[Federal Register Volume 59, Number 10 (Friday, January 14, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-491] [[Page Unknown]] [Federal Register: January 14, 1994] ======================================================================= ----------------------------------------------------------------------- GENERAL SERVICES ADMINISTRATION 48 CFR Parts 519 and 552 [GSAR Notice 5-384] General Services Administration Acquisition Regulation; Small Business Subcontracting Program AGENCY: Office of Acquisition Policy, GSA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This notice invites written comments on a proposed revision which expresses GSA's expectation that offerors under GSA procurements, in submitting required subcontracting plans, will do more than merely restate minimum plan requirements described at FAR 52.219-9. GSA also expects subcontracting plans to demonstrate aggressiveness, creativity, and innovation in involving small, small disadvantaged, and women-owned small business concerns in subcontracting opportunities and an understanding of the requirement that these concerns be afforded the maximum practicable opportunity to perform as subcontractors in the offeror's procurements. In negotiated solicitations, the subcontracting plan will be negotiated with price and any technical and management proposal required by the solicitation. In sealed bid solicitations, target goals may be stated by GSA in the solicitation. GSA understands, however, that offerors' subcontracting circumstances may vary greatly. The proposed revision also deletes various sections because they concern nonregulatory material. DATES: Comments are due in writing on or before March 15, 1994. ADDRESSES: Comments should be addressed to the GSA Desk Officer, room 3235, NEOB, Washington, DC 20503 and Marjorie Ashby, Office of GSA Acquisition Policy, 18th and F Streets, NW., room 4006, Washington, DC 20405. FOR FURTHER INFORMATION CONTACT: Paul Linfield, Office of GSA Acquisition Policy, (202) 501-1224. SUPPLEMENTARY INFORMATION: A. Executive Order 12866 This rule was not submitted to the Office of Management and Budget (OMB) for review because the rule is not a significant regulatory action as defined in Executive Order 12866, Regulatory Planning and Review, and, therefore, was not required to be submitted. B. Regulatory Flexibility Act Pursuant to the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), the GSA certifies that the proposed rule will not have significant impact on a substantial number of small entities, since the revised subcontracting plan requirements in the proposed regulation will not apply to small business concerns. Accordingly, an initial regulatory flexibility analysis has not been prepared. C. Paperwork Reduction Act The retitled provision at 552.219-73 contains an information collection requirement that is subject to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), and it has been submitted to OMB for approval under the Act. Comments on the information collection may be submitted to the Office of Information and Regulatory Affairs of OMB, Attention: Desk Officer for GSA, Washington, DC 20503. The title of the information collection is ``GSAR 552.219-73 Preparation, Submission, and Negotiation of Subcontracting Plans.'' The provision requires all offerors, other than small business concerns, responding to a negotiated solicitation to submit a subcontracting plan with their respective offers so that a plan can be negotiated concurrently with other parts of the proposal. The respondents are potential GSA contractors. The contracting officer will use the information to evaluate whether GSA's expectation that subcontracting opportunities exist for small, small disadvantaged and women-owned small business is reasonable under the circumstances; negotiate goals consistent with statutory requirements and acquisition objectives; and expedite the award process. The estimated annual burden for this additional collection is 14,690 hours. This is based on an estimated burden per response of 11.3 hours, a proposed frequency of one response per respondent, and an estimated number of likely respondents of 1,300. List of Subjects in 48 CFR Parts 519 and 552 Government procurement. Accordingly, it is proposed that 48 CFR parts 519 and 552 be amended to read as follows: 1. The authority citation for 48 CFR parts 519 and 552 continues to read as follows: Authority: 40 U.S.C. 486(c). PART 519--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS 519.701, 519.702 and 519.704 [Removed] 2. Sections 519.701, 519.702, and 519.704 are removed. 3. Section 519.705-2 is revised to read as follows: 519.705-2 Determining the need for a subcontracting plan. The requirement at FAR 19.702(a)(1) for submission of a subcontracting plan by only the apparently successful offeror does not apply to GSA negotiated solicitations when the contract is expected to exceed $500,000 ($1,000,000 for construction). Except for acquisitions of leasehold interests in real property using expedited procedures and those offering minimal subcontracting opportunities, negotiated solicitations shall require submission with the initial offer of a subcontracting plan in the format described in FAR 52.219-9 by all offerors that are not small business concerns. Where price is the basis for award, such as multiple award schedule contracts, the plan will be evaluated and negotiated along with price. In solicitations requiring technical and management proposals, the subcontracting plan will be included as an evaluation factor or subfactor and negotiated concurrently with the technical, management, and price proposals. 519.705-4, 519.705-6, 519.706, and 519.706-70 [Removed] 4. Section 519.705-4, 519.705-6, 519.706, and 519.706-70 are removed. 5. Section 519.708 is revised to read as follows: 519.708 Solicitation provisions and contract clauses. (a) The contracting officer shall insert the provision at 552.219- 72, Notice to Offerors of Subcontracting Plan Requirements, on the cover page of the solicitation if the contract amount is expected to exceed $500,000 ($1,000,000 for construction) except for: (1) Acquisitions set aside for small business; (2) Solicitations for personal services; (3) Solicitations for work to be performed outside any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; and (4) Acquisitions of leasehold interests in real property using expedited procedures. (b) The contracting officer shall insert the provision at 552.219- 73, Preparation, Submission, and Negotiation of Subcontracting Plans, in negotiated solicitations if the contract amount is expected to exceed $500,000 ($1,000,000 for construction) except for: (1) Acquisitions set aside for small business; (2) Solicitations for personal services; (3) Solicitations for work to be performed outside any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico; (4) Acquisitions of leasehold interests in real property using expedited procedures; and (5) Solicitations where, in the judgment of the contracting officer, subcontracting opportunities are minimal. (c) The contracting officer shall insert the provision at 552.219- 74, Goals for Subcontracting Plan, in sealed bid solicitations if the contract amount is expected to exceed $500,000 ($1,000,000 for construction) except for: (1) Acquisitions set aside for small business; (2) Solicitations for personal services; (3) Solicitations for work to be performed outside any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico. The basic provision should be used when the contracting officer is able to realistically establish target goals. Alternate I should be used when the contracting officer cannot establish realistic target goals. 519.770, 519.770-1, and 519.770-3 [Removed] 6. Sections 519.770, 519.770-1, and 519.770-3 are removed. 7. Section 552.219-72 is revised to read as follows: 552.219-72 Notice to offerors of subcontracting plan requirements. As prescribed in 519.708(a), insert the following provision: Notice to Offerors of Subcontracting Plan Requirements (XXX 1993) The General Services Administration (GSA) is committed to assuring that maximum practicable opportunity is provided to small, small disadvantaged, and women-owned small business concerns to participate in the performance of this contract consistent with its efficient performance. GSA expects any subcontracting plan submitted pursuant to FAR 52.219-9 to reflect this commitment. Consequently, an offeror, other than a small business concern, before being awarded a contract exceeding $500,000 ($1,000,000 for construction) will be required to demonstrate that its subcontracting plan represents an aggressive program for involving small, small disadvantaged, and women-owned small business concerns as subcontractors in the performance of this contract. (End of Provision) 8. Section 552.219-73 is revised to read as follows: 552.219-73 Preparation, submission, and negotiation of subcontracting plans. As prescribed in 519.708(b), insert the following provision: Preparation, Submission, and Negotiation of Subcontracting Plans (XXX 1993) (a) An offeror, other than a small business concern, submitting an offer that exceeds $500,000 ($1,000,000 for construction) shall submit a subcontracting plan with its initial offer. The subcontracting plan will be negotiated concurrently with price and any required technical and management proposals, unless the offeror submits a previously-approved commercial products plan. Maximum practicable utilization of small, small disadvantaged, and women- owned small business concerns as subcontractors is a matter of national interest with both social and economic benefits. It is the General Services Administration's (GSA's) expectation that an offeror's subcontracting plan will reflect a commitment to assuring that small, small disadvantaged, and women-owned small business concerns are provided the maximum practicable opportunity, consistent with efficient contract performance, to participate as subcontractors in the performance of the resulting contract. (b) GSA believes that this potential contract provides significant opportunities for the use of small, small disadvantaged, and women-owned small business concerns as subcontractors. Consequently, in addressing the eleven elements described at FAR 52.219-9(d), the offeror shall demonstrate that its subcontracting plan represents an aggressive program for involving small, small disadvantaged, and women-owned small business concerns in performing the contract. The subcontracting plan shall include a description of the offeror's subcontracting strategies used in any previous contracts, significant achievements, and how this plan will build upon those earlier achievements. Additionally, the offeror shall demonstrate through its plan that it understands the small business subcontracting program's objectives, GSA's expectations, and actions necessary to meet these goals and expectations. (c) In determining the acceptability of any subcontracting plan, the Contracting Officer will-- (1) Review the plan to verify that the offeror has demonstrated an understanding of the small business subcontracting program's objectives and GSA's expectations with the respect to the program and has included all the information, goals, and assurances required by FAR 52.219-9; (2) Consider previous goals and achievements of contractors in the same industry; (3) Consider information and potential sources obtained from agencies administering national and local preference programs and other advocacy groups in evaluating whether the goals stated in the plan adequately reflect the anticipated potential for subcontracting to small, small disadvantaged, and women-owned small business concerns; and (4) Review, when applicable, the offeror's description of its strategies, historical performance and significant achievements in placing subcontracts for the same or similar products or services with small, small disadvantaged, and women-owned small business concerns. (d) Failure to submit to subcontracting plan and/or correct deficiencies in the plan within the time specified by the Contracting Officer shall make the offeror ineligible for award. (End of Provision) 9. Section 552.219-74 is added to read as follows: 552.219-74 Goals for subcontracting plan. As prescribed in 519.708(c), insert the following provision: Goals for Subcontracting Plan (XXX 1993) (a) Maximum practicable utilization of small, small disadvantaged, and women-owned small business concerns as subcontractors is a matter of national interest with both social and economic benefits. The General Services Administration's (GSA's) commitment to ensuring that maximum practicable opportunity is provided to small, small disadvantaged, and women-owned small business concerns to participate as subcontractors in the performance of this contract, consistent with its efficient performance, must be reflected in the offeror's subcontracting plan submitted pursuant to FAR 52.219-9. In addressing the eleven elements described at FAR 52.219-9(d), the offeror shall demonstrate that its subcontracting plan represents an aggressive program for involving small, small disadvantaged, and women-owned small business concerns in performing this contract. The subcontracting plan shall include a description of the offeror's subcontracting strategies used in previous contracts, significant achievements, and how this plan will build upon those earlier achievements. Additionally, the offeror shall demonstrate through its's plan that it understands the small business subcontracting program's objectives, GSA's expectations, and actions necessary to meet these goals and expectations. (b) GSA believes that this contract provides significant opportunities for the use of small, small disadvantaged, and women- owned small business concerns as subcontractors. Accordingly, it is anticipated that an acceptable subcontracting plan will contain at least the following goals: Small Business: ____ percent Small Disadvantaged Business: ____ percent Women-Owned Small Business: ____ percent Note: Target goals are expressed as a percentage of planned subcontracting dollars. (c) In determining the acceptability of a subcontracting plan, the Contracting Officer will-- (1) Review the plan to verify that the offeror has demonstrated an understanding of the small business subcontracting program's objectives and GSA's expectations with respect to the program and has included all the information, goals, and assurances required by FAR 52.219-9; (2) Consider previous goals and achievements of contractors in the same industry; (3) Consider information and potential sources obtained from agencies administering national and local preference programs and other advocacy groups in evaluating whether the goals stated in the plan adequately reflect the anticipated potential for subcontracting to small, small disadvantaged, and women-owned small business concerns; and (4) Review, when applicable, the offeror's description of strategies, historical performance and significant achievements in placing subcontracts for the same or similar products or services with small, small disadvantaged, and women-owned small business concerns. (d) Failure to submit an acceptable subcontracting plan and/or correct deficiencies in the plan within the time specified by the Contracting Officer shall make the offeror ineligible for award. (End of Provision) Alternate I (XXX 1993) The Contracting Officer, as prescribed in 519.708(c) shall delete paragraph (b) of the basic provision and redesignate paragraphs (c) and (d) as paragraphs (b) and (c). Dated: December 21, 1993. Richard H. Hopf, III, Associate Administrator for Acquisition Policy. [FR Doc. 94-491 Filed 1-13-94; 8:45 am] BILLING CODE 6820-61-M