Federal Acquisition Regulation: Update of “Affiliates” and Section 8(a) Clauses, 47862-47864 [2019-19361]
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47862
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Rules and Regulations
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intended to limit the applicability of
laws to contracts for the acquisition of
commercial items. Section 1906
provides that if a provision of law
contains criminal or civil penalties, or if
the FAR Council makes a written
determination that it is not in the best
interest of the Federal Government to
exempt commercial item contracts, the
provision of law will apply to contracts
for the acquisition of commercial items.
Finally, 41 U.S.C. 1907 states that
acquisitions of COTS items will be
exempt from a provision of law unless
the law (i) contains criminal or civil
penalties; (ii) specifically refers to 41
U.S.C. 1907 and states that the law
applies to acquisitions of COTS items;
(iii) concerns authorities or
responsibilities under the Small
Business Act (15 U.S.C. 644) or bid
protest procedures developed under the
authority of 31 U.S.C. 3551 et seq., 10
U.S.C. 2305(e) and (f), or 41 U.S.C. 3706
and 3707; or (iv) the Administrator for
Federal Procurement Policy makes a
written determination and finding that
would not be in the best interest of the
Federal Government to exempt contracts
for the procurement of COTS items from
the provision of law.
C. Determinations
With the publication of the interim
rule the FAR Council has determined it
was in the best interest of the
Government to apply the rule to
contracts at or below the SAT and for
the acquisition of commercial items.
Likewise, the Administrator for Federal
Procurement Policy determined it was
in the best interest of the Government to
apply this rule to contracts for the
acquisition of COTS items.
While the law does not specifically
address acquisitions of commercial
items, including COTS items, there is an
unacceptable level of risk for the
Government in buying hardware,
software, or services developed or
provided in whole or in part by
Kaspersky Lab. This level of risk is not
alleviated by the fact that the item being
acquired has been sold or offered for
sale to the general public, either in the
same form or a modified form as sold to
the Government (i.e., that it is a
commercial item or COTS item), nor by
the small size of the purchase (i.e., at or
below the SAT). As a result, agencies
may face increased exposure for
violating the law and unknowingly
acquiring a covered article absent
coverage of these types of acquisitions
by this rule.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
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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. 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.
VI. Regulatory Flexibility Act
A final Regulatory Flexibility
Analysis (FRFA) consistent with the
Regulatory Flexibility Act, 5 U.S.C. 601,
et seq. was prepared. The FRFA is
summarized below.
This final rule implements section 1634 of
Division A of the National Defense
Authorization Act (NDAA) for Fiscal Year
(FY) 2018 (Pub. L. 115–91). The objective of
the rule is to prescribe appropriate policies
and procedures to enable agencies to
determine that they are not purchasing
articles that section 1634 prohibits for use by
the Government on or after October 1, 2018.
There were no significant issues raised by
the public in response to the Initial
Regulatory Flexibility Analysis provided in
the interim rule.
The rule applies to all contractors and
subcontractors, regardless of size. Data from
the Federal Procurement Data System (FPDS)
indicates that the Government awarded
contracts to an average of 93,792 unique
entities in FY 2017 and FY 2018, of which
an average of 68,778 (73 percent) were small
entities. It is estimated that reports will be
submitted by 5 percent of contractors, or
3,439 small entities.
The rule requires contractors and
subcontractors that are subject to the clause
to report to the contracting officer, or for
DoD, to the website listed in the clause, any
discovery of a covered article during the
course of contract performance.
Because of the nature of the prohibition
enacted by section 1634, it is not possible to
establish different compliance or reporting
requirements or timetables that take into
account the resources available to small
entities or to exempt small entities from
coverage of the rule, or any part thereof. DoD,
GSA, and NASA were unable to identify any
alternatives that would reduce the burden on
small entities and still meet the objectives of
section 1634.
Interested parties may obtain a copy
of the FRFA from the Regulatory
PO 00000
Frm 00004
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Secretariat Division. The Regulatory
Secretariat Division has submitted a
copy of the FRFA to the Chief Counsel
for Advocacy of the Small Business
Administration.
VII. Paperwork Reduction Act
This rule contains information
collection requirements that have been
approved by the Office of Management
and Budget under the Paperwork
Reduction Act (44 U.S.C. chapter 35).
This information collection requirement
has been assigned OMB Control Number
9000–0197, entitled ‘‘Use of Products
and Services of Kaspersky Lab’’.
List of Subjects in 48 CFR Parts 1, 4, 13,
39, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Interim Rule Adopted as Final Without
Change
Accordingly, the interim rule
amending 48 CFR parts 1, 4, 13, 39, and
52 which was published in the Federal
Register at 83 FR 28141 on June 15,
2018, is adopted as a final rule without
change.
[FR Doc. 2019–19360 Filed 9–9–19; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 2, 19, and 52
[FAC 2019–06; FAR Case 2019–006; Item
II; Docket No. FAR–2019–0006, Sequence
No. 1]
RIN 9000–AN89
Federal Acquisition Regulation:
Update of ‘‘Affiliates’’ and Section 8(a)
Clauses
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 to amend the Federal
Acquisition Regulation (FAR) to update
the definition of ‘‘affiliates’’ in the FAR,
including references to that definition,
and to delete an obsolete requirement
for contractors who are 8(a) Program
participants.
SUMMARY:
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Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Rules and Regulations
DATES:
Effective October 10, 2019.
FOR FURTHER INFORMATION CONTACT:
Ms.
Marilyn E. Chambers, Procurement
Analyst, at 202–285–7380 for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755.
Please cite FAC 2019–06, FAR Case
2019–006.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are amending
the FAR to revise the definition of
‘‘affiliates’’ at FAR 19.101, as well as
references to this definition at FAR
2.101, 19.001, 19.1303, 19.1403, and in
the clause at FAR 52.219–27, Notice of
Service-Disabled Veteran-Owned Small
Business Set-Aside. The clauses at FAR
52.219–12, Special 8(a) Subcontract
Conditions, and 52.219–17, Section 8(a)
Award, currently require contractors
who are 8(a) Program participants to
obtain written approval from the Small
Business Administration (SBA) and the
contracting officer before subcontracting
the performance of any contract
requirements. SBA has removed this
requirement from their regulations on
the 8(a) Program at 13 CFR part 124.
Therefore, DoD, GSA, and NASA are
removing this obsolete requirement
from the FAR.
II. Discussion and Analysis
A. Definition of ‘‘affiliates’’ in parts 2
and 9.
Subpart 2.1, Definitions, is amended
to revise the definition of ‘‘affiliates’’ to
include references to the unique
definitions of that term in 9.403 and
19.101.
B. Definition of ‘‘concern’’. Section
19.001, Definitions, is amended to
delete a reference to section 19.101
regarding affiliation and to replace it
with a reference to SBA’s regulations at
13 CFR 121.105.
C. Definition of ‘‘affiliates’’ in part 19.
Subpart 19.1, Size Standards, is
amended to revise the definition of
‘‘affiliates’’ by deleting existing language
and replacing it with a reference to
SBA’s regulations on determining
affiliation at 13 CFR 121.103. Editorial
changes are made in 19.1303(c),
19.1403(c)(3), and paragraph (e)(3) of
the clause at 52.219–27 to remove
references to the definition of
‘‘affiliates’’ in 19.101 and 52.219–27 and
to replace them with references to the
applicable SBA regulation.
D. Removal of obsolete requirement
for 8(a) contractors. The clauses at FAR
52.219–12 and 52.219–17 are amended
to delete from each clause the paragraph
requiring 8(a) contractors to obtain
approval from SBA and the contracting
officer prior to subcontracting the
performance of any contract
requirements. These paragraphs are
obsolete.
III. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
The statute that applies to the
publication of the FAR is the Office of
Federal Procurement Policy statute
(codified at title 41 of the United States
Code). Specifically, 41 U.S.C. 1707(a)(1)
requires that a procurement policy,
regulation, procedure, or form
(including an amendment or
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. While this final
rule relates to the expenditure of
appropriated funds, it is not required to
be published for public comment,
because it does not have a significant
effect or impose any requirements on
contractors or offerors. The rule makes
minor revisions to the definition of
‘‘affiliates’’ that have no bearing on the
meaning of the term and replaces FAR
coverage that is redundant of SBA
regulations with references to SBA’s
Summary
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To access the full Regulatory Cost
Analysis for this rule, go to the Federal
eRulemaking Portal at
www.regulations.gov, search for ‘‘FAR
Case 2019–006’’, click ‘‘Open Docket,’’
and view ‘‘Supporting Documents’’.
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Jkt 247001
rules. Additionally, this rule eliminates
a requirement that no longer exists in
SBA’s regulations on the 8(a) Business
Development Program at 13 CFR part
124.
IV. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule amends the FAR to update
the definition of ‘‘affiliates,’’ as well as
a reference to this definition in the
clause at 52.219–27, Notice of ServiceDisabled Veteran-Owned Small
Business Set-Aside. Additionally, this
rule removes an obsolete requirement
from the clauses at FAR 52.219–12,
Special 8(a) Subcontract Conditions,
and 52.219–17, Section 8(a) Award, for
contractors who are 8(a) Program
participants to obtain written approval
from SBA and the contracting officer
before subcontracting the performance
of any contract requirements. This rule
does not change the applicability of
these clauses, which currently apply to
solicitations and contracts below the
SAT and to the acquisition of
commercial items, including COTS
items.
V. Expected Cost Savings
This rule impacts only 8(a) Program
participants who do business with the
Government. Currently, 8(a) Program
participants who have Federal contracts
must obtain written approval from SBA
and the contracting officer before
subcontracting the performance of any
contract requirements in accordance
with FAR clauses 52.219–12 and
52.219–17. Removal of the requirement
to obtain this approval is expected to
result in savings for contractors who are
8(a) Program participants. The following
is a summary of the estimated public
and Government cost savings calculated
in perpetuity in 2016 dollars at a 7percent discount rate:
Public
Present Value ............................................................................................................
Annualized Costs .......................................................................................................
Annualized Value Costs (as of 2016 if Year 1 is 2020) ............................................
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
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
Government
¥$14,595,843
¥1,021,709
¥799,457
VI. Executive Orders 12866 and 13563
47863
¥$7,297,914
¥510,854
¥389,728
Total
¥$21,893,757
¥1,532,563
¥1,189,185
(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
E:\FR\FM\10SER4.SGM
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47864
Federal Register / Vol. 84, No. 175 / Tuesday, September 10, 2019 / Rules and Regulations
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.
(2) For the use in subpart 19.1, see the
definition at 19.101.
*
*
*
*
*
Business Set-Aside (Oct 2019) (15
U.S.C. 657f).
*
*
*
*
*
PART 19—SMALL BUSINESS
PROGRAMS
■
VII. Executive Order 13771
19.001
This final rule is considered to be an
E.O. 13771 deregulatory action. The
total annualized value of the cost
savings is $1,189,185. Details on the
estimated cost savings can be found in
section V. of this preamble.
■
VIII. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) does not apply to this
rule, because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule under 41 U.S.C.
1707(a)(1) (see section III. of this
preamble). Accordingly, no regulatory
flexibility analysis is required and none
has been prepared.
IX. 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 Parts 2, 19,
and 52
[Amended]
3. Amend section 19.001, in the
defined term ‘‘Concern’’ by removing
the last sentence and adding ‘‘For more
information, see 13 CFR 121.105.’’ in its
place.
4. Amend section 19.101 by revising
the section heading and the definition of
‘‘Affiliates’’ to read as follows:
■
19.101
*
*
*
*
Affiliates means business concerns,
one of whom directly or indirectly
controls or has the power to control the
others, or a third party or parties control
or have the power to control the others.
In determining whether affiliation
exists, consideration is given to all
appropriate factors including common
ownership, common management, and
contractual relationships. SBA
determines affiliation based on the
factors set forth at 13 CFR 121.103.
*
*
*
*
*
[Amended]
5. Amend section 19.1303, in
paragraph (c) by removing ‘‘the
explanation of affiliates (see 19.101)’’
and adding ‘‘13 CFR 121.103(h)’’ in its
place.
■
Government procurement.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
19.1403
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 2, 19, and 52 as set
forth below:
■ 1. The authority citation for parts 2, 9,
19, and 52 continues to read as follows:
[Amended]
6. Amend section 19.1403, in
paragraph (c)(3), by removing ‘‘of
paragraph 7 of the explanation of
Affiliates in 19.101’’ and adding ‘‘in 13
CFR 121.103(h)’’ in its place.
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
7. Amend section 52.212–5 by
revising the date of the clause and
paragraph (b)(21) to read as follows:
■
PART 2—DEFINITIONS OF WORDS
AND TERMS
2. Amend section 2.101, in paragraph
(b)(2), by revising the definition of
‘‘Affiliates’’ to read as follows:
■
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2.101
Definitions.
VerDate Sep<11>2014
17:39 Sep 09, 2019
52.212–5 Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items.
*
(b) * * *
(2) * * *
Affiliates means associated business
concerns or individuals if, directly or
indirectly either one controls or can
control the other; or third party controls
or can control both, except as follows:
(1) For the use in subpart 9.4, see the
definition at 9.403.
Jkt 247001
*
*
*
*
Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Items
Oct 2019)
*
*
*
*
*
(b) * * *
(21) 52.219–27, Notice of ServiceDisabled Veteran-Owned Small
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Frm 00006
Fmt 4701
52.219–12 Special 8(a) Subcontract
Conditions.
*
Definitions.
*
19.1303
8. Amend section 52.219–12 by—
a. Revising the date of the clause;
■ b. Removing paragraph (b)(3);
■ c. Redesignating paragraph (b)(4) as
(b)(3); and
■ d. Removing from newly redesignated
paragraph (b)(3) ‘‘That is’’ and adding
‘‘That it’’ in its place.
The revision reads as follows:
■
Sfmt 4700
*
*
*
*
Special 8(a) Subcontract Conditions
(Oct 2019)
*
*
*
*
*
9. Amend section 52.219–17 by
revising the date of the clause and
paragraph (a)(2) and removing
paragraph (c).
The revisions read as follows:
■
52.219–17
Section 8(a) Award.
*
*
*
*
*
Section 8(a) Award (Oct 2019)
(a) * * *
(2) Except for novation agreements,
delegates to the ___ [insert name of
contracting activity] the responsibility
for administering the contract with
complete authority to take any action on
behalf of the Government under the
terms and conditions of the contract;
provided, however that the contracting
agency shall give advance notice to the
SBA before it issues a final notice
terminating the right of the
subcontractor to proceed with further
performance, either in whole or in part,
under the contract.
*
*
*
*
*
10. Amend section 52.219–27 by
revising the date of the clause and
removing from paragraph (e)(3)
‘‘paragraph 7 of the explanation of
Affiliates in 19.101 of the Federal
Acquisition Regulation’’ and adding ‘‘13
CFR 121.103(h)’’ in its place.
The revision reads as follows:
■
52.219–27 Notice of Service-Disabled
Veteran-Owned Small Business Set-Aside.
*
*
*
*
*
Notice of Service-Disabled VeteranOwned Small Business Set-Aside (Oct
2019)
*
*
*
*
*
[FR Doc. 2019–19361 Filed 9–9–19; 8:45 am]
BILLING CODE 6820–EP–P
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]]>Agencies
[Federal Register Volume 84, Number 175 (Tuesday, September 10, 2019)]
[Rules and Regulations]
[Pages 47862-47864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19361]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 19, and 52
[FAC 2019-06; FAR Case 2019-006; Item II; Docket No. FAR-2019-0006,
Sequence No. 1]
RIN 9000-AN89
Federal Acquisition Regulation: Update of ``Affiliates'' and
Section 8(a) Clauses
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 to amend the
Federal Acquisition Regulation (FAR) to update the definition of
``affiliates'' in the FAR, including references to that definition, and
to delete an obsolete requirement for contractors who are 8(a) Program
participants.
[[Page 47863]]
DATES: Effective October 10, 2019.
FOR FURTHER INFORMATION CONTACT: Ms. Marilyn E. Chambers, Procurement
Analyst, at 202-285-7380 for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat Division at 202-501-4755. Please cite FAC 2019-06, FAR Case
2019-006.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are amending the FAR to revise the definition of
``affiliates'' at FAR 19.101, as well as references to this definition
at FAR 2.101, 19.001, 19.1303, 19.1403, and in the clause at FAR
52.219-27, Notice of Service-Disabled Veteran-Owned Small Business Set-
Aside. The clauses at FAR 52.219-12, Special 8(a) Subcontract
Conditions, and 52.219-17, Section 8(a) Award, currently require
contractors who are 8(a) Program participants to obtain written
approval from the Small Business Administration (SBA) and the
contracting officer before subcontracting the performance of any
contract requirements. SBA has removed this requirement from their
regulations on the 8(a) Program at 13 CFR part 124. Therefore, DoD,
GSA, and NASA are removing this obsolete requirement from the FAR.
II. Discussion and Analysis
A. Definition of ``affiliates'' in parts 2 and 9.
Subpart 2.1, Definitions, is amended to revise the definition of
``affiliates'' to include references to the unique definitions of that
term in 9.403 and 19.101.
B. Definition of ``concern''. Section 19.001, Definitions, is
amended to delete a reference to section 19.101 regarding affiliation
and to replace it with a reference to SBA's regulations at 13 CFR
121.105.
C. Definition of ``affiliates'' in part 19. Subpart 19.1, Size
Standards, is amended to revise the definition of ``affiliates'' by
deleting existing language and replacing it with a reference to SBA's
regulations on determining affiliation at 13 CFR 121.103. Editorial
changes are made in 19.1303(c), 19.1403(c)(3), and paragraph (e)(3) of
the clause at 52.219-27 to remove references to the definition of
``affiliates'' in 19.101 and 52.219-27 and to replace them with
references to the applicable SBA regulation.
D. Removal of obsolete requirement for 8(a) contractors. The
clauses at FAR 52.219-12 and 52.219-17 are amended to delete from each
clause the paragraph requiring 8(a) contractors to obtain approval from
SBA and the contracting officer prior to subcontracting the performance
of any contract requirements. These paragraphs are obsolete.
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is the
Office of Federal Procurement Policy statute (codified at title 41 of
the United States Code). Specifically, 41 U.S.C. 1707(a)(1) requires
that a procurement policy, regulation, procedure, or form (including an
amendment or 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.
While this final rule relates to the expenditure of appropriated funds,
it is not required to be published for public comment, because it does
not have a significant effect or impose any requirements on contractors
or offerors. The rule makes minor revisions to the definition of
``affiliates'' that have no bearing on the meaning of the term and
replaces FAR coverage that is redundant of SBA regulations with
references to SBA's rules. Additionally, this rule eliminates a
requirement that no longer exists in SBA's regulations on the 8(a)
Business Development Program at 13 CFR part 124.
IV. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule amends the FAR to update the definition of
``affiliates,'' as well as a reference to this definition in the clause
at 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business
Set-Aside. Additionally, this rule removes an obsolete requirement from
the clauses at FAR 52.219-12, Special 8(a) Subcontract Conditions, and
52.219-17, Section 8(a) Award, for contractors who are 8(a) Program
participants to obtain written approval from SBA and the contracting
officer before subcontracting the performance of any contract
requirements. This rule does not change the applicability of these
clauses, which currently apply to solicitations and contracts below the
SAT and to the acquisition of commercial items, including COTS items.
V. Expected Cost Savings
This rule impacts only 8(a) Program participants who do business
with the Government. Currently, 8(a) Program participants who have
Federal contracts must obtain written approval from SBA and the
contracting officer before subcontracting the performance of any
contract requirements in accordance with FAR clauses 52.219-12 and
52.219-17. Removal of the requirement to obtain this approval is
expected to result in savings for contractors who are 8(a) Program
participants. The following is a summary of the estimated public and
Government cost savings calculated in perpetuity in 2016 dollars at a
7-percent discount rate:
----------------------------------------------------------------------------------------------------------------
Summary Public Government Total
----------------------------------------------------------------------------------------------------------------
Present Value.......................................... -$14,595,843 -$7,297,914 -$21,893,757
Annualized Costs....................................... -1,021,709 -510,854 -1,532,563
Annualized Value Costs (as of 2016 if Year 1 is 2020).. -799,457 -389,728 -1,189,185
----------------------------------------------------------------------------------------------------------------
To access the full Regulatory Cost Analysis for this rule, go to
the Federal eRulemaking Portal at www.regulations.gov, search for ``FAR
Case 2019-006'', click ``Open Docket,'' and view ``Supporting
Documents''.
VI. 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
[[Page 47864]]
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.
VII. Executive Order 13771
This final rule is considered to be an E.O. 13771 deregulatory
action. The total annualized value of the cost savings is $1,189,185.
Details on the estimated cost savings can be found in section V. of
this preamble.
VIII. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) does not
apply to this rule, because a notice of proposed rulemaking and an
opportunity for public comment are not required to be given for this
rule under 41 U.S.C. 1707(a)(1) (see section III. of this preamble).
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
IX. 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 Parts 2, 19, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 19, and 52 as
set forth below:
0
1. The authority citation for parts 2, 9, 19, and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 2--DEFINITIONS OF WORDS AND TERMS
0
2. Amend section 2.101, in paragraph (b)(2), by revising the definition
of ``Affiliates'' to read as follows:
2.101 Definitions.
(b) * * *
(2) * * *
Affiliates means associated business concerns or individuals if,
directly or indirectly either one controls or can control the other; or
third party controls or can control both, except as follows:
(1) For the use in subpart 9.4, see the definition at 9.403.
(2) For the use in subpart 19.1, see the definition at 19.101.
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
19.001 [Amended]
0
3. Amend section 19.001, in the defined term ``Concern'' by removing
the last sentence and adding ``For more information, see 13 CFR
121.105.'' in its place.
0
4. Amend section 19.101 by revising the section heading and the
definition of ``Affiliates'' to read as follows:
19.101 Definitions.
* * * * *
Affiliates means business concerns, one of whom directly or
indirectly controls or has the power to control the others, or a third
party or parties control or have the power to control the others. In
determining whether affiliation exists, consideration is given to all
appropriate factors including common ownership, common management, and
contractual relationships. SBA determines affiliation based on the
factors set forth at 13 CFR 121.103.
* * * * *
19.1303 [Amended]
0
5. Amend section 19.1303, in paragraph (c) by removing ``the
explanation of affiliates (see 19.101)'' and adding ``13 CFR
121.103(h)'' in its place.
19.1403 [Amended]
0
6. Amend section 19.1403, in paragraph (c)(3), by removing ``of
paragraph 7 of the explanation of Affiliates in 19.101'' and adding
``in 13 CFR 121.103(h)'' in its place.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Amend section 52.212-5 by revising the date of the clause and
paragraph (b)(21) 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 Oct 2019)
* * * * *
(b) * * *
(21) 52.219-27, Notice of Service-Disabled Veteran-Owned Small
Business Set-Aside (Oct 2019) (15 U.S.C. 657f).
* * * * *
0
8. Amend section 52.219-12 by--
0
a. Revising the date of the clause;
0
b. Removing paragraph (b)(3);
0
c. Redesignating paragraph (b)(4) as (b)(3); and
0
d. Removing from newly redesignated paragraph (b)(3) ``That is'' and
adding ``That it'' in its place.
The revision reads as follows:
52.219-12 Special 8(a) Subcontract Conditions.
* * * * *
Special 8(a) Subcontract Conditions (Oct 2019)
* * * * *
0
9. Amend section 52.219-17 by revising the date of the clause and
paragraph (a)(2) and removing paragraph (c).
The revisions read as follows:
52.219-17 Section 8(a) Award.
* * * * *
Section 8(a) Award (Oct 2019)
(a) * * *
(2) Except for novation agreements, delegates to the ___ [insert
name of contracting activity] the responsibility for administering the
contract with complete authority to take any action on behalf of the
Government under the terms and conditions of the contract; provided,
however that the contracting agency shall give advance notice to the
SBA before it issues a final notice terminating the right of the
subcontractor to proceed with further performance, either in whole or
in part, under the contract.
* * * * *
0
10. Amend section 52.219-27 by revising the date of the clause and
removing from paragraph (e)(3) ``paragraph 7 of the explanation of
Affiliates in 19.101 of the Federal Acquisition Regulation'' and adding
``13 CFR 121.103(h)'' in its place.
The revision reads as follows:
52.219-27 Notice of Service-Disabled Veteran-Owned Small Business Set-
Aside.
* * * * *
Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (Oct
2019)
* * * * *
[FR Doc. 2019-19361 Filed 9-9-19; 8:45 am]
BILLING CODE 6820-EP-P
