Federal Acquisition Regulation; Confirmation of HUBZone Certification, 43581-43583 [05-14669]
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Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Rules and Regulations
materials or labor-hour contracts with
small business represent only
approximately 2 percent of all contracts.
In addition, the rule eases the impact of
the current FAR by permitting the
contracting officer to use judgment in
deciding whether to withhold
payments, thus the number of contracts
affected is a subset of the 2 percent
figure. This change is expected to have
a small but beneficial impact on small
businesses.
furnish material that is regularly sold to
the general public in the normal course
of business by the contractor and the
price is under the limitations prescribed
in 16.601(b)(3), the contracting officer
shall use the clause with its Alternate I.
(ii) If a labor-hour contract is
contemplated, and if no specific
reimbursement for materials furnished
is intended, the contracting officer may
use the clause with its Alternate II.
(iii) If the contracting officer
determines that it is necessary to
C. Paperwork Reduction Act
withhold payment to protect the
Government’s interests, paragraph (a)(2)
The Paperwork Reduction Act does
of the clause permits the contracting
not apply because the changes to the
officer to unilaterally issue a
FAR do not impose information
collection requirements that require the modification requiring the contractor to
withhold 5 percent of amounts due, up
approval of the Office of Management
to a maximum of $50,000 under the
and Budget under 44 U.S.C. 3501, et
contract. The contracting officer shall
seq.
ensure that the modification specifies
List of Subjects in 48 CFR Parts 14, 32,
the percentage and total amount of the
and 52
withhold payment. Normally, there
Government procurement.
should be no need to withhold payment
for a contractor with a record of timely
Dated: July 20, 2005.
submittal of the release discharging the
Julia B. Wise,
Government from all liabilities,
Director, Contract Policy Division.
obligations, and claims, as required by
I Therefore, DoD, GSA, and NASA
paragraph (f) of the clause.
amend 48 CFR parts 14, 32, and 52 as set
*
*
*
*
*
forth below:
52.232–8
43581
[Amended]
5. In the introductory text of section
52.232–8, remove ‘‘32.111(c)(1)’’ and
add ‘‘32.111(b)(1)’’ in its place.
I
52.232–9
[Amended]
6. In the introductory text of section
52.232–9, remove ‘‘32.111(c)(2)’’ and
add ‘‘32.111(b)(2)’’ in its place.
I
52.232–10
[Amended]
7. In the introductory text of section
52.232–10, remove ‘‘32.111(d)(1)’’ and
add ‘‘32.111(c)(1)’’ in its place.
I
52.232–11
[Amended]
8. In the introductory text of section
52.232–11, remove ‘‘32.111(d)(2)’’ and
add ‘‘32.111(c)(2)’’ in its place.
I
[FR Doc. 05–14668 Filed 7–26–05; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 19 and 52
1. The authority citation for 48 CFR
parts 14, 32, and 52 is revised to read as
follows:
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
[FAC 2005–05; FAR Case 2005–009; Item
IV]
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
I
I
4. Amend section 52.232–7 by—
a. Removing from the introductory text
‘‘32.111(b)’’ and adding ‘‘32.111(a)(7)’’ in
its place;
I b. Revising the date of the clause; and
I c. Revising paragraph (a)(2).
The revised text reads as follows:
RIN 9000–AK22
I
PART 14—SEALED BIDDING
14.408–3
[Amended]
2. Amend section 14.408–3 in
paragraph (b) by removing ‘‘See
32.111(c)(1),’’ and adding ‘‘See
32.111(b)(1),’’ in its place.
I
52.232–7 Payments under Time-andMaterials and Labor-Hour Contracts.
*
PART 32—CONTRACT FINANCING
3. Amend section 32.111 by—
a. Removing from the end of paragraph
(a)(5) the word ‘‘and’’;
I b. Removing the period from the end
of paragraph (a)(6) and adding ‘‘; and’’ in
its place;
I c. Adding paragraph (a)(7);
I d. Removing paragraph (b); and
I e. Redesignating paragraphs (c) and (d)
as (b) and (c), respectively.
The added text reads as follows:
I
I
32.111 Contract clauses for noncommercial purchases.
(a) * * *
(7) The clause at 52.232–7, Payments
under Time-and-Materials and LaborHour Contracts, in solicitations and
contracts when a time-and-materials or
labor-hour contract is contemplated.
(i) If the nature of the work to be
performed requires the contractor to
VerDate jul<14>2003
18:07 Jul 26, 2005
Jkt 205001
*
*
*
*
PAYMENTS UNDER TIME-ANDMATERIALS AND LABOR-HOUR
CONTRACTS (AUG 2005)
*
*
*
*
*
(a) * * *
(2) Unless otherwise prescribed in the
Schedule, the Contracting Officer may
unilaterally issue a contract
modification requiring the Contractor to
withhold amounts from its billings until
a reserve is set aside in an amount that
the Contracting Officer considers
necessary to protect the Government’s
interests. The Contracting Officer may
require a withhold of 5 percent of the
amounts due under paragraph (a), but
the total amount withheld for the
contract shall not exceed $50,000. The
amounts withheld shall be retained
until the Contractor executes and
delivers the release required by
paragraph (f) of this clause.
*
*
*
*
*
PO 00000
Frm 00007
Fmt 4701
Sfmt 4700
Federal Acquisition Regulation;
Confirmation of HUBZone Certification
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule with request for
comments.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) have agreed to an interim
rule amending the Federal Acquisition
Regulation (FAR) to clarify that prime
contractors must confirm that a
subcontractor representing itself as a
Historically Underutilized Business
Zone (HUBZone) small business
concern is certified, consistent with the
requirements of 15 U.S.C. 632 et seq., as
amended.
DATES: Effective Date: July 27, 2005.
Comment Date: Interested parties
should submit comments to the FAR
Secretariat at the address shown below
on or before September 26, 2005 to be
considered in the formulation of a final
rule.
ADDRESSES: Submit comments
identified by FAC 2005–05, FAR case
E:\FR\FM\27JYR3.SGM
27JYR3
43582
Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Rules and Regulations
2005–009, by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Agency Web Site: https://
www.acqnet.gov/far/ProposedRules/
proposed.htm. Click on the FAR case
number to submit comments.
• E-mail: farcase.2005–009@gsa.gov.
Include FAC 2005–05, FAR case 2005–
009 in the subject line of the message.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(VIR), 1800 F Street, NW, Room 4035,
ATTN: Laurieann Duarte, Washington,
DC 20405.
Instructions: Please submit comments
only and cite FAC 2005–05, FAR case
2005–009, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.acqnet.gov/far/ProposedRules/
proposed.htm, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT: The
FAR Secretariat at (202) 501–4755, for
information pertaining to status or
publication schedules. For clarification
of content, contact Ms. Rhonda Cundiff,
Procurement Analyst, at (202) 501–
0044. Please cite FAC 2005–05, FAR
case 2005–009.
SUPPLEMENTARY INFORMATION:
A. Background
Title 15 of the United States Code,
section 632 requires that a qualified
Historically Underutilized Business
Zone (HUBZone) small business
concern be certified by the Small
Business Administration (SBA). A
Department of Defense Inspector
General report D–2003–019 ‘‘DoD
Contractor Subcontracting With
Historically Underutilized Business
Zones (HUBZones) Small Businesses’’
found that prime contractors were
overstating their HUBZone
accomplishments because
subcontractor’s representations were not
being verified. The FAR is being revised
to clarify that prime contractors must
confirm a subcontractor representing
itself as a HUBZone small business
concern is certified, consistent with the
requirements of 15 U.S.C. 632 et seq., as
amended.
The specific changes revise FAR
19.703 and the clause at 52.219–9 to
clarify that contractors shall confirm
that a subcontractor representing itself
as a HUBZone small business concern is
certified by SBA as a HUBZone small
business concern by accessing the
Central Contractor Registration or by
contacting the SBA.
VerDate jul<14>2003
16:07 Jul 26, 2005
Jkt 205001
This is not a significant regulatory
action and, therefore, was not subject to
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 changes may 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 this
rule change will have a positive effect
on small businesses who are certified
HUBZone small business concerns and
are losing subcontracting opportunities
taken by another company falsely
claiming to be a certified HUBZone
small business concern. The FAR
Secretariat has submitted a copy of the
Initial Regulatory Flexibility Analysis to
the Chief Counsel for Advocacy of the
Small Business Administration. The
analysis is summarized as follows:
Title 15 of the United States Code, section
632 requires that a qualified Historically
Underutilized Business Zone (HUBZone)
small business concern be on the list of
qualified HUBZone small business concerns
maintained by the Small Business
Administration. A Department of Defense
Inspector General report D–2003–019 ‘‘DoD
Contractor Subcontracting With Historically
Underutilized Business Zones (HUBZones)
Small Businesses’’ found that prime
contractors were overstating their HUBZone
accomplishments because subcontractor’s
representations were not being verified. This
interim rule revises the Federal Acquisition
Regulation to require prime contractors to
verify that its HUBZone small business
concerns are qualified as required by 15
U.S.C. 632 et seq., as amended.
The changes may 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 certified HUBZone small
business concerns will have additional
subcontracting opportunities previously
taken by other companies falsely claiming to
be certified HUBZone small business
concerns.
Interested parties may obtain a copy
from the FAR Secretariat. The Councils
will consider comments from small
entities concerning the affected FAR
Parts 19 and 52 in accordance with 5
U.S.C. 610. Interested parties must
submit such comments separately and
should cite 5 U.S.C 601, et seq. (FAC
2005–05, FAR case 2005–009), in
correspondence.
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
PO 00000
Frm 00008
Fmt 4701
Sfmt 4700
and Budget under 44 U.S.C. 3501, et
seq.
D. Determination to Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
(DoD), the Administrator of General
Services (GSA), and the Administrator
of the National Aeronautics and Space
Administration (NASA) that urgent and
compelling reasons exist to promulgate
this interim rule without prior
opportunity for public comment. This
action is necessary because some
subcontractors incorrectly claim to be
certified HUBZone small business
concerns. Since prime contractors are
not currently required to verify their
subcontractors’ HUBZone certifications
through the SBA prior to reporting their
subcontracting awards to DoD, many
real HUBZone small business concerns
are losing opportunities that they
should have. This also results in the
reporting of inaccurate data on the
HUBZone program to Congress and
SBA. Awards to improperly certified
subcontractors can be stopped
immediately, if prime contractors make
a simple check on the CCR database or
contact SBA. Pursuant to Public Law
98–577 and FAR 1.501, the Councils
will consider public comments received
in response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Parts 19 and
52
Government procurement.
Dated: July 20. 2005.
Julia B. Wise,
Director, Contract Policy Division.
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 19 and 52 as set
forth below:
I 1. The authority citation for 48 CFR
parts 19 and 52 is revised to read as
follows:
I
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
PART 19—SMALL BUSINESS
PROGRAMS
2. Amend section 19.703 by—
a. Removing ‘‘HUBZone small
business,’’ from the first sentence of
paragraph (b);
I b. Removing the last sentence of
paragraph (b); and
I c. Adding paragraph (c) to read as
follows:
I
I
19.703 Eligibility requirements for
participating in the program.
*
*
*
*
*
(c)(1) The contractor shall confirm
that a subcontractor representing itself
E:\FR\FM\27JYR3.SGM
27JYR3
Federal Register / Vol. 70, No. 143 / Wednesday, July 27, 2005 / Rules and Regulations
as a HUBZone small business concern is
certified by SBA as a HUBZone small
business concern by accessing the
Central Contractor Registration (CCR)
database or by contacting the SBA.
Options for contacting the SBA
include—
(i) HUBZone web page at https://
dsbs.sba.gov/dsbs/
dsplsearchhubzone.cfm;
(ii) In writing to the AA/HUB at U.S.
Small Business Administration, 409 3rd
Street, S.W., Washington DC 20416; or
(iii) E-mail at hubzone@sba.gov.
(2) Protests challenging HUBZone
small business concern size status must
be filed in accordance with 13 CFR
121.411.
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
3. Amend section 52.212–5 by—
I a. Revising the date of the clause; and
I b. Removing from paragraph (b)(8)(i)
‘‘(JAN 2002’’) and adding ‘‘(JUL 2005’’).
The revised and added text reads as
follows:
I
52.212–5 Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items.
*
*
*
*
*
CONTRACT TERMS AND CONDITIONS
REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS—COMMERCIAL
ITEMS (JUL 2005)
*
*
*
*
*
I 4. Amend section 52.219–9 by—
I a. Revising the date of the clause;
I b. Redesignating paragraph (e)(4) as
paragraph (e)(5); and
I c. Adding a new paragraph (e)(4).
The revised and added text reads as
follows:
52.219–9
Plan.
*
Small Business Subcontracting
*
*
*
*
SMALL BUSINESS SUBCONTRACTING
PLAN (JUL 2005)
*
*
*
*
(e) * * *
(4) Confirm that a subcontractor
representing itself as a HUBZone small
business concern is identified as a
certified HUBZone small business
concern by accessing the Central
Contractor Registration (CCR) database
or by contacting SBA.
*
*
*
*
*
[FR Doc. 05–14669 Filed 7–26–05; 8:45 am]
VerDate jul<14>2003
18:07 Jul 26, 2005
Jkt 205001
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 45 and 52
[FAC 2005–05; FAR Case 2002–015; Item
V]
RIN 9000–AJ99
Federal Acquisition Regulation;
Government Property Rental and
Special Tooling
AGENCIES: Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
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 incorporate a class
deviation regarding use and charges,
which has been applicable to the
Department of Defense since 1998. This
deviation is appropriate for application
across the Federal Government. The
change clarifies the basis for
determining the rental charges for the
use of Government property and is
intended to promote the dual use of
such property. The final rule
specifically impacts contracting officers,
property administrators, and contractors
responsible for the management of
Government property.
DATES: Effective Date: August 26, 2005.
FOR FURTHER INFORMATION CONTACT: The
FAR Secretariat at (202) 501–4755 for
information pertaining to status or
publication schedules. For clarification
of content, contact Ms. Jeritta Parnell,
Procurement Analyst, at (202) 501–
4082. Please cite FAC 2005–05, FAR
case 2002–015.
SUPPLEMENTARY INFORMATION:
A. Background
*
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
69 FR 42544, July 15, 2004, to
incorporate two Department of Defense
class deviations, 98–O0010, Use and
Charges, and 98–O0011, Special
Tooling, into FAR Part 45 and make
appropriate revisions to FAR 52.245–9,
Use and Charges, and FAR 52.245–17,
Special Tooling. The final rule
establishes, as the basis for rental
charges, the time property is actually
used for commercial purposes, rather
PO 00000
Frm 00009
Fmt 4701
Sfmt 4700
43583
than the time available for use; permits
contractors to obtain property appraisals
from independent appraisers; permits
appraisal-based rentals for all property;
and allows contracting officers to
consider alternate bases for determining
rentals. The final rule does not change
the requirements for special tooling as
originally proposed by the Councils
because the Councils are now
considering deleting the clause in its
entirety rather than revising it based on
comments received on the proposed
rule. The Councils plan to solicit
comments on the proposed deletion of
the FAR clause at 52.245–17, Special
Tooling, under another proposed rule.
Four respondents provided public
comments. Consideration of these
comments resulted in only minor
administrative changes to the proposed
rule. The resolution of the comments
follows:
Summary of Comments Received/
Disposition
1. Proposed Rule (PR): 52.245–9.
Deviation to the clause at 52.245–9 sets
a fair and equitable method for applying
a rent usage when Government property
is used for commercial purposes or
existing Government property is used
for future contracts and equitable
adjustment is needed to eliminate unfair
competitive advantage.
Concur.
2. PR: 52.245–17. All respondents
proposed the elimination of the special
tooling clause.The Councils plan to
solicit comments on the proposed
deletion of the FAR clause at 52.245–17,
Special Tooling, under another
proposed rule.
3. PR: 52.245–9(h). Amend paragraph
(h) to strike ‘‘person’’ and replace it
with ‘‘contractor.’’ Rationale is that a
company would control their personnel
through their administrative procedures
when wrong is discovered and the
Government may control the contractor
in a like manner.
Nonconcur. The legal basis for this
citation, 18 U.S.C. 641, applies to an
individual, as well as a corporate entity.
4. PR: 52.245–9. It may make sense to
provide a time frame where an
immediate need for usage of property
from another contract becomes
imminent and use of the property would
not interfere with the owning contract,
and the ACO is not available for
authorization, a period of 48 hours,
documented by the losing contract,
would be allowed for transfer of tooling
and use of such tooling be paid for at
a higher rate than the proposed
schedule. Tooling would be returned
immediately if authorization were not
received.
E:\FR\FM\27JYR3.SGM
27JYR3
Agencies
[Federal Register Volume 70, Number 143 (Wednesday, July 27, 2005)]
[Rules and Regulations]
[Pages 43581-43583]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-14669]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 19 and 52
[FAC 2005-05; FAR Case 2005-009; Item IV]
RIN 9000-AK22
Federal Acquisition Regulation; Confirmation of HUBZone
Certification
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed to an interim
rule amending the Federal Acquisition Regulation (FAR) to clarify that
prime contractors must confirm that a subcontractor representing itself
as a Historically Underutilized Business Zone (HUBZone) small business
concern is certified, consistent with the requirements of 15 U.S.C. 632
et seq., as amended.
DATES: Effective Date: July 27, 2005.
Comment Date: Interested parties should submit comments to the FAR
Secretariat at the address shown below on or before September 26, 2005
to be considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-05, FAR case
[[Page 43582]]
2005-009, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Agency Web Site: https://www.acqnet.gov/far/ProposedRules/
proposed.htm. Click on the FAR case number to submit comments.
E-mail: farcase.2005-009@gsa.gov. Include FAC 2005-05, FAR
case 2005-009 in the subject line of the message.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-05, FAR
case 2005-009, in all correspondence related to this case. All comments
received will be posted without change to https://www.acqnet.gov/far/
ProposedRules/proposed.htm, including any personal information
provided.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755,
for information pertaining to status or publication schedules. For
clarification of content, contact Ms. Rhonda Cundiff, Procurement
Analyst, at (202) 501-0044. Please cite FAC 2005-05, FAR case 2005-009.
SUPPLEMENTARY INFORMATION:
A. Background
Title 15 of the United States Code, section 632 requires that a
qualified Historically Underutilized Business Zone (HUBZone) small
business concern be certified by the Small Business Administration
(SBA). A Department of Defense Inspector General report D-2003-019
``DoD Contractor Subcontracting With Historically Underutilized
Business Zones (HUBZones) Small Businesses'' found that prime
contractors were overstating their HUBZone accomplishments because
subcontractor's representations were not being verified. The FAR is
being revised to clarify that prime contractors must confirm a
subcontractor representing itself as a HUBZone small business concern
is certified, consistent with the requirements of 15 U.S.C. 632 et
seq., as amended.
The specific changes revise FAR 19.703 and the clause at 52.219-9
to clarify that contractors shall confirm that a subcontractor
representing itself as a HUBZone small business concern is certified by
SBA as a HUBZone small business concern by accessing the Central
Contractor Registration or by contacting the SBA.
This is not a significant regulatory action and, therefore, was not
subject to 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 changes may 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 this rule change will
have a positive effect on small businesses who are certified HUBZone
small business concerns and are losing subcontracting opportunities
taken by another company falsely claiming to be a certified HUBZone
small business concern. The FAR Secretariat has submitted a copy of the
Initial Regulatory Flexibility Analysis to the Chief Counsel for
Advocacy of the Small Business Administration. The analysis is
summarized as follows:
Title 15 of the United States Code, section 632 requires that a
qualified Historically Underutilized Business Zone (HUBZone) small
business concern be on the list of qualified HUBZone small business
concerns maintained by the Small Business Administration. A
Department of Defense Inspector General report D-2003-019 ``DoD
Contractor Subcontracting With Historically Underutilized Business
Zones (HUBZones) Small Businesses'' found that prime contractors
were overstating their HUBZone accomplishments because
subcontractor's representations were not being verified. This
interim rule revises the Federal Acquisition Regulation to require
prime contractors to verify that its HUBZone small business concerns
are qualified as required by 15 U.S.C. 632 et seq., as amended.
The changes may 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 certified
HUBZone small business concerns will have additional subcontracting
opportunities previously taken by other companies falsely claiming
to be certified HUBZone small business concerns.
Interested parties may obtain a copy from the FAR Secretariat. The
Councils will consider comments from small entities concerning the
affected FAR Parts 19 and 52 in accordance with 5 U.S.C. 610.
Interested parties must submit such comments separately and should cite
5 U.S.C 601, et seq. (FAC 2005-05, FAR case 2005-009), in
correspondence.
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.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because some subcontractors incorrectly claim to be
certified HUBZone small business concerns. Since prime contractors are
not currently required to verify their subcontractors' HUBZone
certifications through the SBA prior to reporting their subcontracting
awards to DoD, many real HUBZone small business concerns are losing
opportunities that they should have. This also results in the reporting
of inaccurate data on the HUBZone program to Congress and SBA. Awards
to improperly certified subcontractors can be stopped immediately, if
prime contractors make a simple check on the CCR database or contact
SBA. Pursuant to Public Law 98-577 and FAR 1.501, the Councils will
consider public comments received in response to this interim rule in
the formation of the final rule.
List of Subjects in 48 CFR Parts 19 and 52
Government procurement.
Dated: July 20. 2005.
Julia B. Wise,
Director, Contract Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 19 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 19 and 52 is revised to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 19--SMALL BUSINESS PROGRAMS
0
2. Amend section 19.703 by--
0
a. Removing ``HUBZone small business,'' from the first sentence of
paragraph (b);
0
b. Removing the last sentence of paragraph (b); and
0
c. Adding paragraph (c) to read as follows:
19.703 Eligibility requirements for participating in the program.
* * * * *
(c)(1) The contractor shall confirm that a subcontractor
representing itself
[[Page 43583]]
as a HUBZone small business concern is certified by SBA as a HUBZone
small business concern by accessing the Central Contractor Registration
(CCR) database or by contacting the SBA. Options for contacting the SBA
include--
(i) HUBZone web page at https://dsbs.sba.gov/dsbs/dsp_
searchhubzone.cfm;
(ii) In writing to the AA/HUB at U.S. Small Business
Administration, 409 3rd Street, S.W., Washington DC 20416; or
(iii) E-mail at hubzone@sba.gov.
(2) Protests challenging HUBZone small business concern size status
must be filed in accordance with 13 CFR 121.411.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Amend section 52.212-5 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(8)(i) ``(JAN 2002'') and adding ``(JUL
2005'').
The revised and added text reads as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS--COMMERCIAL ITEMS (JUL 2005)
* * * * *
0
4. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraph (e)(4) as paragraph (e)(5); and
0
c. Adding a new paragraph (e)(4).
The revised and added text reads as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
SMALL BUSINESS SUBCONTRACTING PLAN (JUL 2005)
* * * * *
(e) * * *
(4) Confirm that a subcontractor representing itself as a HUBZone
small business concern is identified as a certified HUBZone small
business concern by accessing the Central Contractor Registration (CCR)
database or by contacting SBA.
* * * * *
[FR Doc. 05-14669 Filed 7-26-05; 8:45 am]
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