Federal Acquisition Regulation: Maximum Award Price for Certain Sole Source Manufacturing Contracts, 61040-61041 [2021-22146]
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61040
Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations
List of Subjects in 48 CFR Parts 5 and
7
Government procurement.
William F. Clark,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA are
amending 48 CFR parts 5 and 7 as set
forth below:
■ 1. The authority citation for 48 CFR
parts 5 and 7 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
PART 5—PUBLICIZING CONTRACT
ACTIONS
2. Amend section 5.205 by revising
paragraph (g) to read as follows:
■
5.205
Special Situations.
*
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*
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*
(g) Notifications to the public
regarding consolidation, bundling, or
substantial bundling. (1) For the
requirement to publish a notification of
consolidation or substantial bundling of
contract requirements, see 7.107–5(c)
and (d).
(2) The agency is encouraged to
provide notification of the rationale for
any bundled requirement to the GPE
before issuing the solicitation of any
bundled requirement (see 7.107–5(b)).
PART 7—ACQUISITION PLANNING
7.105
[Amended]
3. Amend section 7.105 by removing
from paragraph (b)(16) the term ‘‘GPE’’
and adding ‘‘Governmentwide point of
entry (GPE)’’ in its place.
■
7.107–1
[Amended]
4. Amend section 7.107–1 by
removing from paragraph (a) the phrase
‘‘7.107–3 and 7.107–4’’ and adding
‘‘7.107–3, 7.107–4, and 7.107–5’’ in its
place.
■
7.107–2
[Amended]
5. Amend section 7.107–2 by—
a. Removing from paragraph (a)
introductory text the phrases ‘‘senior
procurement executive’’ and ‘‘chief
acquisition officer’’ and adding ‘‘senior
procurement executive (SPE)’’ and
‘‘chief acquisition officer (CAO)’’ in
their places, respectively;
■ b. Removing from paragraph (b) the
phrases ‘‘senior procurement executive
or chief acquisition officer’’ and
‘‘subsection’’ and adding ‘‘SPE or CAO’’
and ‘‘section’’ in their places,
respectively;
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■
■
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c. Removing from paragraph (d)(3) the
phrase ‘‘senior procurement executive
or chief acquisition officer’’ and adding
‘‘SPE or CAO’’ in its place;
■ d. Removing from paragraph (e)(1)
introductory text the word ‘‘subsection’’
wherever it appears and adding
‘‘section’’ in its place;
■ e. Removing from paragraph (e)(1)(i)
the word ‘‘subsection’’ and adding
‘‘section’’ in its place; and
■ f. Removing from paragraph (e)(2)(i)
the phrase ‘‘senior procurement
executive’’ and adding ‘‘SPE’’ in its
place.
■ 6. Amend section 7.107–5 by—
■ a. Revising paragraph (b);
■ b. Redesignating paragraphs (c) and
(d) as paragraphs (e) and (g) and adding
new paragraphs (c) and (d) and
paragraph (f); and
■ c. Removing from the newly
redesignated paragraph (g) ‘‘Public
notification’’ and adding ‘‘Notification
to public’’ in its place.
The revision and additions read as
follows:
■
7.107–5
[FR Doc. 2021–22145 Filed 11–3–21; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
Notifications.
*
*
*
*
*
(b) Notification to the public of
rationale for bundled requirement. The
agency is encouraged to provide
notification of the rationale for any
bundled requirement to the GPE, before
issuance of the solicitation (see 5.201).
(c) Notification to the public of
consolidation of contract requirements.
The SPE or CAO shall publish in the
GPE—
(1) A notice that the agency has
determined a consolidation of contract
requirements is necessary and justified
(see 7.107–2) no later than 7 days after
making the determination; the
solicitation may not be publicized prior
to 7 days after publication of the notice
of the agency determination; and
(2) The determination that
consolidation is necessary and justified
with the publication of the solicitation.
See 7.107–2 for the required content of
the determination.
(d) Notification to the public of
substantial bundling of contract
requirements. The head of the agency
shall publish in the GPE—
(1) A notice that the agency has
determined that a procurement involves
substantial bundling (see 7.107–4) no
later than 7 days after such
determination has been made; the
solicitation may not be publicized prior
to 7 days after the publication of the
notice of the determination; and
(2) The rationale for substantial
bundling with the publication of the
solicitation. The rationale is the
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information required for inclusion in
the acquisition strategy at 7.107–4(b).
*
*
*
*
*
(f) Annual notification to the public of
the rationale for bundled requirements.
The agency shall publish on its website
a list and rationale for any bundled
requirement for which the agency
solicited offers or issued an award. The
notification shall be made annually
within 30 days of the agency’s data
certification regarding the validity and
verification of data entered in the
Federal Procurement Data System to the
Office of Federal Procurement Policy
(see 4.604).
*
*
*
*
*
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48 CFR Part 19
[FAC 2022–01; FAR Case 2021–007; Item
III; Docket No. FAR–2021–0007, Sequence
No. 1]
RIN 9000—AO25
Federal Acquisition Regulation:
Maximum Award Price for Certain Sole
Source Manufacturing Contracts
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
DoD, GSA, and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
implement a section of the William M.
(Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021
that modified the Small Business Act
maximum award price for
manufacturing contracts to $7 million.
DATES: Effective December 6, 2021.
FOR FURTHER INFORMATION CONTACT: Mr.
Michael O. Jackson, Procurement
Analyst, at 202–208–4949 or by email at
michaelo.jackson@gsa.gov, for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAC
2022–01, FAR Case 2021–007.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations
I. Background
DoD, GSA, and NASA are amending
the FAR to implement section 864 of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2021 (Pub.
L. 116–283, January 1, 2021). Section
864 amends the Small Business Act to
modify the maximum award price for
manufacturing contracts to $7 million
for the 8(a), Women-Owned Small
Business (WOSB), Historically
Underutilized Business Zone
(HUBZone), and Service-Disabled
Veteran-Owned Small Business
(SDVOSB) programs.
The maximum award price for
manufacturing contracts at FAR 19.804–
6(c)(2), 19.805–1(a)(2), 19.1306(a)(2)(i),
19.1406(a)(2)(i), and 19.1506(c)(1)(i) is
subject to the inflationary adjustment
required by 41 U.S.C. 1908. Section
1908 requires an adjustment every five
years (on October 1 of each year evenly
divisible by five) of statutory
acquisition-related thresholds for
inflation, using the Consumer Price
Index for all urban consumers, except
for the Construction Wage Rate
Requirements statute (Davis-Bacon Act),
Service Contract Labor Standards statute
(Service Contract Act), and trade
agreements thresholds (see FAR 1.109).
FAR case 2019–013 (85 FR 62485),
effective on October 1, 2020, made
inflationary adjustments to, amongst
others, the following: Increased the $7
million threshold at FAR 19.804–6(c)(2),
19.805–1(a)(2), and 19.1306(a)(2)(i) to
$7.5 million; increased the $6.5 million
threshold at FAR 19.1406(a)(2)(i) to $7
million; and increased the $6.5 million
threshold at FAR 19.1506(c)(1)(i) to $7
million.
This final rule will harmonize the
maximum award price threshold for
manufacturing contracts amongst the
socioeconomic programs by changing
the current FAR maximum award price
threshold for the 8(a) sole source, 8(a)
competitive, and HUBZone sole source
programs from $7.5 million to the
statutory amount of $7 million. The
maximum award price threshold for the
WOSB and SDVOSB programs remains
unchanged at the current threshold of
$7 million, which is consistent with
section 864 of the NDAA for FY 2021.
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II. Publication of This Final Rule for
Public Comment Is Not Required by
Statute
The statute that applies to the
publication of the FAR is 41 U.S.C.
1707. Subsection (a)(1) of 41 U.S.C.
1707 requires that a procurement policy,
regulation, procedure, or form
(including an amendment or
modification thereof) must be published
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20:16 Nov 03, 2021
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for public comment if it relates to the
expenditure of appropriated funds and
has either a significant effect beyond the
internal operating procedures of the
agency issuing the policy, regulation,
procedure, or form, or has a significant
cost or administrative impact on
contractors or offerors. This final rule is
not required to be published for public
comment because the rule will not have
a significant cost or administrative
impact on contractors or offerors. A
search of the Federal Procurement Data
System revealed that there were no
contracts awarded for 8(a) sole source,
8(a) competitive, or HUBZone sole
source manufacturing contracts in the
range of $7 million to $7.5 million
between the date of the increase in the
threshold to $7.5 million (October 1,
2020) and April 2021.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule does not create new
solicitation provisions or contract
clauses or impact any existing
provisions or clauses. This rule merely
modifies a threshold in accordance with
statute. This rule does not impose any
new requirements on contracts at or
below the SAT or for commercial items,
including COTS items, except for the
changes in the thresholds themselves.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is not a significant
regulatory action and, therefore, was not
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993.
V. Congressional Review Act
As required by the Congressional
Review Act (5 U.S.C. 801–808) before an
interim or final rule takes effect, DoD,
GSA, and NASA will send the rule and
the ‘‘Submission of Federal Rules Under
the Congressional Review Act’’ form to
each House of the Congress and to the
Comptroller General of the United
States. A major rule cannot take effect
until 60 days after it is published in the
PO 00000
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Fmt 4701
Sfmt 9990
61041
Federal Register. The Office of
Information and Regulatory Affairs
(OIRA) in the Office of Management and
Budget has determined that this is not
a major rule under 5 U.S.C. 804.
VI. Regulatory Flexibility Act
Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule under 41 U.S.C.
1707(a)(1) (see section II. of this
preamble), the analytical requirements
of the Regulatory Flexibility Act (5
U.S.C. 601–612) are not applicable.
Accordingly, no regulatory flexibility
analysis is required, and none has been
prepared.
VII. Paperwork Reduction Act
This rule does not contain any
information collection requirements that
require the approval of the Office of
Management and Budget under the
Paperwork Reduction Act (44 U.S.C.
3501–3521).
List of Subjects in 48 CFR Part 19
Government procurement.
William F. Clark,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA
amend 48 CFR part 19 as set forth
below:
PART 19—SMALL BUSINESS
PROGRAMS
1. The authority citation for 48 CFR
part 19 continues to read as follows:
■
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
19.804–6
[Amended]
2. Amend section 19.804–6 by
removing from paragraph (c)(2) the
phrase ‘‘$7.5 million’’ and adding ‘‘$7
million’’ in its place.
■
19.805–1
[Amended]
3. Amend section 19.805–1 by
removing from paragraph (a)(2) the
phrase ‘‘$7.5 million’’ and adding ‘‘$7
million’’ in its place.
■
19.1306
[Amended]
4. Amend section 19.1306 by
removing from paragraph (a)(2)(i) the
phrase ‘‘$7.5 million’’ and adding ‘‘$7
million’’ in its place.
■
[FR Doc. 2021–22146 Filed 11–3–21; 8:45 am]
BILLING CODE 6820–EP–P
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]]>Agencies
[Federal Register Volume 86, Number 211 (Thursday, November 4, 2021)]
[Rules and Regulations]
[Pages 61040-61041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22146]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 19
[FAC 2022-01; FAR Case 2021-007; Item III; Docket No. FAR-2021-0007,
Sequence No. 1]
RIN 9000--AO25
Federal Acquisition Regulation: Maximum Award Price for Certain
Sole Source Manufacturing Contracts
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement a section of the
William M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 that modified the Small Business Act maximum award
price for manufacturing contracts to $7 million.
DATES: Effective December 6, 2021.
FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement
Analyst, at 202-208-4949 or by email at [email protected], for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or [email protected]. Please cite FAC 2022-01, FAR Case
2021-007.
SUPPLEMENTARY INFORMATION:
[[Page 61041]]
I. Background
DoD, GSA, and NASA are amending the FAR to implement section 864 of
the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021
(Pub. L. 116-283, January 1, 2021). Section 864 amends the Small
Business Act to modify the maximum award price for manufacturing
contracts to $7 million for the 8(a), Women-Owned Small Business
(WOSB), Historically Underutilized Business Zone (HUBZone), and
Service-Disabled Veteran-Owned Small Business (SDVOSB) programs.
The maximum award price for manufacturing contracts at FAR 19.804-
6(c)(2), 19.805-1(a)(2), 19.1306(a)(2)(i), 19.1406(a)(2)(i), and
19.1506(c)(1)(i) is subject to the inflationary adjustment required by
41 U.S.C. 1908. Section 1908 requires an adjustment every five years
(on October 1 of each year evenly divisible by five) of statutory
acquisition-related thresholds for inflation, using the Consumer Price
Index for all urban consumers, except for the Construction Wage Rate
Requirements statute (Davis-Bacon Act), Service Contract Labor
Standards statute (Service Contract Act), and trade agreements
thresholds (see FAR 1.109).
FAR case 2019-013 (85 FR 62485), effective on October 1, 2020, made
inflationary adjustments to, amongst others, the following: Increased
the $7 million threshold at FAR 19.804-6(c)(2), 19.805-1(a)(2), and
19.1306(a)(2)(i) to $7.5 million; increased the $6.5 million threshold
at FAR 19.1406(a)(2)(i) to $7 million; and increased the $6.5 million
threshold at FAR 19.1506(c)(1)(i) to $7 million.
This final rule will harmonize the maximum award price threshold
for manufacturing contracts amongst the socioeconomic programs by
changing the current FAR maximum award price threshold for the 8(a)
sole source, 8(a) competitive, and HUBZone sole source programs from
$7.5 million to the statutory amount of $7 million. The maximum award
price threshold for the WOSB and SDVOSB programs remains unchanged at
the current threshold of $7 million, which is consistent with section
864 of the NDAA for FY 2021.
II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707. Subsection (a)(1) of 41 U.S.C. 1707 requires that a procurement
policy, regulation, procedure, or form (including an amendment or
modification thereof) must be published for public comment if it
relates to the expenditure of appropriated funds and has either a
significant effect beyond the internal operating procedures of the
agency issuing the policy, regulation, procedure, or form, or has a
significant cost or administrative impact on contractors or offerors.
This final rule is not required to be published for public comment
because the rule will not have a significant cost or administrative
impact on contractors or offerors. A search of the Federal Procurement
Data System revealed that there were no contracts awarded for 8(a) sole
source, 8(a) competitive, or HUBZone sole source manufacturing
contracts in the range of $7 million to $7.5 million between the date
of the increase in the threshold to $7.5 million (October 1, 2020) and
April 2021.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This rule does not create new solicitation provisions or contract
clauses or impact any existing provisions or clauses. This rule merely
modifies a threshold in accordance with statute. This rule does not
impose any new requirements on contracts at or below the SAT or for
commercial items, including COTS items, except for the changes in the
thresholds themselves.
IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
V. Congressional Review Act
As required by the Congressional Review Act (5 U.S.C. 801-808)
before an interim or final rule takes effect, DoD, GSA, and NASA will
send the rule and the ``Submission of Federal Rules Under the
Congressional Review Act'' form to each House of the Congress and to
the Comptroller General of the United States. A major rule cannot take
effect until 60 days after it is published in the Federal Register. The
Office of Information and Regulatory Affairs (OIRA) in the Office of
Management and Budget has determined that this is not a major rule
under 5 U.S.C. 804.
VI. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section II. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612) are
not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
VII. Paperwork Reduction Act
This rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. 3501-3521).
List of Subjects in 48 CFR Part 19
Government procurement.
William F. Clark,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR part 19 as set forth
below:
PART 19--SMALL BUSINESS PROGRAMS
0
1. The authority citation for 48 CFR part 19 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
19.804-6 [Amended]
0
2. Amend section 19.804-6 by removing from paragraph (c)(2) the phrase
``$7.5 million'' and adding ``$7 million'' in its place.
19.805-1 [Amended]
0
3. Amend section 19.805-1 by removing from paragraph (a)(2) the phrase
``$7.5 million'' and adding ``$7 million'' in its place.
19.1306 [Amended]
0
4. Amend section 19.1306 by removing from paragraph (a)(2)(i) the
phrase ``$7.5 million'' and adding ``$7 million'' in its place.
[FR Doc. 2021-22146 Filed 11-3-21; 8:45 am]
BILLING CODE 6820-EP-P
