Federal Acquisition Regulation: Subcontracting to Puerto Rican and Covered Territory Small Businesses, 523-527 [2024-31407]
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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 2, 19, 42, and 52
[FAC 2025–03; FAR Case 2023–001, Item
III; Docket No. FAR 2023–0001; Sequence
No. 1]
RIN 9000–AO50
Federal Acquisition Regulation:
Subcontracting to Puerto Rican and
Covered Territory Small Businesses
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 regulatory changes made by
the Small Business Administration to
add incentives for certain United States
territories under the Small Business
Administration mentor-protégé
program.
SUMMARY:
DATES:
Effective January 17, 2025.
FOR FURTHER INFORMATION CONTACT:
For
clarification of content, contact Ms.
Carrie Moore, Procurement Analyst, at
571–300–5917, or by email at
carrie.moore@gsa.gov. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAC
2025–03, FAR Case 2023–001.
SUPPLEMENTARY INFORMATION:
I. Background
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DoD, GSA, and NASA published a
proposed rule at 89 FR 48540 on June
7, 2024, to implement regulatory
changes made by the Small Business
Administration (SBA) in its final rules
published on October 16, 2020 (85 FR
66146) and on August 19, 2022 (87 FR
50925) to implement section 861 of
Public Law 115–232 and section 866 of
Public Law 116–283. For further details
please see the proposed rule. Two
respondents submitted comments on the
proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the public comments in the
development of the final rule. A
discussion of the comments is provided
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as follows; however, no changes were
made to the rule as a result of those
comments.
A. Summary of significant changes:
There are no significant changes from
the proposed rule.
B. Analysis of public comments:
Comment: The respondents expressed
support for the rule.
Response: The Councils acknowledge
the respondents’ support for the rule.
Comment: The respondents expressed
support for the change at 19.702, which
specifies that subcontracting plans are
not required from Alaska Native
Corporations (ANCs).
Response: The Councils acknowledge
the respondents’ support for this
change. SBA clarified that an ANC
prime contractor is required to submit a
subcontracting plan if they are large for
the North American Industry
Classification System (NAICS) code
assigned to the contract. However, an
ANC subcontractor is treated as a small
business concern by statute and,
therefore, cannot be required to submit
a subcontracting plan (see 13 CFR
125.3(b)(2)).
Comment: The respondents
recommended changes to the proposed
rule text at FAR 19.703(2)(i) and (ii) and
in the clauses at FAR 52.219–8,
Utilization of Small Business Concerns,
and 52.219–9, Small Business
Subcontracting Plan, which specify that
a contractor may rely on a
subcontractor’s representation unless it
has reason to question it. A respondent
recommended the word ‘‘question’’ be
replaced with ‘‘doubt’’ to align with
SBA’s regulations at 13 CFR 121.404(e),
indicating the word ‘‘doubt’’ means, in
accordance with the Merriam-Webster
Dictionary, to call into question the
truth of, to lack confidence in, and to
consider unlikely, whereas ‘‘question’’
simply means to ask a question. Another
respondent recommended the text be
amended to specify: ‘‘unless the
contractor has an objective, evidencebased reason to question a
representation for clarity’’.
Response: In this context, SBA’s term
‘‘doubt’’ has the same meaning as the
FAR term ‘‘question’’. The FAR
consistently uses the term ‘‘question’’
when specifying that a contracting
officer may rely on a representation or
certification unless the contracting
officer has a reason to question the
representation or certification. Aligning
the proposed rule text with text
currently used in the FAR for other
representations or certifications helps
promote certainty and avoids confusion
for the contracting community.
Moreover, the FAR does not replicate
terminology used in SBA’s regulations;
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523
instead SBA’s regulations are translated
into FAR terminology. This rule
implements SBA’s regulations at 13 CFR
121.404(e), which do not specify that
the contractor is required to have an
objective, evidence-based reason to
question a representation. There are a
variety of reasons why a contractor
might question a subcontractor’s
representation and this text is written so
as to not limit the basis on which a
contractor may question such a
representation.
C. Other changes. The proposed rule
FAR text at 19.702(b)(1) is moved in the
final rule to FAR 19.704(a)(9) and to
paragraph (d)(9) of the clause at FAR
52.219–9 and its Alternate IV to specify
for contractors that subcontracting plans
are not required from their
subcontractors that are treated as small
business concerns by statute.
Conforming changes are made to the
clause at FAR 52.219–9 and its
Alternates III and IV.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Products (Including Commercially
Available Off-the-Shelf (COTS) Items)
or for Commercial Services
This rule amends the clauses at FAR
52.212–5, Contract Terms and
Conditions Required To Implement
Statutes or Executive Orders—
Commercial Products and Commercial
Services; 52.213–4, Terms and
Conditions—Simplified Acquisitions
(Other Than Commercial Products and
Commercial Services); 52.219–8,
Utilization of Small Business Concerns;
and 52.219–9, Small Business
Subcontracting Plan. However, this rule
does not change the applicability of
these clauses, which continue to apply
to contracts valued at or below the SAT,
or on contracts for commercial products,
including COTS items, or commercial
services. This rule applies paragraphs
(a) and (d) of section 861 of the John S.
McCain National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2019
(Pub. L. 115–232), and paragraphs (a)
and (c) of section 866 of the NDAA for
FY 2021 (Pub. L. 116–283), to
acquisitions at or below the SAT and to
acquisitions for commercial products,
including COTS items, and commercial
services, as the two new incentives for
SBA’s mentor-protégé program are
available to all contractors in the
program, regardless of the dollar value
of the contract awarded or the
commercial nature of the products and
services procured.
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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations
A. Applicability to Contracts at or Below
the Simplified Acquisition Threshold
The statute at 41 U.S.C. 1905 governs
the applicability of laws to acquisitions
at or below the SAT. Section 1905
generally limits the applicability of new
laws when agencies are making
acquisitions at or below the SAT, but
provides that such acquisitions will not
be exempt from a provision of law
under certain circumstances, including
when the Federal Acquisition
Regulatory Council (FAR Council)
makes a written determination and
finding that it would not be in the best
interest of the Federal Government to
exempt contracts and subcontracts in
amounts not greater than the SAT from
the provision of law. The FAR Council
has made a determination to apply this
statute to acquisitions at or below the
SAT.
B. Applicability to Contracts for the
Acquisition of Commercial Products
and Commercial Services, Including
Commercially Available Off-The-Shelf
(COTS) Items
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The statute at 41 U.S.C. 1906 governs
the applicability of laws to contracts for
the acquisition of commercial products
and commercial services, and is
intended to limit the applicability of
laws to contracts for the acquisition of
commercial products and commercial
services. Section 1906 provides that if
the FAR Council makes a written
determination that it is not in the best
interest of the Federal Government to
exempt commercial contracts, the
provision of law will apply to contracts
for the acquisition of commercial
products and commercial services.
The statute at 41 U.S.C. 1907 states
that acquisitions of COTS items will be
exempt from certain provisions of law
unless the Administrator for Federal
Procurement Policy makes a written
determination and finds that it would
not be in the best interest of the Federal
Government to exempt contracts for the
procurement of COTS items.
The FAR Council has made a
determination to apply this statute to
acquisitions for commercial products
and commercial services. The
Administrator for Federal Procurement
Policy has made a determination to
apply this statute to acquisitions for
COTS items.
IV. Expected Impact of the Rule
This rule is expected to benefit
mentors with an SBA-approved mentorprotégé agreement that subcontract to
covered territory small businesses and
small businesses that have their
principal office located in the
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Commonwealth of Puerto Rico. These
benefits are expected to extend to
covered territory small businesses and
small businesses located in the
Commonwealth of Puerto Rico, as
mentors may be incentivized to enter
into SBA-approved mentor-protégé
agreements with such small businesses
and issue subcontracts to them.
This rule is expected to decrease the
burden for certain entities that are
treated as small business concerns by
statute for certain purposes (e.g., ANCs),
as these entities will not be required to
submit subcontracting plans as
subcontractors.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 (as
amended by E.O. 14094) and 13563
direct agencies to assess 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.
VI. Congressional Review Act
Pursuant to the Congressional Review
Act, DoD, GSA, and NASA will send
this rule to each House of the Congress
and to the Comptroller General of the
United States. The Office of Information
and Regulatory Affairs (OIRA) in the
Office of Management and Budget has
determined that this rule does not meet
the definition in 5 U.S.C. 804(2).
VII. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared
a Final Regulatory Flexibility Analysis
(FRFA) consistent with the Regulatory
Flexibility Act, 5 U.S.C. 601–612. The
FRFA is summarized as follows:
DoD, GSA, and NASA are issuing a final
rule amending the Federal Acquisition
Regulation (FAR) to implement regulatory
changes made by the Small Business
Administration (SBA) in its final rule
published on October 16, 2020, at 85 FR
66146, to implement section 861 of the John
S. McCain National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2019 (Pub.
L. 115–232). The objective of this rule is to
implement SBA’s final rule and to implement
section 861, which amended 15 U.S.C.
657r(a) to add Puerto Rico to the list of
territories from which small businesses are
eligible for preferential treatment under the
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SBA mentor-protégé program. This rule also
implements SBA’s final rule published on
August 19, 2022, at 87 FR 50925 to
implement section 866 of the NDAA for FY
2021 (Pub. L. 116–283), which amended 15
U.S.C. 657r(a) and 15 U.S.C. 632(ff) to add
the U.S. Virgin Islands, American Samoa,
Guam, and the Commonwealth of the
Northern Mariana Islands (CNMI) to the list
of territories from which small businesses are
eligible for preferential treatment under the
SBA mentor-protégé programs. Section 866
also defines a ‘‘covered territory business’’ as
a small business concern that has its
principal office located in one of the
following: (1) the U.S. Virgin Islands; (2)
American Samoa; (3) Guam; and (4) CNMI.
Sections 861 and 866 created two new
incentives for SBA’s small business mentorprotégé program for mentor-protégé pairs in
which the protégé has its principal office
located in the Commonwealth of Puerto Rico
or is a covered territory business.
Specifically, such a mentor that subcontracts
to its protégé is able to receive positive
consideration for the mentor’s past
performance evaluation and is able to apply
the costs of training its protégé to its
subcontracting plan goals. This rule also
specifies the entities that are not required to
submit subcontracting plans as
subcontractors.
There were no significant issues raised by
the public comments in response to the
initial regulatory flexibility analysis.
This final rule will impact small
businesses whose principal office is in the
Commonwealth of Puerto Rico or that are
covered territory businesses that enter into
SBA-approved mentor-protégé agreements.
According to data from the Federal
Procurement Data System, in the last three
fiscal years, the Government awarded
contracts to small businesses in the covered
territories and in the Commonwealth of
Puerto Rico as follows: 506 in fiscal year (FY)
2021, 438 in FY 2022, and 435 in FY 2023,
which averages out to approximately 460
contracts per year. Each of those awards was
made to a unique small entity. In addition,
and according to data from the System for
Award Management (SAM), there are 6,318
small businesses in the Commonwealth of
Puerto Rico that are currently registered in
SAM. Although the Government awarded
approximately 460 contracts to 460 unique
small entities and there are 6,318 small
entities in the Commonwealth of Puerto Rico,
the number of small entities to which this
rule will apply cannot be more precisely
estimated as the number of entities that may
enter into SBA-approved mentor-protégé
agreements is unknown.
The Government does not collect data on
subcontracts; therefore, the Government
cannot estimate the number of small entities
that will not be required to submit
subcontracting plans.
The proposed rule does not impose any
new reporting, recordkeeping, or other
compliance requirements for small entities.
There are no known significant alternative
approaches that would accomplish the stated
objectives of the statutes.
Interested parties may obtain a copy
of the FRFA from the Regulatory
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Secretariat Division. The Regulatory
Secretariat Division has submitted a
copy of the FRFA to the Chief Counsel
for Advocacy of the Small Business
Administration.
VIII. 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 Parts 2, 19,
42, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA are
amending 48 CFR parts 2, 19, 42, and
52 as set forth below:
■ 1. The authority citation for 48 CFR
parts 2, 19, 42, and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51
U.S.C. 20113.
PART 2—DEFINITIONS OF WORDS
AND TERMS
2. Amend section 2.101 by adding in
alphabetic order the definition ‘‘Covered
territory business’’ to read as follows:
■
2.101
Definitions.
*
*
*
*
*
Covered territory business, as defined
at 15 U.S.C. 632(ff) and 13 CFR 125.1,
means a small business concern that has
its principal office located in the United
States Virgin Islands, American Samoa,
Guam, or the Commonwealth of the
Northern Mariana Islands.
*
*
*
*
*
PART 19—SMALL BUSINESS
PROGRAMS
3. Amend section 19.702 by adding
paragraph (e) to read as follows:
■
19.702
Statutory requirements.
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(e) In accordance with 15 U.S.C.
657r(a), a mentor with an SBA-approved
mentor-protégé agreement (see 13 CFR
125.9) that provides a subcontract to its
protégé may apply the costs incurred for
training it provides to its protégé toward
its subcontracting plan goals, provided
that protégé is a covered territory
business or that protégé has its principal
office located in the Commonwealth of
Puerto Rico.
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4. Amend section 19.703 by revising
paragraph (a)(2)(i) and paragraph
(a)(2)(ii) introductory text to read as
follows:
■
19.703 Eligibility requirements for
participating in the program.
(a) * * *
(2)(i) Unless the prime contractor has
reason to question the representation, it
may accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
HUBZone small business, or a womenowned small business, if the
subcontractor represents that the size
and socioeconomic status representation
with its offer are current, accurate, and
complete as of the date of the offer for
the subcontracts; or
(ii) Unless the prime contractor has
reason to question the representation, it
may accept a subcontractor’s
representation of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
HUBZone small business, or a womenowned small business in the System for
Award Management (SAM) if—
*
*
*
*
*
■ 5. Amend section 19.704 by revising
paragraph (a)(9) to read as follows:
19.704
Subcontracting plan requirements.
(a) * * *
(9) Assurances that the offeror will
include the clause at 52.219–8,
Utilization of Small Business Concerns
(see 19.708(a)), in all subcontracts that
offer further subcontracting
opportunities, and that the offeror will
require all subcontractors (except small
business concerns, including entities
that are treated as small business
concerns by statute for certain purposes
(e.g., ANCs, see 13 CFR 125.3(b)(2))) that
receive subcontracts in excess of
$750,000 ($1.5 million for construction)
to adopt a plan that complies with the
requirements of the clause at 52.219–9,
Small Business Subcontracting Plan (see
19.708(b));
*
*
*
*
*
PART 42—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
6. Amend section 42.1501 by revising
paragraph (a)(5) to read as follows:
■
42.1501
General.
(a) * * *
(5) Complying with the requirements
of the small business subcontracting
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525
plan (see 19.705–7(b)), including
favorable consideration of a mentor with
an SBA-approved mentor-protégé
agreement (see 13 CFR 125.9) that
subcontracts to its protégé, and that
protégé is a covered territory business or
that protégé’s principal office is located
in the Commonwealth of Puerto Rico
(see 15 U.S.C. 657r(a));
*
*
*
*
*
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
7. Amend section 52.212–5 by—
a. Removing from paragraph (b)(20)
‘‘(FEB 2024)’’ and adding ‘‘(JAN 2025)’’
in its place;
■ b. Removing from paragraphs
(b)(21)(i) and (v) ‘‘(SEP 2023)’’ and
adding ‘‘(JAN 2025)’’ in their places,
respectively;
■ c. Removing from paragraph
(e)(1)(viii) ‘‘(FEB 2024)’’ and adding
‘‘(JAN 2025)’’ in its place; and
■ d. In Alternate II:
■ i. Revising the date of the Alternate;
and
■ ii. Removing from paragraph
(e)(1)(ii)(H) ‘‘(FEB 2024)’’ and adding
‘‘(JAN 2025)’’ in its place.
The revision reads as follows:
■
■
52.212–5 Contract Terms and Conditions
Required To Implement Statutes or
Executive Orders—Commercial Products
and Commercial Services.
*
*
*
*
*
Alternate II (JAN 2025).* * *
*
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*
■ 8. Amend section 52.213–4 by—
■ a. Revising the date of the clause; and
■ b. Removing from paragraph (a)(2)(vii)
‘‘(NOV 2024)’’ and adding ‘‘(JAN 2025)’’
in its place.
The revision reads as follows:
52.213–4 Terms and Conditions—
Simplified Acquisitions (Other Than
Commercial Products and Commercial
Services).
*
*
*
*
*
Terms and Conditions—Simplified
Acquisitions (Other Than Commercial
Products and Commercial Services)
(JAN 2025)
*
*
*
*
*
9. Amend section 52.219–8 by
revising the date of the clause and
paragraph (e)(1) and paragraph (e)(2)
introductory text to read as follows:
■
52.219–8 Utilization of Small Business
Concerns.
*
*
*
*
*
Utilization of Small Business Concerns
(JAN 2025)
*
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(e)(1) Unless the Contractor has
reason to question the representation, it
may accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
or a women-owned small business if the
subcontractor represents that the size
and socioeconomic status
representations with its offer are
current, accurate, and complete as of the
date of the offer for the subcontract.
(2) Unless the Contractor has reason
to question the representation, it may
accept a subcontractor’s representations
of its size and socioeconomic status as
a small business, small disadvantaged
business, veteran-owned small business,
service-disabled veteran-owned small
business, or a women-owned small
business in the System for Award
Management (SAM) if—
*
*
*
*
*
■ 10. Amend section 52.219–9 by—
■ a. Revising the date of the clause and
paragraphs (c)(2)(i), (c)(2)(ii)
introductory text, (d)(1) introductory
text, and (d)(9);
■ b. Removing from paragraph (d)(10)(ii)
‘‘Offeror’’ and adding ‘‘Contractor’’ in its
place;
■ c. Removing from paragraph (d)(15)
‘‘offeror’’ and adding ‘‘Contractor’’ in its
place;
■ d. In Alternate III:
■ i. Revising the date of the Alternate;
and
■ ii. Removing from paragraph
(d)(10)(ii) ‘‘Offeror’’ and adding
‘‘Contractor’’ in its place; and
■ e. In Alternate IV:
■ i. Revising the date of the Alternate
and paragraphs (c)(2)(i), (c)(2)(ii)
introductory text, (d)(1) introductory
text, and (d)(9); and
■ ii. Removing from paragraph (d)(15)
‘‘offeror’’ and adding ‘‘Contractor’’ in its
place.
The revisions read as follows:
52.219–9
Plan.
*
*
Small Business Subcontracting
*
*
*
Small Business Subcontracting Plan
(JAN 2025)
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*
*
*
*
(c) * * *
(2)(i) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
or a women-owned small business if the
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subcontractor represents that the size
and socioeconomic status
representations with its offer are
current, accurate, and complete as of the
date of the offer for the subcontract.
(ii) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s representations
of its size and socioeconomic status as
a small business, small disadvantaged
business, veteran-owned small business,
service-disabled veteran-owned small
business, or a women-owned small
business in the System for Award
Management (SAM) if—
*
*
*
*
*
(d) * * *
(1) Separate goals, expressed in terms
of total dollars subcontracted, and as a
percentage of total planned
subcontracting dollars, for the use of
small business, veteran-owned small
business, service-disabled veteranowned small business, HUBZone small
business, small disadvantaged business,
and women-owned small business
concerns as subcontractors. For
individual subcontracting plans, and if
required by the Contracting Officer,
goals shall also be expressed in terms of
percentage of total contract dollars, in
addition to the goals expressed as a
percentage of total subcontract dollars.
The Offeror shall include all
subcontracts that contribute to contract
performance, and may include a
proportionate share of products and
services that are normally allocated as
indirect costs. In accordance with 15
U.S.C. 657r(a), an Offeror that is a
mentor with an SBA-approved mentorprotégé agreement (see 13 CFR 125.9)
that provides a subcontract to its protégé
may apply the costs incurred for
training it provides to its protégé toward
its subcontracting plan goals, provided
that protégé is a covered territory
business or that protégé has its principal
office located in the Commonwealth of
Puerto Rico. In accordance with 43
U.S.C. 1626—
*
*
*
*
*
(9) Assurances that the Offeror will
include the clause of this contract
entitled ‘‘Utilization of Small Business
Concerns’’ in all subcontracts that offer
further subcontracting opportunities,
and that the Offeror will require all
subcontractors (except small business
concerns, including entities that are
treated as small business concerns by
statute for certain purposes (e.g., ANCs,
see 13 CFR 125.3(b)(2))) that receive
subcontracts in excess of the applicable
threshold specified in FAR 19.702(a) on
the date of subcontract award, with
further subcontracting possibilities to
adopt a subcontracting plan that
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complies with the requirements of this
clause.
*
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Alternate III (JAN 2025).* * *
*
*
*
*
*
Alternate IV (JAN 2025).* * *
(c) * * *
(2)(i) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s written
representations of its size and
socioeconomic status as a small
business, small disadvantaged business,
veteran-owned small business, servicedisabled veteran-owned small business,
or a women-owned small business if the
subcontractor represents that the size
and socioeconomic status
representations with its offer are
current, accurate, and complete as of the
date of the offer for the subcontract.
(ii) Unless the Contractor has reason
to question the representations, it may
accept a subcontractor’s representations
of its size and socioeconomic status as
a small business, small disadvantaged
business, veteran-owned small business,
service-disabled veteran-owned small
business, or a women-owned small
business in the System for Award
Management (SAM) if—
*
*
*
*
*
(d) * * *
(1) Separate goals, expressed in terms
of total dollars subcontracted and as a
percentage of total planned
subcontracting dollars, for the use of
small business, veteran-owned small
business, service-disabled veteranowned small business, HUBZone small
business, small disadvantaged business,
and women-owned small business
concerns as subcontractors. For
individual subcontracting plans, and if
required by the Contracting Officer,
goals shall also be expressed in terms of
percentage of total contract dollars, in
addition to the goals expressed as a
percentage of total subcontract dollars.
The Contractor shall include all
subcontracts that contribute to contract
performance, and may include a
proportionate share of products and
services that are normally allocated as
indirect costs. In accordance with 15
U.S.C. 657r(a), a Contractor that is a
mentor with an SBA-approved mentorprotégé agreement (see 13 CFR 125.9)
that provides a subcontract to its protégé
may apply the costs incurred for
training it provides to its protégé toward
its subcontracting plan goals, provided
that protégé is a covered territory
business or that protégé has its principal
office located in the Commonwealth of
Puerto Rico. In accordance with 43
U.S.C. 1626—
*
*
*
*
*
E:\FR\FM\03JAR4.SGM
03JAR4
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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations
(9) Assurances that the Contractor
will include the clause of this contract
entitled ‘‘Utilization of Small Business
Concerns’’ in all subcontracts that offer
further subcontracting opportunities,
and that the Contractor will require all
subcontractors (except small business
concerns, including entities that are
treated as small business concerns by
statute for certain purposes (e.g., ANCs,
see 13 CFR 125.3(b)(2))) that receive
subcontracts in excess of the applicable
threshold specified in FAR 19.702(a) on
the date of subcontract award, with
further subcontracting possibilities to
adopt a subcontracting plan that
complies with the requirements of this
clause.
*
*
*
*
*
11. Amend section 52.244–6 by—
a. Revising the date of the clause; and
■ b. Removing from paragraph (c)(1)(x)
‘‘(FEB 2024)’’ and adding ‘‘(JAN 2025)’’
in its place.
The revision reads as follows:
■
■
52.244–6 Subcontracts for Commercial
Products and Commercial Services.
*
*
*
*
Subcontracts for Commercial Products
and Commercial Services (JAN 2025)
*
*
*
*
*
[FR Doc. 2024–31407 Filed 1–2–25; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR–2024–0051, Sequence No.
8]
Federal Acquisition Regulation;
Federal Acquisition Circular 2025–03;
Small Entity Compliance Guide
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
AGENCY:
ACTION:
Small Entity Compliance Guide
(SECG).
*
This document is issued
under the joint authority of DoD, GSA,
and NASA. This Small Entity
Compliance Guide has been prepared in
accordance with section 212 of the
Small Business Regulatory Enforcement
Fairness Act of 1996. It consists of a
summary of the rules appearing in
Federal Acquisition Circular (FAC)
2025–03, which amends the Federal
Acquisition Regulation (FAR).
Interested parties may obtain further
information regarding these rules by
referring to FAC 2025–03, which
precedes this document.
DATES: January 3, 2025.
ADDRESSES: The FAC, including the
SECG, is available at https://
www.regulations.gov.
SUMMARY:
For
clarification of content, contact the
analyst whose name appears in the table
below. Please cite FAC 2025–03 and the
FAR Case number. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755 or
GSARegSec@gsa.gov. An asterisk (*)
next to a rule indicates that a regulatory
flexibility analysis has been prepared.
FOR FURTHER INFORMATION CONTACT:
RULES LISTED IN FAC 2025–03
Item
Subject
* I .......
Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment.
Rerepresentation of Size and Socioeconomic Status ..........................................................................................
Subcontracting to Puerto Rican And Covered Territory Small Businesses .........................................................
lotter on DSK11XQN23PROD with RULES4
* II ......
* III .....
FAR case
SUPPLEMENTARY INFORMATION:
Summaries for each FAR rule follow.
For the actual revisions and/or
amendments made by these FAR rules,
refer to the specific item numbers and
subjects set forth in the documents
following these item summaries. FAC
2025–03 amends the FAR as follows:
how the two systems’ procedures relate
to each other. The changes are not
expected to have a significant economic
impact on a substantial number of small
entities. It is anticipated that this rule
will have a positive impact on small
businesses with increased transparency
in the process.
Item I—Improving Consistency
Between Procurement and
Nonprocurement Procedures on
Suspension and Debarment (FAR Case
2019–015)
Item II—Rerepresentation of Size and
Socioeconomic Status (FAR Case 2020–
016)
This final rule amends the FAR to
improve consistency between the
procurement and nonprocurement
procedures on suspension and
debarment, based on recommendations
of the Interagency Suspension and
Debarment Committee. The changes in
the FAR bring the two systems into
closer alignment, enhancing
transparency and consistency within the
Government’s suspension and
debarment procedures. This allows
contractors a better understanding of
VerDate Sep<11>2014
19:45 Jan 02, 2025
Jkt 262001
This final rule amends the FAR to
implement regulatory changes made by
the Small Business Administration to
size and socioeconomic status
rerepresentation requirements for orders
placed against multiple-award contracts.
Specifically, business concerns that
represented their status as any of the
small business concerns identified at
FAR 19.000(a)(3) are required to
rerepresent their size and/or
socioeconomic status for orders set
aside—
(1) Under unrestricted multiple-award
contracts, unless the order is issued
PO 00000
Frm 00023
Fmt 4701
Sfmt 4700
Analyst
2019–015
Delgado.
2020–016
2023–001
Bowman.
Moore.
against a reserve for which size and/or
status was required.
(2) Under a multiple-award contract
that was totally or partially set aside for
small businesses, and the order requires
a different socioeconomic status.
Federal Supply Schedules (FSS) are
exempt from these requirements.
The final rule will help to validate
that small businesses qualify for the size
and/or socioeconomic status associated
with orders placed under certain
multiple-award contracts. Also, entities
that no longer qualify under the
applicable North American Industry
Classification System (NAICS) code or
the socioeconomic status they claim
may not qualify under the applicable
NAICS code or socioeconomic status for
set-aside orders under the multipleaward contracts subject to this rule.
The final rule is not expected to have
a significant economic impact on a
substantial number of small entities.
E:\FR\FM\03JAR4.SGM
03JAR4
]]>Agencies
[Federal Register Volume 90, Number 2 (Friday, January 3, 2025)]
[Rules and Regulations]
[Pages 523-527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31407]
[[Page 523]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 19, 42, and 52
[FAC 2025-03; FAR Case 2023-001, Item III; Docket No. FAR 2023-0001;
Sequence No. 1]
RIN 9000-AO50
Federal Acquisition Regulation: Subcontracting to Puerto Rican
and Covered Territory Small Businesses
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 regulatory changes
made by the Small Business Administration to add incentives for certain
United States territories under the Small Business Administration
mentor-prot[eacute]g[eacute] program.
DATES: Effective January 17, 2025.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Carrie Moore, Procurement Analyst, at 571-300-5917, or by email at
[email protected]. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or [email protected]. Please cite FAC 2025-03, FAR Case
2023-001.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule at 89 FR 48540 on June
7, 2024, to implement regulatory changes made by the Small Business
Administration (SBA) in its final rules published on October 16, 2020
(85 FR 66146) and on August 19, 2022 (87 FR 50925) to implement section
861 of Public Law 115-232 and section 866 of Public Law 116-283. For
further details please see the proposed rule. Two respondents submitted
comments on the proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the public comments in the
development of the final rule. A discussion of the comments is provided
as follows; however, no changes were made to the rule as a result of
those comments.
A. Summary of significant changes: There are no significant changes
from the proposed rule.
B. Analysis of public comments:
Comment: The respondents expressed support for the rule.
Response: The Councils acknowledge the respondents' support for the
rule.
Comment: The respondents expressed support for the change at
19.702, which specifies that subcontracting plans are not required from
Alaska Native Corporations (ANCs).
Response: The Councils acknowledge the respondents' support for
this change. SBA clarified that an ANC prime contractor is required to
submit a subcontracting plan if they are large for the North American
Industry Classification System (NAICS) code assigned to the contract.
However, an ANC subcontractor is treated as a small business concern by
statute and, therefore, cannot be required to submit a subcontracting
plan (see 13 CFR 125.3(b)(2)).
Comment: The respondents recommended changes to the proposed rule
text at FAR 19.703(2)(i) and (ii) and in the clauses at FAR 52.219-8,
Utilization of Small Business Concerns, and 52.219-9, Small Business
Subcontracting Plan, which specify that a contractor may rely on a
subcontractor's representation unless it has reason to question it. A
respondent recommended the word ``question'' be replaced with ``doubt''
to align with SBA's regulations at 13 CFR 121.404(e), indicating the
word ``doubt'' means, in accordance with the Merriam-Webster
Dictionary, to call into question the truth of, to lack confidence in,
and to consider unlikely, whereas ``question'' simply means to ask a
question. Another respondent recommended the text be amended to
specify: ``unless the contractor has an objective, evidence-based
reason to question a representation for clarity''.
Response: In this context, SBA's term ``doubt'' has the same
meaning as the FAR term ``question''. The FAR consistently uses the
term ``question'' when specifying that a contracting officer may rely
on a representation or certification unless the contracting officer has
a reason to question the representation or certification. Aligning the
proposed rule text with text currently used in the FAR for other
representations or certifications helps promote certainty and avoids
confusion for the contracting community. Moreover, the FAR does not
replicate terminology used in SBA's regulations; instead SBA's
regulations are translated into FAR terminology. This rule implements
SBA's regulations at 13 CFR 121.404(e), which do not specify that the
contractor is required to have an objective, evidence-based reason to
question a representation. There are a variety of reasons why a
contractor might question a subcontractor's representation and this
text is written so as to not limit the basis on which a contractor may
question such a representation.
C. Other changes. The proposed rule FAR text at 19.702(b)(1) is
moved in the final rule to FAR 19.704(a)(9) and to paragraph (d)(9) of
the clause at FAR 52.219-9 and its Alternate IV to specify for
contractors that subcontracting plans are not required from their
subcontractors that are treated as small business concerns by statute.
Conforming changes are made to the clause at FAR 52.219-9 and its
Alternates III and IV.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items) or for Commercial Services
This rule amends the clauses at FAR 52.212-5, Contract Terms and
Conditions Required To Implement Statutes or Executive Orders--
Commercial Products and Commercial Services; 52.213-4, Terms and
Conditions--Simplified Acquisitions (Other Than Commercial Products and
Commercial Services); 52.219-8, Utilization of Small Business Concerns;
and 52.219-9, Small Business Subcontracting Plan. However, this rule
does not change the applicability of these clauses, which continue to
apply to contracts valued at or below the SAT, or on contracts for
commercial products, including COTS items, or commercial services. This
rule applies paragraphs (a) and (d) of section 861 of the John S.
McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY)
2019 (Pub. L. 115-232), and paragraphs (a) and (c) of section 866 of
the NDAA for FY 2021 (Pub. L. 116-283), to acquisitions at or below the
SAT and to acquisitions for commercial products, including COTS items,
and commercial services, as the two new incentives for SBA's mentor-
prot[eacute]g[eacute] program are available to all contractors in the
program, regardless of the dollar value of the contract awarded or the
commercial nature of the products and services procured.
[[Page 524]]
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
The statute at 41 U.S.C. 1905 governs the applicability of laws to
acquisitions at or below the SAT. Section 1905 generally limits the
applicability of new laws when agencies are making acquisitions at or
below the SAT, but provides that such acquisitions will not be exempt
from a provision of law under certain circumstances, including when the
Federal Acquisition Regulatory Council (FAR Council) makes a written
determination and finding that it would not be in the best interest of
the Federal Government to exempt contracts and subcontracts in amounts
not greater than the SAT from the provision of law. The FAR Council has
made a determination to apply this statute to acquisitions at or below
the SAT.
B. Applicability to Contracts for the Acquisition of Commercial
Products and Commercial Services, Including Commercially Available Off-
The-Shelf (COTS) Items
The statute at 41 U.S.C. 1906 governs the applicability of laws to
contracts for the acquisition of commercial products and commercial
services, and is intended to limit the applicability of laws to
contracts for the acquisition of commercial products and commercial
services. Section 1906 provides that if the FAR Council makes a written
determination that it is not in the best interest of the Federal
Government to exempt commercial contracts, the provision of law will
apply to contracts for the acquisition of commercial products and
commercial services.
The statute at 41 U.S.C. 1907 states that acquisitions of COTS
items will be exempt from certain provisions of law unless the
Administrator for Federal Procurement Policy makes a written
determination and finds that it would not be in the best interest of
the Federal Government to exempt contracts for the procurement of COTS
items.
The FAR Council has made a determination to apply this statute to
acquisitions for commercial products and commercial services. The
Administrator for Federal Procurement Policy has made a determination
to apply this statute to acquisitions for COTS items.
IV. Expected Impact of the Rule
This rule is expected to benefit mentors with an SBA-approved
mentor-prot[eacute]g[eacute] agreement that subcontract to covered
territory small businesses and small businesses that have their
principal office located in the Commonwealth of Puerto Rico. These
benefits are expected to extend to covered territory small businesses
and small businesses located in the Commonwealth of Puerto Rico, as
mentors may be incentivized to enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements with such small businesses and issue
subcontracts to them.
This rule is expected to decrease the burden for certain entities
that are treated as small business concerns by statute for certain
purposes (e.g., ANCs), as these entities will not be required to submit
subcontracting plans as subcontractors.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 (as amended by E.O. 14094) and 13563
direct agencies to assess 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.
VI. Congressional Review Act
Pursuant to the Congressional Review Act, DoD, GSA, and NASA will
send this rule to each House of the Congress and to the Comptroller
General of the United States. The Office of Information and Regulatory
Affairs (OIRA) in the Office of Management and Budget has determined
that this rule does not meet the definition in 5 U.S.C. 804(2).
VII. Regulatory Flexibility Act
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5
U.S.C. 601-612. The FRFA is summarized as follows:
DoD, GSA, and NASA are issuing a final rule amending the Federal
Acquisition Regulation (FAR) to implement regulatory changes made by
the Small Business Administration (SBA) in its final rule published
on October 16, 2020, at 85 FR 66146, to implement section 861 of the
John S. McCain National Defense Authorization Act (NDAA) for Fiscal
Year (FY) 2019 (Pub. L. 115-232). The objective of this rule is to
implement SBA's final rule and to implement section 861, which
amended 15 U.S.C. 657r(a) to add Puerto Rico to the list of
territories from which small businesses are eligible for
preferential treatment under the SBA mentor-prot[eacute]g[eacute]
program. This rule also implements SBA's final rule published on
August 19, 2022, at 87 FR 50925 to implement section 866 of the NDAA
for FY 2021 (Pub. L. 116-283), which amended 15 U.S.C. 657r(a) and
15 U.S.C. 632(ff) to add the U.S. Virgin Islands, American Samoa,
Guam, and the Commonwealth of the Northern Mariana Islands (CNMI) to
the list of territories from which small businesses are eligible for
preferential treatment under the SBA mentor-prot[eacute]g[eacute]
programs. Section 866 also defines a ``covered territory business''
as a small business concern that has its principal office located in
one of the following: (1) the U.S. Virgin Islands; (2) American
Samoa; (3) Guam; and (4) CNMI. Sections 861 and 866 created two new
incentives for SBA's small business mentor-prot[eacute]g[eacute]
program for mentor-prot[eacute]g[eacute] pairs in which the
prot[eacute]g[eacute] has its principal office located in the
Commonwealth of Puerto Rico or is a covered territory business.
Specifically, such a mentor that subcontracts to its
prot[eacute]g[eacute] is able to receive positive consideration for
the mentor's past performance evaluation and is able to apply the
costs of training its prot[eacute]g[eacute] to its subcontracting
plan goals. This rule also specifies the entities that are not
required to submit subcontracting plans as subcontractors.
There were no significant issues raised by the public comments
in response to the initial regulatory flexibility analysis.
This final rule will impact small businesses whose principal
office is in the Commonwealth of Puerto Rico or that are covered
territory businesses that enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements. According to data from the Federal
Procurement Data System, in the last three fiscal years, the
Government awarded contracts to small businesses in the covered
territories and in the Commonwealth of Puerto Rico as follows: 506
in fiscal year (FY) 2021, 438 in FY 2022, and 435 in FY 2023, which
averages out to approximately 460 contracts per year. Each of those
awards was made to a unique small entity. In addition, and according
to data from the System for Award Management (SAM), there are 6,318
small businesses in the Commonwealth of Puerto Rico that are
currently registered in SAM. Although the Government awarded
approximately 460 contracts to 460 unique small entities and there
are 6,318 small entities in the Commonwealth of Puerto Rico, the
number of small entities to which this rule will apply cannot be
more precisely estimated as the number of entities that may enter
into SBA-approved mentor-prot[eacute]g[eacute] agreements is
unknown.
The Government does not collect data on subcontracts; therefore,
the Government cannot estimate the number of small entities that
will not be required to submit subcontracting plans.
The proposed rule does not impose any new reporting,
recordkeeping, or other compliance requirements for small entities.
There are no known significant alternative approaches that would
accomplish the stated objectives of the statutes.
Interested parties may obtain a copy of the FRFA from the
Regulatory
[[Page 525]]
Secretariat Division. The Regulatory Secretariat Division has submitted
a copy of the FRFA to the Chief Counsel for Advocacy of the Small
Business Administration.
VIII. 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 Parts 2, 19, 42, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA are amending 48 CFR parts 2, 19, 42,
and 52 as set forth below:
0
1. The authority citation for 48 CFR parts 2, 19, 42, and 52 continues
to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C.
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C.
20113.
PART 2--DEFINITIONS OF WORDS AND TERMS
0
2. Amend section 2.101 by adding in alphabetic order the definition
``Covered territory business'' to read as follows:
2.101 Definitions.
* * * * *
Covered territory business, as defined at 15 U.S.C. 632(ff) and 13
CFR 125.1, means a small business concern that has its principal office
located in the United States Virgin Islands, American Samoa, Guam, or
the Commonwealth of the Northern Mariana Islands.
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
0
3. Amend section 19.702 by adding paragraph (e) to read as follows:
19.702 Statutory requirements.
* * * * *
(e) In accordance with 15 U.S.C. 657r(a), a mentor with an SBA-
approved mentor-prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that
provides a subcontract to its prot[eacute]g[eacute] may apply the costs
incurred for training it provides to its prot[eacute]g[eacute] toward
its subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico.
0
4. Amend section 19.703 by revising paragraph (a)(2)(i) and paragraph
(a)(2)(ii) introductory text to read as follows:
19.703 Eligibility requirements for participating in the program.
(a) * * *
(2)(i) Unless the prime contractor has reason to question the
representation, it may accept a subcontractor's written representations
of its size and socioeconomic status as a small business, small
disadvantaged business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, or a women-owned
small business, if the subcontractor represents that the size and
socioeconomic status representation with its offer are current,
accurate, and complete as of the date of the offer for the
subcontracts; or
(ii) Unless the prime contractor has reason to question the
representation, it may accept a subcontractor's representation of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, HUBZone small business, or a women-owned small business
in the System for Award Management (SAM) if--
* * * * *
0
5. Amend section 19.704 by revising paragraph (a)(9) to read as
follows:
19.704 Subcontracting plan requirements.
(a) * * *
(9) Assurances that the offeror will include the clause at 52.219-
8, Utilization of Small Business Concerns (see 19.708(a)), in all
subcontracts that offer further subcontracting opportunities, and that
the offeror will require all subcontractors (except small business
concerns, including entities that are treated as small business
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR
125.3(b)(2))) that receive subcontracts in excess of $750,000 ($1.5
million for construction) to adopt a plan that complies with the
requirements of the clause at 52.219-9, Small Business Subcontracting
Plan (see 19.708(b));
* * * * *
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
6. Amend section 42.1501 by revising paragraph (a)(5) to read as
follows:
42.1501 General.
(a) * * *
(5) Complying with the requirements of the small business
subcontracting plan (see 19.705-7(b)), including favorable
consideration of a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that subcontracts to
its prot[eacute]g[eacute], and that prot[eacute]g[eacute] is a covered
territory business or that prot[eacute]g[eacute]'s principal office is
located in the Commonwealth of Puerto Rico (see 15 U.S.C. 657r(a));
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Amend section 52.212-5 by--
0
a. Removing from paragraph (b)(20) ``(FEB 2024)'' and adding ``(JAN
2025)'' in its place;
0
b. Removing from paragraphs (b)(21)(i) and (v) ``(SEP 2023)'' and
adding ``(JAN 2025)'' in their places, respectively;
0
c. Removing from paragraph (e)(1)(viii) ``(FEB 2024)'' and adding
``(JAN 2025)'' in its place; and
0
d. In Alternate II:
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (e)(1)(ii)(H) ``(FEB 2024)'' and adding
``(JAN 2025)'' in its place.
The revision reads as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
Alternate II (JAN 2025).* * *
* * * * *
0
8. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(2)(vii) ``(NOV 2024)'' and adding ``(JAN
2025)'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Products and Commercial Services).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Products and Commercial Services) (JAN 2025)
* * * * *
0
9. Amend section 52.219-8 by revising the date of the clause and
paragraph (e)(1) and paragraph (e)(2) introductory text to read as
follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (JAN 2025)
* * * * *
[[Page 526]]
(e)(1) Unless the Contractor has reason to question the
representation, it may accept a subcontractor's written representations
of its size and socioeconomic status as a small business, small
disadvantaged business, veteran-owned small business, service-disabled
veteran-owned small business, or a women-owned small business if the
subcontractor represents that the size and socioeconomic status
representations with its offer are current, accurate, and complete as
of the date of the offer for the subcontract.
(2) Unless the Contractor has reason to question the
representation, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small business in the System for Award
Management (SAM) if--
* * * * *
0
10. Amend section 52.219-9 by--
0
a. Revising the date of the clause and paragraphs (c)(2)(i), (c)(2)(ii)
introductory text, (d)(1) introductory text, and (d)(9);
0
b. Removing from paragraph (d)(10)(ii) ``Offeror'' and adding
``Contractor'' in its place;
0
c. Removing from paragraph (d)(15) ``offeror'' and adding
``Contractor'' in its place;
0
d. In Alternate III:
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (d)(10)(ii) ``Offeror'' and adding
``Contractor'' in its place; and
0
e. In Alternate IV:
0
i. Revising the date of the Alternate and paragraphs (c)(2)(i),
(c)(2)(ii) introductory text, (d)(1) introductory text, and (d)(9); and
0
ii. Removing from paragraph (d)(15) ``offeror'' and adding
``Contractor'' in its place.
The revisions read as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (JAN 2025)
* * * * *
(c) * * *
(2)(i) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's written
representations of its size and socioeconomic status as a small
business, small disadvantaged business, veteran-owned small business,
service-disabled veteran-owned small business, or a women-owned small
business if the subcontractor represents that the size and
socioeconomic status representations with its offer are current,
accurate, and complete as of the date of the offer for the subcontract.
(ii) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small business in the System for Award
Management (SAM) if--
* * * * *
(d) * * *
(1) Separate goals, expressed in terms of total dollars
subcontracted, and as a percentage of total planned subcontracting
dollars, for the use of small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns
as subcontractors. For individual subcontracting plans, and if required
by the Contracting Officer, goals shall also be expressed in terms of
percentage of total contract dollars, in addition to the goals
expressed as a percentage of total subcontract dollars. The Offeror
shall include all subcontracts that contribute to contract performance,
and may include a proportionate share of products and services that are
normally allocated as indirect costs. In accordance with 15 U.S.C.
657r(a), an Offeror that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a
subcontract to its prot[eacute]g[eacute] may apply the costs incurred
for training it provides to its prot[eacute]g[eacute] toward its
subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico. In
accordance with 43 U.S.C. 1626--
* * * * *
(9) Assurances that the Offeror will include the clause of this
contract entitled ``Utilization of Small Business Concerns'' in all
subcontracts that offer further subcontracting opportunities, and that
the Offeror will require all subcontractors (except small business
concerns, including entities that are treated as small business
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR
125.3(b)(2))) that receive subcontracts in excess of the applicable
threshold specified in FAR 19.702(a) on the date of subcontract award,
with further subcontracting possibilities to adopt a subcontracting
plan that complies with the requirements of this clause.
* * * * *
Alternate III (JAN 2025).* * *
* * * * *
Alternate IV (JAN 2025).* * *
(c) * * *
(2)(i) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's written
representations of its size and socioeconomic status as a small
business, small disadvantaged business, veteran-owned small business,
service-disabled veteran-owned small business, or a women-owned small
business if the subcontractor represents that the size and
socioeconomic status representations with its offer are current,
accurate, and complete as of the date of the offer for the subcontract.
(ii) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small business in the System for Award
Management (SAM) if--
* * * * *
(d) * * *
(1) Separate goals, expressed in terms of total dollars
subcontracted and as a percentage of total planned subcontracting
dollars, for the use of small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns
as subcontractors. For individual subcontracting plans, and if required
by the Contracting Officer, goals shall also be expressed in terms of
percentage of total contract dollars, in addition to the goals
expressed as a percentage of total subcontract dollars. The Contractor
shall include all subcontracts that contribute to contract performance,
and may include a proportionate share of products and services that are
normally allocated as indirect costs. In accordance with 15 U.S.C.
657r(a), a Contractor that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a
subcontract to its prot[eacute]g[eacute] may apply the costs incurred
for training it provides to its prot[eacute]g[eacute] toward its
subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico. In
accordance with 43 U.S.C. 1626--
* * * * *
[[Page 527]]
(9) Assurances that the Contractor will include the clause of this
contract entitled ``Utilization of Small Business Concerns'' in all
subcontracts that offer further subcontracting opportunities, and that
the Contractor will require all subcontractors (except small business
concerns, including entities that are treated as small business
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR
125.3(b)(2))) that receive subcontracts in excess of the applicable
threshold specified in FAR 19.702(a) on the date of subcontract award,
with further subcontracting possibilities to adopt a subcontracting
plan that complies with the requirements of this clause.
* * * * *
0
11. Amend section 52.244-6 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(x) ``(FEB 2024)'' and adding ``(JAN
2025)'' in its place.
The revision reads as follows:
52.244-6 Subcontracts for Commercial Products and Commercial
Services.
* * * * *
Subcontracts for Commercial Products and Commercial Services (JAN 2025)
* * * * *
[FR Doc. 2024-31407 Filed 1-2-25; 8:45 am]
BILLING CODE 6820-EP-P
