[Federal Register Volume 63, Number 249 (Tuesday, December 29, 1998)]
[Rules and Regulations]
[Page 71604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34316]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1871


Administrative Revisions to the NASA FAR Supplement, MidRange 
Procurement Procedures

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This is a final rule to conform NASA FAR Supplement MidRange 
Procurement Procedures with FAR 19.10 and 13.5.

DATES: This final rule is effective December 29, 1998.

ADDRESSES: Celeste Dalton, NASA Headquarters Office of Procurement, 
Contract Management Division (Code HK), Washington, DC 20546.

FOR FURTHER INFORMATION CONTACT: Celeste Dalton, (202) 358-1645.

SUPPLEMENTARY INFORMATION:

Background

    NASA MidRange Procurement Procedures require that all acquisitions 
be reserved for small business concerns with specific exceptions noted. 
FAR Subpart 19.10, Small Business Competitiveness Demonstration 
Program, requires acquisitions in four designated industry groups be 
conducted on an unrestricted basis as long as specific goals for small 
business are achieved. This rule will add acquisitions subject to FAR 
Subpart 19.10 to the list of MidRange exceptions. Also, FAR Subpart 
13.5, Test Program for Certain Commercial Items, allows for use of 
simplified acquisition procedures for commercial item acquisition of 
$5M or less. NASA MidRange Procurement Procedures require that 
commercial items acquired under FAR Subpart 13.5 be accomplished using 
MidRange Procedures. This precludes the use of additional flexibility 
provided for in FAR Part 13. This final rule will relax the MidRange 
requirement to permit use of MidRange Procurement Procedures for 
commercial item acquisitions conducted under FAR Subpart 13.5. Also, an 
editorial change is made to correct a FAR citation noted in section 
1871.401-6.

Impact

    NASA certifies that this regulation will not have a significant 
economic impact on a substantial number of small business entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) since the 
changes modify administrative procedures and do not impose any new 
requirements on offerors or contractors. The rule does not impose any 
reporting or recordkeeping requirements subject to the Paperwork 
Reduction Act.

List of Subjects in 48 CFR Part 1871

    Government Procurement.
Tom Luedtke,
Acting Associate Administrator for Procurement.
    Accordingly, 48 CFR Part 1871 is amended as follows:
    1. The authority citation for 48 CFR Part 1871 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1)

PART 1871--MIDRANGE PROCUREMENT PROCEDURES

    2. Section 1871.204 is revised to read as follows:


1871.204  Small business set-asides.

    (a) Except as provided in paragraphs (b) through (f) of this 
section, each MidRange acquisition shall be reserved exclusively for 
small business concerns.
    (b) The requirement for small business MidRange set-asides does not 
relieve the buying office of its responsibility to procure from 
required sources of supply, such as Federal Prison Industries, 
Industries for the Blind and Other Severely Handicapped, and multiple 
award Federal Supply Schedule contracts.
    (c) Procurements not conducted as small business set-asides and 
under less than full and open competition require a Justification for 
Other than Full and Open Competition pursuant to FAR Part 6.
    (d) If the buying team procurement member determines there is no 
reasonable expectation of obtaining offers from two or more responsible 
small business concerns that will be competitive in terms of market 
price, quality, and delivery, the buying team need not proceed with the 
small business set-aside and may purchase on an unrestricted basis 
utilizing MidRange procedures. The buying team procurement member shall 
document the contract file with the reason for the unrestricted 
procurement.
    (e) Acquisitions required to be conducted under Full and Open 
Competition by the Small Business Competitiveness Demonstration 
Program, FAR subpart 19.10, will not be set aside for small business.
    (f) If the buying team proceeds with the small business MidRange 
set-aside and receives an offer from only one responsible small 
business concern at a reasonable price, the contracting officer will 
normally make an award to that concern. However, if the buying team 
does not receive a reasonable offer from a responsible small business 
concern, the buying team procurement member may cancel the small 
business set-aside and complete the procurement on an unrestricted 
basis utilizing MidRange procedures. The buying team procurement 
members shall document in the file the reason for the unrestricted 
purchase.
    (g) Each model contract under a small business MidRange set-aside 
shall contain the clause at FAR 52.219-6, Notice of Total Small 
Business Set-Aside.


1871.401-6  [Amended]

    3. In paragraph (a)(2) to section 1871.401-6, the word ``shall'' is 
revised to read ``may'' and the citation ``FAR subpart 13.6'' is 
revised to read ``FAR subpart 13.5''.
[FR Doc. 98-34316 Filed 12-28-98; 8:45 am]
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