Federal Acquisition Regulation; Contracting With Women-Owned Small Business Concerns, 35864-35865 [2014-14381]

Agencies

• DEPARTMENT OF DEFENSE
• General Services Administration
• National Aeronautics and Space Administration

[Federal Register Volume 79, Number 121 (Tuesday, June 24, 2014)]
[Rules and Regulations]
[Pages 35864-35865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14381]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 19

[FAC 2005-75; FAR Case 2013-010; Item II; 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: Final rule.

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SUMMARY: DoD, GSA, and NASA have adopted as final, without change, 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 24, 2014.

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 2005-75, FAR Case 2013-
010.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published an interim rule in the Federal 
Register at 78 FR 37692 on June 21, 2013, to implement section 1697 of 
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2013 
(Pub. L. 112-239), which amended section 8(m) of the Small Business 
Act, (15 U.S.C. 637(m)). Section 1697 of the NDAA for FY 2013 amended 
section 8(m) by removing the dollar limitation for set-asides to 
economically disadvantaged women-owned small business (EDWOSB)

[[Page 35865]]

concerns, and eligible women-owned small business (WOSB) concerns (see 
13 CFR 127.200-13 and 127.305 for eligibility and certification 
requirements), in industries determined by the Small Business 
Administration (SBA) to be underrepresented or substantially 
underrepresented by small business concerns owned and controlled by 
women, with respect to Federal procurement.
    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), an interim FAR 
rule was published in the Federal Register at 78 FR 37692 on June 21, 
2013, removing the dollar limitations for set-asides to EDWOSB concerns 
or WOSB concerns eligible under the WOSB Program. The interim rule 
allows contracting officers to 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. Discussion and Analysis

    The comment period for the FAR interim rule closed on August 20, 
2013. No public comments were received; therefore DoD, GSA, and NASA 
are finalizing the interim rule without change.

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 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.

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:

    The objective of this final rule is to finalize the changes set 
forth in section 1697 of the National Defense Authorization Act for 
fiscal year 2013. Section 1697 eliminated the statutory limitations 
(thresholds) at section 8(m) of the Small Business Act, (15 U.S.C. 
637(m)), for set-asides to economically disadvantaged women-owned 
small business (EDWOSB) concerns and to women-owned small business 
(WOSB) concerns eligible under the WOSB Program in industries that 
are underrepresented or substantially underrepresented by WOSB 
concerns. This final rule follows an interim rule that was published 
in the Federal Register at 78 FR 37692 on June 21, 2013, which 
removed the set-aside limitations set forth at FAR 19.1505(b)(2) and 
(c)(2), in keeping with the statutory change and SBA's revised 
regulations.
    There were no comments received in response to the interim rule 
by its closing date of August 20, 2013. Therefore, the changes made 
in the interim rule will be adopted as final, without change, 
allowing contracting officers to 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.
    Analysis of the Federal Procurement Data System from April 1, 
2011 (the implementation date of the WOSB Program) through January 
1, 2013, revealed that there were approximately 26,712 WOSB 
concerns, including 131 EDWOSB concerns and 388 WOSB concerns 
eligible under the WOSB Program, that received obligated funds from 
Federal contract awards, task or delivery orders, and modifications 
to existing contracts. This final rule may have a significant 
positive economic impact on EDWOSB concerns competing for 
contracting opportunities in industries determined by SBA to be 
underrepresented by WOSB concerns and may positively affect WOSB 
concerns eligible under the WOSB Program competing in industries 
determined by SBA to be substantially underrepresented by WOSB 
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 because those firms may 
now be excluded from competition on some acquisitions that 
previously 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 final 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 that 
would accomplish the stated objectives of the statute.

    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 Subjects in 48 CFR Part 19

    Government procurement.

    Dated: June 13, 2014.
William Clark,
Acting Director, Office of Government-Wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-Wide Policy.

Interim Rule Adopted as Final Without Change

0
Accordingly, the interim rule amending 48 CFR part 19 which was 
published in the Federal Register at 78 FR 37692 on June 21, 2013, is 
adopted as a final rule without change.

[FR Doc. 2014-14381 Filed 6-23-14; 8:45 am]
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