[Federal Register Volume 64, Number 185 (Friday, September 24, 1999)]
[Rules and Regulations]
[Pages 51829-51830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24410]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 5, 8, 12, 19, and 52

[FAC 97-14; FAR Case 98-013; Item I]
RIN 9000-AI29


Federal Acquisition Regulation; Very Small Business Concerns

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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[[Page 51830]]

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to implement the 
Small Business Administration's (SBA) Very Small Business Pilot 
Program. This program became effective on January 4, 1999.

EFFECTIVE DATE: November 23, 1999.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405 (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 97-14, FAR case 98-013.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 304 of the Small Business Administration Reauthorization 
and Amendments Act of 1994 (Pub. L. 103-403) authorized the SBA 
Administrator to establish and carry out a pilot program for very small 
business (VSB) concerns. The Small Business Administration (SBA) 
published a final rule in the Federal Register on September 2, 1998, 
(63 FR 46640), amending 13 CFR Parts 121 and 125 to establish a pilot 
program for VSB business concerns. The purpose of the program is to 
improve access to Government contract opportunities for concerns that 
are substantially below SBA's size standards by reserving certain 
acquisitions for competition among VSB concerns. Implementation of the 
program is limited to geographic areas served by 10 SBA district 
offices. A VSB concern is defined as a small business that has 15 or 
fewer employees together with average annual receipts that do not 
exceed $1 million. Any procurement that has an anticipated dollar value 
exceeding $2,500 but not greater than $50,000 may be set aside for VSB 
concerns. A contracting officer must set aside for VSB concerns any 
such service or construction requirement that will be performed within 
the geographical boundaries served by a designated SBA district office 
if there is a reasonable expectation of obtaining fair and reasonable 
offers from two or more responsible VSB concerns headquartered within 
the geographical area served by that designated SBA district. In the 
case of a procurement for supplies, a contracting officer must set 
aside any such requirement for VSBs if the contracting office is 
located within the geographical area served by a designated SBA 
district, and there is a reasonable expectation of obtaining fair and 
reasonable offers from two or more responsible VSB concerns 
headquartered within the geographical area served by that designated 
SBA district. The program will expire on September 30, 2000.
    The Councils published an interim rule in the Federal Register on 
March 4, 1999, (64 FR 10535). Five respondents submitted comments in 
response to the interim rule. The Councils considered all comments in 
the development of the final rule.
    This rule was not subject to Office of Management and Budget review 
under Section 6(b) of Executive Order 12866, Regulatory Planning and 
Review, dated September 30, 1993. This rule is not a major rule under 5 
U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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 does not 
impose any new requirements on large or small contractors. The Small 
Business Administration has certified that the revisions to 13 CFR 
Parts 121 and 125 being implemented by this rule will not have 
significant economic impact on a substantial number of small entities 
within the meaning of the Regulatory Flexibility Act.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that require 
the approval of the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

List of Subjects in 48 CFR Parts 5, 8, 12, 19, and 52

    Government procurement.

    Dated: September 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

Interim Rule Adopted as Final With Changes

    Accordingly, DoD, GSA, and NASA adopt the interim rule amending 48 
CFR Parts 5, 8, 12, 19, and 52, which was published in the Federal 
Register on March 4, 1999, (64 FR 10535), as a final rule with the 
following changes:

PART 19--SMALL BUSINESS PROGRAMS

    1. The authority citation for 48 CFR Part 19, and continues to read 
as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

19.904   [Amended]

    2. In section 19.904, remove from paragraphs (a) introductory text, 
(b), (c), and (d) ``shall'' and insert ``must'', in their places.


19.905   [Amended]

    3. In section 19.905, remove from the introductory text, paragraph 
(a) introductory text, and paragraph (b) ``The contracting officer 
shall use'' and insert ``Insert'', in their places.

[FR Doc. 99-24410 Filed 9-23-99; 8:45 am]
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