Federal Acquisition Regulation; Set-Asides for Small Business, 68032-68037 [2011-27786]
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68032
Federal Register / Vol. 76, No. 212 / Wednesday, November 2, 2011 / Rules and Regulations
(i) Represents, to the best of its knowledge
and belief, that the offeror does not export
any sensitive technology to the government
of Iran or any entities or individuals owned
or controlled by, or acting on behalf or at the
direction of, the government of Iran; and
(ii) Certifies that the offeror, or any person
owned or controlled by the offeror, does not
engage in any activities for which sanctions
may be imposed under section 5 of the Iran
Sanctions Act.
(3) The representation and certification
requirements of paragraph (o)(2) of this
provision do not apply if—
(i) This solicitation includes a trade
agreements certification (e.g., 52.212–3(g) or
a comparable agency provision); and
(ii) The offeror has certified that all the
offered products to be supplied are
designated country end products.
*
*
*
*
*
10. Revise section 52.225–25 to read
as follows:
■
52.225–25 Prohibition on Contracting with
Entities Engaging in Sanctioned Activities
Relating to Iran—Representation and
Certification.
As prescribed at 25.1103(e), insert the
following provision:
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Prohibition on Contracting With
Entities Engaging in Sanctioned
Activities Relating to Iran—
Representation and Certification
(NOV 2011)
[FR Doc. 2011–27784 Filed 11–1–11; 8:45 am]
BILLING CODE 6820–EP–P
(a) Definitions. As used in this provision—
Person—
(1) Means—
(i) A natural person;
(ii) A corporation, business association,
partnership, society, trust, financial
institution, insurer, underwriter, guarantor,
and any other business organization, any
other nongovernmental entity, organization,
or group, and any governmental entity
operating as a business enterprise; and
(iii) Any successor to any entity described
in paragraph (1)(ii) of this definition; and
(2) Does not include a government or
governmental entity that is not operating as
a business enterprise.
Sensitive technology—
(1) Means hardware, software,
telecommunications equipment, or any other
technology that is to be used specifically—
(i) To restrict the free flow of unbiased
information in Iran; or
(ii) To disrupt, monitor, or otherwise
restrict speech of the people of Iran; and
(2) Does not include information or
informational materials the export of which
the President does not have the authority to
regulate or prohibit pursuant to section
203(b)(3) of the International Emergency
Economic Powers Act (50 U.S.C. 1702(b)(3)).
(b) The offeror shall email questions
concerning sensitive technology to the
Department of State at
CISADA106@state.gov.
(c) Except as provided in paragraph (d) of
this provision or if a waiver has been granted
in accordance with 25.703–4, by submission
of its offer, the offeror—
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(1) Represents, to the best of its knowledge
and belief, that the offeror does not export
any sensitive technology to the government
of Iran or any entities or individuals owned
or controlled by, or acting on behalf or at the
direction of, the government of Iran; and
(2) Certifies that the offeror, or any person
owned or controlled by the offeror, does not
engage in any activities for which sanctions
may be imposed under section 5 of the Iran
Sanctions Act. These sanctioned activities
are in the areas of development of the
petroleum resources of Iran, production of
refined petroleum products in Iran, sale and
provision of refined petroleum products to
Iran, and contributing to Iran’s ability to
acquire or develop certain weapons or
technologies.
(d) Exception for trade agreements. The
representation requirement of paragraph
(c)(1) and the certification requirement of
paragraph (c)(2) of this provision do not
apply if—
(1) This solicitation includes a trade
agreements notice or certification (e.g.,
52.225–4, 52.225–6, 52.225–12, 52.225–24, or
comparable agency provision); and
(2) The offeror has certified that all the
offered products to be supplied are
designated country end products or
designated country construction material.
(End of provision)
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 8, 12, 16, 19, 38, and 52
[FAC 2005–54; FAR Case 2011–024; Item
VI; Docket 2011–0024, Sequence 01]
RIN 9000–AM12
Federal Acquisition Regulation; SetAsides for Small Business
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
AGENCY:
DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
implement section 1331 of the Small
Business Jobs Act of 2010 (Jobs Act).
Section 1331 addresses set-asides of
task- and delivery-orders under
multiple-award contracts, partial setasides under multiple-award contracts,
and the reserving of one or more
multiple-award contracts that are
awarded using full and open
competition. Within this same context,
SUMMARY:
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section 1331 also addresses the Federal
Supply Schedules Program managed by
GSA. DoD, GSA, and NASA are
coordinating with the Small Business
Administration (SBA) on the
development of an SBA proposed rule
that will provide greater detail regarding
implementation of section 1331
authorities.
Effective Date: November 2,
2011.
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before
January 3, 2012 to be considered in the
formation of a final rule.
Applicability Date: Contracting
officers are encouraged to modify, on a
bilateral basis, existing multiple-award
contracts in accordance with FAR
1.108(d)(3), if the remaining period of
performance extends at least six months
after the effective date, and the amount
of work or number of orders expected
under the remaining performance
period is substantial.
ADDRESSES: Submit comments
identified by FAC 2005–54, FAR Case
2011–024, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘FAR Case 2011–024’’ under
the heading ‘‘Enter Keyword or ID’’ and
selecting ‘‘Search.’’ Select the link
‘‘Submit a Comment’’ that corresponds
with ‘‘FAR Case 2011–024.’’ Follow the
instructions provided at the ‘‘Submit a
Comment’’ screen. Please include your
name, company name (if any), and
‘‘FAR Case 2011–024’’ on your attached
document.
• Fax: (202) 501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Hada Flowers, 1275
First Street, NE., 7th Floor, Washington,
DC 20417.
Instructions: Please submit comments
only and cite FAC 2005–54, FAR Case
2011–024, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Mr.
Karlos Morgan, Procurement Analyst, at
(202) 501–2364, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at (202) 501–
4755. Please cite FAC 2005–54, FAR
Case 2011–024.
SUPPLEMENTARY INFORMATION:
DATES:
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I. Background
Over the past 15 years, Federal
agencies have increasingly used
multiple award contracts—including the
Federal Supply Schedules managed by
GSA, governmentwide acquisition
contracts, multi-agency contracts, and
agency-specific indefinite-delivery,
indefinite-quantity (IDIQ) contracts—to
acquire a wide range of products and
services. This trend has created
challenges for agencies seeking to
provide maximum opportunity for small
businesses. Although set-asides are one
of the most effective tools agencies have
at their disposal to help small
businesses participate in Government
contracting opportunities, the FAR is
silent on how to apply set-asides at the
task-or-delivery order level.
In September 2010, the Interagency
Task Force on Small Business
Contracting, created by the President in
April of that year, issued a report
recommending that the rules on setasides, including for multiple-award
contracts, be clarified, and that
legislation be developed where it is
determined that statutory changes are
warranted. The Task Force noted that
set-asides accounted for approximately
half of all small business contract
awards in FY 2009, yet ‘‘there has been
no attempt to create a comprehensive
policy for orders placed under either
general task- and delivery-order
contracts or schedule contracts that
rationalizes and appropriately balances
the need for efficiency with the need to
maximize opportunities for small
businesses.’’ For a copy of the report, go
to https://www.sba.gov/sites/default/
files/
contracting_task_force_report_0.pdf.
The same month as the Task Force
report was issued, the President signed
the Jobs Act (Pub. L. 111–240) into law
to protect the interests of small
businesses and expand their
opportunities in the Federal
marketplace. Section 1331 of the Jobs
Act amends section 15 of the Small
Business Act (Pub. L. 85–536) to add a
new subsection (r) stating, in pertinent
part, that:
The Administrator, Office of Federal
Procurement Policy (OFPP) and the
Administrator, U.S. Small Business
Administration (SBA), in consultation
with the Administrator of the General
Services, shall, by regulation, establish
guidance under which Federal agencies
may, at their discretion—
(1) Set aside part or parts of a
multiple-award contract for small
business concerns, including the
subcategories of small business
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concerns identified in subsection (g)(2)
of the Small Business Act;
(2) Notwithstanding the fair
opportunity requirements under section
2304c(b) of Title 10, United States Code,
and section 303J(b) of the Federal
Property and Administrative Services
Act of 1949 (41 U.S.C. 253j(b))
(subsequently recodified as 41 U.S.C.
4106), set aside orders placed against
multiple-award contracts for small
business concerns, including the
subcategories of small business
concerns identified in subsection (g)(2)
of the Small Business Act; and
(3) Reserve one or more contract
awards for small business concerns
under full and open multiple-award
procurements, including the
subcategories of small business
concerns identified in subsection (g)(2)
of the Small Business Act.
SBA and OFPP, which are vested
under section 1331 with the authority to
issue regulations, in consultation with
the Administrator of GSA, have
requested that DoD, GSA, and NASA
publish this interim rule in order to
provide agencies with guidance that
they can use in taking advantage of this
important tool, while SBA completes
the drafting and coordination of a
proposed rule that will set forth more
specific guidance. This interim rule
amends—
• FAR subpart 8.4 to make clear that
order set-asides may be used in
connection with the placement of orders
and blanket purchase agreements under
Federal Supply Schedules;
• FAR subpart 12.2 to acknowledge
that discretionary set-asides may be
used if placing an order under a
multiple-award contract;
• FAR subpart 16.5 to acknowledge
that set-asides may be used in
connection with the placement of orders
under multiple-award contracts,
notwithstanding the requirement to
provide each contract holder a fair
opportunity to be considered;
• FAR part 19 to add a new section
authorizing agencies to (1) use set-asides
under multiple-award contracts—
including set-asides for small businesses
participating in the small business
programs identified in FAR 19.000(a)(3);
and (2) reserve one or more contract
awards under multiple-award contracts
for small businesses, including any of
the socio-economic groups; and
• FAR subpart 38.1 to add a reference
to FAR 8.405–5 to make clear that order
set-asides may be used in connection
with the placement of orders and
blanket purchase agreements under
Federal Supply Schedules.
This interim rule also amends existing
solicitation provisions and contract
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clauses, including FAR 52.219–6 to
provide notice of total set-asides and
partial set-asides under multiple-award
contracts, and revises existing contract
clauses to address limitations on
subcontracting for small businesses
under multiple award contracts.
DoD, GSA, and NASA expect agencies
to take advantage of set-asides under
multiple-award contracts by: (1)
Identifying existing or prospective
multiple-award contracts with small
business contract holders where order
set-asides may be appropriate, and (2)
maximizing opportunities for small
business by utilizing order set-asides
under the Federal Supply Schedule
Program.
II. Executive Order 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is a significant
regulatory action and, therefore was
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
III. Regulatory Flexibility Act
The change 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. The Initial
Regulatory Flexibility Analysis (IRFA) is
summarized as follows:
The Administrator of the Office of
Management and Budget’s Office of Federal
Procurement Policy requested that DoD,
GSA, and NASA amend the FAR to provide
preliminary implementation of section 1331
of the Small Business Jobs Act of 2010 (Jobs
Act).
DoD, GSA, and NASA are amending the
FAR to implement the authority to (1) set
aside part or parts of a multiple-award
contract for small business concerns; (2) set
aside orders placed against multiple-award
contracts, including Federal Supply
Schedules, for small business concerns; and
(3) reserve one or more contract awards
under full and open multiple-award
procurements, for small business concerns.
The objective of this rule is to provide an
additional tool for agencies to increase
opportunities for small business to compete
in the Federal marketplace. The statutory
authority for this action is Small Business
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Jobs Act of 2010, Pub. L. 111–240, 15 U.S.C.
644(r).
This rule may have a significant positive
economic impact on any small business
entity that wishes to participate in the
Federal procurement arena. Analysis of the
Central Contractor Registration database
indicates there are over 351,203 small
business registrants that can potentially
benefit from the implementation of this rule.
This rule does not impose any new
reporting, recordkeeping, or other
compliance requirements. The rule does not
duplicate, overlap, or conflict with any other
Federal rules.
The Regulatory Secretariat will be
submitting a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat. DoD, GSA, and
NASA invite comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by this rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAC 2005–54, FAR Case 2011–024) in
correspondence.
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IV. Paperwork Reduction Act
The interim rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
V. 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 section 1331
of the Jobs Act calls for the issuance,
within one year of the law’s enactment
(September 27, 2010), of ‘‘a regulation,
to establish guidance under which
Federal agencies may, at their
discretion—’’ set aside task-and-delivery
orders under multiple-award contracts,
use partial set-asides under multipleaward contracts, and reserve one or
more contracts under procurements
awarded using full and open
competition.
Despite the progress agencies have
made over the past two years in
increasing the amount of contracting
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dollars awarded to small businesses, the
set-aside authority for multiple-award
contracts conveyed by this interim rule
may serve as the linchpin to closing the
remaining shortfall agencies are
experiencing in meeting their small
business contracting goals. As such,
valuable opportunities to help small
businesses through set-asides and
reserves under multiple-award contracts
will be lost while the rulemaking
process moves forward. Issuing an
interim rule that is effective upon
publication, prior to the receipt of
public comment, will allow agencies to
immediately begin taking advantage of
set-asides under multiple-award
contracts, as envisioned by the Jobs Act,
to increase awards to small businesses.
However, pursuant to 41 U.S.C. 1707
and FAR 1.501–3(b), DoD, GSA, and
NASA 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 8, 12,
16, 19, 38, and 52
12.207
Government procurement.
Dated: October 21, 2011.
Laura Auletta,
Acting Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 8, 12, 16, 19, 38,
and 52 as set forth below:
■ 1. The authority citation for 48 CFR
parts 8, 12, 16, 19, 38, and 52 continues
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 8—REQUIRED SOURCES OF
SUPPLIES AND SERVICES
2. Amend section 8.405–5 by revising
paragraph (a); and redesignating
paragraphs (b) and (c) as paragraphs (c)
and (d), respectively; and adding a new
paragraph (b) to read as follows:
■
8.405–5
Small business.
(a) Although the preference programs
of part 19 are not mandatory in this
subpart, in accordance with section
1331 of Public Law 111–240 (15 U.S.C.
644(r))—
(1) Ordering activity contracting
officers may, at their discretion—
(i) Set aside orders for any of the
small business concerns identified in
19.000(a)(3); and
(ii) Set aside BPAs for any of the small
business concerns identified in
19.000(a)(3).
(2) When setting aside orders and
BPAs—
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(i) Follow the ordering procedures for
Federal Supply Schedules at 8.405–1,
8.405–2, and 8.405–3; and
(ii) The specific small business
program eligibility requirements
identified in part 19 apply.
(b) Orders placed against schedule
contracts may be credited toward the
ordering activity’s small business goals.
For purposes of reporting an order
placed with a small business schedule
contractor, an ordering agency may only
take credit if the awardee meets a size
standard that corresponds to the work
performed. Ordering activities should
rely on the small business
representations made by schedule
contractors at the contract level.
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PART 12—ACQUISITION OF
COMMERCIAL ITEMS
3. Amend section 12.207 by revising
paragraph (b)(1)(i)(C) to read as follows:
Contract type.
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(b) * * *
(1) * * *
(i) * * *
(C) The fair opportunity procedures in
16.505 (including discretionary small
business set-asides under
16.505(b)(2)(i)(F)), if placing an order
under a multiple-award delivery-order
contract; and
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PART 16—TYPES OF CONTRACTS
4. Amend section 16.505 by—
a. Revising the introductory text of
paragraph (b);
■ b. Adding paragraph (b)(2)(i)(F);
■ c. Revising the introductory text of
paragraph (b)(2)(ii); and
■ d. Revising paragraph (b)(2)(ii)(D)(5).
The revised and added text reads as
follows:
■
■
16.505
Ordering.
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(b) Orders under multiple-award
contracts—
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(2) * * *
(i) * * *
(F) In accordance with section 1331 of
Public Law 111–240 (15 U.S.C. 644(r)),
contracting officers may, at their
discretion, set aside orders for any of the
small business concerns identified in
19.000(a)(3). When setting aside orders
for small business concerns, the specific
small business program eligibility
requirements identified in part 19
apply.
(ii) The justification for an exception
to fair opportunity shall be in writing as
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specified in paragraphs (b)(2)(ii)(A) or
(B) of this section. No justification is
needed for the exception described in
paragraph (b)(2)(i)(F) of this section.
*
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*
(D) * * *
(5) The posting requirement of this
section does not apply—
(i) When disclosure would
compromise the national security (e.g.,
would result in disclosure of classified
information) or create other security
risks; or
(ii) To a small business set-aside
under paragraph (b)(2)(i)(F).
*
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*
PART 19—SMALL BUSINESS
PROGRAMS
19.502–4 and 19.502–5 [Redesignated as
19.502–5 and 19.502–6]
5a. Redesignate sections 19.502–4 and
19.502–5 as sections 19.502–5 and
19.502–6, respectively.
■ 5b. Add a new section 19.502–4 to
read as follows:
■
19.502–4 Multiple-award contracts and
small business set-asides.
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In accordance with section 1331 of
Public Law 111–240 (15 U.S.C. 644(r))
contracting officers may, at their
discretion—
(a) When conducting multiple-award
procurements using full and open
competition, reserve one or more
contract awards for any of the small
business concerns identified in
19.000(a)(3). The specific program
eligibility requirements identified in
this part apply;
(b) Set aside part or parts of a
multiple-award contract for any of the
small business concerns identified in
19.000(a)(3). The specific program
eligibility requirements identified in
this part apply; or
(c) Set aside orders placed under
multiple-award contracts for any of the
small business concerns identified in
19.000(a)(3). For orders placed under
the Federal Supply Schedules Program
see 8.405–5. For all other multipleaward contracts see 16.505.
*
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*
*
*
■ 6. Amend section 19.508 by revising
paragraphs (c), (d), and (e); and adding
paragraph (f) to read as follows:
19.508 Solicitation provisions and
contract clauses.
*
*
*
*
*
(c) The contracting officer shall insert
the clause at 52.219–6, Notice of Total
Small Business Set-Aside, in
solicitations and contracts involving
total small business set-asides or
reserves. This includes multiple-award
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contracts when orders may be set aside
for any of the small business concerns
identified in 19.000(a)(3), as described
in 8.405–5 and 16.505(b)(2)(i)(F). The
clause at 52.219–6 with its Alternate I
will be used when the acquisition is for
a product in a class for which the Small
Business Administration has waived the
nonmanufacturer rule (see 19.102(f)(4)
and (5)). Use the clause at 52.219–6 with
its Alternate II when including FPI in
the competition in accordance with
19.504.
(d) The contracting officer shall insert
the clause at 52.219–7, Notice of Partial
Small Business Set-Aside, in
solicitations and contracts involving
partial small business set-asides. This
includes part or parts of multiple-award
contracts, including those described in
38.101. The clause at 52.219–7 with its
Alternate I will be used when the
acquisition is for a product in a class for
which the Small Business
Administration has waived the
nonmanufacturer rule (see 19.102(f)(4)
and (5)). Use the clause at 52.219–7 with
its Alternate II when including FPI in
the competition in accordance with
19.504.
(e) The contracting officer shall insert
the clause at 52.219–14, Limitations on
Subcontracting, in solicitations and
contracts for supplies, services, and
construction, if any portion of the
requirement is to be set aside or
reserved for small business and the
contract amount is expected to exceed
$150,000. This includes multiple-award
contracts when orders may be set aside
for small business concerns, as
described in 8.405–5 and
16.505(b)(2)(i)(F).
(f) The contracting officer shall insert
the clause at 52.219–13, Notice of SetAside of Orders, in solicitations and
contracts to notify offerors if an order or
orders are to be set aside for any of the
small business concerns identified in
19.000(a)(3).
■ 7. Amend section 19.811–3 by
revising paragraph (e) to read as follows:
19.811–3
Contract clauses.
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19.1304
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Exclusions.
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(b) Orders under indefinite-delivery
contracts (see subpart 16.5). (But see
16.505(b)(2)(i)(F) for discretionary setasides of orders);
(c) Orders against Federal Supply
Schedules (see subpart 8.4). (But see
8.405–5 for discretionary set-asides of
orders);
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19.1308
[Amended]
9. Amend section 19.1308 by
removing from the first sentence of
paragraph (b) ‘‘of Total Hubzone’’ and
adding ‘‘of Hubzone’’ in its place.
■ 10. Amend section 19.1309 by
revising the introductory text of
paragraph (a) to read as follows:
■
19.1309
Contract clauses.
(a) The contracting officer shall insert
the clause 52.219–3, Notice of HUBZone
Set-Aside or Sole Source Award, in
solicitations and contracts for
acquisitions that are set aside, or
reserved for, or awarded on a sole
source basis to, HUBZone small
business concerns under 19.1305 or
19.1306. This includes multiple-award
contracts when orders may be set aside
for HUBZone small business concerns
as described in 8.405–5 and
16.505(b)(2)(i)(F).
*
*
*
*
*
■ 11. Amend section 19.1404 by
revising paragraphs (b) and (c) to read
as follows:
19.1404
Exclusions.
*
*
*
*
*
(b) Orders under indefinite-delivery
contracts (see subpart 16.5). (But see
16.505(b)(2)(i)(F) for discretionary setasides of orders);
(c) Orders against Federal Supply
Schedules (see subpart 8.4). (But see
8.405–5 for discretionary set-asides of
orders); or
*
*
*
*
*
■ 12. Revise section 19.1407 to read as
follows:
19.1407
*
*
*
*
(e) The contracting officer shall insert
the clause at 52.219–14, Limitations on
Subcontracting, in any solicitation and
contract resulting from this subpart.
This includes multiple-award contracts
when orders may be set aside for 8(a)
concerns as described in 8.405–5 and
16.505(b)(2)(i)(F).
■ 8. Amend section 19.1304 by revising
paragraphs (b) and (c) to read as follows:
68035
Contract clauses.
The contracting officer shall insert the
clause 52.219–27, Notice of ServiceDisabled Veteran-Owned Small
Business Set-Aside, in solicitations and
contracts for acquisitions that are set
aside or reserved for, or awarded on a
sole source basis to, service-disabled
veteran-owned small business concerns
under 19.1405 and 19.1406. This
includes multiple-award contracts when
orders may be set aside for servicedisabled veteran-owned small business
concerns as described in 8.405–5 and
16.505(b)(2)(i)(F).
E:\FR\FM\02NOR4.SGM
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The revised and added text reads as
follows:
13. Amend section 19.1504 by
revising paragraphs (c) and (d) to read
as follows:
■
19.1504
Exclusions.
*
*
*
*
*
(c) Orders under indefinite-delivery
contracts (see subpart 16.5). (But see
16.505(b)(2)(i)(F) for discretionary setasides of orders); or (d) Orders against
Federal Supply Schedules (see subpart
8.4). (But see 8.405–5 for discretionary
set-asides of orders.)
■ 14. Amend section 19.1506 by
revising paragraphs (a) and (b) to read
as follows:
19.1506
PART 38—FEDERAL SUPPLY
SCHEDULE CONTRACTING
[Amended]
15. Amend section 38.101 by
removing from paragraph (e) ‘‘(except
see 8.404).’’ and adding ‘‘(except see
8.404 and 8.405–5).’’ in its place.
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
16. Amend section 52.212–5 by—
a. Revising the date of the clause and
paragraphs (b)(8) and (b)(11);
■ b. Redesignating paragraphs (b)(15)
through (b)(49) as paragraphs (b)(16)
through (b)(50), respectively;
■ c. Adding a new paragraph (b)(15);
and
■ d. Revising newly redesignated
paragraphs (b)(16), (b)(21), (b)(23), and
(b)(24).
mstockstill on DSK4VPTVN1PROD with RULES4
■
■
VerDate Mar<15>2010
18:15 Nov 01, 2011
52.212–5 Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items.
(b) Applicability. This clause applies only
to—
(1) Contracts that have been set aside or
reserved for, or awarded on a sole source
basis to, HUBZone small business concerns;
(2) Part or parts of a multiple-award
contract that have been set aside for
HUBZone small business concerns; and
(3) Orders set-aside for HUBZone small
business concerns under multiple-award
contracts as described in 8.405–5 and
16.505(b)(2)(i)(F).
*
Jkt 226001
*
*
*
*
Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items
(NOV 2011)
*
*
*
*
*
(b) * * *
__(8) 52.219–3, Notice of HUBZone SetAside or Sole-Source Award (NOV 2011) (15
U.S.C. 657a).
*
Contract clauses.
(a) The contracting officer shall insert
the clause 52.219–29, Notice of SetAside for Economically Disadvantaged
Women-owned Small Business
Concerns, in solicitations and contracts
for acquisitions that are set aside or
reserved for economically
disadvantaged women-owned small
business (EDWOSB) concerns under
19.1505(b). This includes multipleaward contracts when orders may be set
aside for EDWOSB concerns as
described in 8.405–5 and
16.505(b)(2)(i)(F).
(b) The contracting officer shall insert
the clause 52.219–30, Notice of SetAside for Women-Owned Small
Business Concerns Eligible Under the
Women-Owned Small Business
Program, in solicitations and contracts
for acquisitions that are set aside or
reserved for women-owned small
business (WOSB) concerns under
19.1505(c). This includes multipleaward contracts when orders may be set
aside for WOSB concerns eligible under
the WOSB program as described in
8.405–5 and 16.505(b)(2)(i)(F).
38.101
Notice of HUBZone Set-Aside or Sole
Source Award (NOV 2011)
*
*
*
*
__(11)(i) 52.219–6, Notice of Total Small
Business Set-Aside (NOV 2011) (15 U.S.C.
644).
__(ii) Alternate I (NOV 2011).
__(iii) Alternate II (NOV 2011).
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
__(15) 52.219–13, Notice of Set-Aside of
Orders (NOV 2011) (15 U.S.C. 644(r)).
__(16) 52.219–14, Limitations on
Subcontracting (NOV 2011) (15 U.S.C.
637(a)(14)).
__(21) 52.219–27, Notice of ServiceDisabled Veteran-Owned Small Business SetAside (NOV 2011) (15 U.S.C. 657f).
__(23) 52.219–29, Notice of Set-Aside for
Economically Disadvantaged Women-Owned
Small Business Concerns (NOV 2011).
__(24) 52.219–30, Notice of Set-Aside for
Women-Owned Small Business Concerns
Eligible Under the Women-Owned Small
Business Program (NOV 2011).
*
*
*
*
*
17. Amend section 52.219–3 by—
a. Revising the section heading, the
clause heading, and the date of the
clause;
■ b. Redesignating paragraphs (b)
through (f) as paragraphs (c) through (g),
respectively;
■ c. Adding a new paragraph (b);
■ d. Removing from the newly
redesignated paragraph (e) ‘‘in
paragraph (c) of’’ and adding ‘‘in
paragraph (d) of’’ in its place;
■ e. Removing from the newly
redesignated paragraph (f) ‘‘Paragraphs
(e)(1) and (e)(2) of’’ and adding
‘‘Paragraphs (f)(1) and (f)(2) of’’ in its
place; and
■ f. In Alternate I, revising the date and
introductory text; and redesignating
paragraphs (c)(3) and (c)(4) as
paragraphs (d)(3) and (d)(4),
respectively.
The revised and added text reads as
follows:
■
■
52.219–3 Notice of HUBZone Set-Aside or
Sole Source Award.
*
PO 00000
*
*
Frm 00024
*
Fmt 4701
*
Sfmt 4700
*
*
*
*
*
Alternate I (NOV 2011). As prescribed in
19.1309(a)(1), substitute the following
paragraphs (d)(3) and (d)(4) for paragraphs
(d)(3) and (d)(4) of the basic clause:
*
*
*
*
*
18. Amend section 52.219–6 by—
a. Revising the date of the clause;
b. Redesignating paragraphs (b) and
(c) as paragraphs (c) and (d),
respectively;
■ c. Adding a new paragraph (b);
■ d. In Alternate I, revising the date; and
removing from the end of the paragraph
‘‘delete paragraph (c).’’ and adding
‘‘delete paragraph (d).’’ in its place; and
■ e. In Alternate II, revising the date and
introductory text; and redesignating
paragraph (b) as paragraph (c),
respectively.
The revised and added text reads as
follows:
■
■
■
52.219–6 Notice of Total Small Business
Set-Aside.
*
*
*
*
*
Notice of Total Small Business SetAside (NOV 2011)
*
*
*
*
*
(b) Applicability. This clause applies only
to—
(1) Contracts that have been totally set
aside or reserved for small business concerns;
and
(2) Orders set aside for small business
concerns under multiple-award contracts as
described in 8.405–5 and 16.505(b)(2)(i)(F).
*
*
*
*
*
Alternate I (NOV 2011). * * *
Alternate II (NOV 2011). As prescribed in
19.508(c), substitute the following paragraph
(c) for paragraph (c) of the basic clause:
*
*
*
*
*
19. Add section 52.219–13 to read as
follows:
■
52.219–13
Notice of Set-Aside of Orders.
As prescribed in 19.508(f), insert the
following clause:
Notice of Set-Aside of Orders (Nov
2011)
The Contracting Officer will give notice of
the order or orders, if any, to be set aside for
small business concerns identified in
19.000(a)(3) and the applicable small
E:\FR\FM\02NOR4.SGM
02NOR4
Federal Register / Vol. 76, No. 212 / Wednesday, November 2, 2011 / Rules and Regulations
business program. This notice, and its
restrictions, will apply only to the specific
orders that have been set aside for any of the
small business concerns identified in
19.000(a)(3).
(End of clause)
20. Amend section 52.219–14 by—
a. Revising the date of the clause;
b. Redesignating paragraph (b) as
paragraph (c; and
■ c. Adding a new paragraph (b) to read
as follows:
■
■
■
52.219–14
Limitations on Subcontracting.
*
*
*
*
*
Limitations on Subcontracting (Nov
2011)
*
*
*
*
*
*
*
*
*
*
21. Amend section 52.219–27 by—
a. Revising the section heading, the
clause heading, and the date of the
clause;
■ b. Redesignating paragraphs (b)
through (e) as paragraphs (c) through (f),
respectively; and
■ c. Adding a new paragraph (b).
The revised and added text reads as
follows:
■
■
52.219–27 Notice of Service-Disabled
Veteran-Owned Small Business Set-Aside.
*
*
*
*
Notice of Service-Disabled VeteranOwned Small Business Set-Aside (Nov
2011)
*
*
*
*
*
mstockstill on DSK4VPTVN1PROD with RULES4
(b) Applicability. This clause applies only
to—
(1) Contracts that have been set aside or
reserved for service-disabled veteran-owned
small business concerns;
(2) Part or parts of a multiple-award
contract that have been set aside for servicedisabled veteran-owned small business
concerns; and
(3) Orders set aside for service-disabled
veteran-owned small business concerns
under multiple-award contracts as described
in 8.405–5 and 16.505(b)(2)(i)(F).
*
*
*
*
*
22. Amend section 52.219–29 by—
a. Revising the section heading, the
clause heading, and the date of the
clause;
■ b. Redesignating paragraphs (b)
through (e) as paragraphs (c) through (f),
respectively;
■
■
VerDate Mar<15>2010
18:15 Nov 01, 2011
Jkt 226001
DEPARTMENT OF DEFENSE
52.219–29 Notice of Set-Aside for
Economically Disadvantaged WomenOwned Small Business Concerns.
48 CFR Part 25
■
■
*
*
*
*
*
Notice of Set-Aside for Economically
Disadvantaged Women-Owned Small
Business Concerns (Nov 2011)
*
(b) Applicability. This clause applies only
to—
(1) Contracts that have been set aside or
reserved for small business concerns or 8(a)
concerns;
(2) Part or parts of a multiple-award
contract that have been set aside for small
business concerns or 8(a) concerns; and
(3) Orders set aside for small business or
8(a) concerns under multiple-award contracts
as described in 8.405–5 and
16.505(b)(2)(i)(F).
*
c. Adding a new paragraph (b); and
d. Removing from the newly
redesignated paragraph (e)(4)
‘‘paragraph (c) above’’ and adding
‘‘paragraph (d) above’’ in its place.
The revised and added text reads as
follows:
68037
*
*
*
*
(b) Applicability. This clause applies only
to—
(1) Contracts that have been set aside or
reserved for EDWOSB concerns;
(2) Part or parts of a multiple-award
contract that have been set aside for
EDWOSB concerns; and
(3) Orders set aside for EDWOSB concerns
under multiple-award contracts as described
in 8.405–5 and 16.505(b)(2)(i)(F).
*
*
*
*
*
23. Amend section 52.219–30 by—
■ a. Revising the section heading, the
clause heading, and the date of the
clause;
■ b. Redesignating paragraphs (b)
through (e) as paragraphs (c) through (f),
respectively;
■ c. Adding a new paragraph (b); and
■ d. Removing from the newly
redesignated paragraph (e)(4)
‘‘paragraph (c) above’’ and adding
‘‘paragraph (d) above’’ in its place.
The revised and added text reads as
follows:
■
52.219–30 Notice of Set-Aside for WomenOwned Small Business Concerns Eligible
Under the Women-Owned Small Business
Program.
*
*
*
*
*
Notice of Set-Aside for Women-Owned
Small Business Concerns Eligible Under
the Women-Owned Small Business
Program (Nov 2011)
*
*
*
*
*
(b) Applicability. This clause applies only
to—
(1) Contracts that have been set aside or
reserved for WOSB concerns eligible under
the WOSB Program;
(2) Part or parts of a multiple-award
contract that have been set aside for WOSB
concerns eligible under the WOSB Program;
and
(3) Orders set aside for WOSB concerns
eligible under the WOSB Program, under
multiple-award contracts as described in
8.405–5 and 16.505(b)(2)(i)(F).
*
*
*
*
*
[FR Doc. 2011–27786 Filed 11–1–11; 8:45 am]
BILLING CODE 6820–EP–P
PO 00000
Frm 00025
Fmt 4701
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GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[FAC 2005–54; FAR Case 2009–041; Item
VII; Docket 2010–0105, Sequence 1]
RIN 9000–AL65
Federal Acquisition Regulation; Sudan
Waiver Process
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
revise the prohibition on contracting
with entities that conduct restricted
business operations in Sudan. This rule
adds specific criteria including foreign
policy aspects that an agency must
address when applying to the President
or his appointed designee for a waiver
of the prohibition on awarding a
contract to a contractor that conducts
restricted business operations in Sudan.
The rule also describes the consultation
process that will be used by the Office
of Federal Procurement Policy (OFPP)
in support of the waiver request review.
DATES: Effective Date: December 2, 2011.
FOR FURTHER INFORMATION CONTACT:
Cecelia L. Davis, Procurement Analyst,
at (202) 219–0202, for clarification of
content. For information pertaining to
status or publication schedules, contact
the FAR Secretariat at (202) 501–4755.
Please cite FAC 2005–54, FAR Case
2009–041.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
75 FR 62069 on October 7, 2010, to
revise FAR 25.702, Prohibition on
contracting with entities that conduct
restricted business operations in Sudan,
to add specific criteria including foreign
policy aspects that an agency must
address when applying to the President
or his appointed designee for a waiver
of the prohibition on awarding a
contract to a contractor that conducts
restricted business operations in Sudan.
The rule also describes the consultation
process that will be used by OFPP in
support of the waiver review. No
comments were received by the close of
E:\FR\FM\02NOR4.SGM
02NOR4
Agencies
[Federal Register Volume 76, Number 212 (Wednesday, November 2, 2011)]
[Rules and Regulations]
[Pages 68032-68037]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27786]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 8, 12, 16, 19, 38, and 52
[FAC 2005-54; FAR Case 2011-024; Item VI; Docket 2011-0024, Sequence
01]
RIN 9000-AM12
Federal Acquisition Regulation; Set-Asides for Small Business
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to implement section 1331 of the
Small Business Jobs Act of 2010 (Jobs Act). Section 1331 addresses set-
asides of task- and delivery-orders under multiple-award contracts,
partial set-asides under multiple-award contracts, and the reserving of
one or more multiple-award contracts that are awarded using full and
open competition. Within this same context, section 1331 also addresses
the Federal Supply Schedules Program managed by GSA. DoD, GSA, and NASA
are coordinating with the Small Business Administration (SBA) on the
development of an SBA proposed rule that will provide greater detail
regarding implementation of section 1331 authorities.
DATES: Effective Date: November 2, 2011.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before January 3, 2012 to be
considered in the formation of a final rule.
Applicability Date: Contracting officers are encouraged to modify,
on a bilateral basis, existing multiple-award contracts in accordance
with FAR 1.108(d)(3), if the remaining period of performance extends at
least six months after the effective date, and the amount of work or
number of orders expected under the remaining performance period is
substantial.
ADDRESSES: Submit comments identified by FAC 2005-54, FAR Case 2011-
024, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2011-024'' under the heading ``Enter Keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2011-024.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2011-024'' on your attached document.
Fax: (202) 501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street, NE., 7th
Floor, Washington, DC 20417.
Instructions: Please submit comments only and cite FAC 2005-54, FAR
Case 2011-024, in all correspondence related to this case. All comments
received will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: Mr. Karlos Morgan, Procurement
Analyst, at (202) 501-2364, for clarification of content. For
information pertaining to status or publication schedules, contact the
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-54, FAR
Case 2011-024.
SUPPLEMENTARY INFORMATION:
[[Page 68033]]
I. Background
Over the past 15 years, Federal agencies have increasingly used
multiple award contracts--including the Federal Supply Schedules
managed by GSA, governmentwide acquisition contracts, multi-agency
contracts, and agency-specific indefinite-delivery, indefinite-quantity
(IDIQ) contracts--to acquire a wide range of products and services.
This trend has created challenges for agencies seeking to provide
maximum opportunity for small businesses. Although set-asides are one
of the most effective tools agencies have at their disposal to help
small businesses participate in Government contracting opportunities,
the FAR is silent on how to apply set-asides at the task-or-delivery
order level.
In September 2010, the Interagency Task Force on Small Business
Contracting, created by the President in April of that year, issued a
report recommending that the rules on set-asides, including for
multiple-award contracts, be clarified, and that legislation be
developed where it is determined that statutory changes are warranted.
The Task Force noted that set-asides accounted for approximately half
of all small business contract awards in FY 2009, yet ``there has been
no attempt to create a comprehensive policy for orders placed under
either general task- and delivery-order contracts or schedule contracts
that rationalizes and appropriately balances the need for efficiency
with the need to maximize opportunities for small businesses.'' For a
copy of the report, go to https://www.sba.gov/sites/default/files/contracting_task_force_report_0.pdf.
The same month as the Task Force report was issued, the President
signed the Jobs Act (Pub. L. 111-240) into law to protect the interests
of small businesses and expand their opportunities in the Federal
marketplace. Section 1331 of the Jobs Act amends section 15 of the
Small Business Act (Pub. L. 85-536) to add a new subsection (r)
stating, in pertinent part, that:
The Administrator, Office of Federal Procurement Policy (OFPP) and
the Administrator, U.S. Small Business Administration (SBA), in
consultation with the Administrator of the General Services, shall, by
regulation, establish guidance under which Federal agencies may, at
their discretion--
(1) Set aside part or parts of a multiple-award contract for small
business concerns, including the subcategories of small business
concerns identified in subsection (g)(2) of the Small Business Act;
(2) Notwithstanding the fair opportunity requirements under section
2304c(b) of Title 10, United States Code, and section 303J(b) of the
Federal Property and Administrative Services Act of 1949 (41 U.S.C.
253j(b)) (subsequently recodified as 41 U.S.C. 4106), set aside orders
placed against multiple-award contracts for small business concerns,
including the subcategories of small business concerns identified in
subsection (g)(2) of the Small Business Act; and
(3) Reserve one or more contract awards for small business concerns
under full and open multiple-award procurements, including the
subcategories of small business concerns identified in subsection
(g)(2) of the Small Business Act.
SBA and OFPP, which are vested under section 1331 with the
authority to issue regulations, in consultation with the Administrator
of GSA, have requested that DoD, GSA, and NASA publish this interim
rule in order to provide agencies with guidance that they can use in
taking advantage of this important tool, while SBA completes the
drafting and coordination of a proposed rule that will set forth more
specific guidance. This interim rule amends--
FAR subpart 8.4 to make clear that order set-asides may be
used in connection with the placement of orders and blanket purchase
agreements under Federal Supply Schedules;
FAR subpart 12.2 to acknowledge that discretionary set-
asides may be used if placing an order under a multiple-award contract;
FAR subpart 16.5 to acknowledge that set-asides may be
used in connection with the placement of orders under multiple-award
contracts, notwithstanding the requirement to provide each contract
holder a fair opportunity to be considered;
FAR part 19 to add a new section authorizing agencies to
(1) use set-asides under multiple-award contracts--including set-asides
for small businesses participating in the small business programs
identified in FAR 19.000(a)(3); and (2) reserve one or more contract
awards under multiple-award contracts for small businesses, including
any of the socio-economic groups; and
FAR subpart 38.1 to add a reference to FAR 8.405-5 to make
clear that order set-asides may be used in connection with the
placement of orders and blanket purchase agreements under Federal
Supply Schedules.
This interim rule also amends existing solicitation provisions and
contract clauses, including FAR 52.219-6 to provide notice of total
set-asides and partial set-asides under multiple-award contracts, and
revises existing contract clauses to address limitations on
subcontracting for small businesses under multiple award contracts.
DoD, GSA, and NASA expect agencies to take advantage of set-asides
under multiple-award contracts by: (1) Identifying existing or
prospective multiple-award contracts with small business contract
holders where order set-asides may be appropriate, and (2) maximizing
opportunities for small business by utilizing order set-asides under
the Federal Supply Schedule Program.
II. Executive Order 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action and, therefore was subject to
review under section 6(b) of E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
III. Regulatory Flexibility Act
The change 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. The Initial Regulatory
Flexibility Analysis (IRFA) is summarized as follows:
The Administrator of the Office of Management and Budget's
Office of Federal Procurement Policy requested that DoD, GSA, and
NASA amend the FAR to provide preliminary implementation of section
1331 of the Small Business Jobs Act of 2010 (Jobs Act).
DoD, GSA, and NASA are amending the FAR to implement the
authority to (1) set aside part or parts of a multiple-award
contract for small business concerns; (2) set aside orders placed
against multiple-award contracts, including Federal Supply
Schedules, for small business concerns; and (3) reserve one or more
contract awards under full and open multiple-award procurements, for
small business concerns.
The objective of this rule is to provide an additional tool for
agencies to increase opportunities for small business to compete in
the Federal marketplace. The statutory authority for this action is
Small Business
[[Page 68034]]
Jobs Act of 2010, Pub. L. 111-240, 15 U.S.C. 644(r).
This rule may have a significant positive economic impact on any
small business entity that wishes to participate in the Federal
procurement arena. Analysis of the Central Contractor Registration
database indicates there are over 351,203 small business registrants
that can potentially benefit from the implementation of this rule.
This rule does not impose any new reporting, recordkeeping, or
other compliance requirements. The rule does not duplicate, overlap,
or conflict with any other Federal rules.
The Regulatory Secretariat will be submitting a copy of the IRFA to
the Chief Counsel for Advocacy of the Small Business Administration. A
copy of the IRFA may be obtained from the Regulatory Secretariat. DoD,
GSA, and NASA invite comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this rule
in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAC 2005-54, FAR Case
2011-024) in correspondence.
IV. Paperwork Reduction Act
The interim rule does not contain any information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).
V. 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 section 1331 of the Jobs Act calls for the
issuance, within one year of the law's enactment (September 27, 2010),
of ``a regulation, to establish guidance under which Federal agencies
may, at their discretion--'' set aside task-and-delivery orders under
multiple-award contracts, use partial set-asides under multiple-award
contracts, and reserve one or more contracts under procurements awarded
using full and open competition.
Despite the progress agencies have made over the past two years in
increasing the amount of contracting dollars awarded to small
businesses, the set-aside authority for multiple-award contracts
conveyed by this interim rule may serve as the linchpin to closing the
remaining shortfall agencies are experiencing in meeting their small
business contracting goals. As such, valuable opportunities to help
small businesses through set-asides and reserves under multiple-award
contracts will be lost while the rulemaking process moves forward.
Issuing an interim rule that is effective upon publication, prior to
the receipt of public comment, will allow agencies to immediately begin
taking advantage of set-asides under multiple-award contracts, as
envisioned by the Jobs Act, to increase awards to small businesses.
However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and
NASA 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 8, 12, 16, 19, 38, and 52
Government procurement.
Dated: October 21, 2011.
Laura Auletta,
Acting Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 8, 12, 16, 19, 38,
and 52 as set forth below:
0
1. The authority citation for 48 CFR parts 8, 12, 16, 19, 38, and 52
continues 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
0
2. Amend section 8.405-5 by revising paragraph (a); and redesignating
paragraphs (b) and (c) as paragraphs (c) and (d), respectively; and
adding a new paragraph (b) to read as follows:
8.405-5 Small business.
(a) Although the preference programs of part 19 are not mandatory
in this subpart, in accordance with section 1331 of Public Law 111-240
(15 U.S.C. 644(r))--
(1) Ordering activity contracting officers may, at their
discretion--
(i) Set aside orders for any of the small business concerns
identified in 19.000(a)(3); and
(ii) Set aside BPAs for any of the small business concerns
identified in 19.000(a)(3).
(2) When setting aside orders and BPAs--
(i) Follow the ordering procedures for Federal Supply Schedules at
8.405-1, 8.405-2, and 8.405-3; and
(ii) The specific small business program eligibility requirements
identified in part 19 apply.
(b) Orders placed against schedule contracts may be credited toward
the ordering activity's small business goals. For purposes of reporting
an order placed with a small business schedule contractor, an ordering
agency may only take credit if the awardee meets a size standard that
corresponds to the work performed. Ordering activities should rely on
the small business representations made by schedule contractors at the
contract level.
* * * * *
PART 12--ACQUISITION OF COMMERCIAL ITEMS
0
3. Amend section 12.207 by revising paragraph (b)(1)(i)(C) to read as
follows:
12.207 Contract type.
* * * * *
(b) * * *
(1) * * *
(i) * * *
(C) The fair opportunity procedures in 16.505 (including
discretionary small business set-asides under 16.505(b)(2)(i)(F)), if
placing an order under a multiple-award delivery-order contract; and
* * * * *
PART 16--TYPES OF CONTRACTS
0
4. Amend section 16.505 by--
0
a. Revising the introductory text of paragraph (b);
0
b. Adding paragraph (b)(2)(i)(F);
0
c. Revising the introductory text of paragraph (b)(2)(ii); and
0
d. Revising paragraph (b)(2)(ii)(D)(5).
The revised and added text reads as follows:
16.505 Ordering.
* * * * *
(b) Orders under multiple-award contracts--
* * * * *
(2) * * *
(i) * * *
(F) In accordance with section 1331 of Public Law 111-240 (15
U.S.C. 644(r)), contracting officers may, at their discretion, set
aside orders for any of the small business concerns identified in
19.000(a)(3). When setting aside orders for small business concerns,
the specific small business program eligibility requirements identified
in part 19 apply.
(ii) The justification for an exception to fair opportunity shall
be in writing as
[[Page 68035]]
specified in paragraphs (b)(2)(ii)(A) or (B) of this section. No
justification is needed for the exception described in paragraph
(b)(2)(i)(F) of this section.
* * * * *
(D) * * *
(5) The posting requirement of this section does not apply--
(i) When disclosure would compromise the national security (e.g.,
would result in disclosure of classified information) or create other
security risks; or
(ii) To a small business set-aside under paragraph (b)(2)(i)(F).
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
19.502-4 and 19.502-5 [Redesignated as 19.502-5 and 19.502-6]
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5a. Redesignate sections 19.502-4 and 19.502-5 as sections 19.502-5 and
19.502-6, respectively.
0
5b. Add a new section 19.502-4 to read as follows:
19.502-4 Multiple-award contracts and small business set-asides.
In accordance with section 1331 of Public Law 111-240 (15 U.S.C.
644(r)) contracting officers may, at their discretion--
(a) When conducting multiple-award procurements using full and open
competition, reserve one or more contract awards for any of the small
business concerns identified in 19.000(a)(3). The specific program
eligibility requirements identified in this part apply;
(b) Set aside part or parts of a multiple-award contract for any of
the small business concerns identified in 19.000(a)(3). The specific
program eligibility requirements identified in this part apply; or
(c) Set aside orders placed under multiple-award contracts for any
of the small business concerns identified in 19.000(a)(3). For orders
placed under the Federal Supply Schedules Program see 8.405-5. For all
other multiple-award contracts see 16.505.
* * * * *
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6. Amend section 19.508 by revising paragraphs (c), (d), and (e); and
adding paragraph (f) to read as follows:
19.508 Solicitation provisions and contract clauses.
* * * * *
(c) The contracting officer shall insert the clause at 52.219-6,
Notice of Total Small Business Set-Aside, in solicitations and
contracts involving total small business set-asides or reserves. This
includes multiple-award contracts when orders may be set aside for any
of the small business concerns identified in 19.000(a)(3), as described
in 8.405-5 and 16.505(b)(2)(i)(F). The clause at 52.219-6 with its
Alternate I will be used when the acquisition is for a product in a
class for which the Small Business Administration has waived the
nonmanufacturer rule (see 19.102(f)(4) and (5)). Use the clause at
52.219-6 with its Alternate II when including FPI in the competition in
accordance with 19.504.
(d) The contracting officer shall insert the clause at 52.219-7,
Notice of Partial Small Business Set-Aside, in solicitations and
contracts involving partial small business set-asides. This includes
part or parts of multiple-award contracts, including those described in
38.101. The clause at 52.219-7 with its Alternate I will be used when
the acquisition is for a product in a class for which the Small
Business Administration has waived the nonmanufacturer rule (see
19.102(f)(4) and (5)). Use the clause at 52.219-7 with its Alternate II
when including FPI in the competition in accordance with 19.504.
(e) The contracting officer shall insert the clause at 52.219-14,
Limitations on Subcontracting, in solicitations and contracts for
supplies, services, and construction, if any portion of the requirement
is to be set aside or reserved for small business and the contract
amount is expected to exceed $150,000. This includes multiple-award
contracts when orders may be set aside for small business concerns, as
described in 8.405-5 and 16.505(b)(2)(i)(F).
(f) The contracting officer shall insert the clause at 52.219-13,
Notice of Set-Aside of Orders, in solicitations and contracts to notify
offerors if an order or orders are to be set aside for any of the small
business concerns identified in 19.000(a)(3).
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7. Amend section 19.811-3 by revising paragraph (e) to read as follows:
19.811-3 Contract clauses.
* * * * *
(e) The contracting officer shall insert the clause at 52.219-14,
Limitations on Subcontracting, in any solicitation and contract
resulting from this subpart. This includes multiple-award contracts
when orders may be set aside for 8(a) concerns as described in 8.405-5
and 16.505(b)(2)(i)(F).
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8. Amend section 19.1304 by revising paragraphs (b) and (c) to read as
follows:
19.1304 Exclusions.
* * * * *
(b) Orders under indefinite-delivery contracts (see subpart 16.5).
(But see 16.505(b)(2)(i)(F) for discretionary set-asides of orders);
(c) Orders against Federal Supply Schedules (see subpart 8.4). (But
see 8.405-5 for discretionary set-asides of orders);
* * * * *
19.1308 [Amended]
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9. Amend section 19.1308 by removing from the first sentence of
paragraph (b) ``of Total Hubzone'' and adding ``of Hubzone'' in its
place.
0
10. Amend section 19.1309 by revising the introductory text of
paragraph (a) to read as follows:
19.1309 Contract clauses.
(a) The contracting officer shall insert the clause 52.219-3,
Notice of HUBZone Set-Aside or Sole Source Award, in solicitations and
contracts for acquisitions that are set aside, or reserved for, or
awarded on a sole source basis to, HUBZone small business concerns
under 19.1305 or 19.1306. This includes multiple-award contracts when
orders may be set aside for HUBZone small business concerns as
described in 8.405-5 and 16.505(b)(2)(i)(F).
* * * * *
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11. Amend section 19.1404 by revising paragraphs (b) and (c) to read as
follows:
19.1404 Exclusions.
* * * * *
(b) Orders under indefinite-delivery contracts (see subpart 16.5).
(But see 16.505(b)(2)(i)(F) for discretionary set-asides of orders);
(c) Orders against Federal Supply Schedules (see subpart 8.4). (But
see 8.405-5 for discretionary set-asides of orders); or
* * * * *
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12. Revise section 19.1407 to read as follows:
19.1407 Contract clauses.
The contracting officer shall insert the clause 52.219-27, Notice
of Service-Disabled Veteran-Owned Small Business Set-Aside, in
solicitations and contracts for acquisitions that are set aside or
reserved for, or awarded on a sole source basis to, service-disabled
veteran-owned small business concerns under 19.1405 and 19.1406. This
includes multiple-award contracts when orders may be set aside for
service-disabled veteran-owned small business concerns as described in
8.405-5 and 16.505(b)(2)(i)(F).
[[Page 68036]]
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13. Amend section 19.1504 by revising paragraphs (c) and (d) to read as
follows:
19.1504 Exclusions.
* * * * *
(c) Orders under indefinite-delivery contracts (see subpart 16.5).
(But see 16.505(b)(2)(i)(F) for discretionary set-asides of orders); or
(d) Orders against Federal Supply Schedules (see subpart 8.4). (But see
8.405-5 for discretionary set-asides of orders.)
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14. Amend section 19.1506 by revising paragraphs (a) and (b) to read as
follows:
19.1506 Contract clauses.
(a) The contracting officer shall insert the clause 52.219-29,
Notice of Set-Aside for Economically Disadvantaged Women-owned Small
Business Concerns, in solicitations and contracts for acquisitions that
are set aside or reserved for economically disadvantaged women-owned
small business (EDWOSB) concerns under 19.1505(b). This includes
multiple-award contracts when orders may be set aside for EDWOSB
concerns as described in 8.405-5 and 16.505(b)(2)(i)(F).
(b) The contracting officer shall insert the clause 52.219-30,
Notice of Set-Aside for Women-Owned Small Business Concerns Eligible
Under the Women-Owned Small Business Program, in solicitations and
contracts for acquisitions that are set aside or reserved for women-
owned small business (WOSB) concerns under 19.1505(c). This includes
multiple-award contracts when orders may be set aside for WOSB concerns
eligible under the WOSB program as described in 8.405-5 and
16.505(b)(2)(i)(F).
PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING
38.101 [Amended]
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15. Amend section 38.101 by removing from paragraph (e) ``(except see
8.404).'' and adding ``(except see 8.404 and 8.405-5).'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
16. Amend section 52.212-5 by--
0
a. Revising the date of the clause and paragraphs (b)(8) and (b)(11);
0
b. Redesignating paragraphs (b)(15) through (b)(49) as paragraphs
(b)(16) through (b)(50), respectively;
0
c. Adding a new paragraph (b)(15); and
0
d. Revising newly redesignated paragraphs (b)(16), (b)(21), (b)(23),
and (b)(24).
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 (NOV 2011)
* * * * *
(b) * * *
----(8) 52.219-3, Notice of HUBZone Set-Aside or Sole-Source
Award (NOV 2011) (15 U.S.C. 657a).
* * * * *
----(11)(i) 52.219-6, Notice of Total Small Business Set-Aside
(NOV 2011) (15 U.S.C. 644).
----(ii) Alternate I (NOV 2011).
----(iii) Alternate II (NOV 2011).
* * * * *
----(15) 52.219-13, Notice of Set-Aside of Orders (NOV 2011) (15
U.S.C. 644(r)).
----(16) 52.219-14, Limitations on Subcontracting (NOV 2011) (15
U.S.C. 637(a)(14)).
* * * * *
----(21) 52.219-27, Notice of Service-Disabled Veteran-Owned
Small Business Set-Aside (NOV 2011) (15 U.S.C. 657f).
* * * * *
----(23) 52.219-29, Notice of Set-Aside for Economically
Disadvantaged Women-Owned Small Business Concerns (NOV 2011).
----(24) 52.219-30, Notice of Set-Aside for Women-Owned Small
Business Concerns Eligible Under the Women-Owned Small Business
Program (NOV 2011).
* * * * *
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17. Amend section 52.219-3 by--
0
a. Revising the section heading, the clause heading, and the date of
the clause;
0
b. Redesignating paragraphs (b) through (f) as paragraphs (c) through
(g), respectively;
0
c. Adding a new paragraph (b);
0
d. Removing from the newly redesignated paragraph (e) ``in paragraph
(c) of'' and adding ``in paragraph (d) of'' in its place;
0
e. Removing from the newly redesignated paragraph (f) ``Paragraphs
(e)(1) and (e)(2) of'' and adding ``Paragraphs (f)(1) and (f)(2) of''
in its place; and
0
f. In Alternate I, revising the date and introductory text; and
redesignating paragraphs (c)(3) and (c)(4) as paragraphs (d)(3) and
(d)(4), respectively.
The revised and added text reads as follows:
52.219-3 Notice of HUBZone Set-Aside or Sole Source Award.
* * * * *
Notice of HUBZone Set-Aside or Sole Source Award (NOV 2011)
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for, or
awarded on a sole source basis to, HUBZone small business concerns;
(2) Part or parts of a multiple-award contract that have been
set aside for HUBZone small business concerns; and
(3) Orders set-aside for HUBZone small business concerns under
multiple-award contracts as described in 8.405-5 and
16.505(b)(2)(i)(F).
* * * * *
Alternate I (NOV 2011). As prescribed in 19.1309(a)(1),
substitute the following paragraphs (d)(3) and (d)(4) for paragraphs
(d)(3) and (d)(4) of the basic clause:
* * * * *
0
18. Amend section 52.219-6 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraphs (b) and (c) as paragraphs (c) and (d),
respectively;
0
c. Adding a new paragraph (b);
0
d. In Alternate I, revising the date; and removing from the end of the
paragraph ``delete paragraph (c).'' and adding ``delete paragraph
(d).'' in its place; and
0
e. In Alternate II, revising the date and introductory text; and
redesignating paragraph (b) as paragraph (c), respectively.
The revised and added text reads as follows:
52.219-6 Notice of Total Small Business Set-Aside.
* * * * *
Notice of Total Small Business Set-Aside (NOV 2011)
* * * * *
(b) Applicability. This clause applies only to--
(1) Contracts that have been totally set aside or reserved for
small business concerns; and
(2) Orders set aside for small business concerns under multiple-
award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).
* * * * *
Alternate I (NOV 2011). * * *
Alternate II (NOV 2011). As prescribed in 19.508(c), substitute
the following paragraph (c) for paragraph (c) of the basic clause:
* * * * *
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19. Add section 52.219-13 to read as follows:
52.219-13 Notice of Set-Aside of Orders.
As prescribed in 19.508(f), insert the following clause:
Notice of Set-Aside of Orders (Nov 2011)
The Contracting Officer will give notice of the order or orders,
if any, to be set aside for small business concerns identified in
19.000(a)(3) and the applicable small
[[Page 68037]]
business program. This notice, and its restrictions, will apply only
to the specific orders that have been set aside for any of the small
business concerns identified in 19.000(a)(3).
(End of clause)
0
20. Amend section 52.219-14 by--
0
a. Revising the date of the clause;
0
b. Redesignating paragraph (b) as paragraph (c; and
0
c. Adding a new paragraph (b) to read as follows:
52.219-14 Limitations on Subcontracting.
* * * * *
Limitations on Subcontracting (Nov 2011)
* * * * *
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for small
business concerns or 8(a) concerns;
(2) Part or parts of a multiple-award contract that have been
set aside for small business concerns or 8(a) concerns; and
(3) Orders set aside for small business or 8(a) concerns under
multiple-award contracts as described in 8.405-5 and
16.505(b)(2)(i)(F).
* * * * *
0
21. Amend section 52.219-27 by--
0
a. Revising the section heading, the clause heading, and the date of
the clause;
0
b. Redesignating paragraphs (b) through (e) as paragraphs (c) through
(f), respectively; and
0
c. Adding a new paragraph (b).
The revised and added text reads as follows:
52.219-27 Notice of Service-Disabled Veteran-Owned Small Business Set-
Aside.
* * * * *
Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (Nov
2011)
* * * * *
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for service-
disabled veteran-owned small business concerns;
(2) Part or parts of a multiple-award contract that have been
set aside for service-disabled veteran-owned small business
concerns; and
(3) Orders set aside for service-disabled veteran-owned small
business concerns under multiple-award contracts as described in
8.405-5 and 16.505(b)(2)(i)(F).
* * * * *
0
22. Amend section 52.219-29 by--
0
a. Revising the section heading, the clause heading, and the date of
the clause;
0
b. Redesignating paragraphs (b) through (e) as paragraphs (c) through
(f), respectively;
0
c. Adding a new paragraph (b); and
0
d. Removing from the newly redesignated paragraph (e)(4) ``paragraph
(c) above'' and adding ``paragraph (d) above'' in its place.
The revised and added text reads as follows:
52.219-29 Notice of Set-Aside for Economically Disadvantaged Women-
Owned Small Business Concerns.
* * * * *
Notice of Set-Aside for Economically Disadvantaged Women-Owned Small
Business Concerns (Nov 2011)
* * * * *
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for EDWOSB
concerns;
(2) Part or parts of a multiple-award contract that have been
set aside for EDWOSB concerns; and
(3) Orders set aside for EDWOSB concerns under multiple-award
contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).
* * * * *
0
23. Amend section 52.219-30 by--
0
a. Revising the section heading, the clause heading, and the date of
the clause;
0
b. Redesignating paragraphs (b) through (e) as paragraphs (c) through
(f), respectively;
0
c. Adding a new paragraph (b); and
0
d. Removing from the newly redesignated paragraph (e)(4) ``paragraph
(c) above'' and adding ``paragraph (d) above'' in its place.
The revised and added text reads as follows:
52.219-30 Notice of Set-Aside for Women-Owned Small Business Concerns
Eligible Under the Women-Owned Small Business Program.
* * * * *
Notice of Set-Aside for Women-Owned Small Business Concerns Eligible
Under the Women-Owned Small Business Program (Nov 2011)
* * * * *
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for WOSB
concerns eligible under the WOSB Program;
(2) Part or parts of a multiple-award contract that have been
set aside for WOSB concerns eligible under the WOSB Program; and
(3) Orders set aside for WOSB concerns eligible under the WOSB
Program, under multiple-award contracts as described in 8.405-5 and
16.505(b)(2)(i)(F).
* * * * *
[FR Doc. 2011-27786 Filed 11-1-11; 8:45 am]
BILLING CODE 6820-EP-P