Federal Acquisition Regulation; NAICS and Size Standards, 56741-56742 [2012-22578]

Download as PDF Federal Register / Vol. 77, No. 178 / Thursday, September 13, 2012 / Rules and Regulations 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 not a significant regulatory action and, therefore, was not 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. The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant FAR revision, and 41 U.S.C. 1707 does not require publication for public comment. V. Paperwork Reduction Act The final 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). List of Subject in 48 CFR Part 6 Government procurement. Dated: September 7, 2012. Laura Auletta, Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. Therefore, DoD, GSA, and NASA amend 48 CFR part 6 as set forth below: PART 6—COMPETITION REQUIREMENTS 1. The authority citation for 48 CFR part 6 is revised to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. [Amended] 2. Amend section 6.302–3 by removing paragraph (b)(1)(iv); and redesignating paragraphs (b)(1)(v) through (b)(1)(vii) as paragraphs (b)(1)(iv) through (b)(1)(vi), respectively. ■ [FR Doc. 2012–22577 Filed 9–12–12; 8:45 am] mstockstill on DSK4VPTVN1PROD with RULES3 BILLING CODE 6820–EP–P VerDate Mar<15>2010 19:34 Sep 12, 2012 Jkt 226001 GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 19 [FAC 2005–61; FAR Case 2012–021; Item III; Docket 2012–0021, Sequence 1] RIN 9000–AM32 Federal Acquisition Regulation; NAICS and Size Standards IV. Regulatory Flexibility Act 6.302–3 DEPARTMENT OF DEFENSE Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to clarify that new North American Industry Classification System (NAICS) codes are not available for use in Federal contracting until the Small Business Administration (SBA) publishes corresponding industry size standards. Other corresponding changes were also made. Published industry size standards are available on SBA’s Web site. DATES: Effective Date: October 15, 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 2005–61 FAR Case 2012–021. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background Every five years the Economic Classification Policy Committee (ECPC), an interagency committee established by the Office of Management and Budget (OMB), reviews NAICS codes for potential revisions to the classification system. The ECPC determines the feasibility and adherence to the underlying principles of NAICS, determines if the proposed changes are acceptable, and makes final recommendations to OMB for additions and changes to the NAICS manual. The Small Business Administration (SBA) is responsible for developing size standards for each NAICS category on an industry by industry basis. Before a size standard is made available for use by industry, the SBA must solicit comments from the public through the rulemaking process and then coordinate PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 56741 with General Services Administration to update the associated acquisition systems, to reflect industry size standards that have been adopted for new NAICS codes. SBA publishes the corresponding industry size standards on their Web site at https://www.sba.gov/ content/table-small-business-sizestandards and at 13 CFR 121.201. Contracting officers must identify, in the solicitation or request for proposal, both the NAICS code that best describes the principal nature of the product or service being acquired and the size standard that has been established by the SBA for the NAICS code so that offerors can correctly represent themselves as a large or small business concern. The process used by OMB/ ECPC for developing new NAICS codes and the process used by SBA to approve size standards for new NAICS codes, are not performed simultaneously. Therefore, it is important that new language be added to the FAR to clarify that new NAICS codes are not available for use in Federal contracting until SBA publishes corresponding industry size standards. II. Discussion and analysis. This final rule revises— (1) FAR 19.001, to remove the Uniform Resource Locator (URL) for the NAICS manual, at the end of the definition for ‘‘Industry,’’ since this information is already provided in FAR 19.102(b)(1). (2) FAR 19.102(a) to restructure as paragraphs (a)(1) and (a)(2). FAR 19.102(a)(1) provides the updated URL for the table of small business size standards and matching NAICS codes, and FAR 19.102(a)(2) adds language in the FAR which clarifies that new NAICS codes are not available for use in Federal contracting until SBA publishes corresponding industry size standards on its Web site; (3) FAR 19.102(b)(1) to provide the updated URL for the NAICS manual; (4) FAR 19.102(g) to delete this information as it is already provided in FAR 19.102(a)(1); and (5) FAR 19.303(a), which discusses the determination and selection of NAICS codes, to include a reference to FAR 19.102(a). III. Publication of This Final Rule for Public Comment Is Not Required by Statute. ‘‘Publication of proposed regulations’’, 41 U.S.C. 1707, is the statute which applies to the publication of the FAR. Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure or form (including an amendment or E:\FR\FM\13SER3.SGM 13SER3 56742 Federal Register / Vol. 77, No. 178 / Thursday, September 13, 2012 / Rules and Regulations modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because it does not have a significant effect beyond the internal operating procedures of the Federal Government, nor will it have a significant cost or administrative impact on contractors or offerors. These requirements affect only the internal operating procedures of the Government. IV. 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 not a significant regulatory action and, therefore, was not 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. V. Regulatory Flexibility Act The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant FAR revision, and 41 U.S.C. 1707 does not require publication for public comment. DEPARTMENT OF DEFENSE PART 19—SMALL BUSINESS PROGRAMS 1. The authority citation for 48 CFR part 19 is revised to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. 19.001 2. Amend section 19.001 by removing from the definition ‘‘Industry’’ the words ‘‘(available via the Internet at https://www.census.gov/epcd/www/ naics.html)’’. ■ 3. Amend section 19.102 by— ■ a. Revising paragraph (a); ■ b. Removing from paragraph (b)(1) ‘‘via the Internet at https:// www.census.gov/epcd/www/naics.html’’ and adding ‘‘at https://www.census.gov/ eos/www/naics/’’ in its place; and ■ c. Removing paragraph (g) to read as follows: Size standards. (a)(1) The SBA establishes small business size standards on an industryby-industry basis. (See 13 CFR Part 121). Small business size standards matched to industry NAICS codes are published by the Small Business Administration and are available at https://www.sba.gov/ content/table-small-business-sizestandards. (2) NAICS codes are updated by the Office of Management and Budget through its Economic Classification Policy Committee every five years. New NAICS codes are not available for use in Federal contracting until the Small Business Administration publishes corresponding industry size standards (see 19.102(a)(1)). * * * * * VI. Paperwork Reduction Act The final 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). 4. Amend section 19.303 by adding a new sentence at the end of paragraph (a) to read as follows: 19.303 Determining North American Industry Classification System (NAICS) codes and size standards. List of Subject in 48 CFR Part 19 mstockstill on DSK4VPTVN1PROD with RULES3 Government procurement. Dated: September 7, 2012. Laura Auletta, Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. ■ (a) * * * For information on size standards matched to industry NAICS codes, including the use of new NAICS codes, see also 19.102(a). * * * * * [FR Doc. 2012–22578 Filed 9–12–12; 8:45 am] BILLING CODE 6820–EP–P Therefore, DoD, GSA, and NASA amend 48 CFR part 19 as set forth below: VerDate Mar<15>2010 19:34 Sep 12, 2012 Jkt 226001 PO 00000 Frm 00006 Fmt 4701 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Part 33 [Amended] ■ 19.102 GENERAL SERVICES ADMINISTRATION Sfmt 4700 [FAC 2005–61; FAR Case 2012–008; Item IV; Docket 2012–0008, Sequence 1] RIN 9000–AM31 Federal Acquisition Regulation; Bid Protest and Appeal Authorities Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to address bid protest and appeal authorities. DATES: Effective Date: September 13, 2012. FOR FURTHER INFORMATION CONTACT: Mr. Edward Loeb, Procurement Analyst, at 202–501–0650 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202–501– 4755. Please cite FAC 2005–61, FAR Case 2012–008. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background Protests are addressed at FAR subpart 33.1, and contract disputes are addressed at FAR subpart 33.2. The Defense Acquisition Regulations Council and the Civilian Agency Acquisition Council determined that FAR part 33 should be amended to (1) note that there are other Federal-court related protest authorities and disputeappeal authorities that are not covered by FAR part 33 and (2) provide contracting officers with appropriate references to their office of legal counsel and the Web site for the rules of the U.S. Court of Federal Claims. FAR 33.001 and 33.105 are added and FAR 33.101, Definitions, and 33.102, General, are amended by this final rule. II. Publication of This Final Rule for Public Comment Is Not Required by Statute ‘‘Publication of proposed regulations’’, 41 U.S.C. 1707, is the statute which applies to the publication of the FAR. Paragraph (a)(1) of the statute requires that a procurement policy, regulation, procedure or form E:\FR\FM\13SER3.SGM 13SER3

Agencies

[Federal Register Volume 77, Number 178 (Thursday, September 13, 2012)]
[Rules and Regulations]
[Pages 56741-56742]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-22578]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 19

[FAC 2005-61; FAR Case 2012-021; Item III; Docket 2012-0021, Sequence 
1]
RIN 9000-AM32


Federal Acquisition Regulation; NAICS and Size Standards

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to clarify that new North American 
Industry Classification System (NAICS) codes are not available for use 
in Federal contracting until the Small Business Administration (SBA) 
publishes corresponding industry size standards. Other corresponding 
changes were also made. Published industry size standards are available 
on SBA's Web site.

DATES: Effective Date: October 15, 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 2005-61 FAR Case 2012-021.

SUPPLEMENTARY INFORMATION: 

I. Background

    Every five years the Economic Classification Policy Committee 
(ECPC), an interagency committee established by the Office of 
Management and Budget (OMB), reviews NAICS codes for potential 
revisions to the classification system. The ECPC determines the 
feasibility and adherence to the underlying principles of NAICS, 
determines if the proposed changes are acceptable, and makes final 
recommendations to OMB for additions and changes to the NAICS manual.
    The Small Business Administration (SBA) is responsible for 
developing size standards for each NAICS category on an industry by 
industry basis. Before a size standard is made available for use by 
industry, the SBA must solicit comments from the public through the 
rulemaking process and then coordinate with General Services 
Administration to update the associated acquisition systems, to reflect 
industry size standards that have been adopted for new NAICS codes. SBA 
publishes the corresponding industry size standards on their Web site 
at https://www.sba.gov/content/table-small-business-size-standards and 
at 13 CFR 121.201.
    Contracting officers must identify, in the solicitation or request 
for proposal, both the NAICS code that best describes the principal 
nature of the product or service being acquired and the size standard 
that has been established by the SBA for the NAICS code so that 
offerors can correctly represent themselves as a large or small 
business concern. The process used by OMB/ECPC for developing new NAICS 
codes and the process used by SBA to approve size standards for new 
NAICS codes, are not performed simultaneously. Therefore, it is 
important that new language be added to the FAR to clarify that new 
NAICS codes are not available for use in Federal contracting until SBA 
publishes corresponding industry size standards.

II. Discussion and analysis.

    This final rule revises--
    (1) FAR 19.001, to remove the Uniform Resource Locator (URL) for 
the NAICS manual, at the end of the definition for ``Industry,'' since 
this information is already provided in FAR 19.102(b)(1).
    (2) FAR 19.102(a) to restructure as paragraphs (a)(1) and (a)(2). 
FAR 19.102(a)(1) provides the updated URL for the table of small 
business size standards and matching NAICS codes, and FAR 19.102(a)(2) 
adds language in the FAR which clarifies that new NAICS codes are not 
available for use in Federal contracting until SBA publishes 
corresponding industry size standards on its Web site;
    (3) FAR 19.102(b)(1) to provide the updated URL for the NAICS 
manual;
    (4) FAR 19.102(g) to delete this information as it is already 
provided in FAR 19.102(a)(1); and
    (5) FAR 19.303(a), which discusses the determination and selection 
of NAICS codes, to include a reference to FAR 19.102(a).

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute.

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the FAR. Paragraph (a)(1) 
of the statute requires that a procurement policy, regulation, 
procedure or form (including an amendment or

[[Page 56742]]

modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it does not have a significant effect beyond the internal 
operating procedures of the Federal Government, nor will it have a 
significant cost or administrative impact on contractors or offerors. 
These requirements affect only the internal operating procedures of the 
Government.

IV. 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 not a significant regulatory action and, therefore, was not 
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.

V. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision, and 41 
U.S.C. 1707 does not require publication for public comment.

VI. Paperwork Reduction Act

    The final 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).

List of Subject in 48 CFR Part 19

    Government procurement.

    Dated: September 7, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 19 as set forth 
below:

PART 19--SMALL BUSINESS PROGRAMS

0
1. The authority citation for 48 CFR part 19 is revised to read as 
follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.


19.001  [Amended]

0
2. Amend section 19.001 by removing from the definition ``Industry'' 
the words ``(available via the Internet at https://www.census.gov/epcd/www/naics.html)''.
0
3. Amend section 19.102 by--
0
a. Revising paragraph (a);
0
b. Removing from paragraph (b)(1) ``via the Internet at https://www.census.gov/epcd/www/naics.html'' and adding ``at https://www.census.gov/eos/www/naics/'' in its place; and
0
c. Removing paragraph (g) to read as follows:


19.102  Size standards.

    (a)(1) The SBA establishes small business size standards on an 
industry-by-industry basis. (See 13 CFR Part 121). Small business size 
standards matched to industry NAICS codes are published by the Small 
Business Administration and are available at https://www.sba.gov/content/table-small-business-size-standards.
    (2) NAICS codes are updated by the Office of Management and Budget 
through its Economic Classification Policy Committee every five years. 
New NAICS codes are not available for use in Federal contracting until 
the Small Business Administration publishes corresponding industry size 
standards (see 19.102(a)(1)).
* * * * *

0
4. Amend section 19.303 by adding a new sentence at the end of 
paragraph (a) to read as follows:


19.303  Determining North American Industry Classification System 
(NAICS) codes and size standards.

    (a) * * * For information on size standards matched to industry 
NAICS codes, including the use of new NAICS codes, see also 19.102(a).
* * * * *
[FR Doc. 2012-22578 Filed 9-12-12; 8:45 am]
BILLING CODE 6820-EP-P

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