on the proposed rule services for military construction or
equipment or item could result in should be submitted in writing to the family housing projects valued at
combat casualties. See 252.209–7010 for address shown below on or before $400,000 or more. The remaining
the definition and identification of February 4, 2019, to be considered in paragraphs would be combined into a
critical safety items. the formation of a final rule. single unnumbered paragraph. In
ADDRESSES: Submit comments addition, this rule proposes to revise the
PART 234—MAJOR SYSTEM dollar value at DFARS 219.502–2,
identified by DFARS Case 2018–D057,
ACQUISITION paragraph (a)(iii), from $400,000 to
using any of the following methods:
■ 9. Add section 234.005–2 to read as Æ Federal eRulemaking Portal: http:// $1,000,000. This paragraph requires
follows: www.regulations.gov. Search for acquisitions for architect-engineer
‘‘DFARS Case 2018–D057.’’ Select services for military construction or
234.005–2 Mission-oriented solicitation. family housing projects to be set aside
‘‘Comment Now’’ and follow the
See 215.101–2–70(b)(2) for the instructions provided to submit a for small business below a certain dollar
prohibition on the use of the lowest Comment. Please include ‘‘DFARS Case value.
price technically acceptable source 2018–D057’’ on any attached
selection process for engineering and III. Applicability to Contracts at or
documents. Below the Simplified Acquisition
manufacturing development of a major Æ Email: osd.dfars@mail.mil. Include
defense acquisition program for which Threshold and for Commercial Items,
DFARS Case 2018–D057 in the subject Including Commercially Available Off-
budgetary authority is requested line of the message.
beginning in fiscal year 2019. the-Shelf Items
Æ Fax: 571–372–6094.
Æ Mail: Defense Acquisition This rule does not propose to create
PART 237—SERVICE CONTRACTING
Regulations System, Attn: Ms. Jennifer any new provisions or clauses or impact
■ 10. Amend section 237.270 by— D. Johnson, OUSD(A&S)DPC/DARS, any existing provisions or clauses.
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![Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Proposed Rules 62555
IV. Executive Orders 12866 and 13563 engineer services valued at more than 219.502–1 Requirements for setting aside
the prior threshold of $400,000 and less acquisitions.
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs than the new threshold of $1,000,000. Do not set aside acquisitions for
and benefits of available regulatory This rule proposes to require future supplies which were developed and
alternatives and, if regulation is contracts in this range to be awarded financed, in whole or in part, by
necessary, to select regulatory pursuant to FAR part 19 set-aside Canadian sources under the U.S.-
approaches that maximize net benefits procedures. DoD also awarded 290 Canadian Defense Development Sharing
(including potential economic, contracts for architect-engineer services Program.
environmental, public health and safety valued at more than $1,000,000. This
rule proposes to make it possible for 219.502–2 [Amended]
effects, distributive impacts, and ■ 3. Amend section 219.502–2, in
equity). E.O. 13563 emphasizes the future contracts at those dollar values to
be awarded pursuant to part 19 set-aside paragraph (a)(iii), by removing ‘‘of
importance of quantifying both costs under $400,000’’ and adding ‘‘under
and benefits, of reducing costs, of procedures. There are more than 33,000
small entities listed in the Small $1,000,000’’ in its place.
harmonizing rules, and of promoting
flexibility. This is not a significant Business Administration’s Dynamic [FR Doc. 2018–26308 Filed 12–3–18; 8:45 am]
regulatory action and, therefore, was not Small Business Search that provide BILLING CODE 5001–06–P
subject to review under section 6(b) of architect-engineer services. Of these
E.O. 12866, Regulatory Planning and entities, approximately 300 could
Review, dated September 30, 1993. This benefit from this rule. DEPARTMENT OF COMMERCE
rule is not a major rule under 5 U.S.C. This rule does not impose any new
804. reporting, recordkeeping, or other National Oceanic and Atmospheric
compliance requirements for small Administration
V. Executive Order 13771 entities.
This proposed rule is not expected to This rule does not duplicate, overlap, 50 CFR Part 622
be an E.O. 13771 regulatory action, or conflict with any other Federal rules. [Docket No. 180724688–8688–01]
because this rule is not significant under There are no known alternatives that RIN 0648–BI39
E.O. 12866. would meet the requirements of the
VI. Regulatory Flexibility Act applicable statute. Fisheries of the Caribbean, Gulf of
DoD invites comments from small Mexico, and South Atlantic; Reef Fish
DoD does not expect this proposed business concerns and other interested Fishery of the Gulf of Mexico;
rule to have a significant economic parties on the expected impact of this Revisions to Red Snapper and Hogfish
impact on a substantial number of small rule on small entities. DoD will also Management Measures
entities within the meaning of the consider comments from small entities
Regulatory Flexibility Act, 5 U.S.C. 601, concerning the existing regulations in AGENCY: National Marine Fisheries
et seq., because the rule impacts a small subparts affected by this rule in Service (NMFS), National Oceanic and
number of small entities. However, an accordance with 5 U.S.C. 610. Interested Atmospheric Administration (NOAA),
initial regulatory flexibility analysis has parties must submit such comments Commerce.
been performed and is summarized as separately and should cite 5 U.S.C 610 ACTION: Proposed rule; request for
follows: (DFARS Case 2018–D057), in comments.
DoD is proposing to revise the DFARS correspondence.
to implement section 2804 of the SUMMARY: NMFS proposes to implement
National Defense Authorization Act VII. Paperwork Reduction Act management measures described in two
(NDAA) for Fiscal Year (FY) 2019 (Pub. The rule does not contain any framework actions to the Fishery
L. 115–232), which amends the information collection requirements that Management Plan (FMP) for the Reef
thresholds at 10 U.S.C. 2855 for small require the approval of the Office of Fish Resources of the Gulf of Mexico
business set-asides of acquisitions for Management and Budget under the (Gulf), as prepared by the Gulf of
architect-engineer services, including Paperwork Reduction Act (44 U.S.C. Mexico Fishery Management Council
construction design, in connection with chapter 35). (Council). The framework actions are
military construction projects or titled ‘‘Modify the Annual Catch Limit
military family housing projects. List of Subjects in 48 CFR Part 219 (ACL) for the Gulf Red Snapper and
The objective of this rule is to Hogfish Stocks’’ (ACL Framework
Government procurement.
implement statutory changes to 10 Action) and ‘‘Modify the Red Snapper
U.S.C. 2855 by removing the restriction Jennifer Lee Hawes, Recreational Annual Catch Targets
on small business set-asides for these Regulatory Control Officer, Defense (ACT)’’ (ACT Framework Action). This
acquisitions and increasing the Acquisition Regulations System. proposed rule would modify Gulf red
threshold for small business set-aside to snapper commercial and recreational
Therefore, 48 CFR part 219 is
$1,000,000. The legal basis for the rule ACLs (quotas) and ACTs, as well as the
proposed to be amended as follows:
is section 2804 of the NDAA for FY Gulf hogfish (West Florida stock) stock
2019. PART 219—SMALL BUSINESS ACL, as a result of recent stock
The rule applies to contract awards PROGRAMS assessments for each species.
for architect-engineer services, Additionally, this proposed rule would
including construction design. Data ■ 1. The authority citation for 48 CFR reduce the Federal charter vessel/
from the Federal Procurement Data part 219 continues to read as follows: headboat (for-hire) component’s red
System shows that, during FY 2017, snapper ACT buffer to a level that
Authority: 41 U.S.C. 1303 and 48 CFR
DoD awarded 232 contracts for would allow a greater harvest in 2019
chapter 1.
architect-engineer services to 187 while continuing to constrain landings
unique small entities. In FY 2017, DoD ■ 2. Revise section 219.502–1 to read as to the component and total recreational
awarded 41 contracts for architect- follows: ACLs. The purposes of this proposed
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Document Created: 2018-12-04 00:42:23
Document Modified: 2018-12-04 00:42:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments on the proposed rule should be submitted in writing to the address shown below on or before February 4, 2019, to be considered in the formation of a final rule. | |
| Contact | Ms. Jennifer D. Johnson, telephone 571-372-6100. | |
| FR Citation | 83 FR 62554 | |
| RIN Number | 0750-AK18 |
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