[Federal Register Volume 63, Number 131 (Thursday, July 9, 1998)]
[Notices]
[Page 37096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18097]


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DEPARTMENT OF DEFENSE


Reinstatement of Small Business Set-Asides for Certain 
Acquisitions Under the Small Business Competitiveness Demonstration 
Program

AGENCY: Department of Defense (DoD).

ACTION: Notice of reinstatement of small business set-asides under the 
Small Business Competitiveness Demonstration Program.

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SUMMARY: The Director of Defense Procurement has reinstated the use of 
small business set-aside procedures for certain construction 
acquisitions issued by the Departments of the Army and Navy. Included 
in the reinstatement are solicitations issued under Standard Industrial 
Category Major Group 15 and Standard Industrial Category Code 1629 
(Navy only).

EFFECTIVE DATE: June 17, 1998.

FOR FURTHER INFORMATION CONTACT:
Mr. Michael Sipple, OUSD (A&T), Director of Defense Procurement, 
Contract Policy Administration, Room 3C838, 3060 Defense Pentagon, 
Washington, DC 20301-3060, telephone (703) 695-8567.

SUPPLEMENTARY INFORMATION: The Office of Federal Procurement Policy 
(OFPP) implemented Title VII of Pub. L. 100-656 (15 U.S.C. 644 note) by 
issuance of the ``Small Business Competitiveness Demonstration Program 
Test Plan'' on August 31, 1989, amended April 16, 1993. The program was 
further implemented in Subpart 19.10 of the Federal Acquisition 
Regulation (FAR) and Subpart 219.10 of the Defense FAR Supplement 
(DFARS).

    Under the program, small business set-asides were initially 
suspended for certain designated industry groups (DIGs). Agencies are 
required by paragraphs III.D.2.a and IV.A.4. of the OFPP test plan to 
reinstate the use of small business set-asides whenever the small 
business awards under any designated industry group falls below 40 
percent or whenever small business awards under an Individual Standard 
Industrial Classification (SIC) Code within the designated industry 
group falls below 35 percent. Reinstatement is to be limited to the 
organizational elements (in the case of DoD, the individual military 
departments or other components) that failed to meet the small business 
participation goals.
    For the 12 months ending March 1998, DoD awards in the industries 
shown below fell below the 40 percent (SIC Major Group 15) or 35 
percent (SIC Code 1629) thresholds. Accordingly, pursuant to DFARS 
219.1006(b)(2), the Director of Defense Procurement has directed 
reinstatement of small business set aside procedures for solicitations 
that involve the industry categories shown below. The reinstatement 
applies to solicitations issued by the applicable buying activities on 
or after June 17, 1998, or as soon thereafter as practicable:

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              Industry                           Applicable to          
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Construction:.......................                                    
    Major Group 15 (including SIC     All Army and Navy Activities.     
     1521, 1522, 1531, 1541, and                                        
     1542).                                                             
    Major Group 16--SIC, Code 1629    All Navy Activities.              
     only.                                                              
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    Consistent with the OFPP test plan, this reinstatement of set-
asides will be periodically reviewed for continuation. Small business 
set-asides were reinstated DoD-wide for the DIG titled ``Architectural 
and Engineering Services,'' by memorandum of September 30, 1991. That 
reinstatement remains in effect.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 98-18097 Filed 7-8-98; 8:45 am]
BILLING CODE 5000-04-M