Federal Acquisition Regulation; Federal Acquisition Circular 2025-03; Introduction, 506-507 [2024-31409]
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506
Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations
and National Aeronautics and Space
Administration (NASA).
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
ACTION:
Summary presentation of final
rules.
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[Docket No. FAR–2024–0051, Sequence No.
8]
Federal Acquisition Regulation;
Federal Acquisition Circular 2025–03;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
AGENCY:
The
analyst whose name appears in the table
below in relation to the FAR case. For
information pertaining to status or
publication schedules, contact the
Regulatory Secretariat Division at 202–
501–4755 or GSARegSec@gsa.gov.
FOR FURTHER INFORMATION CONTACT:
This document summarizes
the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2025–03. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC.
SUMMARY:
48 CFR Chapter 1
The FAC, including the
SECG, is available at https://
www.regulations.gov.
ADDRESSES:
For effective dates see the
separate documents, which follow.
DATES:
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 .......................................................
II .......
III ......
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:
lotter on DSK11XQN23PROD with RULES4
Item I—Improving Consistency
Between Procurement and
Nonprocurement Procedures on
Suspension and Debarment (FAR Case
2019–015)
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
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.
VerDate Sep<11>2014
19:45 Jan 02, 2025
Jkt 262001
FAR case
Analyst
2019–015
Delgado.
2020–016
2023–001
Bowman.
Moore.
Item II—Rerepresentation of Size and
Socioeconomic Status (FAR Case 2020–
016)
The final rule is not expected to have
a significant economic impact on a
substantial number of small entities.
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
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.
Item III—Subcontracting to Puerto
Rican and Covered Territory Small
Businesses (FAR Case 2023–001)
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This final rule amends the FAR to
implement regulatory changes made by
the Small Business Administration to
implement section 861 of Public Law
115–232 and section 866 of Public Law
116–283, which add incentives for
certain U.S. territories under the Small
Business Administration mentor-protégé
program. This final rule also specifies
the entities that are not required to
submit subcontracting plans as
subcontractors. This final rule is not
expected to have a significant impact on
a substantial number of small entities;
however, it 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 mentorprotégé agreements.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2025–
03 is issued under the authority of the
Secretary of Defense, the Administrator of
General Services, and the Administrator of
National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal
Acquisition Regulation (FAR) and other
E:\FR\FM\03JAR4.SGM
03JAR4
Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations
directive material contained in FAC 2025–03
are effective January 17, 2025.
John M. Tenaglia,
Principal Director, Defense Pricing,
Contracting, and Acquisition Policy,
Department of Defense.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy,
U.S. General Services Administration.
Marvin L. Horne,
Deputy Assistant Administrator for NASA
Procurement, National Aeronautics and
Space Administration.
[FR Doc. 2024–31409 Filed 1–2–25; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
48 CFR Parts 2, 3, 9, 22, 25, 26, 33, and
52
[FAC 2025–03; FAR Case 2019–015, Item
I; Docket No. FAR–2019–0015; Sequence
No. 1]
RIN 9000–AN98
Federal Acquisition Regulation:
Improving Consistency Between
Procurement and Nonprocurement
Procedures on Suspension and
Debarment
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
improve consistency between the
procurement and nonprocurement
procedures on suspension and
debarment, based on the
recommendations of the Interagency
Suspension and Debarment Committee.
DATES: Effective January 17, 2025.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Ms.
Zenaida Delgado, Procurement Analyst,
at 202–969–7207 or by email at
zenaida.delgado@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
2019–015.
SUPPLEMENTARY INFORMATION:
lotter on DSK11XQN23PROD with RULES4
SUMMARY:
19:45 Jan 02, 2025
DoD, GSA, and NASA published a
proposed rule at 89 FR 1043 on January
9, 2024, to improve consistency between
procurement and nonprocurement
procedures on suspension and
debarment, based on the
recommendations of the Interagency
Suspension and Debarment Committee
(ISDC). The procurement procedures on
suspension and debarment are covered
in the FAR. The nonprocurement
procedures on suspension and
debarment (i.e., Nonprocurement
Common Rule (NCR)) are covered in 2
CFR part 180 and agency implementing
regulations. For further details please
see the proposed rule. Five respondents
submitted comments on the proposed
rule.
II. Discussion and Analysis
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
VerDate Sep<11>2014
I. Background
Jkt 262001
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 and the
changes made to the rule as a result of
those comments are provided as
follows:
A. Summary of significant changes:
No changes to the FAR text have been
made from the proposed to final rule
that have a significant negative effect on
contractors. Minor changes and
clarifications have been made to the
final rule. These changes are outlined
below:
1. Revised FAR 9.406–1(a) to provide
clarification regarding which mitigating
and aggravating factors may apply to
individuals.
2. Revised FAR 9.406–3(b)(1) and
9.407–3(b)(1) to clarify that if the
suspending and debarring official (SDO)
extends the opportunity for the
contractor to submit material in
opposition, then the SDO should also
give a deadline for submission of
materials.
3. Revised FAR 9.406–3(c)(1)(i) to
allow the notice of proposed debarment,
or the notice of suspension, to be sent
by U.S. mail or private delivery service
to the last known street address, with
delivery notification service.
4. Revised FAR 9.406–3(c)(1)(ii) to
allow the notice of proposed debarment,
or the notice of suspension, to be sent
by email to the point of contact email
address in the contractor’s registration
in the System for Award Management
(SAM), if any, or to the last known
email address as confirmed by the
agency.
5. Revised FAR 9.406–3(d)(1) to
clarify that the official record closes
PO 00000
Frm 00003
Fmt 4701
Sfmt 4700
507
upon the expiration of the contractor’s
time to submit information and
argument in opposition, including any
extensions.
B. Analysis of Public Comments
1. Outside the Scope of the Rule
Comment: A respondent
recommended adding FAR language to
address applicability of the suspension
and debarment rules to Other
Transaction Authority (OTA)
Agreements and to grants.
Response: This comment is outside
the scope of this rule. Neither OTA
Agreements nor grants are covered in
the FAR.
Comment: A respondent
recommended adding a definition of
‘‘present responsibility.’’
Response: This issue was previously
considered in a notice issued by the
Office of Management and Budget
(OMB) regarding guidelines for
Nonprocurement Debarment and
Suspension at 52 FR 20360 on May 29,
1987, and it was concluded that the
definition is unnecessary. The
suggestion has been referred to the ISDC
for further consideration.
2. Immediate Exclusionary Effect of a
Notice of Proposed Debarment Under
the FAR
Comment: A respondent stated that
the term ‘‘notice of proposed
debarment’’ under the FAR is
misleading because the debarment is not
‘‘proposed’’—it is ‘‘imposed.’’ Most of
the respondents recommended that the
immediate exclusionary effect of
proposed debarment be removed from
the FAR to align better with the NCR,
and disagree with the Government’s
rationale for retaining it in the FAR.
These respondents indicated that if the
risk to the Government in a specific case
requires immediate exclusion to protect
the Government’s business interests, an
SDO can issue a notice of suspension
under FAR 9.407. Where immediate
exclusion is not necessary and the
Government would not choose to
suspend the contractor, the proposal for
debarment should not have an
exclusionary effect. Immediate
exclusion is particularly unwarranted in
cases where the proposed debarment is
not based on a conviction or civil
judgment, and fact-finding proceedings
are necessary. These respondents
indicated that there is no increased
business risk to the Government in the
procurement context than in
nonprocurement transactions. The
respondents stated that the Government
enters into procurement contracts for
public purposes of equal importance
E:\FR\FM\03JAR4.SGM
03JAR4
]]>Agencies
[Federal Register Volume 90, Number 2 (Friday, January 3, 2025)]
[Rules and Regulations]
[Pages 506-507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31409]
[[Page 505]]
Vol. 90
Friday,
No. 2
January 3, 2025
Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
-----------------------------------------------------------------------
48 CFR Chapter 1
Federal Acquisition Regulations: Federal Acquisition Circular 2025-03;
Introduction, 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, and Federal Acquisition Circular
2025-03; Small Entity Compliance Guide; Final Rules
Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules
and Regulations
[[Page 506]]
-----------------------------------------------------------------------
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; Introduction
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Summary presentation of final rules.
-----------------------------------------------------------------------
SUMMARY: This document summarizes the Federal Acquisition Regulation
(FAR) rules agreed to by the Civilian Agency Acquisition Council and
the Defense Acquisition Regulations Council (Councils) in this Federal
Acquisition Circular (FAC) 2025-03. A companion document, the Small
Entity Compliance Guide (SECG), follows this FAC.
DATES: For effective dates see the separate documents, which follow.
ADDRESSES: The FAC, including the SECG, is available at https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: The analyst whose name appears in the
table below in relation to the FAR case. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat
Division at 202-501-4755 or [email protected].
Rules Listed in FAC 2025-03
------------------------------------------------------------------------
Item Subject FAR case Analyst
------------------------------------------------------------------------
I............ Improving Consistency 2019-015 Delgado.
Between Procurement and
Nonprocurement
Procedures on Suspension
and Debarment.
II........... Rerepresentation of Size 2020-016 Bowman.
and Socioeconomic Status.
III.......... Subcontracting to Puerto 2023-001 Moore.
Rican And Covered
Territory Small
Businesses.
------------------------------------------------------------------------
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:
Item I--Improving Consistency Between Procurement and Nonprocurement
Procedures on Suspension and Debarment (FAR Case 2019-015)
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 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 II--Rerepresentation of Size and Socioeconomic Status (FAR Case
2020-016)
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 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 multiple-award contracts subject to this
rule.
The final rule is not expected to have a significant economic
impact on a substantial number of small entities.
Item III--Subcontracting to Puerto Rican and Covered Territory Small
Businesses (FAR Case 2023-001)
This final rule amends the FAR to implement regulatory changes made
by the Small Business Administration to implement section 861 of Public
Law 115-232 and section 866 of Public Law 116-283, which add incentives
for certain U.S. territories under the Small Business Administration
mentor-prot[eacute]g[eacute] program. This final rule also specifies
the entities that are not required to submit subcontracting plans as
subcontractors. This final rule is not expected to have a significant
impact on a substantial number of small entities; however, it 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.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Federal Acquisition Circular (FAC) 2025-03 is issued under the
authority of the Secretary of Defense, the Administrator of General
Services, and the Administrator of National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other
[[Page 507]]
directive material contained in FAC 2025-03 are effective January
17, 2025.
John M. Tenaglia,
Principal Director, Defense Pricing, Contracting, and Acquisition
Policy, Department of Defense.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy, U.S. General
Services Administration.
Marvin L. Horne,
Deputy Assistant Administrator for NASA Procurement, National
Aeronautics and Space Administration.
[FR Doc. 2024-31409 Filed 1-2-25; 8:45 am]
BILLING CODE 6820-EP-P
