Federal Acquisition Regulation; Women-Owned Small Business (WOSB) Program, 12913-12924 [2012-4475]
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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations
reasonableness when placing an order
under a blanket purchase agreement
(BPA) with hourly rate services. The
final rule also removes the requirement
for an ordering activity’s competition
advocate to approve a contracting
officer’s annual review of a single-award
BPA prior to exercise of an option to
extend the term of the BPA. This should
benefit contractors because it removes a
requirement that is considered to be a
restriction on the use of FSS singleaward BPAs.
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Item IV—Socioeconomic Program
Parity (FAR Case 2011–004)
This rule adopts as final, with
changes, an interim rule published in
the Federal Register at 76 FR 14566 on
March 16, 2011, which implemented
section 1347 of the Small Business Jobs
Act of 2010 (Pub. L. 111–240). Section
1347(b) clarifies that there is no order of
precedence among the small business
socioeconomic programs. The FAR
interim rule clarified the existence of
socioeconomic parity and that
contracting officers may exercise
discretion when determining whether
an acquisition will be restricted to small
businesses participating in the 8(a)
Business Development Program (8(a)),
Historically Underutilized Business
Zones (HUBZone) Program, ServiceDisabled Veteran-Owned Small
Business (SDVOSB) Program, or the
Women-Owned Small Business (WOSB)
Program. This final rule may have a
positive impact on small businesses as
it presents the maximum practicable
opportunity for small business concerns
qualified under the socioeconomic
programs to participate in the
performance of contracts, and assist
Federal agencies in meeting each of the
Government’s small business
contracting goals.
Item V—Trade Agreements Thresholds
(FAR Case 2012–002)
This final rule adjusts the thresholds
for application of the World Trade
Organization Government Procurement
Agreement and the Free Trade
Agreements as determined by the
United States Trade Representative,
according to a formula set forth in the
agreements. The threshold changes do
not have significant cost or
administrative impact, because they
maintain the status quo by keeping pace
with inflation.
Item VI—New Designated Country
(Armenia) and Other Trade Agreements
Updates (FAR Case 2011–030)
This final rule allows contracting
officers to purchase the goods and
services of Armenia without application
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of the Buy American Act if the
acquisition is covered by the World
Trade Organization Government
Procurement Agreement. It also updates
the lists of countries that are party to the
Agreement on Trade in Civil Aircraft.
This rule has no significant impact on
small business concerns.
Item VII—Government Property (FAR
Case 2010–009)
This final rule amends the FAR to
clarify reporting, reutilization, and
disposal of Government property and
the contractor requirements under the
Government property clause. The
proposed rule was published on April 4,
2011 (76 FR 18497).
The rule specifically impacts
contracting officers and contractors by
clarifying disposal of Government
property. The rule does not have a
significant economic impact on small
entities because the rule does not
impose any additional requirements on
small business.
Item VIII—Technical Amendments
Editorial changes are made at FAR
19.812, 42.203, and 52.209–9.
Dated: February 21, 2012.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Federal Acquisition Circular (FAC) 2005–
56 is issued under the authority of the
Secretary of Defense, the Administrator of
General Services, and the Administrator for
the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal
Acquisition Regulation (FAR) and other
directive material contained in FAC 2005–56
is effective March 2, 2012, except for Items
I, II, III, IV, and VII which are effective April
2, 2012.
Dated: February 17, 2012.
Richard Ginman,
Director, Defense Procurement and
Acquisition Policy.
Dated: February 15, 2012.
Mindy S. Connolly, CPCM,
Chief Acquisition Officer, U.S. General
Services Administration.
Dated: February 15, 2012.
William P. McNally,
Assistant Administrator for Procurement,
National Aeronautics and Space
Administration.
[FR Doc. 2012–4457 Filed 3–1–12; 8:45 am]
BILLING CODE 6820–EP–P
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12913
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18,
19, 26, 33, 36, 42, 52, and 53
[FAC 2005–56; FAR Case 2010–015; Item
I; Docket 2010–0015, Sequence 1]
RIN 9000–AL97
Federal Acquisition Regulation;
Women-Owned Small Business
(WOSB) Program
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
DoD, GSA, and NASA have
adopted as final, with changes, an
interim rule amending the Federal
Acquisition Regulation (FAR) to
implement the Small Business
Administration’s regulations
establishing the Women-Owned Small
Business (WOSB) Program. This rule
authorizes the restriction of competition
for Federal contracts in certain
industries to economically
disadvantaged women-owned small
business (EDWOSB) concerns or WOSB
concerns eligible under the WOSB
Program.
DATES: Effective Date: April 2, 2012.
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 2005–56, FAR
Case 2010–015.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
76 FR 18304 on April 1, 2011, to
implement the Small Business
Administration (SBA) regulations at 13
CFR part 127 and the procedures
authorized under section 8(m) of the
Small Business Act, Public Law 85–536,
(15 U.S.C. 637(m)). Seven respondents
submitted comments on the interim
rule. All respondents expressed support
for the WOSB Program; however, some
revisions to the WOSB Program were
recommended. This final rule
incorporates changes made in response
to public comments as well as minor
technical corrections.
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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations
On December 21, 2000, Congress
enacted the Small Business
Reauthorization Act of 2000 (Act), (Pub.
L. 106–554). Section 811 of Appendix I
of the Act amended the Small Business
Act to provide for a procurement
program for women-owned small
business concerns. Today, this program
is known as the Women-Owned Small
Business (WOSB) Program. The purpose
of the WOSB Program is to ensure that
women-owned small business concerns
have an equal opportunity to participate
in Federal contracting and to assist
agencies in achieving their womenowned small business concern
participation goals.
Under the WOSB Program,
contracting officers may restrict
competition for Federal contracts to
small business concerns owned and
controlled by women, under certain
conditions, including but not limited to:
(1) The procurement requirement is in
an industry the SBA has determined to
be underrepresented or substantially
underrepresented by small business
concerns owned and controlled by
women; and (2) small business concerns
owned and controlled by women
participating in the WOSB Program
have met the Program’s eligibility
requirements. The contracting officer
must expect that two or more concerns
will submit offers; contract award will
be made at a fair and reasonable price;
and the anticipated award price of the
contract (including options) will not
exceed $6.5 million in the case of a
contract assigned a North American
Industry Classification System (NAICS)
code for manufacturing, or $4 million,
in the case of all other contracts. These
figures are higher than the statute and
SBA regulation figures because they are
adjusted for inflation (see FAR 1.109).
Section 3(n) of the Small Business Act
(15 U.S.C. 632(n)) broadly defines a
small business concern owned and
controlled by women as one that is at
least 51 percent owned by one or more
women (or in the case of any publicly
owned business, at least 51 percent of
the stock is owned by one or more
women) and whose management and
daily business operations are controlled
by one or more women. The
Governmentwide goal for participation
by small business concerns owned and
controlled by women is 5 percent of the
total value of all prime and subcontract
awards (15 U.S.C. 644(g)). However, not
all small business concerns owned and
controlled by women are eligible to
participate in the WOSB Program set
forth in section 8(m) of the Small
Business Act (15 U.S.C. 637(m)).
The SBA established detailed criteria
at 13 CFR 127.200, 127.201, 127.202,
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and 127.203 for the women-owned
small businesses authorized under the
Act to participate in the Program:
EDWOSB concerns and WOSB concerns
eligible under the WOSB Program. In
contrast with the broader definition for
women-owned small businesses
provided at 15 U.S.C. 632(n), both
EDWOSB concerns and WOSB concerns
eligible under the WOSB Program must
be no less than 51 percent
unconditionally and directly owned by
one or more women who are United
States citizens. (Other WOSB Programspecific eligibility criteria are set forth
in the SBA’s regulations and FAR
subpart 19.15.) Thus, EDWOSB
concerns and WOSB concerns eligible
under the WOSB Program are actually
subcategories of the larger group of
women-owned small business concerns.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the public comments in the
development of the final rule. A
discussion of the comments and the
changes made to the rule as a result of
those comments are provided as
follows:
A. Changes From the Interim Rule
This final rule makes minor changes
to the interim rule. The term ‘‘WOSB
concern’’ is corrected to ‘‘WOSB
concern eligible under the WOSB
Program’’ in the FAR and in the
Standard Forms. The relevant
Paperwork Reduction Act burden
control number is added to the list at
FAR 1.106.
B. Analysis of Public Comments
1. The WOSB Program Should Be
Modeled After Current SBA Programs
Comment: One respondent
commented that the WOSB Program
should be modeled after current SBA
programs and require either a selfcertification or an SBA Certification
where eligibility appears on the firm’s
Central Contractor Registration (CCR)
database and Online Representations
and Certifications Application (ORCA)
profiles.
Response: The WOSB Program
adheres to the authorizing statute,
section 811 of the Small Business
Reauthorization Act of 2000, Public Law
106–554, and SBA regulations. The
statute permits both self-certifications
by the concern and third-party
certification from an entity approved by
the SBA. In the SBA final rule the
supporting legislative history stated that
there was no intent to create a
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certification program similar to the one
for the section 8(a) Business
Development Program.
2. The WOSB Program Repository Is
Burdensome
Comment: One respondent
commented that the WOSB Program
Repository is burdensome and to have
companies register in CCR, ORCA and
then a third system seems extraneous.
Response: The WOSB Program
Repository is SBA’s solution to facilitate
the statutory requirement to provide
documents verifying program eligibility.
SBA established the repository so that
WOSB concerns eligible under the
WOSB Program and EDWOSB concerns
would not have to submit documents
each time they are the apparent
successful offeror. The WOSB Program
repository minimizes paperwork burden
and increases oversight and program
monitoring capabilities.
3. The WOSB Program Requirement To
Submit Additional (and Sensitive)
Documents Could Create a Disincentive
for the Use of the Program
Comment: One respondent
commented that the WOSB Program’s
requirement to submit personal
information and the additional reviews
on behalf of the Government might
create a disincentive to utilize the
program and contracting authority to the
fullest extent possible.
Response: The certification and
additional documentation requirements
are necessary to meet the statutory
provisions and regulatory requirements
of the WOSB Program, and to ensure
that only WOSB concerns eligible under
the WOSB Program receive the benefits
of the WOSB Program.
4. Dollar Thresholds and Eligibility
Requirements
Comment: One respondent
commented that the WOSB Program’s
EDWOSB limits and eligibility
requirements need to be re-evaluated as
the $750,000.00 threshold may be too
low.
Response: The $750,000 personal net
worth requirement was established by
the SBA. See the SBA regulation at 13
CFR 127.203 for limitations and for
exclusions, e.g., primary personal
residence, ownership interest in the
EDWOSB concern, and retirement
accounts.
´ ´
5. Mentor-Protege Program for WOSB
Program
Comment: One respondent
commented that the Councils should
´ ´
consider a Mentor-Protege Program for
the WOSB Program. Such a program
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already exists for the section 8(a)
´ ´
program. A Mentor-Protege Program
would allow women-owned small
businesses to learn from larger, more
successful businesses.
Response: Under the Small Business
Jobs Act of 2010, Public Law 111–240,
SBA was given the authority to establish
´ ´
mentor-protege programs for small
business concerns owned and
controlled by service-disabled veterans,
small business concerns owned and
controlled by women, and HUBZone
small business concerns modeled on the
´ ´
Mentor-Protege Program of the SBA for
small business concerns participating in
programs under section 8(a) of the Small
Business Act (15 U.S.C. 637(a)).
6. Order of Precedence Among the
WOSB Program and Other Small
Business and Socioeconomic
Contracting Programs
Comment: One respondent
commented that the interim rule
implementing the WOSB Program did
not revise FAR 19.203(c) to include
WOSB concerns eligible under the
WOSB Program in the list of programs
to be considered before using a small
business set-aside pursuant to FAR
19.502–2(b). The interim rule, therefore,
creates some uncertainty as to whether
a contracting officer must first consider
an acquisition under section 8(a),
HUBZone, or service-disabled veteranowned small business programs before
he or she can properly set-aside an
acquisition for competition among
WOSB concerns eligible under the
WOSB Program or EDWOSB concerns.
Response: The interim rule did revise
FAR 19.203(c) by adding WOSB
programs.
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7. ‘‘WOSB Concern’’ Is Used
Interchangeably With ‘‘WOSB Concerns
Eligible Under the WOSB Program’’
Comment: One respondent
commented that FAR subpart 19.15
appears to use the term ‘‘WOSB
concern’’ interchangeably with ‘‘WOSB
concerns eligible under the WOSB
Program.’’ This is potentially confusing
and may lead to a misrepresentation of
eligibility by a non-eligible WOSB
concern.
Response: Where applicable, for
clarity and consistency, references to
WOSB concern were revised to add
‘‘eligible under the WOSB Program.’’
8. Clarification Is Needed To
Differentiate Between Eligibility Under
the WOSB Program and Eligibility as a
WOSB in General
Comment: One respondent
commented that the terms ‘‘WomenOwned Small Business Concern’’ and
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‘‘Women-Owned Small Business
(WOSB) Concern Eligible under the
WOSB Program’’ (in accordance with 13
CFR 127) should be clarified. It was
further suggested that the legislative and
regulatory history for these definitions
should be provided in the Background
section of the Federal Register.
Response: The ‘‘Background’’ of this
final rule provides a brief legislative and
regulatory history for the definitions of
‘‘Women-Owned Small Business
Concern’’ and ‘‘Women-Owned Small
Business (WOSB) Concern Eligible
under the WOSB Program.’’ A more
expansive historical perspective can be
found in the SBA’s proposed rule
published in the Federal Register at 75
FR 10030 on March 4, 2010, and final
rule published in the Federal Register at
75 FR 62258 on October 7, 2010.
C. Other changes
Other changes include a minor
revision to the Optional Form (OF) 347,
Order for Supplies and Services;
Standard Form (SF) 1447, Solicitation/
Contract; and the SF 1449, Solicitation/
Contract/Order for Commercial Items, to
add to the business classification for
Women-Owned Small Business (WOSB)
‘‘eligible under the WOSB Program.’’
III. Executive Orders 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.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared
a Final Regulatory Flexibility Analysis
(FRFA) consistent with the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. The
FRFA is summarized as follows:
This rule finalizes an interim rule that
revised the FAR to implement section 8(m)
of the Small Business Act, 15 U.S.C. 637(m),
to provide a tool for Federal agencies to
ensure equal opportunity, and thereby
increases Federal procurement opportunities
to Women-Owned Small Business (WOSB)
concerns.
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12915
The objective of the final rule is to assist
Federal agencies in eliminating barriers to
the participation by women-owned small
business concerns in Federal contracting,
thereby achieving the Federal Government’s
goal of awarding five percent of Federal
contract dollars to women-owned small
business concerns, as provided in the Federal
Acquisition Streamlining Act of 1994.
There were no significant issues raised by
the public in response to the Initial
Regulatory Flexibility Analysis. No public
comments were filed by the Chief Counsel for
Advocacy of the Small Business
Administration in response to this rule.
The Central Contractor Registration (CCR)
database currently lists approximately 3,800
Small Disadvantaged Businesses (SDBs)
owned and controlled by one or more
women. While DoD, GSA, and NASA
acknowledge that there may be other womenowned small business concerns in existence
other than those listed in the CCR as being
certified by SBA as SDBs, it is difficult to
envision more than 6,000 women-owned
small business concerns that could meet
SBA’s eligibility criteria and that are also
ready, willing, and able to bid on
Government contracts.
In addition, not all areas of Federal
procurement have been designated as
underrepresented or substantially
underrepresented, and opportunities in some
of the qualified industries may be limited.
Consequently, many otherwise-qualified
EDWOSB and WOSB concerns eligible under
the WOSB Program may not find it
advantageous to pursue contract
opportunities under these procedures.
Contracting opportunities identified by
Federal agencies as candidates to be set aside
for WOSB concerns eligible under the WOSB
Program (including EDWOSB concerns) will
come from new contracting requirements and
contracts currently performed by small and
large business concerns. At this time, DoD,
GSA, and NASA cannot accurately predict
how the existing distribution of contracts by
business type may change with this rule.
DoD, GSA, and NASA determined that this
rule imposes new reporting and
recordkeeping requirements. The
certification process described in 13 CFR
Subpart C, 127.300 to 127.302, is an
information collection. The certification
process requires a concern seeking to benefit
from Federal contracting opportunities
designated for WOSB concerns eligible under
the WOSB Program or EDWOSB concerns to
verify its status by providing documents to
the WOSB Program Repository, submitting a
certification to the WOSB Program
Repository, and representing its status in an
existing electronic contracting system (i.e.,
Online Representations and Certifications
Application (ORCA)). The WOSB concern
eligible under the WOSB Program or
EDWOSB concern will have to represent in
ORCA that it meets each eligibility
requirement of the program. Specifically, the
WOSB concern eligible under the WOSB
Program or EDWOSB concern will be
required to submit certain documents
verifying eligibility at the time of certification
in ORCA (and every year thereafter). These
documents will be submitted to a document
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repository established by SBA. Further, the
protest and eligibility examination
procedures will require the submission of
documents from those parties subject to a
protest and eligibility examination. To
reduce the burden on the WOSB concerns
eligible under the WOSB Program or
EDWOSB concerns, the same documents
submitted at the time of certification will be
used for the protests and eligibility
examinations, except that for protests and
eligibility examinations, SBA will also
request copies of proposals submitted in
response to a solicitation set-aside for WOSB
concerns eligible under the WOSB Program
or EDWOSB concerns and certain other
documents and information to verify the
status of an EDWOSB concern. Finally, this
rule also requires the WOSB concerns
eligible under the WOSB Program or
EDWOSB concerns to retain copies of the
documents submitted for a period of six (6)
years. DoD, GSA, and NASA believe that any
additional burden imposed by this
recordkeeping requirement would be
minimal since the firms would maintain the
information in their general course of
business.
This final rule minimizes the significant
economic impact on small entities by
allowing WOSB concerns eligible under the
WOSB Program, including EDWOSB
concerns, to be certified by a Federal agency,
a State government, or a national certifying
entity approved by the SBA. WOSB concerns
eligible under the WOSB Program, including
EDWOSB concerns, may also self-certify
eligibility status to the contracting officer
through submission of the required
documentation in accordance with standards
established by SBA. An alternative approach
would have been to require EDWOSB
concerns and WOSB concerns eligible under
the WOSB Program to apply for formal
certification. This alternative approach was
ruled out as unnecessary, not required by
statute, and too costly. DoD, GSA, and NASA
believe that eligibility examinations and
protest procedures incorporated into this
final rule will minimize the likelihood of
fraud and misrepresentation of status as a
WOSB concern eligible under the WOSB
Program or an EDWOSB concern. DoD, GSA,
and NASA have decided that allowing selfcertification and the option for firms to apply
for certification from SBA-approved
certifiers, when combined with random
eligibility examinations and a formal protest
procedure is a more viable approach than
formal certification and greatly reduces the
burden on small entities.
Interested parties may obtain a copy
of the FRFA from the Regulatory
Secretariat. The Regulatory Secretariat
has submitted a copy of the FRFA to the
Chief Counsel for Advocacy of the Small
Business Administration.
V. Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. chapter 35) applies. The rule
contains information collection
requirements. The Office of
Management and Budget (OMB) has
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cleared this information collection
requirement under OMB Control
Number 3245–0374, titled:
‘‘Certification for the Women-Owned
Small Business Federal Contract
Program.’’ SBA’s request is discussed in
detail in its proposed rule that
published in the Federal Register at 75
FR 10030 on March 4, 2010, and the
final rule that published in the Federal
Register at 75 FR 62258 on October 7,
2010.
List of Subjects in 48 CFR Parts 1, 2, 4,
6, 13, 14, 15, 18, 19, 26, 33, 36, 42, 52,
and 53
Government procurement.
Dated: February 21, 2012.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Interim Rule Adopted as Final With
Changes
Accordingly, the interim rule
amending 48 CFR parts 2, 4, 6, 13, 14,
15, 18, 19, 26, 33, 36, 42, 52, and 53,
which was published in the Federal
Register at 76 FR 18304 on April 1,
2011, is adopted as final with the
following changes:
■ 1. The authority citation for 48 CFR
parts 1, 2, 4, 18, 19, 52, and 53
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 1—FEDERAL ACQUISITION
REGULATIONS SYSTEM
1.106
[Amended]
2. Amend section 1.106, in the table
following the introductory text, by
adding in numerical sequence, FAR
segment ‘‘52.219–29’’ and its
corresponding OMB Control Number
‘‘3245–0374’’, and FAR segment
‘‘52.219–30’’ and its corresponding
OMB Control Number ‘‘3245–0374’’.
■
PART 2—DEFINITIONS OF WORDS
AND TERMS
3. Amend section 2.101, in paragraph
(b)(2), in the definition ‘‘Women-Owned
Small Business (WOSB) Program’’ by
revising paragraph (3) to read as follows:
■
2.101
Definitions.
*
*
*
*
*
(b) * * *
(2) * * *
Women-Owned Small Business
(WOSB) Program. * * *
(3) Women-owned small business
(WOSB) concern eligible under the
WOSB Program means a small business
concern that is at least 51 percent
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directly and unconditionally owned by,
and the management and daily business
operations of which are controlled by,
one or more women who are citizens of
the United States (13 CFR part 127).
*
*
*
*
*
PART 4—ADMINISTRATIVE MATTERS
4.803
[Amended]
4. Amend section 4.803 by removing
from the introductory text of paragraph
(a)(42) ‘‘concerns or’’ and adding
‘‘concerns eligible under the WOSB
Program or’’ in its place.
■
PART 18—EMERGENCY
ACQUISITIONS
18.117
[Amended]
5. Amend section 18.117 by removing
‘‘concerns on’’ and adding ‘‘concerns
eligible under the WOSB Program on’’
in its place.
■
PART 19—SMALL BUSINESS
PROGRAMS
6. Amend section 19.201 by revising
paragraph (d)(10) to read as follows:
■
19.201
General policy.
*
*
*
*
*
(d) * * *
(10) Make recommendations in
accordance with agency procedures as
to whether a particular acquisition
should be awarded under subpart 19.5
as a small business set-aside, under
subpart 19.8 as a section 8(a) award,
under subpart 19.13 as a HUBZone setaside, under subpart 19.14 as a servicedisabled veteran-owned small business
set-aside, or under subpart 19.15 as a
set-aside for economically
disadvantaged women-owned small
business (EDWOSB) concerns or
women-owned small business (WOSB)
concerns eligible under the WOSB
Program.
*
*
*
*
*
19.308
[Amended]
7. Amend section 19.308 by removing
from paragraphs (h)(2)(i) and (h)(3)(iv)
‘‘concern, and’’ and adding ‘‘concern
eligible under the WOSB Program, and’’
in its place.
■ 8. Amend section 19.501 by revising
the second sentence of paragraph (c) to
read as follows:
■
19.501
General.
*
*
*
*
*
(c) * * * The contracting officer shall
perform market research and document
why a small business set-aside is
inappropriate when an acquisition is
not set aside for small business, unless
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an award is anticipated to a small
business under the 8(a), HUBZone,
SDVOSB, or WOSB Programs. * * *
*
*
*
*
*
■ 9. Amend section 19.1500 by revising
paragraph (b) and adding paragraph (c)
to read as follows:
19.1500
General.
*
*
*
*
*
(b) The purpose of the WOSB Program
is to ensure women-owned small
business concerns have an equal
opportunity to participate in Federal
contracting and to assist agencies in
achieving their women-owned small
business participation goals (see 13 part
CFR 127).
(c) An economically disadvantaged
women-owned small business
(EDWOSB) concern or WOSB concern
eligible under the WOSB Program is a
subcategory of ‘‘women-owned small
business concern’’ as defined in 2.101.
■ 10. Revise section 19.1503 to read as
follows:
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19.1503
Status.
(a) Status as an EDWOSB concern or
WOSB concern eligible under the
WOSB Program is determined in
accordance with 13 CFR part 127.
(b) The contracting officer shall verify
that the offeror—
(1) Is registered in Central Contractor
Registration (CCR);
(2) Is self-certified in the Online
Representations and Certifications
Application (ORCA); and
(3) Has submitted documents
verifying its eligibility at the time of
initial offer to the WOSB Program
Repository. The contract shall not be
awarded until all required documents
are received.
(c)(1) An EDWOSB concern or WOSB
concern eligible under the WOSB
Program that has been certified by a
SBA approved third party certifier,
(which includes SBA certification under
the 8(a) Program), must provide the
following eligibility requirement
documents—
(i) The third-party certification;
(ii) SBA’s WOSB Program
Certification form (SBA Form 2413 for
WOSB concerns eligible under the
WOSB Program and SBA Form 2414 for
EDWOSB concerns); and
(iii) The joint venture agreement, if
applicable.
(2) An EDWOSB concern or WOSB
concern eligible under the WOSB
Program that has not been certified by
an SBA approved third party certifier or
by SBA under the 8(a) Program, must
provide the following documents:
(i) The U.S. birth certificate,
naturalization documentation, or
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unexpired U.S. passport for each
woman owner.
(ii) The joint venture agreement, if
applicable.
(iii) For limited liability companies,
Articles of organization (also referred to
as certificate of organization or articles
of formation) and any amendments, and
the operating agreement and any
amendments.
(iv) For corporations, articles of
incorporation and any amendments, bylaws and any amendments, all issued
stock certificates, including the front
and back copies, signed in accord with
the by-laws, stock ledger, and voting
agreements, if any.
(v) For partnerships, the partnership
agreement and any amendments.
(vi) For sole proprietorships,
corporations, limited liability
companies and partnerships if
applicable, the assumed/fictitious name
certificate(s).
(vii) SBA’s WOSB Program
Certification form (SBA Form 2413 for
WOSB concerns eligible under the
WOSB Program and SBA Form 2414 for
EDWOSB concerns).
(viii) For EDWOSB concerns, in
addition to the above, the SBA Form
413, Personal Financial Statement,
available to the public at https://
www.sba.gov/tools/Forms/,
for each woman claiming economic
disadvantage.
(d)(1) A contracting officer may accept
a concern’s self-certification as accurate
for a specific procurement reserved for
award under this subpart if—
(i) The apparent successful WOSB
eligible under the WOSB Program or
EDWOSB offeror provided the required
documents;
(ii) There has been no protest or other
credible information that calls into
question the concern’s eligibility as an
EDWOSB concern or WOSB concern
eligible under the WOSB Program; and
(iii) There has been no decision
issued by SBA as a result of a current
eligibility examination finding the
concern did not qualify as an EDWOSB
concern or WOSB concern eligible
under the WOSB Program at the time it
submitted its initial offer.
(2) The contracting officer shall file a
status protest in accordance with 19.308
if—
(i) There is information that questions
the eligibility of a concern; or
(ii) The concern fails to provide all of
the required documents to verify its
eligibility.
(e) If there is a decision issued by SBA
as a result of a current eligibility
examination finding that the concern
did not qualify as an EDWOSB concern
or WOSB concern eligible under the
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12917
WOSB Program, the contracting officer
may terminate the contract, and shall
not exercise any option nor award
further task or delivery orders. The
contracting officer shall not count or
include the award toward the small
business accomplishments for an
EDWOSB concern or WOSB concern
eligible under the WOSB Program and
must update FPDS from the date of
award.
(f) A joint venture may be considered
an EDWOSB concern or WOSB concern
eligible under the WOSB Program if it
meets the requirements of 13 CFR
127.506.
(g) An EDWOSB concern or WOSB
concern eligible under the WOSB
Program that is a non-manufacturer, as
defined in 13 CFR 121.406(b), may
submit an offer on a requirement set
aside for an EDWOSB concern or a
WOSB concern eligible under the
WOSB Program with a NAICS code for
supplies, if it meets the requirements
under the non-manufacturer rule set
forth in that regulation.
■ 11. Amend section 19.1505 by
revising paragraphs (a), (c)(1), (d), and
(f) to read as follows:
19.1505
Set-aside procedures.
(a) The contracting officer—
(1) Shall comply with 19.203 before
deciding to set aside an acquisition
under the WOSB Program.
(2) May set aside acquisitions
exceeding the micro-purchase threshold
for competition restricted to EDWOSB
concerns or WOSB concerns eligible
under the WOSB Program in those
NAICS codes in which SBA has
determined that WOSB concerns
eligible under the WOSB program are
underrepresented or substantially
underrepresented in Federal
procurement, as specified on SBA’s Web
site at https://www.sba.gov/WOSB.
*
*
*
*
*
(c) * * *
(1) Two or more WOSB concerns
eligible under the WOSB Program
(including EDWOSB concerns), will
submit offers;
*
*
*
*
*
(d) The contracting officer may make
an award, if only one acceptable offer is
received from a qualified EDWOSB
concern or WOSB concern eligible
under the WOSB Program.
*
*
*
*
*
(f) If no acceptable offers are received
from an EDWOSB concern or WOSB
concern eligible under the WOSB
Program, the set-aside shall be
withdrawn and the requirement, if still
valid, must be considered for set aside
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in accordance with 19.203 and subpart
19.5.
*
*
*
*
*
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
Small Business (EDWOSB) Concerns (4/2/12)
(15 U.S.C. 637(m)).
l (25) 52.219–30, Notice of Set-Aside for
Women-Owned Small Business (WOSB)
Concerns Eligible Under the WOSB Program
(4/2/12) (15 U.S.C. 637(m)).
*
*
*
*
*
14. Amend section 52.219–1 by
revising the date of the provision and
paragraphs (b)(4)(ii) and (b)(5)(ii) to read
as follows:
■
12. Amend section 52.212–3 by
revising the date of the provision and
paragraphs (c)(6)(ii), (c)(7)(i), and
(c)(7)(ii) to read as follows:
■
52.212–3 Offeror Representations and
Certifications—Commercial Items.
52.219–1 Small Business Program
Representations.
*
*
*
*
*
*
*
*
*
*
OFFEROR REPRESENTATIONS AND
CERTIFICATIONS—COMMERCIAL ITEMS
APR 2012
SMALL BUSINESS PROGRAM
REPRESENTATIONS APR 2012
*
(b) * * *
(4) * * *
(ii) It b is, b is not a joint venture that
complies with the requirements of 13 CFR
part 127, and the representation in paragraph
(b)(4)(i) of this provision is accurate for each
WOSB concern eligible under the WOSB
Program participating in the joint venture.
[The offeror shall enter the name or names
of the WOSB concern eligible under the
WOSB Program and other small businesses
that are participating in the joint venture:
llllllll.] Each WOSB concern
eligible under the WOSB Program
participating in the joint venture shall submit
a separate signed copy of the WOSB
representation.
(5) * * *
(ii) It b is, b is not a joint venture that
complies with the requirements of 13 CFR
part 127, and the representation in paragraph
(b)(5)(i) of this provision is accurate for each
EDWOSB concern participating in the joint
venture. [The offeror shall enter the name or
names of the EDWOSB concern and other
small businesses that are participating in the
joint venture: llllllll.] Each
EDWOSB concern participating in the joint
venture shall submit a separate signed copy
of the EDWOSB representation.
*
*
*
*
(c) * * *
(6) * * *
(ii) It b is, b is not a joint venture that
complies with the requirements of 13 CFR
part 127, and the representation in paragraph
(c)(6)(i) of this provision is accurate for each
WOSB concern eligible under the WOSB
Program participating in the joint venture.
[The offeror shall enter the name or names
of the WOSB concern eligible under the
WOSB Program and other small businesses
that are participating in the joint venture:
llllllll.] Each WOSB concern
eligible under the WOSB Program
participating in the joint venture shall submit
a separate signed copy of the WOSB
representation.
(7) * * *
(i) It b is, b is not an EDWOSB concern,
has provided all the required documents to
the WOSB Repository, and no change in
circumstances or adverse decisions have
been issued that affects its eligibility; and
(ii) It b is, b is not a joint venture that
complies with the requirements of 13 CFR
part 127, and the representation in paragraph
(c)(7)(i) of this provision is accurate for each
EDWOSB concern participating in the joint
venture. [The offeror shall enter the name or
names of the EDWOSB concern and other
small businesses that are participating in the
joint venture: llllllll.] Each
EDWOSB concern participating in the joint
venture shall submit a separate signed copy
of the EDWOSB representation.
*
*
*
*
*
13. Amend section 52.212–5 by
revising the date of the clause and
paragraphs (b)(24) and (b)(25) to read as
follows:
■
52.212–5 Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items.
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*
*
*
*
*
CONTRACT TERMS AND CONDITIONS
REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS—COMMERCIAL
ITEMS APR 2012
*
*
*
*
*
(b) * * *
l (24) 52.219–29, Notice of Set-Aside for
Economically Disadvantaged Women-Owned
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*
*
*
*
*
*
*
*
*
*
■ 15. Amend section 52.219–29 by—
■ a. Revising the date of the clause;
■ b. Removing from paragraph (c)(3)
‘‘EDWOSB concern’’ and adding
‘‘apparent successful offeror’’ in its
place; and
■ c. Removing from paragraph (f) ‘‘An
EDWOSB that’’ and adding ‘‘An
EDWOSB concern that’’ in its place.
The revised text reads as follows:
a. Revising the date of the clause,
paragraph (c), and the introductory text
of paragraphs (d) and (e);
■ b. Removing from paragraph (e)(2)
‘‘concern;’’ and adding ‘‘concern eligible
under the WOSB Program;’’ in its place;
■ c. Removing from paragraph (e)(3)(ii)
‘‘WOSB as’’ and adding ‘‘WOSB concern
eligible under the WOSB Program as’’ in
its place;
■ d. Revising paragraph (e)(5); and
■ e. Removing from paragraph (f)
‘‘WOSB that’’ and adding ‘‘WOSB
concern eligible under the WOSB
Program that’’ in its place.
The revised 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 WOMENOWNED SMALL BUSINESS CONCERNS
ELIGIBLE UNDER THE WOMEN-OWNED
SMALL BUSINESS PROGRAM APR 2012
*
*
*
*
*
(c) General. (1) Offers are solicited only
from WOSB concerns eligible under the
WOSB Program. Offers received from
concerns that are not WOSB concerns eligible
under the WOSB program shall not be
considered.
(2) Any award resulting from this
solicitation will be made to a WOSB concern
eligible under the WOSB Program.
(3) The Contracting Officer will ensure that
the apparent successful offeror has provided
the required documents to the WOSB
Program Repository. The contract shall not be
awarded until all required documents are
received.
(d) Agreement. A WOSB concern eligible
under the WOSB Program agrees that in the
performance of the contract for— * * *
*
*
*
*
*
(e) Joint Venture. A joint venture may be
considered a WOSB concern eligible under
the WOSB Program if—
*
*
*
*
*
(5) The procuring activity executes the
contract in the name of the WOSB concern
eligible under the WOSB Program or joint
venture.
*
*
*
*
*
PART 53—FORMS
53.212
[Amended]
52.219–29 Notice of Set-Aside for
Economically Disadvantaged WomenOwned Small Business Concerns.
17. Amend section 53.212 by
removing ‘‘SF 1449, (Rev. 10/2010)’’ and
adding ‘‘SF 1449 (Rev. 2/2012)’’ in its
place.
*
53.213
*
*
*
*
NOTICE OF SET-ASIDE FOR
ECONOMICALLY DISADVANTAGED
WOMEN-OWNED SMALL BUSINESS
CONCERNS APR 2012
*
■
*
*
*
*
16. Amend section 52.219–30 by—
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■
[Amended]
18. Amend section 53.213 by
removing from paragraph (a) ‘‘SF 1449,
(Rev. 10/2010)’’ and adding ‘‘SF 1449
(Rev. 2/2012)’’ in its place; and by
removing from paragraph (f) ‘‘SF 1449,
(Rev. 10/2010)’’ and ‘‘OF 347, (Rev. 10/
■
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53.214
53.236–1
19. Amend section 53.214 by
removing from paragraph (d) ‘‘SF 1447
■
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[Amended]
[Amended]
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20. Amend section 53.236–1 by
removing from paragraph (e) ‘‘OF 347
■
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(Rev. 10/2010)’’ and adding ‘‘OF 347
(Rev. 2/2012)’’ in its place.
■ 21. Revise section 53.301–1447 to
read as follows:
53.301–1447
Solicitation/Contract
BILLING CODE 6820–EP–P
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(Rev. 11/2010)’’ and adding ‘‘SF 1447
(Rev. 2/2012)’’ in its place.
2010)’’ and adding ‘‘SF 1449 (Rev. 2/
2012)’’ and ‘‘OF 347 (Rev. 2/2012)’’ in
their place, respectively.
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22. Revise section 53.301–1449 to
read as follows:
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■
VerDate Mar<15>2010
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53.301–1449 Solicitation/Contract/Order
for Commercial Items.
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23. Revise section 53.302–347 to read
as follows:
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■
VerDate Mar<15>2010
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53.302–347
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[FR Doc. 2012–4475 Filed 3–1–12; 8:45 am]
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BILLING CODE 6820–C
Agencies
[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Rules and Regulations]
[Pages 12913-12924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4475]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18, 19, 26, 33, 36, 42, 52,
and 53
[FAC 2005-56; FAR Case 2010-015; Item I; Docket 2010-0015, Sequence 1]
RIN 9000-AL97
Federal Acquisition Regulation; Women-Owned Small Business (WOSB)
Program
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA have adopted as final, with changes, an
interim rule amending the Federal Acquisition Regulation (FAR) to
implement the Small Business Administration's regulations establishing
the Women-Owned Small Business (WOSB) Program. This rule authorizes the
restriction of competition for Federal contracts in certain industries
to economically disadvantaged women-owned small business (EDWOSB)
concerns or WOSB concerns eligible under the WOSB Program.
DATES: Effective Date: April 2, 2012.
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 2005-56, FAR Case 2010-
015.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published an interim rule in the Federal
Register at 76 FR 18304 on April 1, 2011, to implement the Small
Business Administration (SBA) regulations at 13 CFR part 127 and the
procedures authorized under section 8(m) of the Small Business Act,
Public Law 85-536, (15 U.S.C. 637(m)). Seven respondents submitted
comments on the interim rule. All respondents expressed support for the
WOSB Program; however, some revisions to the WOSB Program were
recommended. This final rule incorporates changes made in response to
public comments as well as minor technical corrections.
[[Page 12914]]
On December 21, 2000, Congress enacted the Small Business
Reauthorization Act of 2000 (Act), (Pub. L. 106-554). Section 811 of
Appendix I of the Act amended the Small Business Act to provide for a
procurement program for women-owned small business concerns. Today,
this program is known as the Women-Owned Small Business (WOSB) Program.
The purpose of the WOSB Program is to ensure that women-owned small
business concerns have an equal opportunity to participate in Federal
contracting and to assist agencies in achieving their women-owned small
business concern participation goals.
Under the WOSB Program, contracting officers may restrict
competition for Federal contracts to small business concerns owned and
controlled by women, under certain conditions, including but not
limited to: (1) The procurement requirement is in an industry the SBA
has determined to be underrepresented or substantially underrepresented
by small business concerns owned and controlled by women; and (2) small
business concerns owned and controlled by women participating in the
WOSB Program have met the Program's eligibility requirements. The
contracting officer must expect that two or more concerns will submit
offers; contract award will be made at a fair and reasonable price; and
the anticipated award price of the contract (including options) will
not exceed $6.5 million in the case of a contract assigned a North
American Industry Classification System (NAICS) code for manufacturing,
or $4 million, in the case of all other contracts. These figures are
higher than the statute and SBA regulation figures because they are
adjusted for inflation (see FAR 1.109).
Section 3(n) of the Small Business Act (15 U.S.C. 632(n)) broadly
defines a small business concern owned and controlled by women as one
that is at least 51 percent owned by one or more women (or in the case
of any publicly owned business, at least 51 percent of the stock is
owned by one or more women) and whose management and daily business
operations are controlled by one or more women. The Governmentwide goal
for participation by small business concerns owned and controlled by
women is 5 percent of the total value of all prime and subcontract
awards (15 U.S.C. 644(g)). However, not all small business concerns
owned and controlled by women are eligible to participate in the WOSB
Program set forth in section 8(m) of the Small Business Act (15 U.S.C.
637(m)).
The SBA established detailed criteria at 13 CFR 127.200, 127.201,
127.202, and 127.203 for the women-owned small businesses authorized
under the Act to participate in the Program: EDWOSB concerns and WOSB
concerns eligible under the WOSB Program. In contrast with the broader
definition for women-owned small businesses provided at 15 U.S.C.
632(n), both EDWOSB concerns and WOSB concerns eligible under the WOSB
Program must be no less than 51 percent unconditionally and directly
owned by one or more women who are United States citizens. (Other WOSB
Program-specific eligibility criteria are set forth in the SBA's
regulations and FAR subpart 19.15.) Thus, EDWOSB concerns and WOSB
concerns eligible under the WOSB Program are actually subcategories of
the larger group of women-owned small business concerns.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule. A discussion of the comments and the
changes made to the rule as a result of those comments are provided as
follows:
A. Changes From the Interim Rule
This final rule makes minor changes to the interim rule. The term
``WOSB concern'' is corrected to ``WOSB concern eligible under the WOSB
Program'' in the FAR and in the Standard Forms. The relevant Paperwork
Reduction Act burden control number is added to the list at FAR 1.106.
B. Analysis of Public Comments
1. The WOSB Program Should Be Modeled After Current SBA Programs
Comment: One respondent commented that the WOSB Program should be
modeled after current SBA programs and require either a self-
certification or an SBA Certification where eligibility appears on the
firm's Central Contractor Registration (CCR) database and Online
Representations and Certifications Application (ORCA) profiles.
Response: The WOSB Program adheres to the authorizing statute,
section 811 of the Small Business Reauthorization Act of 2000, Public
Law 106-554, and SBA regulations. The statute permits both self-
certifications by the concern and third-party certification from an
entity approved by the SBA. In the SBA final rule the supporting
legislative history stated that there was no intent to create a
certification program similar to the one for the section 8(a) Business
Development Program.
2. The WOSB Program Repository Is Burdensome
Comment: One respondent commented that the WOSB Program Repository
is burdensome and to have companies register in CCR, ORCA and then a
third system seems extraneous.
Response: The WOSB Program Repository is SBA's solution to
facilitate the statutory requirement to provide documents verifying
program eligibility. SBA established the repository so that WOSB
concerns eligible under the WOSB Program and EDWOSB concerns would not
have to submit documents each time they are the apparent successful
offeror. The WOSB Program repository minimizes paperwork burden and
increases oversight and program monitoring capabilities.
3. The WOSB Program Requirement To Submit Additional (and Sensitive)
Documents Could Create a Disincentive for the Use of the Program
Comment: One respondent commented that the WOSB Program's
requirement to submit personal information and the additional reviews
on behalf of the Government might create a disincentive to utilize the
program and contracting authority to the fullest extent possible.
Response: The certification and additional documentation
requirements are necessary to meet the statutory provisions and
regulatory requirements of the WOSB Program, and to ensure that only
WOSB concerns eligible under the WOSB Program receive the benefits of
the WOSB Program.
4. Dollar Thresholds and Eligibility Requirements
Comment: One respondent commented that the WOSB Program's EDWOSB
limits and eligibility requirements need to be re-evaluated as the
$750,000.00 threshold may be too low.
Response: The $750,000 personal net worth requirement was
established by the SBA. See the SBA regulation at 13 CFR 127.203 for
limitations and for exclusions, e.g., primary personal residence,
ownership interest in the EDWOSB concern, and retirement accounts.
5. Mentor-Prot[eacute]g[eacute] Program for WOSB Program
Comment: One respondent commented that the Councils should consider
a Mentor-Prot[eacute]g[eacute] Program for the WOSB Program. Such a
program
[[Page 12915]]
already exists for the section 8(a) program. A Mentor-
Prot[eacute]g[eacute] Program would allow women-owned small businesses
to learn from larger, more successful businesses.
Response: Under the Small Business Jobs Act of 2010, Public Law
111-240, SBA was given the authority to establish mentor-
prot[eacute]g[eacute] programs for small business concerns owned and
controlled by service-disabled veterans, small business concerns owned
and controlled by women, and HUBZone small business concerns modeled on
the Mentor-Prot[eacute]g[eacute] Program of the SBA for small business
concerns participating in programs under section 8(a) of the Small
Business Act (15 U.S.C. 637(a)).
6. Order of Precedence Among the WOSB Program and Other Small Business
and Socioeconomic Contracting Programs
Comment: One respondent commented that the interim rule
implementing the WOSB Program did not revise FAR 19.203(c) to include
WOSB concerns eligible under the WOSB Program in the list of programs
to be considered before using a small business set-aside pursuant to
FAR 19.502-2(b). The interim rule, therefore, creates some uncertainty
as to whether a contracting officer must first consider an acquisition
under section 8(a), HUBZone, or service-disabled veteran-owned small
business programs before he or she can properly set-aside an
acquisition for competition among WOSB concerns eligible under the WOSB
Program or EDWOSB concerns.
Response: The interim rule did revise FAR 19.203(c) by adding WOSB
programs.
7. ``WOSB Concern'' Is Used Interchangeably With ``WOSB Concerns
Eligible Under the WOSB Program''
Comment: One respondent commented that FAR subpart 19.15 appears to
use the term ``WOSB concern'' interchangeably with ``WOSB concerns
eligible under the WOSB Program.'' This is potentially confusing and
may lead to a misrepresentation of eligibility by a non-eligible WOSB
concern.
Response: Where applicable, for clarity and consistency, references
to WOSB concern were revised to add ``eligible under the WOSB
Program.''
8. Clarification Is Needed To Differentiate Between Eligibility Under
the WOSB Program and Eligibility as a WOSB in General
Comment: One respondent commented that the terms ``Women-Owned
Small Business Concern'' and ``Women-Owned Small Business (WOSB)
Concern Eligible under the WOSB Program'' (in accordance with 13 CFR
127) should be clarified. It was further suggested that the legislative
and regulatory history for these definitions should be provided in the
Background section of the Federal Register.
Response: The ``Background'' of this final rule provides a brief
legislative and regulatory history for the definitions of ``Women-Owned
Small Business Concern'' and ``Women-Owned Small Business (WOSB)
Concern Eligible under the WOSB Program.'' A more expansive historical
perspective can be found in the SBA's proposed rule published in the
Federal Register at 75 FR 10030 on March 4, 2010, and final rule
published in the Federal Register at 75 FR 62258 on October 7, 2010.
C. Other changes
Other changes include a minor revision to the Optional Form (OF)
347, Order for Supplies and Services; Standard Form (SF) 1447,
Solicitation/Contract; and the SF 1449, Solicitation/Contract/Order for
Commercial Items, to add to the business classification for Women-Owned
Small Business (WOSB) ``eligible under the WOSB Program.''
III. Executive Orders 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.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601, et seq. The FRFA is summarized as follows:
This rule finalizes an interim rule that revised the FAR to
implement section 8(m) of the Small Business Act, 15 U.S.C. 637(m),
to provide a tool for Federal agencies to ensure equal opportunity,
and thereby increases Federal procurement opportunities to Women-
Owned Small Business (WOSB) concerns.
The objective of the final rule is to assist Federal agencies in
eliminating barriers to the participation by women-owned small
business concerns in Federal contracting, thereby achieving the
Federal Government's goal of awarding five percent of Federal
contract dollars to women-owned small business concerns, as provided
in the Federal Acquisition Streamlining Act of 1994.
There were no significant issues raised by the public in
response to the Initial Regulatory Flexibility Analysis. No public
comments were filed by the Chief Counsel for Advocacy of the Small
Business Administration in response to this rule.
The Central Contractor Registration (CCR) database currently
lists approximately 3,800 Small Disadvantaged Businesses (SDBs)
owned and controlled by one or more women. While DoD, GSA, and NASA
acknowledge that there may be other women-owned small business
concerns in existence other than those listed in the CCR as being
certified by SBA as SDBs, it is difficult to envision more than
6,000 women-owned small business concerns that could meet SBA's
eligibility criteria and that are also ready, willing, and able to
bid on Government contracts.
In addition, not all areas of Federal procurement have been
designated as underrepresented or substantially underrepresented,
and opportunities in some of the qualified industries may be
limited. Consequently, many otherwise-qualified EDWOSB and WOSB
concerns eligible under the WOSB Program may not find it
advantageous to pursue contract opportunities under these
procedures.
Contracting opportunities identified by Federal agencies as
candidates to be set aside for WOSB concerns eligible under the WOSB
Program (including EDWOSB concerns) will come from new contracting
requirements and contracts currently performed by small and large
business concerns. At this time, DoD, GSA, and NASA cannot
accurately predict how the existing distribution of contracts by
business type may change with this rule.
DoD, GSA, and NASA determined that this rule imposes new
reporting and recordkeeping requirements. The certification process
described in 13 CFR Subpart C, 127.300 to 127.302, is an information
collection. The certification process requires a concern seeking to
benefit from Federal contracting opportunities designated for WOSB
concerns eligible under the WOSB Program or EDWOSB concerns to
verify its status by providing documents to the WOSB Program
Repository, submitting a certification to the WOSB Program
Repository, and representing its status in an existing electronic
contracting system (i.e., Online Representations and Certifications
Application (ORCA)). The WOSB concern eligible under the WOSB
Program or EDWOSB concern will have to represent in ORCA that it
meets each eligibility requirement of the program. Specifically, the
WOSB concern eligible under the WOSB Program or EDWOSB concern will
be required to submit certain documents verifying eligibility at the
time of certification in ORCA (and every year thereafter). These
documents will be submitted to a document
[[Page 12916]]
repository established by SBA. Further, the protest and eligibility
examination procedures will require the submission of documents from
those parties subject to a protest and eligibility examination. To
reduce the burden on the WOSB concerns eligible under the WOSB
Program or EDWOSB concerns, the same documents submitted at the time
of certification will be used for the protests and eligibility
examinations, except that for protests and eligibility examinations,
SBA will also request copies of proposals submitted in response to a
solicitation set-aside for WOSB concerns eligible under the WOSB
Program or EDWOSB concerns and certain other documents and
information to verify the status of an EDWOSB concern. Finally, this
rule also requires the WOSB concerns eligible under the WOSB Program
or EDWOSB concerns to retain copies of the documents submitted for a
period of six (6) years. DoD, GSA, and NASA believe that any
additional burden imposed by this recordkeeping requirement would be
minimal since the firms would maintain the information in their
general course of business.
This final rule minimizes the significant economic impact on
small entities by allowing WOSB concerns eligible under the WOSB
Program, including EDWOSB concerns, to be certified by a Federal
agency, a State government, or a national certifying entity approved
by the SBA. WOSB concerns eligible under the WOSB Program, including
EDWOSB concerns, may also self-certify eligibility status to the
contracting officer through submission of the required documentation
in accordance with standards established by SBA. An alternative
approach would have been to require EDWOSB concerns and WOSB
concerns eligible under the WOSB Program to apply for formal
certification. This alternative approach was ruled out as
unnecessary, not required by statute, and too costly. DoD, GSA, and
NASA believe that eligibility examinations and protest procedures
incorporated into this final rule will minimize the likelihood of
fraud and misrepresentation of status as a WOSB concern eligible
under the WOSB Program or an EDWOSB concern. DoD, GSA, and NASA have
decided that allowing self-certification and the option for firms to
apply for certification from SBA-approved certifiers, when combined
with random eligibility examinations and a formal protest procedure
is a more viable approach than formal certification and greatly
reduces the burden on small entities.
Interested parties may obtain a copy of the FRFA from the
Regulatory Secretariat. The Regulatory Secretariat has submitted a copy
of the FRFA to the Chief Counsel for Advocacy of the Small Business
Administration.
V. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies. The
rule contains information collection requirements. The Office of
Management and Budget (OMB) has cleared this information collection
requirement under OMB Control Number 3245-0374, titled: ``Certification
for the Women-Owned Small Business Federal Contract Program.'' SBA's
request is discussed in detail in its proposed rule that published in
the Federal Register at 75 FR 10030 on March 4, 2010, and the final
rule that published in the Federal Register at 75 FR 62258 on October
7, 2010.
List of Subjects in 48 CFR Parts 1, 2, 4, 6, 13, 14, 15, 18, 19,
26, 33, 36, 42, 52, and 53
Government procurement.
Dated: February 21, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Interim Rule Adopted as Final With Changes
Accordingly, the interim rule amending 48 CFR parts 2, 4, 6, 13,
14, 15, 18, 19, 26, 33, 36, 42, 52, and 53, which was published in the
Federal Register at 76 FR 18304 on April 1, 2011, is adopted as final
with the following changes:
0
1. The authority citation for 48 CFR parts 1, 2, 4, 18, 19, 52, and 53
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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.106 [Amended]
0
2. Amend section 1.106, in the table following the introductory text,
by adding in numerical sequence, FAR segment ``52.219-29'' and its
corresponding OMB Control Number ``3245-0374'', and FAR segment
``52.219-30'' and its corresponding OMB Control Number ``3245-0374''.
PART 2--DEFINITIONS OF WORDS AND TERMS
0
3. Amend section 2.101, in paragraph (b)(2), in the definition ``Women-
Owned Small Business (WOSB) Program'' by revising paragraph (3) to read
as follows:
2.101 Definitions.
* * * * *
(b) * * *
(2) * * *
Women-Owned Small Business (WOSB) Program. * * *
(3) Women-owned small business (WOSB) concern eligible under the
WOSB Program means a small business concern that is at least 51 percent
directly and unconditionally owned by, and the management and daily
business operations of which are controlled by, one or more women who
are citizens of the United States (13 CFR part 127).
* * * * *
PART 4--ADMINISTRATIVE MATTERS
4.803 [Amended]
0
4. Amend section 4.803 by removing from the introductory text of
paragraph (a)(42) ``concerns or'' and adding ``concerns eligible under
the WOSB Program or'' in its place.
PART 18--EMERGENCY ACQUISITIONS
18.117 [Amended]
0
5. Amend section 18.117 by removing ``concerns on'' and adding
``concerns eligible under the WOSB Program on'' in its place.
PART 19--SMALL BUSINESS PROGRAMS
0
6. Amend section 19.201 by revising paragraph (d)(10) to read as
follows:
19.201 General policy.
* * * * *
(d) * * *
(10) Make recommendations in accordance with agency procedures as
to whether a particular acquisition should be awarded under subpart
19.5 as a small business set-aside, under subpart 19.8 as a section
8(a) award, under subpart 19.13 as a HUBZone set-aside, under subpart
19.14 as a service-disabled veteran-owned small business set-aside, or
under subpart 19.15 as a set-aside for economically disadvantaged
women-owned small business (EDWOSB) concerns or women-owned small
business (WOSB) concerns eligible under the WOSB Program.
* * * * *
19.308 [Amended]
0
7. Amend section 19.308 by removing from paragraphs (h)(2)(i) and
(h)(3)(iv) ``concern, and'' and adding ``concern eligible under the
WOSB Program, and'' in its place.
0
8. Amend section 19.501 by revising the second sentence of paragraph
(c) to read as follows:
19.501 General.
* * * * *
(c) * * * The contracting officer shall perform market research and
document why a small business set-aside is inappropriate when an
acquisition is not set aside for small business, unless
[[Page 12917]]
an award is anticipated to a small business under the 8(a), HUBZone,
SDVOSB, or WOSB Programs. * * *
* * * * *
0
9. Amend section 19.1500 by revising paragraph (b) and adding paragraph
(c) to read as follows:
19.1500 General.
* * * * *
(b) The purpose of the WOSB Program is to ensure women-owned small
business concerns have an equal opportunity to participate in Federal
contracting and to assist agencies in achieving their women-owned small
business participation goals (see 13 part CFR 127).
(c) An economically disadvantaged women-owned small business
(EDWOSB) concern or WOSB concern eligible under the WOSB Program is a
subcategory of ``women-owned small business concern'' as defined in
2.101.
0
10. Revise section 19.1503 to read as follows:
19.1503 Status.
(a) Status as an EDWOSB concern or WOSB concern eligible under the
WOSB Program is determined in accordance with 13 CFR part 127.
(b) The contracting officer shall verify that the offeror--
(1) Is registered in Central Contractor Registration (CCR);
(2) Is self-certified in the Online Representations and
Certifications Application (ORCA); and
(3) Has submitted documents verifying its eligibility at the time
of initial offer to the WOSB Program Repository. The contract shall not
be awarded until all required documents are received.
(c)(1) An EDWOSB concern or WOSB concern eligible under the WOSB
Program that has been certified by a SBA approved third party
certifier, (which includes SBA certification under the 8(a) Program),
must provide the following eligibility requirement documents--
(i) The third-party certification;
(ii) SBA's WOSB Program Certification form (SBA Form 2413 for WOSB
concerns eligible under the WOSB Program and SBA Form 2414 for EDWOSB
concerns); and
(iii) The joint venture agreement, if applicable.
(2) An EDWOSB concern or WOSB concern eligible under the WOSB
Program that has not been certified by an SBA approved third party
certifier or by SBA under the 8(a) Program, must provide the following
documents:
(i) The U.S. birth certificate, naturalization documentation, or
unexpired U.S. passport for each woman owner.
(ii) The joint venture agreement, if applicable.
(iii) For limited liability companies, Articles of organization
(also referred to as certificate of organization or articles of
formation) and any amendments, and the operating agreement and any
amendments.
(iv) For corporations, articles of incorporation and any
amendments, by-laws and any amendments, all issued stock certificates,
including the front and back copies, signed in accord with the by-laws,
stock ledger, and voting agreements, if any.
(v) For partnerships, the partnership agreement and any amendments.
(vi) For sole proprietorships, corporations, limited liability
companies and partnerships if applicable, the assumed/fictitious name
certificate(s).
(vii) SBA's WOSB Program Certification form (SBA Form 2413 for WOSB
concerns eligible under the WOSB Program and SBA Form 2414 for EDWOSB
concerns).
(viii) For EDWOSB concerns, in addition to the above, the SBA Form
413, Personal Financial Statement, available to the public at https://www.sba.gov/tools/Forms/, for each woman claiming economic
disadvantage.
(d)(1) A contracting officer may accept a concern's self-
certification as accurate for a specific procurement reserved for award
under this subpart if--
(i) The apparent successful WOSB eligible under the WOSB Program or
EDWOSB offeror provided the required documents;
(ii) There has been no protest or other credible information that
calls into question the concern's eligibility as an EDWOSB concern or
WOSB concern eligible under the WOSB Program; and
(iii) There has been no decision issued by SBA as a result of a
current eligibility examination finding the concern did not qualify as
an EDWOSB concern or WOSB concern eligible under the WOSB Program at
the time it submitted its initial offer.
(2) The contracting officer shall file a status protest in
accordance with 19.308 if--
(i) There is information that questions the eligibility of a
concern; or
(ii) The concern fails to provide all of the required documents to
verify its eligibility.
(e) If there is a decision issued by SBA as a result of a current
eligibility examination finding that the concern did not qualify as an
EDWOSB concern or WOSB concern eligible under the WOSB Program, the
contracting officer may terminate the contract, and shall not exercise
any option nor award further task or delivery orders. The contracting
officer shall not count or include the award toward the small business
accomplishments for an EDWOSB concern or WOSB concern eligible under
the WOSB Program and must update FPDS from the date of award.
(f) A joint venture may be considered an EDWOSB concern or WOSB
concern eligible under the WOSB Program if it meets the requirements of
13 CFR 127.506.
(g) An EDWOSB concern or WOSB concern eligible under the WOSB
Program that is a non-manufacturer, as defined in 13 CFR 121.406(b),
may submit an offer on a requirement set aside for an EDWOSB concern or
a WOSB concern eligible under the WOSB Program with a NAICS code for
supplies, if it meets the requirements under the non-manufacturer rule
set forth in that regulation.
0
11. Amend section 19.1505 by revising paragraphs (a), (c)(1), (d), and
(f) to read as follows:
19.1505 Set-aside procedures.
(a) The contracting officer--
(1) Shall comply with 19.203 before deciding to set aside an
acquisition under the WOSB Program.
(2) May set aside acquisitions exceeding the micro-purchase
threshold for competition restricted to EDWOSB concerns or WOSB
concerns eligible under the WOSB Program in those NAICS codes in which
SBA has determined that WOSB concerns eligible under the WOSB program
are underrepresented or substantially underrepresented in Federal
procurement, as specified on SBA's Web site at https://www.sba.gov/WOSB.
* * * * *
(c) * * *
(1) Two or more WOSB concerns eligible under the WOSB Program
(including EDWOSB concerns), will submit offers;
* * * * *
(d) The contracting officer may make an award, if only one
acceptable offer is received from a qualified EDWOSB concern or WOSB
concern eligible under the WOSB Program.
* * * * *
(f) If no acceptable offers are received from an EDWOSB concern or
WOSB concern eligible under the WOSB Program, the set-aside shall be
withdrawn and the requirement, if still valid, must be considered for
set aside
[[Page 12918]]
in accordance with 19.203 and subpart 19.5.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
12. Amend section 52.212-3 by revising the date of the provision and
paragraphs (c)(6)(ii), (c)(7)(i), and (c)(7)(ii) to read as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS APR 2012
* * * * *
(c) * * *
(6) * * *
(ii) It [ballot] is, [ballot] is not a joint venture that
complies with the requirements of 13 CFR part 127, and the
representation in paragraph (c)(6)(i) of this provision is accurate
for each WOSB concern eligible under the WOSB Program participating
in the joint venture. [The offeror shall enter the name or names of
the WOSB concern eligible under the WOSB Program and other small
businesses that are participating in the joint venture: ------------
----.] Each WOSB concern eligible under the WOSB Program
participating in the joint venture shall submit a separate signed
copy of the WOSB representation.
(7) * * *
(i) It [ballot] is, [ballot] is not an EDWOSB concern, has
provided all the required documents to the WOSB Repository, and no
change in circumstances or adverse decisions have been issued that
affects its eligibility; and
(ii) It [ballot] is, [ballot] is not a joint venture that
complies with the requirements of 13 CFR part 127, and the
representation in paragraph (c)(7)(i) of this provision is accurate
for each EDWOSB concern participating in the joint venture. [The
offeror shall enter the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture:
----------------.] Each EDWOSB concern participating in the joint
venture shall submit a separate signed copy of the EDWOSB
representation.
* * * * *
0
13. Amend section 52.212-5 by revising the date of the clause and
paragraphs (b)(24) and (b)(25) to read 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 APR 2012
* * * * *
(b) * * *
-- (24) 52.219-29, Notice of Set-Aside for Economically
Disadvantaged Women-Owned Small Business (EDWOSB) Concerns (4/2/12)
(15 U.S.C. 637(m)).
-- (25) 52.219-30, Notice of Set-Aside for Women-Owned Small
Business (WOSB) Concerns Eligible Under the WOSB Program (4/2/12)
(15 U.S.C. 637(m)).
* * * * *
0
14. Amend section 52.219-1 by revising the date of the provision and
paragraphs (b)(4)(ii) and (b)(5)(ii) to read as follows:
52.219-1 Small Business Program Representations.
* * * * *
SMALL BUSINESS PROGRAM REPRESENTATIONS APR 2012
* * * * *
(b) * * *
(4) * * *
(ii) It [ballot] is, [ballot] is not a joint venture that
complies with the requirements of 13 CFR part 127, and the
representation in paragraph (b)(4)(i) of this provision is accurate
for each WOSB concern eligible under the WOSB Program participating
in the joint venture. [The offeror shall enter the name or names of
the WOSB concern eligible under the WOSB Program and other small
businesses that are participating in the joint venture: ------------
----.] Each WOSB concern eligible under the WOSB Program
participating in the joint venture shall submit a separate signed
copy of the WOSB representation.
(5) * * *
(ii) It [ballot] is, [ballot] is not a joint venture that
complies with the requirements of 13 CFR part 127, and the
representation in paragraph (b)(5)(i) of this provision is accurate
for each EDWOSB concern participating in the joint venture. [The
offeror shall enter the name or names of the EDWOSB concern and
other small businesses that are participating in the joint venture:
----------------.] Each EDWOSB concern participating in the joint
venture shall submit a separate signed copy of the EDWOSB
representation.
* * * * *
0
15. Amend section 52.219-29 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (c)(3) ``EDWOSB concern'' and adding
``apparent successful offeror'' in its place; and
0
c. Removing from paragraph (f) ``An EDWOSB that'' and adding ``An
EDWOSB concern that'' in its place.
The revised 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 APR 2012
* * * * *
0
16. Amend section 52.219-30 by--
0
a. Revising the date of the clause, paragraph (c), and the introductory
text of paragraphs (d) and (e);
0
b. Removing from paragraph (e)(2) ``concern;'' and adding ``concern
eligible under the WOSB Program;'' in its place;
0
c. Removing from paragraph (e)(3)(ii) ``WOSB as'' and adding ``WOSB
concern eligible under the WOSB Program as'' in its place;
0
d. Revising paragraph (e)(5); and
0
e. Removing from paragraph (f) ``WOSB that'' and adding ``WOSB concern
eligible under the WOSB Program that'' in its place.
The revised 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 APR 2012
* * * * *
(c) General. (1) Offers are solicited only from WOSB concerns
eligible under the WOSB Program. Offers received from concerns that
are not WOSB concerns eligible under the WOSB program shall not be
considered.
(2) Any award resulting from this solicitation will be made to a
WOSB concern eligible under the WOSB Program.
(3) The Contracting Officer will ensure that the apparent
successful offeror has provided the required documents to the WOSB
Program Repository. The contract shall not be awarded until all
required documents are received.
(d) Agreement. A WOSB concern eligible under the WOSB Program
agrees that in the performance of the contract for-- * * *
* * * * *
(e) Joint Venture. A joint venture may be considered a WOSB
concern eligible under the WOSB Program if--
* * * * *
(5) The procuring activity executes the contract in the name of
the WOSB concern eligible under the WOSB Program or joint venture.
* * * * *
PART 53--FORMS
53.212 [Amended]
0
17. Amend section 53.212 by removing ``SF 1449, (Rev. 10/2010)'' and
adding ``SF 1449 (Rev. 2/2012)'' in its place.
53.213 [Amended]
0
18. Amend section 53.213 by removing from paragraph (a) ``SF 1449,
(Rev. 10/2010)'' and adding ``SF 1449 (Rev. 2/2012)'' in its place; and
by removing from paragraph (f) ``SF 1449, (Rev. 10/2010)'' and ``OF
347, (Rev. 10/
[[Page 12919]]
2010)'' and adding ``SF 1449 (Rev. 2/2012)'' and ``OF 347 (Rev. 2/
2012)'' in their place, respectively.
53.214 [Amended]
0
19. Amend section 53.214 by removing from paragraph (d) ``SF 1447 (Rev.
11/2010)'' and adding ``SF 1447 (Rev. 2/2012)'' in its place.
53.236-1 [Amended]
0
20. Amend section 53.236-1 by removing from paragraph (e) ``OF 347
(Rev. 10/2010)'' and adding ``OF 347 (Rev. 2/2012)'' in its place.
0
21. Revise section 53.301-1447 to read as follows:
53.301-1447 Solicitation/Contract
BILLING CODE 6820-EP-P
[GRAPHIC] [TIFF OMITTED] TR02MR12.000
[[Page 12920]]
[GRAPHIC] [TIFF OMITTED] TR02MR12.001
0
22. Revise section 53.301-1449 to read as follows:
53.301-1449 Solicitation/Contract/Order for Commercial Items.
[[Page 12921]]
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0
23. Revise section 53.302-347 to read as follows:
53.302-347 Order for Supplies or Services.
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[FR Doc. 2012-4475 Filed 3-1-12; 8:45 am]
BILLING CODE 6820-C