Defense Federal Acquisition Regulation Supplement: Small Business Set-Asides for Architect-Engineer and Construction Design Contracts (DFARS Case 2018-D057), 18160-18161 [2019-08486]
Download as PDF
<![CDATA[
18160
Federal Register / Vol. 84, No. 83 / Tuesday, April 30, 2019 / Rules and Regulations
252.225–7052 Restriction on the
Acquisition of Certain Magnets and
Tungsten.
amozie on DSK9F9SC42PROD with RULES
As prescribed in 225.7018–5, use the
following clause:
Restriction on the Acquisition of Certain
Magnets and Tungsten (APR 2019)
(a) Definitions. As used in this clause—
Covered material means—
(1) Samarium-cobalt magnets;
(2) Neodymium-iron-boron magnets;
(3) Tungsten metal powder; and
(4) Tungsten heavy alloy or any finished or
semi-finished component containing
tungsten heavy alloy.
Covered country means—
(1) The Democratic People’s Republic of
North Korea;
(2) The People’s Republic of China;
(3) The Russian Federation; and
(4) The Islamic Republic of Iran.
(b) Restriction. (1) Except as provided in
paragraph (c) of this clause, the Contractor
shall not deliver under this contract any
covered material melted or produced in any
covered country, or any end item,
manufactured in any covered country, that
contains a covered material (10 U.S.C.
2533c).
(2) For samarium-cobalt magnets and
neodymium iron-boron magnets, this
restriction includes—
(i) Melting samarium with cobalt to
produce the samarium-cobalt alloy or melting
neodymium with iron and boron to produce
the neodymium-iron-boron alloy; and
(ii) All subsequent phases of production of
the magnets, such as powder formation,
pressing, sintering or bonding, and
magnetization.
(3) The restriction on melting and
producing of samarium-cobalt magnets is in
addition to any applicable restrictions on
melting of specialty metals if the clause at
252.225–7009, Restriction on Acquisition of
Certain Articles Containing Specialty Metals,
is included in the contract.
(c) Exceptions. This clause does not
apply—
(1) To an end item that is—
(i) A commercially available off-the-shelf
item, other than—
(A) A commercially available off-the-shelf
item that is 50 percent or more tungsten by
weight; or
(B) A tungsten heavy alloy mill product,
such as bar, billet, slab, wire, cube, sphere,
block, blank, plate, or sheet, that had not
been incorporated into an end item,
subsystem, assembly, or component;
(ii) An electronic device, unless otherwise
specified in the contract; or
(iii) A neodymium-iron-boron magnet
manufactured from recycled material if the
milling of the recycled material and sintering
of the final magnet takes place in the United
States.
(2) If the authorized agency official
concerned has made a nonavailability
determination, in accordance with section
225.7018–4 of the Defense Federal
Acquisition Regulation Supplement, that
covered materials of satisfactory quality and
quantity, in the required form, cannot be
procured as and when needed at a reasonable
VerDate Sep<11>2014
17:09 Apr 29, 2019
Jkt 247001
price from a source other than a covered
country.
final rule, except to add a reference to
10 U.S.C. 2855.
(End of clause)
II. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold and for Commercial Items,
Including Commercially Available Offthe-Shelf Items
This rule does not create any new
provisions or clauses or impact any
existing provisions or clauses.
[FR Doc. 2019–08485 Filed 4–29–19; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 219
[Docket DARS–2018–0056]
RIN 0750–AK18
Defense Federal Acquisition
Regulation Supplement: Small
Business Set-Asides for ArchitectEngineer and Construction Design
Contracts (DFARS Case 2018–D057)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement a section of the
National Defense Authorization Act for
Fiscal Year 2019 regarding set-asides for
architect-engineer and construction
design contracts.
DATES: Effective April 30, 2019.
FOR FURTHER INFORMATION CONTACT: Ms.
Jennifer D. Johnson, telephone 571–
372–6100.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
DoD published a proposed rule in the
Federal Register at 83 FR 62554 on
December 4, 2018, to implement section
2804 of the National Defense
Authorization Act (NDAA) for Fiscal
Year (FY) 2019 (Pub. L. 115–232).
Section 2804 increases to $1 million the
threshold at 10 U.S.C. 2855 for small
business set-asides of acquisitions for
architect-engineer services, including
construction design, in connection with
military construction projects or
military family housing projects. In
addition, section 2804 removes the
prohibition on setting aside these
acquisitions valued above the threshold.
As a result of these statutory changes,
these acquisitions must be set aside for
small business, if valued below $1
million, and may be set aside for small
business, if valued at $1 million or
more.
There were no public comments
submitted in response to the proposed
rule. There are no changes made to the
PO 00000
Frm 00028
Fmt 4700
Sfmt 4700
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. Executive Order 13771
This rule is not subject to E.O. 13771,
because this rule is not a significant
regulatory action under E.O. 12866.
V. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq. The FRFA is summarized as
follows:
DoD is issuing a final rule to amend
the DFARS to implement section 2804
of the NDAA for FY 2019. Section 2804
increases to $1 million the threshold at
10 U.S.C. 2855 for small business setasides of acquisitions for architectengineer services, including
construction design, in connection with
military construction projects or
military family housing projects. In
addition, section 2804 removes the
prohibition on setting aside these
acquisitions valued above the threshold.
As a result of these statutory changes,
these acquisitions must be set aside for
small business, if valued below $1
million, and may be set aside for small
business, if valued at $1 million or
more.
No public comments were received in
response to the initial regulatory
flexibility analysis.
The rule applies to contract awards
for architect-engineer services,
E:\FR\FM\30APR1.SGM
30APR1
Federal Register / Vol. 84, No. 83 / Tuesday, April 30, 2019 / Rules and Regulations
including construction design. Data
from the Federal Procurement Data
System shows that, during FY 2017 and
FY 2018, DoD awarded an average of
229 contracts per year for architectengineer services to an average of 190
unique small entities per year. In FY
2017 and FY 2018, DoD awarded
approximately 30 contracts per year for
architect-engineer services valued at
more than the prior threshold of
$400,000 and less than the new
threshold of $1 million. This rule
requires future contracts in this range to
be awarded pursuant to FAR part 19 setaside procedures. DoD also awarded
approximately 284 contracts per year for
architect-engineer services valued at
more than $1 million. This rule makes
it possible for future contracts at those
dollar values to be awarded pursuant to
FAR part 19 set-aside procedures. There
are more than 27,000 small entities
listed in Small Business
Administration’s Dynamic Small
Business Search that provide architectengineer services. Of these entities,
approximately 270 could benefit from
this rule.
This rule does not impose any new
reporting, recordkeeping, or other
compliance requirements for small
entities.
There are no known, significant
alternatives that would meet the
requirements of the applicable statute.
VI. Paperwork Reduction Act
The 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).
Government procurement.
PART 219—SMALL BUSINESS
PROGRAMS
1. The authority citation for part 219
continues to read as follows:
■
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
2. Revise section 219.502–1 to read as
follows:
amozie on DSK9F9SC42PROD with RULES
■
219.502–1 Requirements for setting aside
acquisitions.
17:09 Apr 29, 2019
Jkt 247001
219.502–2
Comment: The respondent
recommends that DFARS 245.107 be left
‘‘as is’’ and that contracting officers
should insert FAR clause 52.245–1 into
purchase orders for repair based on the
type and cost of property to be repaired.
Response: A determination for when
provisions and clauses are used is
driven primarily by the goods or
services being procured and the type of
contract being contemplated. Tying the
use of FAR 52.245–1 to only some forms
of Government-furnished property
(GFP) and not others would be
impractical given the variety of property
classes, types, values, uses, and
conditions. Discretion, in the case of
inserting FAR clause 52.245–1 in
purchase orders for repair, has led to
inconsistent treatment of GFP.
Moreover, the discretionary use of FAR
52.245–1 has been shown to drive
process inconsistency, compromise
accountability, and promote
nonstandard processes. This
complicates the administration of
contracts, particularly upon contract
closeout when proper disposition and
adjudication of remaining Government
property is crucial.
[Amended]
3. Amend section 219.502–2, in
paragraph (a)(iii), by removing ‘‘of
under $400,000’’ and adding ‘‘under $1
million (10 U.S.C. 2855)’’ in its place.
■
[FR Doc. 2019–08486 Filed 4–29–19; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 245
[Docket DARS–2016–0035]
RIN 0750–AJ11
Defense Federal Acquisition
Regulation Supplement: Use of the
Government Property Clause (DFARS
Case 2015–D035)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
ACTION:
Final rule.
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to expand the prescription for
using the Federal Acquisition (FAR)
Government property clause.
SUMMARY:
DATES:
Effective April 30, 2019.
FOR FURTHER INFORMATION CONTACT:
Ms.
I. Background
Therefore, 48 CFR part 219 is
amended as follows:
VerDate Sep<11>2014
B. Analysis of Public Comments
SUPPLEMENTARY INFORMATION:
Jennifer Lee Hawes,
Regulatory Control Officer, Defense
Acquisition Regulations System.
Do not set aside acquisitions for
supplies that were developed and
financed, in whole or in part, by
Canadian sources under the U.S.Canadian Defense Development Sharing
Program.
Kimberly Bass, telephone 571–372–
6174.
List of Subjects in 48 CFR Part 219
18161
DoD published a proposed rule in the
Federal Register at 81 FR 73002 on
October 21, 2016, to amend DFARS
245.107(1)(i) to require the use of FAR
clause 52.245–1, Government Property,
in all purchase orders for repair,
maintenance, overhaul, or modification
of Government property, regardless of
the unit acquisition cost of the items to
be repaired. One respondent submitted
comments in response to the proposed
rule.
II. Discussion and Analysis
A. Summary of Significant Changes
From the Proposed Rule
There are no changes from the
proposed rule.
PO 00000
Frm 00029
Fmt 4700
Sfmt 4700
1. Support for Continued Discretionary
Use of the FAR Clause
2. Training for Contracting Officers
Comment: The respondent also stated
that appropriate training should be
provided to contracting officers on use
of the Government property clause,
rather than require a blanket
prescription that fails to incorporate
materiality.
Response: The purpose of this rule is
to achieve greater accountability of GFP,
decrease the risk of misuse or loss of
Government property, and mitigate
potential ownership issues. As stated
previously, tying the use of FAR clause
52.245–1 to a specific property class or
type would be impractical given the
variety of property types, values, uses,
and conditions. By extension, training
contracting officers on the potential
materiality of asset types relative to the
use FAR clause 52.245–1 would be
unrealistic and ultimately exacerbate
the accountability gap this rule seeks to
close.
3. Impact to Small Business
Comment: The respondent states the
rule would adversely impact small
business participation in repair,
maintenance, and calibration activities,
and that small businesses would be
required to implement costly property
systems to comply with the Government
E:\FR\FM\30APR1.SGM
30APR1
]]>Agencies
[Federal Register Volume 84, Number 83 (Tuesday, April 30, 2019)]
[Rules and Regulations]
[Pages 18160-18161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08486]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 219
[Docket DARS-2018-0056]
RIN 0750-AK18
Defense Federal Acquisition Regulation Supplement: Small Business
Set-Asides for Architect-Engineer and Construction Design Contracts
(DFARS Case 2018-D057)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement a section of the
National Defense Authorization Act for Fiscal Year 2019 regarding set-
asides for architect-engineer and construction design contracts.
DATES: Effective April 30, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Jennifer D. Johnson, telephone
571-372-6100.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 83 FR
62554 on December 4, 2018, to implement section 2804 of the National
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L.
115-232). Section 2804 increases to $1 million the threshold at 10
U.S.C. 2855 for small business set-asides of acquisitions for
architect-engineer services, including construction design, in
connection with military construction projects or military family
housing projects. In addition, section 2804 removes the prohibition on
setting aside these acquisitions valued above the threshold. As a
result of these statutory changes, these acquisitions must be set aside
for small business, if valued below $1 million, and may be set aside
for small business, if valued at $1 million or more.
There were no public comments submitted in response to the proposed
rule. There are no changes made to the final rule, except to add a
reference to 10 U.S.C. 2855.
II. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Items, Including Commercially Available
Off-the-Shelf Items
This rule does not create any new provisions or clauses or impact
any existing provisions or clauses.
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. Executive Order 13771
This rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
V. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
The FRFA is summarized as follows:
DoD is issuing a final rule to amend the DFARS to implement section
2804 of the NDAA for FY 2019. Section 2804 increases to $1 million the
threshold at 10 U.S.C. 2855 for small business set-asides of
acquisitions for architect-engineer services, including construction
design, in connection with military construction projects or military
family housing projects. In addition, section 2804 removes the
prohibition on setting aside these acquisitions valued above the
threshold. As a result of these statutory changes, these acquisitions
must be set aside for small business, if valued below $1 million, and
may be set aside for small business, if valued at $1 million or more.
No public comments were received in response to the initial
regulatory flexibility analysis.
The rule applies to contract awards for architect-engineer
services,
[[Page 18161]]
including construction design. Data from the Federal Procurement Data
System shows that, during FY 2017 and FY 2018, DoD awarded an average
of 229 contracts per year for architect-engineer services to an average
of 190 unique small entities per year. In FY 2017 and FY 2018, DoD
awarded approximately 30 contracts per year for architect-engineer
services valued at more than the prior threshold of $400,000 and less
than the new threshold of $1 million. This rule requires future
contracts in this range to be awarded pursuant to FAR part 19 set-aside
procedures. DoD also awarded approximately 284 contracts per year for
architect-engineer services valued at more than $1 million. This rule
makes it possible for future contracts at those dollar values to be
awarded pursuant to FAR part 19 set-aside procedures. There are more
than 27,000 small entities listed in Small Business Administration's
Dynamic Small Business Search that provide architect-engineer services.
Of these entities, approximately 270 could benefit from this rule.
This rule does not impose any new reporting, recordkeeping, or
other compliance requirements for small entities.
There are no known, significant alternatives that would meet the
requirements of the applicable statute.
VI. Paperwork Reduction Act
The 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 219
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR part 219 is amended as follows:
PART 219--SMALL BUSINESS PROGRAMS
0
1. The authority citation for part 219 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
0
2. Revise section 219.502-1 to read as follows:
219.502-1 Requirements for setting aside acquisitions.
Do not set aside acquisitions for supplies that were developed and
financed, in whole or in part, by Canadian sources under the U.S.-
Canadian Defense Development Sharing Program.
219.502-2 [Amended]
0
3. Amend section 219.502-2, in paragraph (a)(iii), by removing ``of
under $400,000'' and adding ``under $1 million (10 U.S.C. 2855)'' in
its place.
[FR Doc. 2019-08486 Filed 4-29-19; 8:45 am]
BILLING CODE 5001-06-P
