Acquisition Regulations; Buy Indian Act; Procedures for Contracting, 59338-59345 [2021-23272]
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59338
Federal Register / Vol. 86, No. 205 / Wednesday, October 27, 2021 / Proposed Rules
Dated: October 13, 2021.
John Blevins,
Acting Regional Administrator, Region 4.
I. Background
[FR Doc. 2021–22914 Filed 10–26–21; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF THE INTERIOR
Office of the Secretary
48 CFR Parts 1426, 1452 and 1480
[DOI–2019–0012; 190D0102DM DS62500000
DLSN00000.000000 DX62501]
RIN 1090–AB21
Acquisition Regulations; Buy Indian
Act; Procedures for Contracting
Assistant Secretary for Policy,
Management and Budget, Interior.
ACTION: Notice of proposed rulemaking.
AGENCY:
The Department of the
Interior proposes to revise regulations
implementing the Buy Indian Act,
which provides the Department with
authority to set aside procurement
contracts for Indian-owned and
controlled businesses. These revisions
would eliminate barriers to Indian
Economic Enterprises from competing
on certain construction contracts,
expand Indian Economic Enterprises’
ability to subcontract construction work
consistent with other socio-economic
set-aside programs, and give greater
preference to Indian Economic
Enterprises when a deviation from the
Buy Indian Act is necessary, among
other updates.
DATES: Comments must be received on
or before December 27, 2021.
Consultation sessions with Tribes and
Alaska Native corporations will be held
on Wednesday, December 1, 2021, 2
p.m. to 4 p.m. ET.
ADDRESSES: You may submit comments
on the rulemaking on Docket Number
DOI–2019–0012 through the Federal
eRulemaking Portal at https://
www.regulations.gov. Please use
Regulation Identifier Number (RIN)
1090–AB21 in your message. Follow the
instructions on the website for
submitting comments.
FOR FURTHER INFORMATION CONTACT: Mr.
Christopher Bell, Senior Small Business
Specialist, Office of Small and
Disadvantaged Small Business,
Department of the Interior, 1849 C Street
NW, Mail Stop 4214 MIB, Washington,
DC 20240; telephone (202) 208–3458 or
email christopher_bell@ios.doi.gov.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
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The Department of the Interior
Acquisition Regulations (DIAR) are in
title 48, chapter 14 of the Code of
Federal Regulations (48 CFR parts 1401–
1499) and include regulations
implementing the Buy Indian Act (25
U.S.C. 47, as amended). The Department
recently reviewed the DIAR consistent
with Executive Order (E.O.) 13985,
Advancing Racial Equity and Support
for Underserved Communities Through
the Federal Government. The
Department has identified various
aspects of parts 1426, 1452, and 1480
that are barriers to equal opportunity for
Indians and Indian Tribes in the
Department of the Interior (DOI)
procurement process. These barriers
inhibit job creation, are ineffective at
promoting maximum economic
development in Indian Country, and
limit Indian country from fully
participating in Interior procurements
subject to the Buy Indian Act.
This rule supplements the Federal
Acquisition Regulation (FAR) and
revises the DIAR. For this reason, the
rule is issued by the Assistant Secretary
for Policy, Management and Budget and
follows the numbering system
established by the FAR and DIAR. The
DIAR was last revised in 2013 and
included the addition of a new part
1480 to address acquisitions under the
Buy Indian Act. See 78 FR 34266 (June
7, 2013).
II. Description of Changes
This rule proposes to revise the DIAR
in the following ways, as explained
below: Eliminate the restriction on
Indian Economic Enterprises (IEE) from
competing on ‘‘covered’’ construction
contracts issued under the Buy Indian
Act; expand IEEs’ ability to subcontract
work subject to the Buy Indian Act
consistent with other government socioeconomic set-aside programs; give
greater preference to IEEs; update the
process and thresholds for deviations;
and clarify applicability.
A. Elimination of Restriction for
‘‘Covered’’ Construction Contracts
Interior’s review of DIAR parts 1426,
1480, and 1452 identified changes in
law that affect how Interior applies the
Andrus v. Glover Construction Co.
Supreme Court decision, 446 U.S. 608
(1980). The case has underpinned the
current language of the DIAR part 1480,
which restricts IEE set-asides to
‘‘covered’’ construction. Interior has
determined that the underlying law
upon which the case was decided has
significantly changed since the case was
decided in 1980. The decision
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references 41 U.S.C. 252, which was
amended by The Deficit Reduction Act
of 1984 (Pub. L. 98–369) and moved to
41 U.S.C. 253. Interior has reviewed 41
U.S.C. 253 as currently codified (and
now reclassified to 41 U.S.C. 3301 et
seq. per Pub. L. 111–315) and has
determined that the ‘‘covered’’
construction language in the regulation
is no longer required by law. Interior
has removed all references to ‘‘covered’’
construction throughout the regulation.
Removal of this language will allow for
the set-aside of construction contracts to
IEEs.
B. Expansion of Indian Economic
Enterprises’ Ability To Subcontract
Since Interior proposes to remove
references to ‘‘covered’’ construction
and allow IEEs to compete for all
construction contracts, Interior has
identified restrictions on IEEs that
exceed restrictions in other government
socio-economic set-aside programs.
Currently, 48 CFR 1452.280–3 restricts
the ability of IEEs from subcontracting
more than 50% of the work to firms
other than IEEs. This rule does not
change the 50% subcontract limitation
for supplies and services. However, the
50% limitation is currently not
consistent with FAR clause 52.219–14
Limitation on Subcontracting which has
different limitations for construction
awards. This rule ensures that the 48
CFR 1452.280–3 clause is consistent
with the FAR 52.219–14 clause. The
change will allow IEEs to subcontract
up to 75% for construction by special
trade contractors and 85% for general
construction. Consistency with FAR
clause 52.219–14 ensures equal
treatment of IEEs in Federal
procurement and removes
subcontracting barriers for IEEs.
C. Preference for Indian Small Business
Economic Enterprises
The proposed rule revises 48 CFR
1480.4 to clarify and simplify the
preferences granted to IEEs under the
Buy Indian Act. The current language of
section 1480.403(b) directs Contracting
Officers (CO) to solicit purchases as an
unrestricted small business set-aside
open to non-ISBEE firms when the CO
determines two or more Indian Small
Business Economic Enterprises (ISBEE)
would not provide competitive offers
and the CO has an approved deviation.
The proposed rule would delete existing
language, because it has been
determined to not be fully compliant
with the Buy Indian Act.
The revised section 1480.401(c) adds
language that the CO will give priority
to ISBEEs for all purchases subject to
the Buy Indian Act. The current
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language of 1480.4 only gives preference
to ISBEEs when the purchase is
commercial or a simplified acquisition.
Section 1480.401(d) adds language that
if a CO determines that there is not a
reasonable expectation of obtaining
competitive offers, then the CO will give
priority to IEEs. The updated language
would also allow sole source awards to
an ISBEE or IEE authorized under the
FAR to be compliant with the Buy
Indian Act.
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D. Updates to Thresholds and Process
for Deviations
Interior has determined the existing
deviation process at 48 CFR 1480.403 to
be burdensome in implementation and
not fully compliant with the Buy Indian
Act. The proposed rule clarifies the
deviation process by identifying
acquisitions that do not require a
deviation and streamlining the actions
taken after a deviation is approved. As
proposed at section 1480.403(b), if a
contract follows the requirements of
FAR 6.3 or is subject to a previously
approved deviation, the contract no
longer requires an approved deviation.
As proposed at section 1480.403(f),
acquisitions made under an authorized
deviation from the Buy Indian Act must
follow the FAR and DIAR unless
specified otherwise.
Other changes to the deviation
process include:
• Adding section 1480.403(a) which
ensures sole source awards made to IEEs
or ISBEEs comply with the requirements
of the Buy Indian Act and do not require
a deviation;
• Adding COs as authorized to
approve deviations under $25,000 at
section 1480.403(c);
• Updating deviation approval
thresholds in section 1480.403(c) from
$550,000 to $700,000 to be consistent
with changes in FAR 6.304; and
• Adding ‘‘one level above the CO’’ to
officials authorized to approve
deviations for actions exceeding $25,000
but not exceeding $700,000 in section
1480.403(c).
E. Inapplicability to ISDEAA Contracts
The proposed rule removes language
referencing the Indian Self
Determination and Education
Assistance Act (ISDEAA) (Pub. L. 93–
638) in 48 CFR 1426.70 and 1480.504(b).
Contracts issued under the authority of
ISDEAA are not covered under the FAR
and are codified separately under 25
CFR part 900. Since the contracts under
ISDEAA are not a procurement action
subject to the FAR and are separately
codified, there is no need to address
contracts subject to ISDEAA in the
DIAR. This rule specifically removes 48
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CFR 1426.70, 1452.226–70, 1452.226–
71, and 1480.504(b) in their entirety and
removes all other references to those
sections.
III. Tribal Consultation
The Office of the Assistant
Secretary—Indian Affairs will be
hosting Tribal consultation and Alaska
Native corporation consultation
meetings addressing this rule on
Wednesday, December 1, 2 p.m.–4 p.m.
ET. Please register in advance at:
https://www.zoomgov.com/meeting/
register/vJItduyhrDsqEq
ErEEGizgMi5rooyGrj12s.
IV. Development of the Proposed Rule
This proposed rule has been
developed with consideration of prior
rule-making comments and from
experience in implementing existing
regulations. Prior comments on previous
proposed rules were published in the
Federal Register and may be viewed
there. Previous proposed rules were
published on October 8, 1982 (47 FR
44678), November 15, 1984 (49 FR
45187), June 30, 1988 (53 FR 24738),
September 12, 1991 (56 FR 46468), and
July 26, 2012 (77 FR 43782).
V. Required Determinations
1. Regulatory Planning and Review
(Executive Orders 12866 and 13563).
Executive Order (E.O.) 12866 provides
that the Office of Information and
Regulatory Affairs (OIRA) will review
all significant rules. OIRA has
determined that this proposed rule is
not significant.
Executive Order 13563 reaffirms the
principles of E.O. 12866 while calling
for improvements in the nation’s
regulatory system to promote
predictability, to reduce uncertainty,
and to use the best, most innovative,
and least burdensome tools for
achieving regulatory ends. The
Executive order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public,
where these approaches are relevant,
feasible, and consistent with regulatory
objectives. E.O. 13563 emphasizes
further that regulations must be based
on the best available science and that
the rulemaking process must allow for
public participation and an open
exchange of ideas. We have developed
this rule in a manner consistent with
these requirements.
2. Regulatory Flexibility Act. The
Secretary certifies that the adoption of
this proposed rule will not have a
significant economic impact on a
substantial number of small entities as
they are defined in the Regulatory
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Flexibility Act (5 U.S.C. 601 et seq.).
Therefore, under 5 U.S.C. 605(b), this
rulemaking is exempt from the initial
and final regulatory flexibility analysis
requirements of sections 603 and 604.
3. Small Business Regulatory
Enforcement Fairness Act. This
proposed rule is not a major rule under
the Small Business Regulatory
Enforcement Fairness Act (5 U.S.C.
804(2)). This rule does not have an
annual effect on the economy of $100
million or more. This proposed rule will
not cause a major increase in costs or
prices for consumers, individual
industries, Federal, State, or local
government agencies, or geographic
regions. This proposed rule does not
have significant adverse effects on
competition, employment, investment,
productivity, innovation, or the ability
of U.S.-based enterprises to compete
with foreign-based enterprises.
4. Unfunded Mandates Reform Act.
This proposed rule does not impose an
unfunded mandate on State, local, or
Tribal governments or the private sector
of more than $100 million per year. The
rule does not have a significant or
unique effect on State, local, or Tribal
governments, or the private sector nor
does the rule impose requirements on
State, local, or Tribal governments. A
statement containing the information
required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not
required.
5. Takings (E.O. 12630). This
proposed rule does not affect a taking of
private property or otherwise have
taking implications under Executive
Order 12630. A takings implication
assessment is not required.
6. Federalism (E.O. 13132). Under the
criteria in section 1 of E.O. 13132, this
proposed rule does not have sufficient
Federalism implications to warrant the
preparation of a federalism summary
impact statement. It would not
substantially and directly affect the
relationship between the Federal and
State governments. A federalism
summary impact statement is not
required.
7. Civil Justice Reform (E.O. 12988).
This proposed rule complies with the
requirements of E.O. 12988.
Specifically, this rule (1) meets the
criteria of section 3(a) of this E.O.
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and (2) meets the criteria of
section 3(b)(2) of this E.O. requiring that
all regulations be written in clear
language and contain clear legal
standards.
8. Consultation with Indian Tribes
(E.O. 13175). The Department of the
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Interior strives to strengthen its
government-to-government relationship
with Indian Tribes through a
commitment to consultation with Indian
Tribes and recognition of their right to
self-governance and Tribal sovereignty.
We have evaluated this rule under the
Department’s consultation policy and
under the criteria in E.O. 13175 and
have determined there may be
substantial direct effects on federally
recognized Indian Tribes that will result
from this rulemaking. The Department
has invited Tribes by letter to consult on
these proposed regulations and will
hold consultation sessions with Tribes
on October 15 and 20, 2021, 1 p.m. to
3 p.m. by webinar.
9. Paperwork Reduction Act, 44
U.S.C. 3501, et seq. This proposed rule
requires offerors to certify whether they
met the definition of an ‘‘Indian
Economic Enterprise’’. These statements
are considered simple representations
that an offeror submitted to support its
claim for eligibility to participate in
contract awards under the authority of
the Buy Indian Act (25 U.S.C. 47, as
amended). Because these statements are
a simple certification or
acknowledgment related to a
transaction, they do not qualify as a
collection of information under the
Paperwork Reduction Act. See 5 CFR
1320.3(h).
10. National Environmental Policy
Act. This proposed rule does not
constitute a major Federal action
significantly affecting the quality of the
human environment. A detailed
statement under the National
Environmental Policy Act of 1969
(NEPA) is not required because the rule
is covered by the categorical exclusion
listed in 43 CFR 46.210(c). We have also
determined that the rule does not
involve any of the extraordinary
circumstances listed in 43 CFR 46.215
that would require further analysis
under NEPA.
11. Effects on the Energy Supply (E.O.
13211). This proposed rule is not a
significant energy action under the
definition in E.O. 13211. A Statement of
Energy Effects is not required.
12. Clarity of this Regulation. We are
required by Executive Orders 12866
(section 1(b)(12)), and 12988 (section
3(b)(1)(B)), and 13563 (section 1(a)), and
by the Presidential Memorandum of
June 1, 1998, to write all rules in plain
language. This means that each rule we
publish must: (1) Be logically organized;
(2) use the active voice to address
readers directly; (3) use common,
everyday words and clear language
rather than jargon; (4) be divided into
short sections and sentences; and (5) use
lists and tables wherever possible.
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If you feel that we have not met these
requirements, send us comments by one
of the methods listed in the FOR FURTHER
INFORMATION CONTACT section. To better
help us revise the rule, your comments
should be as specific as possible. For
example, you should tell us the number
of section or paragraphs that you find
unclear, which section or sentences are
too long, the sections where you feel
lists or tables would be useful, etc.
13. Public availability of comments.
Before including your address, phone
number, email address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be publicly available at any time. While
you can ask us in your comment to
withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so. When submitting comments
please identify what topic your
comment covers from the following list:
(1) Covered Construction
(2) Subcontract Limitations
(3) Buy Indian Act Deviations
(4) Other Topic Related to the Proposed
Rule
This action is taken pursuant to
delegated authority.
List of Subjects in 48 CFR Parts 1426,
1452, and 1480
Government procurement, Indians,
Indians—business and finance,
Reporting and recordkeeping
requirements.
For the reasons set out in the
preamble, the DOI proposes to amend
chapter 14 of title 48 CFR as follows:
Subpart 1452.2—Text of Provisions
and Clauses
1452.226–70 and 1452.226–71
and Reserved]
[Removed
4. Remove and reserve sections
1452.226–70 and 1452.226–71.
■ 5. Revise sections 1452.280–1 through
1452.280–4 to read as follows:
■
1452.280–1 Notice of Indian Small
Business Economic Enterprise set-aside.
As prescribed in 1480.503(e)(1), and
in lieu of the requirements of FAR
19.508, insert the following provision in
each written solicitation of offers to
provide supplies, general services, A–E
services, or construction. If the
solicitation is oral, information
substantially identical to that contained
in the provision must be given to
potential offerors.
Notice of Indian Small Business
Economic Enterprise Set-Aside (FEB
2021)
Under the Buy Indian Act, 25 U.S.C. 47,
offers are solicited only from Indian
Economic Enterprises (Subpart 1480.8) that
are also small business concerns. Any
acquisition resulting from this solicitation
will be from such a concern. Offers received
from enterprises that are not both Indian
Economic Enterprises and small business
concerns will not be considered and will be
rejected.
(End of provision)
1452.280–2 Notice of Indian Economic
Enterprise set-aside.
As prescribed in 1480.503(e)(2), insert
the following clause in solicitations and
contracts involving Indian Economic
Enterprise set-asides. If the solicitation
is oral, information substantially
identical to that contained in the
provision must be given to potential
offerors.
PART 1426—OTHER
SOCIOECONOMIC PROGRAMS
Notice of Indian Economic Enterprise
Set-Aside (FEB 2021)
1. The authority citation for part 1426
continues to read as follows:
(a) Definitions as used in this clause.
Alaska Native Claims Settlement Act
(ANCSA) means Public Law 92–203
(December 18, 1971), 85 Stat. 688, codified at
43 U.S.C. 1601–1629h.
Indian means a person who is an enrolled
member of a Federally Recognized Indian
Tribe.
Indian Economic Enterprise means any
business activity owned by one or more
Indians or Federally Recognized Indian
Tribes that is established for the purpose of
profit, provided that:
(i) The combined Indian or Federally
Recognized Indian Tribe ownership of the
enterprise shall constitute not less than 51
percent;
(ii) The Indians or Federally Recognized
Indian Tribes shall, together, receive at least
51 percent of the earnings from the contract;
and
■
Authority: Sec. 205(c), 63 Stat. 390, 40
U.S.C. 486(c); and 5 U.S.C. 301.
Subpart 1426.70—[Removed and
Reserved]
2. Remove and reserve subpart
1426.70.
■
PART 1452—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. The authority citation for part 1452
continues to read as follows:
■
Authority: Sec. 205(c), 63 Stat. 390, 40
U.S.C. 486(c); and 5 U.S.C. 301.
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(iii) The management and daily business
operations of an Indian Economic Enterprise
must be controlled by one or more
individuals who are Indians. To ensure
actual control over the enterprise, the
individuals must possess requisite
management or technical capabilities directly
related to the primary industry in which the
enterprise conducts business.
The enterprise must meet the requirements
of (i) through (iii) throughout the following
time periods:
(1) At the time an offer is made in response
to a written solicitation;
(2) At the time of contract award; and,
(3) During the full term of the contract.
Federally Recognized Indian Tribe means
an Indian tribe, band, nation, or other
Federally recognized group or community on
the List of Federally Recognized Tribes. This
definition includes any Alaska Native
regional or village corporation under the
Alaska Native Claims Settlement Act
(ANCSA).
List of Federally Recognized Tribes means
an entity appearing on the United States
Department of the Interior’s List of federally
recognized Indian tribes published annually
in the Federal Register pursuant to Section
104 of Public Law 103–454, codified at 25
U.S.C. 5131.
Representation means the positive
statement by an enterprise of its eligibility for
preferential consideration and participation
for acquisitions conducted under the Buy
Indian Act, 25 U.S.C. 47, in accordance with
the procedures in Subpart 1480.8.
(b) General.
(1) Under the Buy Indian Act, offers are
solicited only from Indian Economic
Enterprises.
(2) The Contracting Officer (CO) will reject
all offers received from ineligible enterprises.
(3) Any award resulting from this
solicitation will be made to an Indian
Economic Enterprise, as defined in paragraph
(a) of this clause.
(c) Required Submissions. In response to
this solicitation, an offeror must also provide
the following:
(1) A description of the required
percentage of the work/costs to be provided
by the offeror over the contract term as
required by section 1452.280–3,
Subcontracting Limitations clause; and
(2) Qualifications of the key personnel (if
any) that will be assigned to the contract.
(d) Required Assurance. The offeror must
provide written assurance to the CO that the
offeror is and will remain in compliance with
the requirements of this clause. It must do
this before the CO awards the Buy Indian
contract and upon successful and timely
completion of the contract, but before the CO
accepts the work or product.
(e) Non-responsiveness. Failure to provide
the information required by paragraphs (c)
and (d) of this clause may cause the CO to
find an offer non-responsive and reject it.
(f) Eligibility.
(1) Participation in the Mentor-Prote´ge´
Program established under section 831 of the
National Defense Authorization Act for Fiscal
Year 1991 (25 U.S.C. 47 note) does not render
an Indian Economic Enterprise ineligible for
contracts awarded under the Buy Indian Act.
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(2) If a contractor no longer meets the
definition of an Indian Economic Enterprise
after award, the contractor must notify the
CO immediately and in writing. The
notification must include full disclosure of
circumstances causing the contractor to lose
eligibility status and a description of any
actions that the contractor will take to regain
eligibility. Failure to give the CO immediate
written notification means that:
(i) The economic enterprise may be
declared ineligible for future contract awards
under this part; and
(ii) The CO may consider termination for
default if it is in the best interest of the
government.
(End of clause)
1452.280–3 Indian Economic Enterprise
subcontracting limitations.
A contractor shall not subcontract
more than the subcontract limitations
specified under FAR 52.219–14 to other
than responsible Indian Economic
Enterprises when receiving an award
under the Buy Indian Act. For this
purpose, work to be performed does not
include the provision of materials,
supplies, or equipment. As prescribed
in 1480.503(e)(3), insert the following
clause in each written solicitation or
contract to provide supplies, general
services, A–E services, or construction:
Indian Economic Enterprise
Subcontracting Limitations (FEB 2021)
(a) Definitions as used in this clause.
(1) Concern means any business entity
organized for profit (even if its ownership is
in the hands of a nonprofit entity) with a
place of business located in the United States
or its outlying areas and that makes a
significant contribution to the U.S. economy
through payment of taxes and/or use of
American products, materials and/or labor,
etc. It includes but is not limited to an
individual, partnership, corporation, joint
venture, association, or cooperative. For the
purpose of making affiliation findings (see
FAR 19.101), it includes any business entity,
whether or not it is organized for profit or
located in the United States or its outlying
areas.
(2) Subcontract means any agreement
(other than one involving an employeremployee relationship) entered into by a
government prime contractor or
subcontractor calling for supplies and/or
services required for performance of the
contract, contract modification, or
subcontract.
(3) Subcontractor means a concern to
which a contractor subcontracts any work
under the contract. It includes subcontractors
at any tier who perform work on the contract.
(b) Required Percentages of work by the
concern. The contractor must comply with
FAR 52.219–14 Limitations on
Subcontracting clause in allocating what
percentage of work to subcontract. The
contractor shall not subcontract work
exceeding the subcontract limitations in FAR
52.219–14 to a concern other than a
responsible Indian Economic Enterprise.
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(c) Any work that an IEE subcontractor
does not perform with its own employees
shall be considered subcontracted work for
the purpose of calculating percentages of
subcontract work in accordance with FAR
52.219–14 Limitations on Subcontracting.
(d) Cooperation. The contractor must:
(1) Carry out the requirements of this
clause to the fullest extent; and
(2) Cooperate in any study or survey that
the CO, Indian Affairs, or its agents may
conduct to verify the contractor’s compliance
with this clause.
(e) Incorporation in Subcontracts. The
contractor must incorporate the substance of
this clause, including this paragraph (e), in
all subcontracts for supplies, general
services, A–E services, and construction
awarded under this contract.
1452.280–4 Indian Economic Enterprise
representation.
As prescribed in 1480.503(e)(4), insert
the following provision in each written
solicitation for supplies, services, A–E,
or construction:
Indian Economic Enterprise
Representation (FEB 2021)
(a) The offeror represents as part of its offer
that it [ ] does [ ] does not meet the definition
of Indian Economic Enterprise (IEE) as
defined in DIAR 1480.201 and that it intends
to meet the definition of an IEE throughout
the performance of the contract. The offeror
must notify the contracting officer
immediately in writing if there is any
ownership change affecting compliance with
this representation.
(b) Any false or misleading information
submitted by an enterprise when submitting
an offer in consideration for an award set
aside under the Buy Indian Act is a violation
of the law punishable under 18 U.S.C. 1001.
False claims submitted as part of contract
performance are subject to the penalties
enumerated in 31 U.S.C. 3729 to 3731 and 18
U.S.C. 287.
(End of provision)
■ 6. Under the authority of 25 U.S.C. 9,
revise subchapter H to read as follows:
Subchapter H—Buy Indian Act
PART 1480—ACQUISITIONS UNDER
THE BUY INDIAN ACT
Subpart 1480.1—General
1480.101 Scope of part.
1480.102 Buy Indian Act acquisition
regulations.
Subpart 1480.2—Definitions
1480.201 Definitions.
Subpart 1480.3—Applicability
1480.301 Scope of part.
1480.302 Restrictions on the use of the Buy
Indian Act.
Subpart 1480.4—Policy
1480.401 Requirement to give preference to
Indian Economic Enterprises.
1480.402 Delegations and responsibility.
1480.403 Deviations.
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Subpart 1480.5—Procedures
Subpart 1480.2—Definitions
1480.501 General.
1480.502 [Reserved]
1480.503 Procedures for acquisitions under
the Buy Indian Act.
1480.504 Other circumstances for use of
other than full and open competition.
1480.505 Debarment and suspension.
Subpart 1480.6—Contract Requirements
1480.601
1480.602
Subcontracting limitations.
Performance and payment bonds.
Subpart 1480.7—[Reserved]
Subpart 1480.8—Representation by an
Indian Economic Enterprise Offeror
1480.801
1480.802
1480.803
General.
Representation provision.
Representation process.
Subpart 1480.9—Challenges to
Representation
1480.901
1480.902
1480.903
1480.904
General.
Receipt of challenge.
Award in the face of challenge.
Challenge not timely.
Authority: 25 U.S.C. 47, as amended, 41
U.S.C. 253(c)(5), and 5 U.S.C. 301.
PART 1480—ACQUISITIONS UNDER
THE BUY INDIAN ACT
Subpart 1480.1—General
1480.101
Scope of part.
This part implements policies and
procedures for the procurement of
supplies, general services, architect and
engineering (A&E) services, or
construction while giving preference to
Indian Economic Enterprises under
authority of the Buy Indian Act (25
U.S.C. 47).
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1480.102 Buy Indian Act acquisition
regulations.
(a) This part supplements Federal
Acquisition Regulation (FAR) and
Department of the Interior Acquisition
Regulation (DIAR) requirements in this
chapter to meet the needs of the
Department of Interior in implementing
the Buy Indian Act.
(b) This part is under the direct
oversight and control of the Chief
Financial Officer, within the Office of
the Assistant Secretary—Indian Affairs,
Department of the Interior (CFO). The
CFO is responsible for issuing and
implementing this part.
(c) Acquisitions conducted under this
part are subject to all applicable
requirements of the FAR and DIAR, as
well as internal policies, procedures, or
instructions issued by Indian Affairs.
After the FAR, this part would take
precedence over any inconsistent Indian
Affairs policies, procedures, or
instructions.
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1480.201
Definitions.
Alaska Native Claims Settlement Act
(ANCSA) means Public Law 92–203
(December 18, 1971), 85 Stat. 688,
codified at 43 U.S.C. 1601–1629h.
Buy Indian Act means section 23 of
the Act of June 25, 1910, codified at 25
U.S.C. 47.
Contracting Officer (CO) means a
person with the authority to enter into,
administer, or terminate contracts and
make related determinations and
findings on behalf of the U.S.
Government.
Deviation means an exception to the
requirement to use the Buy Indian Act
in fulfilling an acquisition requirement
subject to the Buy Indian Act.
Fair market price means a price based
on reasonable costs under normal
competitive conditions and not on
lowest possible cost, as determined in
accordance with FAR 15.404–1(b).
Federally Recognized Indian Tribe
means an Indian tribe, band, nation, or
other Federally recognized group or
community on the List of Federally
Recognized Tribes. This definition
includes any Alaska Native regional or
village corporation under the Alaska
Native Claims Settlement Act (ANSCA).
Governing Body means the recognized
entity empowered to exercise
governmental authority over a Federally
Recognized Indian Tribe.
Indian means a person who is an
enrolled member of a Federally
Recognized Indian Tribe.
Indian Affairs (IA) means all bureaus
and offices under the Assistant
Secretary—Indian Affairs.
Indian Economic Enterprise (IEE)
means any business activity owned by
one or more Indians or Federally
Recognized Indian Tribes provided that:
(1) The combined Indian or Federally
Recognized Indian Tribe ownership of
the enterprise constitutes not less than
51 percent;
(2) The Indians or Federally
Recognized Indian Tribes must,
together, receive at least 51 percent of
the earnings from the contract; and
(3) The management and daily
business operations of an enterprise
must be controlled by one or more
individuals who are Indians. The Indian
individual(s) must possess requisite
management or technical capabilities
directly related to the primary industry
in which the enterprise conducts
business.
Indian Small Business Economic
Enterprise (ISBEE) means an IEE that is
also a small business concern
established in accordance with the
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criteria and size standards of 13 CFR
part 121.
Interested Party means an IEE that is
an actual or prospective offeror whose
direct economic interest would be
affected by the proposed or actual award
of a particular contract set-aside
pursuant the Buy Indian Act.
List of Federally Recognized Tribes
means an entity appearing on the
United States Department of the
Interior’s List of federally recognized
Indian tribes published annually in the
Federal Register pursuant to Section
104 of Public Law 103–454, codified at
25 U.S.C. 5131.
Subpart 1480.3—Applicability
1480.301
Scope of part.
Except as provided in 1480.302, this
part applies to all acquisitions,
including simplified acquisitions, made
by IA and by any other bureau or office
of the Department of the Interior
conducting acquisitions on behalf of IA
or otherwise delegated the authority to
conduct acquisitions under the Buy
Indian Act.
1480.302 Restrictions on the use of the
Buy Indian Act.
IA must not use the authority of the
Buy Indian Act and the procedures
contained in this part to award
intergovernmental contracts to Tribal
organizations to plan, operate, or
administer authorized IA programs (or
parts thereof) that are within the scope
and intent of the Indian SelfDetermination and Education
Assistance Act (ISDEAA) (Pub. L. 93–
638). IA must use the Buy Indian Act
solely to award procurement contracts
to IEEs. Contracts subject to ISDEAA
must follow 25 CFR part 900.
Subpart 1480.4—Policy
1480.401 Requirement to give preference
to Indian Economic Enterprises.
(a) IA must use the negotiation
authority of the Buy Indian Act to give
preference to Indians or Federally
Recognized Tribes whenever the use of
that authority is practicable. The Buy
Indian Act provides that so far as may
be practicable, Indian labor shall be
employed, and purchases of the
products (including, but not limited to
printing, notwithstanding any other
law) of Indian industry may be made in
open market at the discretion of the
Secretary of the Interior. Thus, IA may
use the Buy Indian Act to give
preference to IEEs through set-asides
when acquiring supplies, general
services, A&E services, or construction
to meet IA needs and requirements. All
other FAR and DIAR requirements that
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do not conflict with this part, such as
requirements applicable to the
acquisition of A&E and construction
services, remain applicable.
(b) The Buy Indian Act does not apply
when a supply requirement can be met
by existing inventories of the requiring
agency or excess from other agencies.
(c) The CO will give priority to
ISBEEs for all purchases, regardless of
dollar value. COs when prioritizing
ISBEEs may consider either:
(1) A set-aside for ISBEEs; or
(2) A sole source award to an ISBEE,
as authorized under the FAR.
(d) If the CO determines after market
research that there is no reasonable
expectation of obtaining offers that will
be competitive in terms of market price,
quality, and delivery, the CO may
consider either:
(1) A set-aside for IEEs; or
(2) A sole source award to an IEE, as
authorized under the FAR.
(e) If the CO determines after market
research that there is no reasonable
expectation of obtaining offers that will
be competitive in terms of market price,
quality, and delivery from ISBEEs or
IEEs, then the CO must follow the
Deviation process under 1480.403.
(f) When only one offer is received
from a responsible IEE in response to an
acquisition set-aside or direct
negotiation under paragraph (c)(1) or
(d)(1) of this section:
(1) If the offer is not at a reasonable
and fair market price, then the CO may
negotiate with that enterprise for a
reasonable and fair market price.
(2) If the offer is at a reasonable and
fair market price, then the CO must:
(i) Make an award to that enterprise;
(ii) Document the reason only one
offer was considered; and
(iii) Initiate action to increase
competition in future solicitations.
(g) If the offers received from one or
more responsible IEEs in response to an
acquisition set-aside under paragraph
(c)(1) or (d)(1) of this section are not
reasonable or otherwise unacceptable,
then the CO must follow the deviation
process under 1480.403. The CO must
document in the deviation
determination the reasons why the IEE
offeror(s) were not reasonable or
otherwise unacceptable.
(1) If a deviation determination is
approved, the CO must cancel the setaside solicitation and inform all offerors
in writing.
(2) When the solicitation of the same
requirement is posted, the CO must
inform all previous offerors in writing of
the solicitation number.
1480.402
Delegations and responsibility.
(a) The Secretary has delegated
authority under the Buy Indian Act to
the Assistant Secretary—Indian Affairs.
IA exercises this authority in support of
its mission and program activities and
as a means of fostering Indian
employment and economic
development.
(b) The Secretary may delegate
authority under the Buy Indian Act to
a bureau or office within the
Department of the Interior other than IA.
59343
(c) The Chief Financial Officer of The
Office of the Assistant Secretary—
Indian Affairs is responsible for
ensuring that all IA acquisitions under
the Buy Indian Act comply with the
requirements of this part.
1480.403
Deviations.
There are certain instances where the
application of the Buy Indian Act to an
acquisition may not be appropriate. In
these instances, the Contracting Officer
must detail the reasons in writing and
make a deviation determination.
(a) Sole source acquisitions awarded
to an ISBEE or IEE under 1480.401(c)(2)
or (d)(2) do not require a deviation
determination and comply with the
requirements of the Buy Indian Act.
(b) Some acquisitions by their very
nature would make such a written
determination unnecessary. The
following acquisitions do not require a
written deviation from the requirements
of the Buy Indian Act:
(1) Any sole source acquisition
justified and approved in accordance
with FAR 6.3 and DIAR 1406.3
constitutes an authorized deviation from
the requirements of the Buy Indian Act.
(2) Any order or call placed against an
indefinite delivery vehicle that already
has an approved deviation from the
requirements of the Buy Indian Act.
(c) Deviation determinations are
required for all other acquisitions where
the Buy Indian Act is applicable and
must be approved as follows:
TABLE 1 TO PARAGRAPH (c)
For a proposed contract action
The following official may authorize a deviation
Up to $25,000 .....................................................
Exceeding $25,000 but not exceeding $700,000
CO.
One level above the CO or Chief of the Contracting Office (CCO) (or the IA Bureau Procurement Chief, absent a CCO).
IA Competition Advocate.
Exceeding $700,000 but not exceeding $13.5
million.
Exceeding $13.5 million but not exceeding $57
million.
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Exceeding $57 million .........................................
(d) Deviations may be authorized
prior to issuing the solicitation when
the CO makes the following
determinations and takes the following
actions:
(1) The CO determines after market
research that there is no reasonable
expectation of obtaining offers that will
be competitive in terms of market price,
quality, and delivery from two or more
responsible ISBEE, IEEs, or direct
negotiation with an IEE that is a
certified 8a business.
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The head of the procuring activity or a designee who is a civilian serving in a position in a
grade above GS–15 under the General Schedule or in a comparable or higher position
under another schedule.
Department of the Interior Senior Procurement Executive.
(2) The deviation determination is
authorized by the official listed at
1480.403(c) for the applicable contract
action
(e) If a deviation determination has
been approved, the CO must follow the
FAR and DIAR unless specified
otherwise.
(f) Acquisitions made under an
authorized deviation from the
requirements of the Buy Indian Act
must be made in conformance with the
order of precedence required by FAR
8.002.
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Subpart 1480.5—Procedures
1480.501
General.
All acquisitions made in accordance
with this part, including simplified or
commercial item acquisitions, must
conform to all applicable requirements
of the FAR and DIAR.
1480.502
[Reserved]
1480.503 Procedures for acquisitions
under the Buy Indian Act.
(a) Commercial items or simplified
acquisitions under this section must
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conform to the competition and price
reasonableness documentation
requirements of FAR 12.209 for
commercial item acquisitions and FAR
13.106 for simplified acquisitions.
(b) When acquiring construction
services, solicit proposals and evaluate
potential contractors in accordance with
FAR part 36 and DIAR subpart 1436.2.
(c) When acquiring A&E services,
solicit proposals and evaluate potential
contractors in accordance with FAR part
36 and DIAR subpart 1436.6.
(d) This paragraph (d) applies to
solicitations that are not restricted to
participation of IEEs.
(1) If an interested IEE is identified
after a solicitation has been issued, but
before the date established for receipt of
offers, the contracting office must
provide a copy of the solicitation to this
enterprise. In this case, the CO:
(i) Will not give preference under the
Buy Indian Act to the IEE; and
(ii) May extend the date for receipt of
offers when practical.
(2) If more than one IEE is identified
subsequent to the solicitation, but prior
to the date established for receipt of
offers, the CO may cancel the
solicitation and re-compete it as an IEE
set-aside.
(e)(1) Insert the clause at 1452.280–1,
Notice of Indian Small Business
Economic Enterprise set-aside, in
accordance with 1480.401(c).
(2) Insert the clause at 1452.280–2,
Notice of Indian Economic Enterprise
set-aside, in accordance with
1480.401(d).
(3) Insert the clause at 1452.280–3,
Indian Economic Enterprise
subcontracting limitations, in
accordance with 1480.601(b).
(4) Insert the clause at 1452.280–4,
Indian Economic Enterprise
representation, in accordance with
1480.801(a).
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1480.504 Other circumstances for use of
other than full and open competition.
(a) Other circumstances may exist
where the use of an IEE set-aside in
accordance with 1480.401(a) and FAR
6.302–5 is not feasible. In such
situations, the requirements of FAR
subparts 6.3 and 13.5 and DIAR subpart
1406.3 apply in justifying the use of the
appropriate authority for other than full
and open competition.
(b) Except as provided in FAR 5.202,
all proposed acquisition actions must
first be publicized in accordance with
the requirements of FAR 5.2 and DIAR
1405.2.
(c) Justifications for use of other than
full and open competition in accordance
with this section must be approved in
accordance with DIAR part 1406. These
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approvals are required for a proposed
contract or for an out of scope
modification to an existing contract.
Solicitations requiring performance
and payment bonds must conform to
FAR part 28 and authorize use of any of
the types of security acceptable in
accordance with FAR subpart 28.2 or
section 11 of Public Law 98–449, the
Indian Financing Act Amendments of
1984. In accordance with FAR 28.102
and 25 U.S.C. 47a, the CO may accept
alternative forms of security in lieu of
performance and payment bonds if a
determination is made that such forms
of security provide the Government
with adequate security for performance
and payment.
certify that it meets the definition of
‘‘Indian Economic Enterprise’’ (as
defined in 1480.201) in response to a
specific solicitation set-aside in
accordance with the Buy Indian Act and
this part; and
(c) The enterprise must meet the
definition of ‘‘Indian Economic
Enterprise’’ throughout the following
time periods:
(1) At the time an offer is made in
response to a solicitation;
(2) At the time of contract award; and
(3) During the full term of the
contract.
(d) If, after award, a contractor no
longer meets the eligibility requirements
as it has certified and as set forth in this
section, then the contractor must
provide the CO with written notification
within 3 days of its failure to comply
with the eligibility requirements. The
notification must include:
(1) Full disclosure of circumstances
causing the contractor to lose eligibility
status; and
(2) A description of actions, if any,
that must be taken to regain eligibility.
(e) Failure to provide written
notification required by paragraph (d) of
this section means that:
(1) The economic enterprise may be
declared ineligible for future contract
awards under this part; and
(2) The CO may consider termination
for default if it is determined to be in
the best interest of the Government.
(f) A CO will investigate the
representation if an interested party
challenges the IEE representation or if
the CO has any other reason to question
the representation. The CO may ask the
offeror for more information to
substantiate the representation.
Challenges of and questions concerning
a specific representation must be
referred to the CO or CCO in accordance
with subpart 1480.9.
(g) Participation in the Mentor-Prote´ge´
Program established under section 831
of the National Defense Authorization
Act for Fiscal Year 1991 (25 U.S.C. 47
note) does not render an IEE ineligible
for contracts awarded under the Buy
Indian Act.
Subpart 1480.7—[Reserved]
1480.802
1480.505
Debarment and suspension.
A misrepresentation by an offeror of
its status as an IEE, failure to notify the
CO of any change in IEE status that
would make the contractor ineligible as
an IEE, or any violation of the
regulations in this part by an offeror or
an awardee may be cause for debarment
or suspension in accordance with FAR
9.406 and 9.407 and DIAR 1409.406 and
1409.407. IA must refer
recommendations for debarment or
suspension to the Director, Office of
Acquisition and Property Management,
Department of the Interior, in
accordance with DIAR 1409.406 and
1409.407, through the Bureau
Procurement Chief with the concurrence
of the head of the contracting activity.
Subpart 1480.6—Contract
Requirements
1480.601
Subcontracting limitations.
(a) In contracts awarded under the
Buy Indian Act and this part, the CO
must insert the clause FAR 52.219–14,
Limitations on Subcontracting.
(b) The CO must also insert the clause
at 1452.280–3, Indian Economic
Enterprise subcontracting limitations, in
all awards to ISBEEs and IEEs pursuant
this part.
1480.602
bonds.
Performance and payment
Subpart 1480.8—Representation by an
Indian Economic Enterprise Offeror
1480.801
General.
(a) The CO must insert the provision
at 1452.280–4, Indian Economic
Enterprise representation, in all
solicitations regardless of dollar value
solicited under 1480.401(c) or (d) and in
accordance with this part.
(b) To be considered for an award
under 1480.401(c) or (d), an offeror must
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Representation provision.
(a) Contracting offices must provide
copies of the IEE representation to any
interested parties upon written request.
(b) The submission of a Solicitation
Mailing List Application by an
enterprise does not remove the
requirement for it to provide
representation as an IEE, as required by
this part, if it wishes to be considered
as an offeror for a specific solicitation.
COs may determine the validity of the
contents of the applicant’s
representation.
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(c) Any false or misleading
information submitted by an enterprise
when submitting an offer in
consideration for an award set aside
under the Buy Indian Act is a violation
of the law punishable under 18 U.S.C.
1001. False claims submitted as part of
contract performance are subject to the
penalties enumerated in 31 U.S.C. 3729
to 3731 and 18 U.S.C. 287.
(d) The CO will investigate and refer
to the appropriate officials all IEE
misrepresentation by an offeror or
failure to provide written notification of
a change in IEE eligibility.
1480.803
Representation process.
(a) Only IEEs may participate in
acquisitions set aside in accordance
with the Buy Indian Act and this part.
These procedures support responsible
IEEs and prevent circumvention or
abuse of the Buy Indian Act.
(b) Eligibility is based on information
furnished by the enterprise to a CO in
the IEE representation at DIAR
1452.280–4 in response to a specific
solicitation under the Buy Indian Act
(c) The CO may ask the appropriate
Regional Solicitor to review the
enterprise’s representation.
(d) The CO may also request the
Office of the Inspector General (on Form
DI–1902 as part of a normal pre-award
audit) to assist in determining the
eligibility of the low responsive and
responsible offerors on Buy Indian Act
awards.
(e) The IEE representation does not
relieve the CO of the obligation for
determining contractor responsibility, as
required by FAR subpart 9.1.
Subpart 1480.9—Challenges to
Representation
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1480.901
General.
(a) The CO can accept an offeror’s
written representation of being an IEE
(as defined in 1480.201) only when it is
submitted with an offer in response to
a solicitation under the Buy Indian Act.
Another interested party may challenge
the representation of an offeror or
contractor by filing a written challenge
to the applicable CO in accordance with
the procedures in 1480.902.
(b) After receipt of offers, the CO may
question the representation of any
offeror in a specific offer by filing a
formal objection with the CCO.
1480.902
Receipt of challenge.
(a) An interested party must file any
challenges against an offeror’s
representation with the cognizant CO.
(b) The challenge must be in writing
and must contain the basis for the
challenge with accurate, complete,
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specific, and detailed evidence. The
evidence must support the allegation
that the offeror fails to meet the
definition of ‘‘Indian Economic
Enterprise’’ or ‘‘Indian Small Business
Economic Enterprise’’ as defined in
1480.201 or is otherwise ineligible. The
CO will dismiss any challenge that is
deemed frivolous or that does not meet
the conditions in this section.
(c) To be considered timely, a
challenge must be received by the CO
no later than 10 days after the basis of
challenge is known or should have been
known, whichever is earlier.
(1) A challenge may be made orally if
it is confirmed in writing within the 10day period after the basis of challenge
is known or should have been known,
whichever is earlier.
(2) A written challenge may be
delivered by hand, telefax, telegram,
email, or letter postmarked within the
10-day period after the basis of
challenge is known or should have been
known, whichever is earlier.
(3) A CO’s challenge to a certification
is always considered timely, whether
filed before or after award.
(d) Upon receiving a timely challenge,
the CO must:
(1) Notify the challenger of the date it
was received, and that the
representation of the enterprise being
challenged is under consideration; and
(2) Furnish to the offeror (whose
representation is being challenged) a
request to provide detailed information
on its eligibility by certified mail, return
receipt requested or electronic mail.
(e) Within 3 days after receiving a
copy of the challenge and the CO’s
request for detailed information, the
challenged offeror must file, as specified
at paragraph (d)(2) of this section, with
the CO a complete statement answering
the allegations in the challenge and
furnish evidence to support its position
on representation. If the offeror does not
submit the required material within the
3 days, or another period of time
granted by the CO, the CO may assume
that the offeror does not intend to
dispute the challenge and must not
award to the challenged offeror.
(f) Within 10 days after receiving a
challenge, the challenged offeror’s
response, and any other pertinent
information, the CO must determine the
representation status of the challenged
offeror and notify the challenger and the
challenged offeror of the decision by
certified mail, return receipt requested,
and make known to all parties the
option to appeal the determination to
the Office of Acquisition and Property
Management, Department of the Interior
(PAM).
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(g) If the representation accompanying
an offer is challenged and subsequently
upheld by the PAM, the written
notification of this action must state the
reason(s).
1480.903
Award in the face of challenge.
(a) Award of a contract in the face of
challenge only may be made on the
basis of the CO’s written determination
that the challenged offeror’s
representation is valid.
(1) This determination is final unless
it is appealed to the PAM, and the CO
is notified of the appeal before award.
(2) If an award was made before the
CO received notice of appeal, the
contract is presumed to be valid.
(b) After receiving a challenge
involving an offeror being considered
for award, the CO must not award the
contract until the CO has determined
the validity of the representation.
Award may be made in the face of a
timely challenge when the CO
determines in writing that an award
must be made to protect the public
interest, is urgently required, or a
prompt award will otherwise be
advantageous to the Government.
(c) If a timely challenge on
representation is filed with the CO and
received before award in response to a
specific offer and solicitation, the CO
must notify eligible offerors within one
day that the award will be withheld.
The CO also may ask eligible offerors to
extend the period for acceptance of their
proposals.
(d) If a challenge on representation is
filed with the CO and received after
award in response to a specific offer and
solicitation, the CO need not suspend
contract performance or terminate the
awarded contract unless the CO believes
that an award may be invalidated and a
delay would prejudice the
Government’s interest. However, if
contract performance is to be
suspended, a mutual no cost agreement
will be sought.
1480.904
Challenge not timely.
If a CO receives an untimely filed
challenge of a representation, the CO
must notify the challenger that the
challenge cannot be considered on the
instant acquisition but will be
considered in any future actions.
However, the CO may question at any
time, before or after award, the
representation of an IEE.
Rachael S. Taylor,
Principal Deputy Assistant Secretary—Policy,
Management and Budget.
[FR Doc. 2021–23272 Filed 10–26–21; 8:45 am]
BILLING CODE 4334–63–P
E:\FR\FM\27OCP1.SGM
27OCP1
Agencies
[Federal Register Volume 86, Number 205 (Wednesday, October 27, 2021)]
[Proposed Rules]
[Pages 59338-59345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23272]
=======================================================================
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DEPARTMENT OF THE INTERIOR
Office of the Secretary
48 CFR Parts 1426, 1452 and 1480
[DOI-2019-0012; 190D0102DM DS62500000 DLSN00000.000000 DX62501]
RIN 1090-AB21
Acquisition Regulations; Buy Indian Act; Procedures for
Contracting
AGENCY: Assistant Secretary for Policy, Management and Budget,
Interior.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Department of the Interior proposes to revise regulations
implementing the Buy Indian Act, which provides the Department with
authority to set aside procurement contracts for Indian-owned and
controlled businesses. These revisions would eliminate barriers to
Indian Economic Enterprises from competing on certain construction
contracts, expand Indian Economic Enterprises' ability to subcontract
construction work consistent with other socio-economic set-aside
programs, and give greater preference to Indian Economic Enterprises
when a deviation from the Buy Indian Act is necessary, among other
updates.
DATES: Comments must be received on or before December 27, 2021.
Consultation sessions with Tribes and Alaska Native corporations will
be held on Wednesday, December 1, 2021, 2 p.m. to 4 p.m. ET.
ADDRESSES: You may submit comments on the rulemaking on Docket Number
DOI-2019-0012 through the Federal eRulemaking Portal at https://www.regulations.gov. Please use Regulation Identifier Number (RIN)
1090-AB21 in your message. Follow the instructions on the website for
submitting comments.
FOR FURTHER INFORMATION CONTACT: Mr. Christopher Bell, Senior Small
Business Specialist, Office of Small and Disadvantaged Small Business,
Department of the Interior, 1849 C Street NW, Mail Stop 4214 MIB,
Washington, DC 20240; telephone (202) 208-3458 or email
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Department of the Interior Acquisition Regulations (DIAR) are
in title 48, chapter 14 of the Code of Federal Regulations (48 CFR
parts 1401-1499) and include regulations implementing the Buy Indian
Act (25 U.S.C. 47, as amended). The Department recently reviewed the
DIAR consistent with Executive Order (E.O.) 13985, Advancing Racial
Equity and Support for Underserved Communities Through the Federal
Government. The Department has identified various aspects of parts
1426, 1452, and 1480 that are barriers to equal opportunity for Indians
and Indian Tribes in the Department of the Interior (DOI) procurement
process. These barriers inhibit job creation, are ineffective at
promoting maximum economic development in Indian Country, and limit
Indian country from fully participating in Interior procurements
subject to the Buy Indian Act.
This rule supplements the Federal Acquisition Regulation (FAR) and
revises the DIAR. For this reason, the rule is issued by the Assistant
Secretary for Policy, Management and Budget and follows the numbering
system established by the FAR and DIAR. The DIAR was last revised in
2013 and included the addition of a new part 1480 to address
acquisitions under the Buy Indian Act. See 78 FR 34266 (June 7, 2013).
II. Description of Changes
This rule proposes to revise the DIAR in the following ways, as
explained below: Eliminate the restriction on Indian Economic
Enterprises (IEE) from competing on ``covered'' construction contracts
issued under the Buy Indian Act; expand IEEs' ability to subcontract
work subject to the Buy Indian Act consistent with other government
socio-economic set-aside programs; give greater preference to IEEs;
update the process and thresholds for deviations; and clarify
applicability.
A. Elimination of Restriction for ``Covered'' Construction Contracts
Interior's review of DIAR parts 1426, 1480, and 1452 identified
changes in law that affect how Interior applies the Andrus v. Glover
Construction Co. Supreme Court decision, 446 U.S. 608 (1980). The case
has underpinned the current language of the DIAR part 1480, which
restricts IEE set-asides to ``covered'' construction. Interior has
determined that the underlying law upon which the case was decided has
significantly changed since the case was decided in 1980. The decision
references 41 U.S.C. 252, which was amended by The Deficit Reduction
Act of 1984 (Pub. L. 98-369) and moved to 41 U.S.C. 253. Interior has
reviewed 41 U.S.C. 253 as currently codified (and now reclassified to
41 U.S.C. 3301 et seq. per Pub. L. 111-315) and has determined that the
``covered'' construction language in the regulation is no longer
required by law. Interior has removed all references to ``covered''
construction throughout the regulation. Removal of this language will
allow for the set-aside of construction contracts to IEEs.
B. Expansion of Indian Economic Enterprises' Ability To Subcontract
Since Interior proposes to remove references to ``covered''
construction and allow IEEs to compete for all construction contracts,
Interior has identified restrictions on IEEs that exceed restrictions
in other government socio-economic set-aside programs. Currently, 48
CFR 1452.280-3 restricts the ability of IEEs from subcontracting more
than 50% of the work to firms other than IEEs. This rule does not
change the 50% subcontract limitation for supplies and services.
However, the 50% limitation is currently not consistent with FAR clause
52.219-14 Limitation on Subcontracting which has different limitations
for construction awards. This rule ensures that the 48 CFR 1452.280-3
clause is consistent with the FAR 52.219-14 clause. The change will
allow IEEs to subcontract up to 75% for construction by special trade
contractors and 85% for general construction. Consistency with FAR
clause 52.219-14 ensures equal treatment of IEEs in Federal procurement
and removes subcontracting barriers for IEEs.
C. Preference for Indian Small Business Economic Enterprises
The proposed rule revises 48 CFR 1480.4 to clarify and simplify the
preferences granted to IEEs under the Buy Indian Act. The current
language of section 1480.403(b) directs Contracting Officers (CO) to
solicit purchases as an unrestricted small business set-aside open to
non-ISBEE firms when the CO determines two or more Indian Small
Business Economic Enterprises (ISBEE) would not provide competitive
offers and the CO has an approved deviation. The proposed rule would
delete existing language, because it has been determined to not be
fully compliant with the Buy Indian Act.
The revised section 1480.401(c) adds language that the CO will give
priority to ISBEEs for all purchases subject to the Buy Indian Act. The
current
[[Page 59339]]
language of 1480.4 only gives preference to ISBEEs when the purchase is
commercial or a simplified acquisition. Section 1480.401(d) adds
language that if a CO determines that there is not a reasonable
expectation of obtaining competitive offers, then the CO will give
priority to IEEs. The updated language would also allow sole source
awards to an ISBEE or IEE authorized under the FAR to be compliant with
the Buy Indian Act.
D. Updates to Thresholds and Process for Deviations
Interior has determined the existing deviation process at 48 CFR
1480.403 to be burdensome in implementation and not fully compliant
with the Buy Indian Act. The proposed rule clarifies the deviation
process by identifying acquisitions that do not require a deviation and
streamlining the actions taken after a deviation is approved. As
proposed at section 1480.403(b), if a contract follows the requirements
of FAR 6.3 or is subject to a previously approved deviation, the
contract no longer requires an approved deviation. As proposed at
section 1480.403(f), acquisitions made under an authorized deviation
from the Buy Indian Act must follow the FAR and DIAR unless specified
otherwise.
Other changes to the deviation process include:
Adding section 1480.403(a) which ensures sole source
awards made to IEEs or ISBEEs comply with the requirements of the Buy
Indian Act and do not require a deviation;
Adding COs as authorized to approve deviations under
$25,000 at section 1480.403(c);
Updating deviation approval thresholds in section
1480.403(c) from $550,000 to $700,000 to be consistent with changes in
FAR 6.304; and
Adding ``one level above the CO'' to officials authorized
to approve deviations for actions exceeding $25,000 but not exceeding
$700,000 in section 1480.403(c).
E. Inapplicability to ISDEAA Contracts
The proposed rule removes language referencing the Indian Self
Determination and Education Assistance Act (ISDEAA) (Pub. L. 93-638) in
48 CFR 1426.70 and 1480.504(b). Contracts issued under the authority of
ISDEAA are not covered under the FAR and are codified separately under
25 CFR part 900. Since the contracts under ISDEAA are not a procurement
action subject to the FAR and are separately codified, there is no need
to address contracts subject to ISDEAA in the DIAR. This rule
specifically removes 48 CFR 1426.70, 1452.226-70, 1452.226-71, and
1480.504(b) in their entirety and removes all other references to those
sections.
III. Tribal Consultation
The Office of the Assistant Secretary--Indian Affairs will be
hosting Tribal consultation and Alaska Native corporation consultation
meetings addressing this rule on Wednesday, December 1, 2 p.m.-4 p.m.
ET. Please register in advance at: https://www.zoomgov.com/meeting/register/vJItduyhrDsqEqErEEGizgMi5rooyGrj12s.
IV. Development of the Proposed Rule
This proposed rule has been developed with consideration of prior
rule-making comments and from experience in implementing existing
regulations. Prior comments on previous proposed rules were published
in the Federal Register and may be viewed there. Previous proposed
rules were published on October 8, 1982 (47 FR 44678), November 15,
1984 (49 FR 45187), June 30, 1988 (53 FR 24738), September 12, 1991 (56
FR 46468), and July 26, 2012 (77 FR 43782).
V. Required Determinations
1. Regulatory Planning and Review (Executive Orders 12866 and
13563). Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) will review all significant
rules. OIRA has determined that this proposed rule is not significant.
Executive Order 13563 reaffirms the principles of E.O. 12866 while
calling for improvements in the nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
The Executive order directs agencies to consider regulatory approaches
that reduce burdens and maintain flexibility and freedom of choice for
the public, where these approaches are relevant, feasible, and
consistent with regulatory objectives. E.O. 13563 emphasizes further
that regulations must be based on the best available science and that
the rulemaking process must allow for public participation and an open
exchange of ideas. We have developed this rule in a manner consistent
with these requirements.
2. Regulatory Flexibility Act. The Secretary certifies that the
adoption of this proposed rule will not have a significant economic
impact on a substantial number of small entities as they are defined in
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Therefore, under
5 U.S.C. 605(b), this rulemaking is exempt from the initial and final
regulatory flexibility analysis requirements of sections 603 and 604.
3. Small Business Regulatory Enforcement Fairness Act. This
proposed rule is not a major rule under the Small Business Regulatory
Enforcement Fairness Act (5 U.S.C. 804(2)). This rule does not have an
annual effect on the economy of $100 million or more. This proposed
rule will not cause a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government agencies, or
geographic regions. This proposed rule does not have significant
adverse effects on competition, employment, investment, productivity,
innovation, or the ability of U.S.-based enterprises to compete with
foreign-based enterprises.
4. Unfunded Mandates Reform Act. This proposed rule does not impose
an unfunded mandate on State, local, or Tribal governments or the
private sector of more than $100 million per year. The rule does not
have a significant or unique effect on State, local, or Tribal
governments, or the private sector nor does the rule impose
requirements on State, local, or Tribal governments. A statement
containing the information required by the Unfunded Mandates Reform Act
(2 U.S.C. 1531 et seq.) is not required.
5. Takings (E.O. 12630). This proposed rule does not affect a
taking of private property or otherwise have taking implications under
Executive Order 12630. A takings implication assessment is not
required.
6. Federalism (E.O. 13132). Under the criteria in section 1 of E.O.
13132, this proposed rule does not have sufficient Federalism
implications to warrant the preparation of a federalism summary impact
statement. It would not substantially and directly affect the
relationship between the Federal and State governments. A federalism
summary impact statement is not required.
7. Civil Justice Reform (E.O. 12988). This proposed rule complies
with the requirements of E.O. 12988. Specifically, this rule (1) meets
the criteria of section 3(a) of this E.O. requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and (2) meets the criteria of section
3(b)(2) of this E.O. requiring that all regulations be written in clear
language and contain clear legal standards.
8. Consultation with Indian Tribes (E.O. 13175). The Department of
the
[[Page 59340]]
Interior strives to strengthen its government-to-government
relationship with Indian Tribes through a commitment to consultation
with Indian Tribes and recognition of their right to self-governance
and Tribal sovereignty. We have evaluated this rule under the
Department's consultation policy and under the criteria in E.O. 13175
and have determined there may be substantial direct effects on
federally recognized Indian Tribes that will result from this
rulemaking. The Department has invited Tribes by letter to consult on
these proposed regulations and will hold consultation sessions with
Tribes on October 15 and 20, 2021, 1 p.m. to 3 p.m. by webinar.
9. Paperwork Reduction Act, 44 U.S.C. 3501, et seq. This proposed
rule requires offerors to certify whether they met the definition of an
``Indian Economic Enterprise''. These statements are considered simple
representations that an offeror submitted to support its claim for
eligibility to participate in contract awards under the authority of
the Buy Indian Act (25 U.S.C. 47, as amended). Because these statements
are a simple certification or acknowledgment related to a transaction,
they do not qualify as a collection of information under the Paperwork
Reduction Act. See 5 CFR 1320.3(h).
10. National Environmental Policy Act. This proposed rule does not
constitute a major Federal action significantly affecting the quality
of the human environment. A detailed statement under the National
Environmental Policy Act of 1969 (NEPA) is not required because the
rule is covered by the categorical exclusion listed in 43 CFR
46.210(c). We have also determined that the rule does not involve any
of the extraordinary circumstances listed in 43 CFR 46.215 that would
require further analysis under NEPA.
11. Effects on the Energy Supply (E.O. 13211). This proposed rule
is not a significant energy action under the definition in E.O. 13211.
A Statement of Energy Effects is not required.
12. Clarity of this Regulation. We are required by Executive Orders
12866 (section 1(b)(12)), and 12988 (section 3(b)(1)(B)), and 13563
(section 1(a)), and by the Presidential Memorandum of June 1, 1998, to
write all rules in plain language. This means that each rule we publish
must: (1) Be logically organized; (2) use the active voice to address
readers directly; (3) use common, everyday words and clear language
rather than jargon; (4) be divided into short sections and sentences;
and (5) use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the FOR FURTHER INFORMATION
CONTACT section. To better help us revise the rule, your comments
should be as specific as possible. For example, you should tell us the
number of section or paragraphs that you find unclear, which section or
sentences are too long, the sections where you feel lists or tables
would be useful, etc.
13. Public availability of comments. Before including your address,
phone number, email address, or other personal identifying information
in your comment, you should be aware that your entire comment--
including your personal identifying information--may be publicly
available at any time. While you can ask us in your comment to withhold
your personal identifying information from public review, we cannot
guarantee that we will be able to do so. When submitting comments
please identify what topic your comment covers from the following list:
(1) Covered Construction
(2) Subcontract Limitations
(3) Buy Indian Act Deviations
(4) Other Topic Related to the Proposed Rule
This action is taken pursuant to delegated authority.
List of Subjects in 48 CFR Parts 1426, 1452, and 1480
Government procurement, Indians, Indians--business and finance,
Reporting and recordkeeping requirements.
For the reasons set out in the preamble, the DOI proposes to amend
chapter 14 of title 48 CFR as follows:
PART 1426--OTHER SOCIOECONOMIC PROGRAMS
0
1. The authority citation for part 1426 continues to read as follows:
Authority: Sec. 205(c), 63 Stat. 390, 40 U.S.C. 486(c); and 5
U.S.C. 301.
Subpart 1426.70--[Removed and Reserved]
0
2. Remove and reserve subpart 1426.70.
PART 1452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. The authority citation for part 1452 continues to read as follows:
Authority: Sec. 205(c), 63 Stat. 390, 40 U.S.C. 486(c); and 5
U.S.C. 301.
Subpart 1452.2--Text of Provisions and Clauses
1452.226-70 and 1452.226-71 [Removed and Reserved]
0
4. Remove and reserve sections 1452.226-70 and 1452.226-71.
0
5. Revise sections 1452.280-1 through 1452.280-4 to read as follows:
1452.280-1 Notice of Indian Small Business Economic Enterprise set-
aside.
As prescribed in 1480.503(e)(1), and in lieu of the requirements of
FAR 19.508, insert the following provision in each written solicitation
of offers to provide supplies, general services, A-E services, or
construction. If the solicitation is oral, information substantially
identical to that contained in the provision must be given to potential
offerors.
Notice of Indian Small Business Economic Enterprise Set-Aside (FEB
2021)
Under the Buy Indian Act, 25 U.S.C. 47, offers are solicited
only from Indian Economic Enterprises (Subpart 1480.8) that are also
small business concerns. Any acquisition resulting from this
solicitation will be from such a concern. Offers received from
enterprises that are not both Indian Economic Enterprises and small
business concerns will not be considered and will be rejected.
(End of provision)
1452.280-2 Notice of Indian Economic Enterprise set-aside.
As prescribed in 1480.503(e)(2), insert the following clause in
solicitations and contracts involving Indian Economic Enterprise set-
asides. If the solicitation is oral, information substantially
identical to that contained in the provision must be given to potential
offerors.
Notice of Indian Economic Enterprise Set-Aside (FEB 2021)
(a) Definitions as used in this clause.
Alaska Native Claims Settlement Act (ANCSA) means Public Law 92-
203 (December 18, 1971), 85 Stat. 688, codified at 43 U.S.C. 1601-
1629h.
Indian means a person who is an enrolled member of a Federally
Recognized Indian Tribe.
Indian Economic Enterprise means any business activity owned by
one or more Indians or Federally Recognized Indian Tribes that is
established for the purpose of profit, provided that:
(i) The combined Indian or Federally Recognized Indian Tribe
ownership of the enterprise shall constitute not less than 51
percent;
(ii) The Indians or Federally Recognized Indian Tribes shall,
together, receive at least 51 percent of the earnings from the
contract; and
[[Page 59341]]
(iii) The management and daily business operations of an Indian
Economic Enterprise must be controlled by one or more individuals
who are Indians. To ensure actual control over the enterprise, the
individuals must possess requisite management or technical
capabilities directly related to the primary industry in which the
enterprise conducts business.
The enterprise must meet the requirements of (i) through (iii)
throughout the following time periods:
(1) At the time an offer is made in response to a written
solicitation;
(2) At the time of contract award; and,
(3) During the full term of the contract.
Federally Recognized Indian Tribe means an Indian tribe, band,
nation, or other Federally recognized group or community on the List
of Federally Recognized Tribes. This definition includes any Alaska
Native regional or village corporation under the Alaska Native
Claims Settlement Act (ANCSA).
List of Federally Recognized Tribes means an entity appearing on
the United States Department of the Interior's List of federally
recognized Indian tribes published annually in the Federal Register
pursuant to Section 104 of Public Law 103-454, codified at 25 U.S.C.
5131.
Representation means the positive statement by an enterprise of
its eligibility for preferential consideration and participation for
acquisitions conducted under the Buy Indian Act, 25 U.S.C. 47, in
accordance with the procedures in Subpart 1480.8.
(b) General.
(1) Under the Buy Indian Act, offers are solicited only from
Indian Economic Enterprises.
(2) The Contracting Officer (CO) will reject all offers received
from ineligible enterprises.
(3) Any award resulting from this solicitation will be made to
an Indian Economic Enterprise, as defined in paragraph (a) of this
clause.
(c) Required Submissions. In response to this solicitation, an
offeror must also provide the following:
(1) A description of the required percentage of the work/costs
to be provided by the offeror over the contract term as required by
section 1452.280-3, Subcontracting Limitations clause; and
(2) Qualifications of the key personnel (if any) that will be
assigned to the contract.
(d) Required Assurance. The offeror must provide written
assurance to the CO that the offeror is and will remain in
compliance with the requirements of this clause. It must do this
before the CO awards the Buy Indian contract and upon successful and
timely completion of the contract, but before the CO accepts the
work or product.
(e) Non-responsiveness. Failure to provide the information
required by paragraphs (c) and (d) of this clause may cause the CO
to find an offer non-responsive and reject it.
(f) Eligibility.
(1) Participation in the Mentor-Prot[eacute]g[eacute] Program
established under section 831 of the National Defense Authorization
Act for Fiscal Year 1991 (25 U.S.C. 47 note) does not render an
Indian Economic Enterprise ineligible for contracts awarded under
the Buy Indian Act.
(2) If a contractor no longer meets the definition of an Indian
Economic Enterprise after award, the contractor must notify the CO
immediately and in writing. The notification must include full
disclosure of circumstances causing the contractor to lose
eligibility status and a description of any actions that the
contractor will take to regain eligibility. Failure to give the CO
immediate written notification means that:
(i) The economic enterprise may be declared ineligible for
future contract awards under this part; and
(ii) The CO may consider termination for default if it is in the
best interest of the government.
(End of clause)
1452.280-3 Indian Economic Enterprise subcontracting limitations.
A contractor shall not subcontract more than the subcontract
limitations specified under FAR 52.219-14 to other than responsible
Indian Economic Enterprises when receiving an award under the Buy
Indian Act. For this purpose, work to be performed does not include the
provision of materials, supplies, or equipment. As prescribed in
1480.503(e)(3), insert the following clause in each written
solicitation or contract to provide supplies, general services, A-E
services, or construction:
Indian Economic Enterprise Subcontracting Limitations (FEB 2021)
(a) Definitions as used in this clause.
(1) Concern means any business entity organized for profit (even
if its ownership is in the hands of a nonprofit entity) with a place
of business located in the United States or its outlying areas and
that makes a significant contribution to the U.S. economy through
payment of taxes and/or use of American products, materials and/or
labor, etc. It includes but is not limited to an individual,
partnership, corporation, joint venture, association, or
cooperative. For the purpose of making affiliation findings (see FAR
19.101), it includes any business entity, whether or not it is
organized for profit or located in the United States or its outlying
areas.
(2) Subcontract means any agreement (other than one involving an
employer-employee relationship) entered into by a government prime
contractor or subcontractor calling for supplies and/or services
required for performance of the contract, contract modification, or
subcontract.
(3) Subcontractor means a concern to which a contractor
subcontracts any work under the contract. It includes subcontractors
at any tier who perform work on the contract.
(b) Required Percentages of work by the concern. The contractor
must comply with FAR 52.219-14 Limitations on Subcontracting clause
in allocating what percentage of work to subcontract. The contractor
shall not subcontract work exceeding the subcontract limitations in
FAR 52.219-14 to a concern other than a responsible Indian Economic
Enterprise.
(c) Any work that an IEE subcontractor does not perform with its
own employees shall be considered subcontracted work for the purpose
of calculating percentages of subcontract work in accordance with
FAR 52.219-14 Limitations on Subcontracting.
(d) Cooperation. The contractor must:
(1) Carry out the requirements of this clause to the fullest
extent; and
(2) Cooperate in any study or survey that the CO, Indian
Affairs, or its agents may conduct to verify the contractor's
compliance with this clause.
(e) Incorporation in Subcontracts. The contractor must
incorporate the substance of this clause, including this paragraph
(e), in all subcontracts for supplies, general services, A-E
services, and construction awarded under this contract.
1452.280-4 Indian Economic Enterprise representation.
As prescribed in 1480.503(e)(4), insert the following provision in
each written solicitation for supplies, services, A-E, or construction:
Indian Economic Enterprise Representation (FEB 2021)
(a) The offeror represents as part of its offer that it [ ] does
[ ] does not meet the definition of Indian Economic Enterprise (IEE)
as defined in DIAR 1480.201 and that it intends to meet the
definition of an IEE throughout the performance of the contract. The
offeror must notify the contracting officer immediately in writing
if there is any ownership change affecting compliance with this
representation.
(b) Any false or misleading information submitted by an
enterprise when submitting an offer in consideration for an award
set aside under the Buy Indian Act is a violation of the law
punishable under 18 U.S.C. 1001. False claims submitted as part of
contract performance are subject to the penalties enumerated in 31
U.S.C. 3729 to 3731 and 18 U.S.C. 287.
(End of provision)
0
6. Under the authority of 25 U.S.C. 9, revise subchapter H to read as
follows:
Subchapter H--Buy Indian Act
PART 1480--ACQUISITIONS UNDER THE BUY INDIAN ACT
Subpart 1480.1--General
1480.101 Scope of part.
1480.102 Buy Indian Act acquisition regulations.
Subpart 1480.2--Definitions
1480.201 Definitions.
Subpart 1480.3--Applicability
1480.301 Scope of part.
1480.302 Restrictions on the use of the Buy Indian Act.
Subpart 1480.4--Policy
1480.401 Requirement to give preference to Indian Economic
Enterprises.
1480.402 Delegations and responsibility.
1480.403 Deviations.
[[Page 59342]]
Subpart 1480.5--Procedures
1480.501 General.
1480.502 [Reserved]
1480.503 Procedures for acquisitions under the Buy Indian Act.
1480.504 Other circumstances for use of other than full and open
competition.
1480.505 Debarment and suspension.
Subpart 1480.6--Contract Requirements
1480.601 Subcontracting limitations.
1480.602 Performance and payment bonds.
Subpart 1480.7--[Reserved]
Subpart 1480.8--Representation by an Indian Economic Enterprise Offeror
1480.801 General.
1480.802 Representation provision.
1480.803 Representation process.
Subpart 1480.9--Challenges to Representation
1480.901 General.
1480.902 Receipt of challenge.
1480.903 Award in the face of challenge.
1480.904 Challenge not timely.
Authority: 25 U.S.C. 47, as amended, 41 U.S.C. 253(c)(5), and 5
U.S.C. 301.
PART 1480--ACQUISITIONS UNDER THE BUY INDIAN ACT
Subpart 1480.1--General
1480.101 Scope of part.
This part implements policies and procedures for the procurement of
supplies, general services, architect and engineering (A&E) services,
or construction while giving preference to Indian Economic Enterprises
under authority of the Buy Indian Act (25 U.S.C. 47).
1480.102 Buy Indian Act acquisition regulations.
(a) This part supplements Federal Acquisition Regulation (FAR) and
Department of the Interior Acquisition Regulation (DIAR) requirements
in this chapter to meet the needs of the Department of Interior in
implementing the Buy Indian Act.
(b) This part is under the direct oversight and control of the
Chief Financial Officer, within the Office of the Assistant Secretary--
Indian Affairs, Department of the Interior (CFO). The CFO is
responsible for issuing and implementing this part.
(c) Acquisitions conducted under this part are subject to all
applicable requirements of the FAR and DIAR, as well as internal
policies, procedures, or instructions issued by Indian Affairs. After
the FAR, this part would take precedence over any inconsistent Indian
Affairs policies, procedures, or instructions.
Subpart 1480.2--Definitions
1480.201 Definitions.
Alaska Native Claims Settlement Act (ANCSA) means Public Law 92-203
(December 18, 1971), 85 Stat. 688, codified at 43 U.S.C. 1601-1629h.
Buy Indian Act means section 23 of the Act of June 25, 1910,
codified at 25 U.S.C. 47.
Contracting Officer (CO) means a person with the authority to enter
into, administer, or terminate contracts and make related
determinations and findings on behalf of the U.S. Government.
Deviation means an exception to the requirement to use the Buy
Indian Act in fulfilling an acquisition requirement subject to the Buy
Indian Act.
Fair market price means a price based on reasonable costs under
normal competitive conditions and not on lowest possible cost, as
determined in accordance with FAR 15.404-1(b).
Federally Recognized Indian Tribe means an Indian tribe, band,
nation, or other Federally recognized group or community on the List of
Federally Recognized Tribes. This definition includes any Alaska Native
regional or village corporation under the Alaska Native Claims
Settlement Act (ANSCA).
Governing Body means the recognized entity empowered to exercise
governmental authority over a Federally Recognized Indian Tribe.
Indian means a person who is an enrolled member of a Federally
Recognized Indian Tribe.
Indian Affairs (IA) means all bureaus and offices under the
Assistant Secretary--Indian Affairs.
Indian Economic Enterprise (IEE) means any business activity owned
by one or more Indians or Federally Recognized Indian Tribes provided
that:
(1) The combined Indian or Federally Recognized Indian Tribe
ownership of the enterprise constitutes not less than 51 percent;
(2) The Indians or Federally Recognized Indian Tribes must,
together, receive at least 51 percent of the earnings from the
contract; and
(3) The management and daily business operations of an enterprise
must be controlled by one or more individuals who are Indians. The
Indian individual(s) must possess requisite management or technical
capabilities directly related to the primary industry in which the
enterprise conducts business.
Indian Small Business Economic Enterprise (ISBEE) means an IEE that
is also a small business concern established in accordance with the
criteria and size standards of 13 CFR part 121.
Interested Party means an IEE that is an actual or prospective
offeror whose direct economic interest would be affected by the
proposed or actual award of a particular contract set-aside pursuant
the Buy Indian Act.
List of Federally Recognized Tribes means an entity appearing on
the United States Department of the Interior's List of federally
recognized Indian tribes published annually in the Federal Register
pursuant to Section 104 of Public Law 103-454, codified at 25 U.S.C.
5131.
Subpart 1480.3--Applicability
1480.301 Scope of part.
Except as provided in 1480.302, this part applies to all
acquisitions, including simplified acquisitions, made by IA and by any
other bureau or office of the Department of the Interior conducting
acquisitions on behalf of IA or otherwise delegated the authority to
conduct acquisitions under the Buy Indian Act.
1480.302 Restrictions on the use of the Buy Indian Act.
IA must not use the authority of the Buy Indian Act and the
procedures contained in this part to award intergovernmental contracts
to Tribal organizations to plan, operate, or administer authorized IA
programs (or parts thereof) that are within the scope and intent of the
Indian Self-Determination and Education Assistance Act (ISDEAA) (Pub.
L. 93-638). IA must use the Buy Indian Act solely to award procurement
contracts to IEEs. Contracts subject to ISDEAA must follow 25 CFR part
900.
Subpart 1480.4--Policy
1480.401 Requirement to give preference to Indian Economic
Enterprises.
(a) IA must use the negotiation authority of the Buy Indian Act to
give preference to Indians or Federally Recognized Tribes whenever the
use of that authority is practicable. The Buy Indian Act provides that
so far as may be practicable, Indian labor shall be employed, and
purchases of the products (including, but not limited to printing,
notwithstanding any other law) of Indian industry may be made in open
market at the discretion of the Secretary of the Interior. Thus, IA may
use the Buy Indian Act to give preference to IEEs through set-asides
when acquiring supplies, general services, A&E services, or
construction to meet IA needs and requirements. All other FAR and DIAR
requirements that
[[Page 59343]]
do not conflict with this part, such as requirements applicable to the
acquisition of A&E and construction services, remain applicable.
(b) The Buy Indian Act does not apply when a supply requirement can
be met by existing inventories of the requiring agency or excess from
other agencies.
(c) The CO will give priority to ISBEEs for all purchases,
regardless of dollar value. COs when prioritizing ISBEEs may consider
either:
(1) A set-aside for ISBEEs; or
(2) A sole source award to an ISBEE, as authorized under the FAR.
(d) If the CO determines after market research that there is no
reasonable expectation of obtaining offers that will be competitive in
terms of market price, quality, and delivery, the CO may consider
either:
(1) A set-aside for IEEs; or
(2) A sole source award to an IEE, as authorized under the FAR.
(e) If the CO determines after market research that there is no
reasonable expectation of obtaining offers that will be competitive in
terms of market price, quality, and delivery from ISBEEs or IEEs, then
the CO must follow the Deviation process under 1480.403.
(f) When only one offer is received from a responsible IEE in
response to an acquisition set-aside or direct negotiation under
paragraph (c)(1) or (d)(1) of this section:
(1) If the offer is not at a reasonable and fair market price, then
the CO may negotiate with that enterprise for a reasonable and fair
market price.
(2) If the offer is at a reasonable and fair market price, then the
CO must:
(i) Make an award to that enterprise;
(ii) Document the reason only one offer was considered; and
(iii) Initiate action to increase competition in future
solicitations.
(g) If the offers received from one or more responsible IEEs in
response to an acquisition set-aside under paragraph (c)(1) or (d)(1)
of this section are not reasonable or otherwise unacceptable, then the
CO must follow the deviation process under 1480.403. The CO must
document in the deviation determination the reasons why the IEE
offeror(s) were not reasonable or otherwise unacceptable.
(1) If a deviation determination is approved, the CO must cancel
the set-aside solicitation and inform all offerors in writing.
(2) When the solicitation of the same requirement is posted, the CO
must inform all previous offerors in writing of the solicitation
number.
1480.402 Delegations and responsibility.
(a) The Secretary has delegated authority under the Buy Indian Act
to the Assistant Secretary--Indian Affairs. IA exercises this authority
in support of its mission and program activities and as a means of
fostering Indian employment and economic development.
(b) The Secretary may delegate authority under the Buy Indian Act
to a bureau or office within the Department of the Interior other than
IA.
(c) The Chief Financial Officer of The Office of the Assistant
Secretary--Indian Affairs is responsible for ensuring that all IA
acquisitions under the Buy Indian Act comply with the requirements of
this part.
1480.403 Deviations.
There are certain instances where the application of the Buy Indian
Act to an acquisition may not be appropriate. In these instances, the
Contracting Officer must detail the reasons in writing and make a
deviation determination.
(a) Sole source acquisitions awarded to an ISBEE or IEE under
1480.401(c)(2) or (d)(2) do not require a deviation determination and
comply with the requirements of the Buy Indian Act.
(b) Some acquisitions by their very nature would make such a
written determination unnecessary. The following acquisitions do not
require a written deviation from the requirements of the Buy Indian
Act:
(1) Any sole source acquisition justified and approved in
accordance with FAR 6.3 and DIAR 1406.3 constitutes an authorized
deviation from the requirements of the Buy Indian Act.
(2) Any order or call placed against an indefinite delivery vehicle
that already has an approved deviation from the requirements of the Buy
Indian Act.
(c) Deviation determinations are required for all other
acquisitions where the Buy Indian Act is applicable and must be
approved as follows:
Table 1 to Paragraph (c)
------------------------------------------------------------------------
The following official may authorize
For a proposed contract action a deviation
------------------------------------------------------------------------
Up to $25,000..................... CO.
Exceeding $25,000 but not One level above the CO or Chief of
exceeding $700,000. the Contracting Office (CCO) (or
the IA Bureau Procurement Chief,
absent a CCO).
Exceeding $700,000 but not IA Competition Advocate.
exceeding $13.5 million.
Exceeding $13.5 million but not The head of the procuring activity
exceeding $57 million. or a designee who is a civilian
serving in a position in a grade
above GS-15 under the General
Schedule or in a comparable or
higher position under another
schedule.
Exceeding $57 million............. Department of the Interior Senior
Procurement Executive.
------------------------------------------------------------------------
(d) Deviations may be authorized prior to issuing the solicitation
when the CO makes the following determinations and takes the following
actions:
(1) The CO determines after market research that there is no
reasonable expectation of obtaining offers that will be competitive in
terms of market price, quality, and delivery from two or more
responsible ISBEE, IEEs, or direct negotiation with an IEE that is a
certified 8a business.
(2) The deviation determination is authorized by the official
listed at 1480.403(c) for the applicable contract action
(e) If a deviation determination has been approved, the CO must
follow the FAR and DIAR unless specified otherwise.
(f) Acquisitions made under an authorized deviation from the
requirements of the Buy Indian Act must be made in conformance with the
order of precedence required by FAR 8.002.
Subpart 1480.5--Procedures
1480.501 General.
All acquisitions made in accordance with this part, including
simplified or commercial item acquisitions, must conform to all
applicable requirements of the FAR and DIAR.
1480.502 [Reserved]
1480.503 Procedures for acquisitions under the Buy Indian Act.
(a) Commercial items or simplified acquisitions under this section
must
[[Page 59344]]
conform to the competition and price reasonableness documentation
requirements of FAR 12.209 for commercial item acquisitions and FAR
13.106 for simplified acquisitions.
(b) When acquiring construction services, solicit proposals and
evaluate potential contractors in accordance with FAR part 36 and DIAR
subpart 1436.2.
(c) When acquiring A&E services, solicit proposals and evaluate
potential contractors in accordance with FAR part 36 and DIAR subpart
1436.6.
(d) This paragraph (d) applies to solicitations that are not
restricted to participation of IEEs.
(1) If an interested IEE is identified after a solicitation has
been issued, but before the date established for receipt of offers, the
contracting office must provide a copy of the solicitation to this
enterprise. In this case, the CO:
(i) Will not give preference under the Buy Indian Act to the IEE;
and
(ii) May extend the date for receipt of offers when practical.
(2) If more than one IEE is identified subsequent to the
solicitation, but prior to the date established for receipt of offers,
the CO may cancel the solicitation and re-compete it as an IEE set-
aside.
(e)(1) Insert the clause at 1452.280-1, Notice of Indian Small
Business Economic Enterprise set-aside, in accordance with 1480.401(c).
(2) Insert the clause at 1452.280-2, Notice of Indian Economic
Enterprise set-aside, in accordance with 1480.401(d).
(3) Insert the clause at 1452.280-3, Indian Economic Enterprise
subcontracting limitations, in accordance with 1480.601(b).
(4) Insert the clause at 1452.280-4, Indian Economic Enterprise
representation, in accordance with 1480.801(a).
1480.504 Other circumstances for use of other than full and open
competition.
(a) Other circumstances may exist where the use of an IEE set-aside
in accordance with 1480.401(a) and FAR 6.302-5 is not feasible. In such
situations, the requirements of FAR subparts 6.3 and 13.5 and DIAR
subpart 1406.3 apply in justifying the use of the appropriate authority
for other than full and open competition.
(b) Except as provided in FAR 5.202, all proposed acquisition
actions must first be publicized in accordance with the requirements of
FAR 5.2 and DIAR 1405.2.
(c) Justifications for use of other than full and open competition
in accordance with this section must be approved in accordance with
DIAR part 1406. These approvals are required for a proposed contract or
for an out of scope modification to an existing contract.
1480.505 Debarment and suspension.
A misrepresentation by an offeror of its status as an IEE, failure
to notify the CO of any change in IEE status that would make the
contractor ineligible as an IEE, or any violation of the regulations in
this part by an offeror or an awardee may be cause for debarment or
suspension in accordance with FAR 9.406 and 9.407 and DIAR 1409.406 and
1409.407. IA must refer recommendations for debarment or suspension to
the Director, Office of Acquisition and Property Management, Department
of the Interior, in accordance with DIAR 1409.406 and 1409.407, through
the Bureau Procurement Chief with the concurrence of the head of the
contracting activity.
Subpart 1480.6--Contract Requirements
1480.601 Subcontracting limitations.
(a) In contracts awarded under the Buy Indian Act and this part,
the CO must insert the clause FAR 52.219-14, Limitations on
Subcontracting.
(b) The CO must also insert the clause at 1452.280-3, Indian
Economic Enterprise subcontracting limitations, in all awards to ISBEEs
and IEEs pursuant this part.
1480.602 Performance and payment bonds.
Solicitations requiring performance and payment bonds must conform
to FAR part 28 and authorize use of any of the types of security
acceptable in accordance with FAR subpart 28.2 or section 11 of Public
Law 98-449, the Indian Financing Act Amendments of 1984. In accordance
with FAR 28.102 and 25 U.S.C. 47a, the CO may accept alternative forms
of security in lieu of performance and payment bonds if a determination
is made that such forms of security provide the Government with
adequate security for performance and payment.
Subpart 1480.7--[Reserved]
Subpart 1480.8--Representation by an Indian Economic Enterprise
Offeror
1480.801 General.
(a) The CO must insert the provision at 1452.280-4, Indian Economic
Enterprise representation, in all solicitations regardless of dollar
value solicited under 1480.401(c) or (d) and in accordance with this
part.
(b) To be considered for an award under 1480.401(c) or (d), an
offeror must certify that it meets the definition of ``Indian Economic
Enterprise'' (as defined in 1480.201) in response to a specific
solicitation set-aside in accordance with the Buy Indian Act and this
part; and
(c) The enterprise must meet the definition of ``Indian Economic
Enterprise'' throughout the following time periods:
(1) At the time an offer is made in response to a solicitation;
(2) At the time of contract award; and
(3) During the full term of the contract.
(d) If, after award, a contractor no longer meets the eligibility
requirements as it has certified and as set forth in this section, then
the contractor must provide the CO with written notification within 3
days of its failure to comply with the eligibility requirements. The
notification must include:
(1) Full disclosure of circumstances causing the contractor to lose
eligibility status; and
(2) A description of actions, if any, that must be taken to regain
eligibility.
(e) Failure to provide written notification required by paragraph
(d) of this section means that:
(1) The economic enterprise may be declared ineligible for future
contract awards under this part; and
(2) The CO may consider termination for default if it is determined
to be in the best interest of the Government.
(f) A CO will investigate the representation if an interested party
challenges the IEE representation or if the CO has any other reason to
question the representation. The CO may ask the offeror for more
information to substantiate the representation. Challenges of and
questions concerning a specific representation must be referred to the
CO or CCO in accordance with subpart 1480.9.
(g) Participation in the Mentor-Prot[eacute]g[eacute] Program
established under section 831 of the National Defense Authorization Act
for Fiscal Year 1991 (25 U.S.C. 47 note) does not render an IEE
ineligible for contracts awarded under the Buy Indian Act.
1480.802 Representation provision.
(a) Contracting offices must provide copies of the IEE
representation to any interested parties upon written request.
(b) The submission of a Solicitation Mailing List Application by an
enterprise does not remove the requirement for it to provide
representation as an IEE, as required by this part, if it wishes to be
considered as an offeror for a specific solicitation. COs may determine
the validity of the contents of the applicant's representation.
[[Page 59345]]
(c) Any false or misleading information submitted by an enterprise
when submitting an offer in consideration for an award set aside under
the Buy Indian Act is a violation of the law punishable under 18 U.S.C.
1001. False claims submitted as part of contract performance are
subject to the penalties enumerated in 31 U.S.C. 3729 to 3731 and 18
U.S.C. 287.
(d) The CO will investigate and refer to the appropriate officials
all IEE misrepresentation by an offeror or failure to provide written
notification of a change in IEE eligibility.
1480.803 Representation process.
(a) Only IEEs may participate in acquisitions set aside in
accordance with the Buy Indian Act and this part. These procedures
support responsible IEEs and prevent circumvention or abuse of the Buy
Indian Act.
(b) Eligibility is based on information furnished by the enterprise
to a CO in the IEE representation at DIAR 1452.280-4 in response to a
specific solicitation under the Buy Indian Act
(c) The CO may ask the appropriate Regional Solicitor to review the
enterprise's representation.
(d) The CO may also request the Office of the Inspector General (on
Form DI-1902 as part of a normal pre-award audit) to assist in
determining the eligibility of the low responsive and responsible
offerors on Buy Indian Act awards.
(e) The IEE representation does not relieve the CO of the
obligation for determining contractor responsibility, as required by
FAR subpart 9.1.
Subpart 1480.9--Challenges to Representation
1480.901 General.
(a) The CO can accept an offeror's written representation of being
an IEE (as defined in 1480.201) only when it is submitted with an offer
in response to a solicitation under the Buy Indian Act. Another
interested party may challenge the representation of an offeror or
contractor by filing a written challenge to the applicable CO in
accordance with the procedures in 1480.902.
(b) After receipt of offers, the CO may question the representation
of any offeror in a specific offer by filing a formal objection with
the CCO.
1480.902 Receipt of challenge.
(a) An interested party must file any challenges against an
offeror's representation with the cognizant CO.
(b) The challenge must be in writing and must contain the basis for
the challenge with accurate, complete, specific, and detailed evidence.
The evidence must support the allegation that the offeror fails to meet
the definition of ``Indian Economic Enterprise'' or ``Indian Small
Business Economic Enterprise'' as defined in 1480.201 or is otherwise
ineligible. The CO will dismiss any challenge that is deemed frivolous
or that does not meet the conditions in this section.
(c) To be considered timely, a challenge must be received by the CO
no later than 10 days after the basis of challenge is known or should
have been known, whichever is earlier.
(1) A challenge may be made orally if it is confirmed in writing
within the 10-day period after the basis of challenge is known or
should have been known, whichever is earlier.
(2) A written challenge may be delivered by hand, telefax,
telegram, email, or letter postmarked within the 10-day period after
the basis of challenge is known or should have been known, whichever is
earlier.
(3) A CO's challenge to a certification is always considered
timely, whether filed before or after award.
(d) Upon receiving a timely challenge, the CO must:
(1) Notify the challenger of the date it was received, and that the
representation of the enterprise being challenged is under
consideration; and
(2) Furnish to the offeror (whose representation is being
challenged) a request to provide detailed information on its
eligibility by certified mail, return receipt requested or electronic
mail.
(e) Within 3 days after receiving a copy of the challenge and the
CO's request for detailed information, the challenged offeror must
file, as specified at paragraph (d)(2) of this section, with the CO a
complete statement answering the allegations in the challenge and
furnish evidence to support its position on representation. If the
offeror does not submit the required material within the 3 days, or
another period of time granted by the CO, the CO may assume that the
offeror does not intend to dispute the challenge and must not award to
the challenged offeror.
(f) Within 10 days after receiving a challenge, the challenged
offeror's response, and any other pertinent information, the CO must
determine the representation status of the challenged offeror and
notify the challenger and the challenged offeror of the decision by
certified mail, return receipt requested, and make known to all parties
the option to appeal the determination to the Office of Acquisition and
Property Management, Department of the Interior (PAM).
(g) If the representation accompanying an offer is challenged and
subsequently upheld by the PAM, the written notification of this action
must state the reason(s).
1480.903 Award in the face of challenge.
(a) Award of a contract in the face of challenge only may be made
on the basis of the CO's written determination that the challenged
offeror's representation is valid.
(1) This determination is final unless it is appealed to the PAM,
and the CO is notified of the appeal before award.
(2) If an award was made before the CO received notice of appeal,
the contract is presumed to be valid.
(b) After receiving a challenge involving an offeror being
considered for award, the CO must not award the contract until the CO
has determined the validity of the representation. Award may be made in
the face of a timely challenge when the CO determines in writing that
an award must be made to protect the public interest, is urgently
required, or a prompt award will otherwise be advantageous to the
Government.
(c) If a timely challenge on representation is filed with the CO
and received before award in response to a specific offer and
solicitation, the CO must notify eligible offerors within one day that
the award will be withheld. The CO also may ask eligible offerors to
extend the period for acceptance of their proposals.
(d) If a challenge on representation is filed with the CO and
received after award in response to a specific offer and solicitation,
the CO need not suspend contract performance or terminate the awarded
contract unless the CO believes that an award may be invalidated and a
delay would prejudice the Government's interest. However, if contract
performance is to be suspended, a mutual no cost agreement will be
sought.
1480.904 Challenge not timely.
If a CO receives an untimely filed challenge of a representation,
the CO must notify the challenger that the challenge cannot be
considered on the instant acquisition but will be considered in any
future actions. However, the CO may question at any time, before or
after award, the representation of an IEE.
Rachael S. Taylor,
Principal Deputy Assistant Secretary--Policy, Management and Budget.
[FR Doc. 2021-23272 Filed 10-26-21; 8:45 am]
BILLING CODE 4334-63-P