Federal Acquisition Regulation; Contracting With Women-Owned Small Business Concerns, 37692-37694 [2013-14616]
Download as PDF
TKELLEY on DSK3SPTVN1PROD with RULES2
37692
Federal Register / Vol. 78, No. 120 / Friday, June 21, 2013 / Rules and Regulations
reasonable price. FAR 15.404–1(b)(2)(i)
discusses the comparison of proposed prices
received in response to a solicitation as an
example of such techniques and procedures.
In this discussion of price analysis
techniques, FAR 15.404–1(b)(2)(i) references
15.403–1(c)(1), which sets forth the various
standards of adequate price competition (for
exceptions from certified cost or pricing data
requirements). However, only FAR 15.403–
1(c)(1)(i) addresses the situation when two or
more responsible offerors, competing
independently, submit priced offers that
satisfy the Government’s expressed
requirement, a situation which is consistent
with the price analysis technique of
comparing proposed prices from multiple
offerors. Therefore, the reference in FAR
15.404–1(b)(2)(i) is more appropriately
identified as 15.403–1(c)(1)(i), which
describes the standard comparing proposed
prices received from multiple offerors, rather
than the generalized 15.403–1(c)(1), which is
broader in scope with various additional
standards of adequate price competition.
One comment from an interested party was
submitted in response to the Regulatory
Flexibility Act request under the proposed
rule. The respondent believed that this rule
was a significant regulatory action under E.O.
12866 based upon the respondent’s
interpretation that the rule would constitute
a significant change to the pricing regulations
in FAR subpart 15.4. However, FAR 15.404–
1(b)(2) delineates the various price analysis
techniques; 15.404–1(b)(2)(i) describes the
comparison of proposed prices received in
response to a solicitation. The current
reference in this section (to FAR 15.403–
1(c)(1)) was too broad; therefore, this rule
changes this generalized reference to 15.403–
1(c)(1)(i), which precisely aligns the price
analysis technique of comparing proposed
prices from multiple offerors in 15.404–
1(b)(2)(i) (for determining a fair and
reasonable price) with the adequate price
competition standard of comparing two or
more offerors’ proposed prices (for
exceptions from certified cost or pricing data
requirements). The designation of a rule as
significant regulatory action under E.O.
12866 is made by the Office of Information
and Regulatory Affairs within the Office of
Management and Budget, which declined to
designate this rule as requiring official
review. No comments were filed by the Chief
Counsel for Advocacy of the Small Business
Administration in response to the rule and
no changes were made to the rule.
It is not expected that this rule will have
a significant economic impact on a
substantial number of small entities within
the meaning of the Regulatory Flexibility Act,
5 U.S.C. 601, et seq.; this rule merely clarifies
that in order to establish a fair and reasonable
price, the reference at FAR 15.404–1(b)(2)(i)
(which describes the pricing technique of
comparing proposed prices from multiple
offerors) shall be the more precise FAR
15.403–1(c)(1)(i) (which describes the
standard for adequate price competition
when proposed prices are submitted by
multiple offerors), rather than the more
generalized 15.403–1(c)(1) (which describes
various standards for adequate price
competition, including comparing proposed
prices from multiple offerors).
VerDate Mar<15>2010
18:42 Jun 20, 2013
Jkt 229001
There are no projected reporting,
recordkeeping, or other compliance
requirements projected for this rule.
The approach described in the final rule is
the most practical and beneficial for both
Government and industry.
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 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 15
Government procurement.
Dated: June 13, 2013.
William Clark,
Acting Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR part 15 as set forth
below:
PART 15—CONTRACTING BY
NEGOTIATION
1. The authority citation for 48 CFR
part 15 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.
15.404–1
[Amended]
2. Amend section 15.404–1 by
removing from paragraph (b)(2)(i)
‘‘15.403–1(c)(1)’’ and adding ‘‘15.403–
1(c)(1)(i)’’ in its place.
■
[FR Doc. 2013–14615 Filed 6–20–13; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 19
[FAC 2005–67; FAR Case 2013–010; Item
VII; Docket 2013–0010, Sequence 1]
RIN 9000–AM59
Federal Acquisition Regulation;
Contracting With Women-Owned Small
Business Concerns
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
PO 00000
Frm 00026
Fmt 4701
Sfmt 4700
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
remove the dollar limitation for setasides to economically disadvantaged
women-owned small business concerns
and to women-owned small business
concerns eligible under the Womenowned Small Business Program.
DATES: Effective Date: June 21, 2013.
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before
August 20, 2013 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments
identified by FAC 2005–67, FAR Case
2013–010, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
searching for ‘‘FAR Case 2013–010’’.
Select the link ‘‘Submit a Comment’’
that corresponds with ‘‘FAR Case 2013–
010.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘FAR Case 2013–
010’’ on your attached document.
• Fax: 202–501–4067.
• Mail: U.S. General Services
Administration, Regulatory Secretariat
Division (MVCB), ATTN: Hada Flowers,
1800 F Street NW., 2nd Floor,
Washington, DC 20405.
Instructions: Please submit comments
only and cite FAC 2005–67, FAR Case
2013–010, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: Mr.
Karlos Morgan, Procurement Analyst, at
202–501–2364, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–67, FAR
Case 2013–010.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD, GSA, and NASA are issuing an
interim rule amending the FAR, to
implement section 1697 of the National
Defense Authorization Act (NDAA) for
Fiscal Year (FY) 2013, Public Law 112–
239, which amended section 8(m) of the
Small Business Act, (15 U.S.C. 637(m)).
Section 8(m) of the Small Business Act
sets forth the Procurement Program for
E:\FR\FM\21JNR2.SGM
21JNR2
Federal Register / Vol. 78, No. 120 / Friday, June 21, 2013 / Rules and Regulations
Women-owned Small Business
Concerns, which is the statutory
authority for SBA’s Women-owned
Small Business Federal Contract
Program. Section 1697 of the NDAA for
FY 2013 amended section 8(m) by
removing the dollar limitation for setasides. The dollar limit (as increased for
inflation—see FAR 1.109) for
acquisitions in the manufacturing
industries, was $6.5 million or less
(including options), and in the case of
all other acquisitions, $4 million or less
(including options).
Pursuant to this statutory change and
in conformance with the Small Business
Administration’s (SBA’s) revised
regulations at 13 CFR 127.503(a)(2) and
127.503(b)(2), (see SBA’s interim final
rule published in the Federal Register at
78 FR 26504, on May 7, 2013), this rule
amends FAR 19.1505(b) and (c) by
removing the dollar limitations on the
anticipated award price of contracts to
economically disadvantaged womenowned small business (EDWOSB)
concerns or women-owned small
business (WOSB) concerns eligible
under the WOSB Program. As a result,
contracting officers may set aside
acquisitions for competition restricted
to EDWOSB concerns or WOSB
concerns eligible under the WOSB
Program at any dollar level above the
micro-purchase threshold, provided the
other requirements for a set-aside under
the WOSB Program are met.
II. Executive Orders 12866 and 13563
TKELLEY on DSK3SPTVN1PROD with RULES2
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.
III. Regulatory Flexibility Act
The change may have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act 5 U.S.C. 601, et seq. The Initial
Regulatory Flexibility Analysis (IRFA) is
summarized as follows:
VerDate Mar<15>2010
18:42 Jun 20, 2013
Jkt 229001
The objective of this interim rule is to
remove language in the FAR that restricts setasides to economically disadvantaged
women-owned small business (EDWOSB)
concerns and to women-owned small
business concerns eligible under the womenowned small business (WOSB) Program, in
industries that are underrepresented or
substantially underrepresented by womenowned small business concerns. The dollar
limits (as increased for inflation—see FAR
1.109) are currently $6.5 million (including
options) for acquisitions in manufacturing
industries and $4 million (including options)
for all other acquisitions. The legal basis for
this interim rule is section 1697 of the
National Defense Authorization Act for Fiscal
Year 2013, Public Law 112–239, which
amended the statutory limitations at section
8(m) of the Small Business Act, (15 U.S.C.
637(m)), by permanently removing these
limitations.
Analysis of the Federal Procurement Data
System from April 1, 2011 (the
implementation date of the WOSB Program)
through January 1, 2013, reveals there are
approximately 26,712 WOSB concerns,
including 131 EDWOSB concerns and 388
women-owned small business concerns
eligible under the WOSB Program, that
received obligated funds from Federal
contract awards, task or delivery orders, and
modifications to existing contracts. This
interim rule may have a significant positive
economic impact on EDWOSB concerns
competing for contracting opportunities in
industries determined by SBA to be
underrepresented by women-owned small
business concerns and may positively affect
WOSB concerns eligible under the WOSB
Program competing in industries determined
by SBA to be substantially underrepresented
by women-owned small business concerns,
since removing the dollar threshold for setasides under the WOSB Program will provide
greater access to Federal contracting
opportunities. However, this rule may have
a negative effect on firms that are womenowned but are not WOSB Program
participants and small businesses that are not
owned by women (i.e., small business
concerns that are not 51 percent owned and
controlled by women), because those firms
may now be excluded from competition on
some acquisitions that could not be set aside
for EDWOSB concerns or WOSB concerns
eligible under the WOSB Program due to the
dollar thresholds and now will be set aside.
This interim rule does not impose new
recordkeeping or reporting requirements. The
rule does not duplicate, overlap, or conflict
with any other Federal rules. There are no
alternatives to the rule which would
accomplish the stated objectives of the
statute.
The Regulatory Secretariat has
submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat. DoD, GSA, and
NASA invite comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
PO 00000
Frm 00027
Fmt 4701
Sfmt 4700
37693
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by this rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAC 2005–67, FAR Case 2013–010), in
correspondence.
IV. Paperwork Reduction Act
The interim rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
chapter 35).
V. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
(DoD), the Administrator of General
Services (GSA), and the Administrator
of the National Aeronautics and Space
Administration (NASA) that urgent and
compelling reasons exist to promulgate
this interim rule without prior
opportunity for public comment. This
action is necessary in order to avoid
conflicting guidance between the two
primary regulations used by the Federal
acquisition community to implement
the WOSB Program, the Small Business
Regulations and the FAR.
Section 1697 of the NDAA for Fiscal
Year 2013 (Publ. Law 112–239) was
enacted by Congress and became
effective on January 2, 2013. In response
to this statutory change, the Small
Business Administration issued an
interim final rule published in the
Federal Register at 78 FR 26504, on
May 7, 2013, amending 13 CFR
127.503(a)(2) and 127.503(b)(2) to
remove the anticipated contract dollar
thresholds for determining when the
contracting officer may set aside a
requirement for economically
disadvantaged women-owned small
business (EDWOSB) concerns and/or
WOSB concerns eligible under the
WOSB Program. As a result, the FAR
must also be amended at 19.1505(b)(2)
and 19.1505(c)(2) to remove the
anticipated award thresholds for
EDWOSB concerns and WOSB concerns
eligible under the WOSB Program, in
order to minimize the risk of
disseminating conflicting guidance to
the Federal acquisition community.
In addition, by issuing an interim rule
that is effective upon publication, prior
to the receipt of public comment,
agencies can immediately begin taking
advantage of having no dollar
limitations for set-asides to EDWOSB or
WOSB concerns eligible under the
E:\FR\FM\21JNR2.SGM
21JNR2
37694
Federal Register / Vol. 78, No. 120 / Friday, June 21, 2013 / Rules and Regulations
WOSB Program, as envisioned by
section 1697.
However, pursuant to 41 U.S.C. 1707
and FAR 1.501–3(b), DoD, GSA, and
NASA will consider public comments
received in response to this interim rule
in the formation of the final rule.
List of Subject in 48 CFR Part 19
Government procurement.
Dated: June 13, 2013.
William Clark,
Acting 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
1. The authority citation for 48 CFR
part 19 continues to read as follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
19.1505
[Amended]
2. Amend section 19.1505 by—
a. Adding to the end of paragraph
(b)(1) ‘‘and’’;
■ b. Removing paragraph (b)(2);
■ c. Redesignating paragraph (b)(3) as
(b)(2);
■ d. Adding to the end of paragraph
(c)(1) ‘‘and’’;
■ e. Removing paragraph (c)(2);
■ f. Redesignating paragraph (c)(3) as
(c)(2); and
■ g. Removing from paragraph (g)(3)
‘‘appeal, that there are urgent’’ and
adding ‘‘appeal, unless the head of the
agency makes a written determination
that urgent’’ in its place.
■
■
[FR Doc. 2013–14616 Filed 6–20–13; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 25
[FAC 2005–67; FAR Case 2013–008; Item
VIII; Docket 2013–0008, Sequence 1]
TKELLEY on DSK3SPTVN1PROD with RULES2
RIN 9000–AM54
Federal Acquisition Regulation;
Deletion of Report to Congress on
Foreign-Manufactured Products
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
AGENCY:
VerDate Mar<15>2010
18:42 Jun 20, 2013
Jkt 229001
ACTION:
Final rule.
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
eliminate an obsolete Congressional
reporting requirement on acquisitions of
end products manufactured outside the
United States.
DATES: Effective Date: July 22, 2013.
FOR FURTHER INFORMATION CONTACT: Ms.
Cecelia L. Davis, Procurement Analyst,
at 202–219–0202, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–67, FAR
Case 2013–008.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
This final rule amends FAR 25.001
and 25.004 to eliminate an obsolete
Congressional reporting requirement
imposed by the United States Troops
Readiness, Veterans’ Care, Katrina
Recovery, and Iraq Accountability
Appropriations Act, 2007 (41 U.S.C.
8302(b)(1)).
This Act required the heads of each
Federal agency to submit a report to
Congress on acquisitions of articles,
materials, or supplies that are
manufactured outside the United States
for Fiscal Year 2007 through Fiscal Year
2011. The report to Congress is no
longer required but the collection of the
data in the Federal Procurement Data
System is still required (see FAR
52.225–18, Place of Manufacture).
II. Discussion and Analysis
‘‘Publication of proposed
regulations’’, 41 U.S.C. 1707, is the
statute which applies to the publication
of the Federal Acquisition Regulation.
Paragraph (a)(1) of the statute requires
that a procurement policy, regulation,
procedure or form (including an
amendment or modification thereof)
must be published for public comment
if it 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 this rule
serves to eliminate a reporting
requirement that only affected the
internal operating procedures of the
Government.
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
PO 00000
Frm 00028
Fmt 4701
Sfmt 4700
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
Executive Order 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
The Regulatory Flexibility Act does
not apply to this rule because this final
rule does not constitute a significant
FAR revision within the meaning of
FAR 1.501–1 and 41 U.S.C. 1707 and
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 25
Government procurement.
Dated: June 13, 2013.
William Clark,
Acting Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR part 25 as set forth
below:
PART 25—FOREIGN ACQUISITION
1. The authority citation for 48 CFR
part 25 continues to read as follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
25.001
[Amended]
2. Amend section 25.001 by—
a. Removing from the introductory
text of paragraph (c) ‘‘report on end
products manufactured outside the
United States (see 25.004)’’ and adding
‘‘representation on end products
manufactured outside the United States
(see 52.225–18)’’ in its place; and
■ b. Removing from paragraph (c)(3)
‘‘For the reporting requirement at
25.004’’ and adding ‘‘For the
representation at 52.225–18’’ in its
place.
■
■
E:\FR\FM\21JNR2.SGM
21JNR2
Agencies
[Federal Register Volume 78, Number 120 (Friday, June 21, 2013)]
[Rules and Regulations]
[Pages 37692-37694]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14616]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 19
[FAC 2005-67; FAR Case 2013-010; Item VII; Docket 2013-0010, Sequence
1]
RIN 9000-AM59
Federal Acquisition Regulation; Contracting With Women-Owned
Small Business Concerns
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to remove the dollar limitation
for set-asides to economically disadvantaged women-owned small business
concerns and to women-owned small business concerns eligible under the
Women-owned Small Business Program.
DATES: Effective Date: June 21, 2013.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before August 20, 2013 to be
considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-67, FAR Case 2013-
010, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching for ``FAR Case
2013-010''. Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2013-010.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2013-010'' on your attached document.
Fax: 202-501-4067.
Mail: U.S. General Services Administration, Regulatory
Secretariat Division (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd
Floor, Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-67, FAR
Case 2013-010, in all correspondence related to this case. All comments
received will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: Mr. Karlos Morgan, Procurement
Analyst, at 202-501-2364, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-67, FAR Case 2013-
010.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are issuing an interim rule amending the FAR, to
implement section 1697 of the National Defense Authorization Act (NDAA)
for Fiscal Year (FY) 2013, Public Law 112-239, which amended section
8(m) of the Small Business Act, (15 U.S.C. 637(m)). Section 8(m) of the
Small Business Act sets forth the Procurement Program for
[[Page 37693]]
Women-owned Small Business Concerns, which is the statutory authority
for SBA's Women-owned Small Business Federal Contract Program. Section
1697 of the NDAA for FY 2013 amended section 8(m) by removing the
dollar limitation for set-asides. The dollar limit (as increased for
inflation--see FAR 1.109) for acquisitions in the manufacturing
industries, was $6.5 million or less (including options), and in the
case of all other acquisitions, $4 million or less (including options).
Pursuant to this statutory change and in conformance with the Small
Business Administration's (SBA's) revised regulations at 13 CFR
127.503(a)(2) and 127.503(b)(2), (see SBA's interim final rule
published in the Federal Register at 78 FR 26504, on May 7, 2013), this
rule amends FAR 19.1505(b) and (c) by removing the dollar limitations
on the anticipated award price of contracts to economically
disadvantaged women-owned small business (EDWOSB) concerns or women-
owned small business (WOSB) concerns eligible under the WOSB Program.
As a result, contracting officers may set aside acquisitions for
competition restricted to EDWOSB concerns or WOSB concerns eligible
under the WOSB Program at any dollar level above the micro-purchase
threshold, provided the other requirements for a set-aside under the
WOSB Program are met.
II. 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.
III. Regulatory Flexibility Act
The change may have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act 5 U.S.C. 601, et seq. The Initial Regulatory
Flexibility Analysis (IRFA) is summarized as follows:
The objective of this interim rule is to remove language in the
FAR that restricts set-asides to economically disadvantaged women-
owned small business (EDWOSB) concerns and to women-owned small
business concerns eligible under the women-owned small business
(WOSB) Program, in industries that are underrepresented or
substantially underrepresented by women-owned small business
concerns. The dollar limits (as increased for inflation--see FAR
1.109) are currently $6.5 million (including options) for
acquisitions in manufacturing industries and $4 million (including
options) for all other acquisitions. The legal basis for this
interim rule is section 1697 of the National Defense Authorization
Act for Fiscal Year 2013, Public Law 112-239, which amended the
statutory limitations at section 8(m) of the Small Business Act, (15
U.S.C. 637(m)), by permanently removing these limitations.
Analysis of the Federal Procurement Data System from April 1,
2011 (the implementation date of the WOSB Program) through January
1, 2013, reveals there are approximately 26,712 WOSB concerns,
including 131 EDWOSB concerns and 388 women-owned small business
concerns eligible under the WOSB Program, that received obligated
funds from Federal contract awards, task or delivery orders, and
modifications to existing contracts. This interim rule may have a
significant positive economic impact on EDWOSB concerns competing
for contracting opportunities in industries determined by SBA to be
underrepresented by women-owned small business concerns and may
positively affect WOSB concerns eligible under the WOSB Program
competing in industries determined by SBA to be substantially
underrepresented by women-owned small business concerns, since
removing the dollar threshold for set-asides under the WOSB Program
will provide greater access to Federal contracting opportunities.
However, this rule may have a negative effect on firms that are
women-owned but are not WOSB Program participants and small
businesses that are not owned by women (i.e., small business
concerns that are not 51 percent owned and controlled by women),
because those firms may now be excluded from competition on some
acquisitions that could not be set aside for EDWOSB concerns or WOSB
concerns eligible under the WOSB Program due to the dollar
thresholds and now will be set aside.
This interim rule does not impose new recordkeeping or reporting
requirements. The rule does not duplicate, overlap, or conflict with
any other Federal rules. There are no alternatives to the rule which
would accomplish the stated objectives of the statute.
The Regulatory Secretariat has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small Business Administration. A copy
of the IRFA may be obtained from the Regulatory Secretariat. DoD, GSA,
and NASA invite comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by this rule
in accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAC 2005-67, FAR Case
2013-010), in correspondence.
IV. Paperwork Reduction Act
The interim rule does not contain any information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).
V. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary in order to avoid conflicting guidance between the two
primary regulations used by the Federal acquisition community to
implement the WOSB Program, the Small Business Regulations and the FAR.
Section 1697 of the NDAA for Fiscal Year 2013 (Publ. Law 112-239)
was enacted by Congress and became effective on January 2, 2013. In
response to this statutory change, the Small Business Administration
issued an interim final rule published in the Federal Register at 78 FR
26504, on May 7, 2013, amending 13 CFR 127.503(a)(2) and 127.503(b)(2)
to remove the anticipated contract dollar thresholds for determining
when the contracting officer may set aside a requirement for
economically disadvantaged women-owned small business (EDWOSB) concerns
and/or WOSB concerns eligible under the WOSB Program. As a result, the
FAR must also be amended at 19.1505(b)(2) and 19.1505(c)(2) to remove
the anticipated award thresholds for EDWOSB concerns and WOSB concerns
eligible under the WOSB Program, in order to minimize the risk of
disseminating conflicting guidance to the Federal acquisition
community.
In addition, by issuing an interim rule that is effective upon
publication, prior to the receipt of public comment, agencies can
immediately begin taking advantage of having no dollar limitations for
set-asides to EDWOSB or WOSB concerns eligible under the
[[Page 37694]]
WOSB Program, as envisioned by section 1697.
However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA,
and NASA will consider public comments received in response to this
interim rule in the formation of the final rule.
List of Subject in 48 CFR Part 19
Government procurement.
Dated: June 13, 2013.
William Clark,
Acting 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 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
19.1505 [Amended]
0
2. Amend section 19.1505 by--
0
a. Adding to the end of paragraph (b)(1) ``and'';
0
b. Removing paragraph (b)(2);
0
c. Redesignating paragraph (b)(3) as (b)(2);
0
d. Adding to the end of paragraph (c)(1) ``and'';
0
e. Removing paragraph (c)(2);
0
f. Redesignating paragraph (c)(3) as (c)(2); and
0
g. Removing from paragraph (g)(3) ``appeal, that there are urgent'' and
adding ``appeal, unless the head of the agency makes a written
determination that urgent'' in its place.
[FR Doc. 2013-14616 Filed 6-20-13; 8:45 am]
BILLING CODE 6820-EP-P