Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 1041 

on the distribution of power and 

responsibilities among the various 

levels of government, as specified in 

Executive Order 13132 (64 FR 43255, 

August 10, 1999). Thus, Executive Order 

13132 does not apply to this action. 

This action merely proposes to approve 

a state negative declaration submitted in 

response to a Federal standard, and does 

not alter the relationship or the 

distribution of power and 

responsibilities established in the CAA. 

This rulemaking also is not subject to 

Executive Order 13045, ‘‘Protection of 

Children from Environmental Health 

Risks and Safety Risks’’ (62 FR 19885, 

April 23, 1997) because it proposes to 

approve a state submission in response 

to a Federal standard. 

This proposed action does not impose 

an information collection burden under 

the provisions of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.). Burden is defined at 5 CFR 

1320.3(b). 

List of Subjects in 40 CFR Part 62 

Environmental protection, Air 

pollution control, Administrative 

practice and procedure, 

Intergovernmental relations, Reporting 

and recordkeeping requirements, 

phosphate fertilizer plants. 

Dated: December 26, 2018. 

Edward H. Chu, 

Acting Regional Administrator, Region 7. 

For the reasons stated in the 

preamble, EPA proposes to amend 40 

CFR part 62 as set forth below: 

PART 62—APPROVAL AND 

PROMULGATION OF STATE PLANS 

FOR DESIGNATED FACILITIES AND 

POLLUTANTS 

■ 1. The authority citation for part 62 

continues to read as follows: 

Authority: 42 U.S.C. 7401 et seq. 

Subpart AA—Missouri 

■ 2. Amend § 62.6350 by adding 

paragraph (b)(7) and revising paragraph 

(c) to read as follows: 

§ 62.6350 Identification of plan. 

* * * * * 

(b) * * * 

(7) A revision to Missouri’s 111(d) 

plan for control of fluoride emissions 

from existing phosphate fertilizer plants 

was state effective on September 30, 

2018 and was submitted to the EPA on 

December 3, 2018. Submission included 

a negative declaration, dated December 

3, 2018, supporting state 

documentation, and request for the EPA 

to withdraw the EPA’s prior plan 

approval for existing Diammonium 

Phosphate Fertilizer Units. 

(c) Designated facilities. The plan 

applies to existing facilities in the 

following categories of sources: 

(1) Primary aluminum reduction 

plants. 

(2) Sulfuric acid production plants. 

■ 3. Section 62.6351 is revised to read 

as follows: 

§ 62.6351 Identification of plan—negative 

declaration. 

Letter from the Missouri Department 

of of Natural Resources, submitted 

December 3, 2018, certifying that there 

are no Diammonium Phosphate Ferilizer 

Units subject to 40 CFR part 60, subpart 

V. Effective date: The effective date of 

the negative declaration and EPA 

withdrawal of the prior plan approval is 

[DATE 60 DAYS AFTER DATE OF 

PUBLICATION OF THE FINAL RULE 

IN THE Federal Register]. 

[FR Doc. 2019–00782 Filed 1–31–19; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Part 806 

RIN 2900–AQ21 

VA Acquisition Regulation: 

Competition Requirements 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is proposing to amend and 

update its VA Acquisition Regulation 

(VAAR) in phased increments to revise 

or remove any policy superseded by 

changes in Federal Acquisition 

Regulation (FAR), to remove procedural 

guidance that is internal to VA into the 

VA Acquisition Manual (VAAM), and to 

incorporate any new agency specific 

regulations or policies. These changes 

seek to streamline and align the VAAR 

with the FAR and remove outdated and 

duplicative requirements and reduce 

burden on contractors. The VAAM 

incorporates portions of the removed 

VAAR as well as other internal agency 

acquisition policy. VA will rewrite 

certain parts of the VAAR and VAAM, 

and as VAAR parts are rewritten, will 

publish them in the Federal Register. 

VA will combine related topics, as 

appropriate. In particular, this 

rulemaking revises the VAAR 

concerning Competition Requirements. 

DATES: Comments must be received on 

or before April 2, 2019 to be considered 

in the formulation of the final rule. 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulation Policy 

and Management (00REG), Department 

of Veterans Affairs, 810 Vermont 

Avenue NW, Room 1063B, Washington, 

DC 20420; or by fax to (202) 273–9026. 

(This is not a toll-free number.) 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AQ21 VA Acquisition Regulation: 

Competition Requirements.’’ Copies of 

comments received will be available for 

public inspection in the Office of 

Regulation Policy and Management, 

Room 1063B, between the hours of 8:00 

a.m. and 4:30 p.m., Monday through 

Friday (except holidays). Please call 

(202) 461–4902 for an appointment. 

(This is not a toll-free number.) In 

addition, during the comment period, 

comments may be viewed online 

through the Federal Docket Management 

System (FDMS) at www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Rafael N. Taylor, Senior Procurement 

Analyst, Procurement Policy and 

Warrant Management Services, 003A2A, 

425 I Street NW, Washington, DC 20001, 

(202) 382–2787. (This is not a toll-free 

number.) 

SUPPLEMENTARY INFORMATION: 

Background 

This rulemaking is issued under the 

authority of the Office of Federal 

Procurement Policy (OFPP) Act which 

provides the authority for an agency 

head to issue agency acquisition 

regulations that implement or 

supplement the FAR. 

VA is proposing to revise the VAAR 

to add new policy or regulatory 

requirements and to remove any 

redundant guidance and guidance that 

is applicable only to VA’s internal 

operating processes or procedures. 

Codified acquisition regulations may be 

amended and revised only through 

rulemaking. All amendments, revisions, 

and removals have been reviewed and 

concurred with by VA’s Integrated 

Product Team of agency stakeholders. 

The VAAR uses the regulatory 

structure and arrangement of the FAR 

and headings and subject areas are 

consistent with the FAR content. The 

VAAR is divided into subchapters, parts 

(each of which covers a separate aspect 

of acquisition), subparts, and sections. 

The Office of Federal Procurement 

Policy Act, as codified in 41 U.S.C. 

1707, provides the authority for the 

Federal Acquisition Regulation and for 

the issuance of agency acquisition 

regulations consistent with the FAR. 

When Federal agencies acquire 

supplies and services using 

1042 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 

appropriated funds, the purchase is 

governed by the FAR, set forth at Title 

48 Code of Federal Regulations (CFR), 

chapter 1, parts 1 through 53, and the 

agency regulations that implement and 

supplement the FAR. The VAAR is set 

forth at Title 48 CFR, chapter 8, parts 

801 to 873. 

Discussion and Analysis 

VA proposes to make the following 

changes to the VAAR in this phase of its 

revision and streamlining initiative. For 

procedural guidance cited below that is 

proposed to be deleted from the VAAR, 

each section cited for removal has been 

considered for inclusion in VA’s 

internal agency operating procedures in 

accordance with FAR 1.301(a)(2). 

Similarly, delegations of authority that 

are removed from the VAAR will be 

included in VA Acquisition Manual 

(VAAM) as internal departmental 

guidance. The VAAM is being created in 

parallel with these revisions to the 

VAAR and is not subject to the 

rulemaking process as they are internal 

VA procedures and guidance. Therefore, 

the VAAM will not be finalized until 

corresponding VAAR parts are finalized, 

and the VAAM is not yet available on 

line. 

VAAR Part 806—Competition 

Requirements 

This proposed rule would revise the 

authority citations pertaining to part 806 

to include a reference to 41 U.S.C. 

1121(c)(3), which is from Title 41, 

Public Contracts, and speaks to the 

authority of an executive agency under 

another law to prescribe policies, 

regulations, procedures, and forms for 

procurement that are subject to the 

authority conferred in the cited section, 

as well as other sections of Title 41 as 

shown therein. 

We also propose to revise the part 806 

authorities to add 41 U.S.C. 1303, an 

updated positive law codification to 

reflect additional authority of the VA as 

an executive agency to issue regulations 

that are essential to implement 

Governmentwide policies and 

procedures in the agency, as well as to 

issue additional policies and procedures 

required to satisfy the specific needs of 

the VA, and to add 41 U.S.C. 1702, 

which addresses overall direction of 

procurement policy, acquisition 

planning and management 

responsibilities of VA’s Chief 

Acquisition Officer. 

We also propose to include a 

reference to 41 U.S.C. 3304 as the basic 

authority to award contracts by other 

than full and open competition. Any 

other proposed changes to authorities or 

additional authorities are shown under 

the individual sections as described in 

the preamble and reflected in the 

amendatory language. We also propose 

to remove 38 U.S.C. 501 as it is a more 

general authority for the Secretary to 

utilize to prescribe all rules and 

regulations. The title 41 authority is 

more appropriate to cite when 

publishing the VAAR. 

We propose to add 806.004–70, 

Definition, to establish that as used in 

part 806, ‘‘health-care resource(s)’’ has 

the same definition as that provided in 

VAAR 873.102. VAAR 873.102 provides 

that ‘‘health-care resource’’ includes 

hospital care and medical services (as 

those terms are defined in section 1701 

of title 38 United States Code (U.S.C.)), 

any other health-care service, and any 

health-care support or administrative 

resource, including the use of medical 

equipment or space. (38 U.S.C. 8153). A 

future rule may contain revisions to 

VAAR part 873 which also might 

include any updated definition for 

‘‘health-care resource.’’ 

We propose to add subpart 806.1— 

Full and Open Competition, and section 

806.102, Use of competitive procedures, 

to address the application of 38 U.S.C. 

8127 to competitive General Services 

Administration (GSA) and VA Federal 

Supply Schedules. 

We propose to add subpart 806.2— 

Full and Open Competition After 

Exclusion of Sources, which would 

contain two sections: 806.203, Setasides for small business concerns, 

which directs attention to subparts 

819.5 and 819.70 for VA’s policies on 

set-asides for small business concerns, 

and 806.270, Set-asides for verified 

Veteran-owned small businesses. 

In 806.270, we propose to set-forth 

VA’s authority under VA’s supplement 

to FAR part 6—VAAR part 806, and the 

requirement mandated by 38 U.S.C. 

8127, to conduct set-asides for Veteranowned small businesses whenever 

market research provides the 

contracting officer with a reasonable 

expectation of receiving two or more 

offers/quotes from eligible and verified 

service-disabled veteran-owned small 

businesses (SDVOSBs) or veteranowned small businesses (VOSBs), and 

award can be made at a fair and 

reasonable price that offers best value to 

the Government (VA Rule of Two). This 

section would also state that the 

requirement to set aside procurements 

for Veteran-owned small businesses 

applies to all contracts under this 

regulation, including orders under 

interagency acquisition vehicles such as 

the Federal Supply Schedules (FSS), 

Governmentwide acquisition contracts 

(GWACs), and multi-agency contracts. 

We propose to also include language in 

paragraph (c) that contracting officers 

shall utilize the authority in paragraph 

(a), for set-asides to verified SDVOSBs 

and VOSBs, over other set-asides 

authorized in FAR subpart 6.2. The 

reason is the statutory requirement in 38 

U.S.C. 8127–8128 for the VA Rule of 

Two which provides VA a unique 

authority for set-asides that includes 

both categories of Veteran-owned small 

businesses. While FAR 6.206, Set-asides 

for service-disabled veteran-owned 

small business concerns, does provide 

for an SDVOSB set-aside, SDVOSBs 

who may receive contract awards under 

that authority self-represent their status, 

whereas eligibility for and participation 

in the VA SDVOSB set-aside program 

requires verification and inclusion in 

the VA, Office of Small and 

Disadvantaged Business Utilization 

(OSDBU), Center for Verification and 

Evaluation, Vendor Information Pages 

(VIP). Additionally, the FAR does not 

have a specific set-aside program for 

VOSBs, while VA does, which also 

requires that in order to be eligible for 

and to participate in the program, 

VOSBs must also go through a thorough 

verification program and be included in 

VA OSBDU’s VIP. This section also 

proposes to include language that would 

provide that for Indefinite-Delivery 

contracts, when a set-aside is restricted 

to verified SDVOSBs or VOSBs, it 

satisfies competition requirements. 

In subpart 806.3—Other Than Full 

and Open Competition, we propose to 

revise the entire subpart to add specific 

reference to VA’s authority for 

noncompetitive procedures for verified 

Veteran-owned small businesses and to 

clarify existing authorities regarding 

such noncompetitive procedures. The 

revised subpart would also clarify 

existing statutory authority for other VA 

unique authorities and update new Title 

41 citations and require other specific 

citation requirements. 

We propose to amend section 

806.302, Circumstances permitting other 

than full and open competition, to add 

several sections. We propose to revise 

806.302–5, Authorized or required by 

statute, to remove its text and retain the 

title. The removed text has been revised 

and moved to 806.302–571. 

Under 806.302–5, we propose to add 

two sections: 806.302–570 and 806.302– 

571. We propose to add 806.302–570, 

Noncompetitive procedures for verified 

Veteran-owned small businesses, to 

provide coverage of the authority to 

enter into contracts non-competitively, 

when specifically authorized under the 

VA Veterans First Contracting Program 

in accordance with VAAR 819.7007 or 

819.7008. Paragraph (a) provides that 

justification and approval requirements 

Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 1043 

of FAR 6.303 and 6.304, and internal 

agency review and approval thresholds 

set forth in VA internal procedures 

apply. Paragraph (b) provides the 

required updated 41 U.S.C. 3304(a)(5) 

citation, the specific authority under 38 

U.S.C. 8127(b), and states that 

contracting officers may award a 

contract to a VIP verified SDVOSB first, 

then VOSB, using other than full and 

open competition, for contracts at or 

below the Simplified Acquisition 

Threshold (SAT). Paragraph (c) provides 

the proposed noncompetitive 

procedures for contracts above the SAT, 

as well as specific limitations that apply 

for actions over the SAT: the proposed 

SDVOSB or VOSB business must be 

responsible; the anticipated award price 

of the contract, including options, will 

exceed the SAT, but will not exceed $5 

million; and, contract award can be 

made at a fair and reasonable price that 

offers best value to the United States. 

We also propose to add 806.302–571, 

Authorized or required by statute—VA 

unique authorities, which would 

contain the statutes previously listed in 

806.302–5 and provide policy under the 

statutes to make awards by other than 

full and open competition. Paragraph (a) 

provides the updated Title 41 

authority—41 U.S.C. 3304(a)(5), 

updated from the moved coverage under 

806.302–5. Paragraph (b)(1) would 

provide that full and open competition 

is not required for the acquisition of 

prosthetic appliances and services based 

on the authority under 38 U.S.C. 8123. 

Paragraph (b)(2) would provide the 

existing policy for the acquisition of 

commercial health-care resources, use of 

medical equipment or space, or research 

acquired from an institution affiliated 

with VA under the authority set forth in 

38 U.S.C. 8153(a)(3)(A). Paragraph (b)(3) 

would provide policy for the acquisition 

of commercial health-care resources, use 

of medical equipment or space from 

other than an affiliated institution, but 

only when conducted in accordance 

with simplified procedures in VAAR 

part 873, Simplified Acquisition 

Procedures for Health-Care Resources, 

under the authority set forth in 38 

U.S.C. 8153(a)(3)(B). Paragraph (b)(4) 

would provide the authority under 38 

U.S.C. 8153(a)(3)(C) for the sole source 

acquisition of commercial health-care 

resources, the use of medical equipment 

or space, when not acquired from an 

affiliated institution in accordance with 

paragraph (b)(2). The justification and 

approval requirements of FAR 6.303 and 

agency internal review procedures 

apply. 

806.302–571, paragraph (c), would 

require that contracts awarded using the 

authority set forth under paragraph (a), 

with the exception of acquisitions 

authorized under paragraph (b)(2) of 

this section, shall be supported by the 

written justifications and approvals 

described in FAR 6.303 and 6.304, and 

VA internal agency procedures. 

806.302–571, paragraph (d), would 

incorporate an updated Title 41 citation 

reference: 41 U.S.C. 3304(a)(5), and 

would also permit VA to procure certain 

supplies and services and require 

contracting officers, pursuant to FAR 

6.302–5(c)(2)(ii), to comply with written 

justification and approval requirements 

set forth in FAR 6.303 and 6.304, citing 

41 U.S.C. 3304(a)(5) and the applicable 

statute. Specifically, 806.302–571(d) 

contains authorities previously under 

806.302–5 and would continue existing 

policy to allow VA to continue to enter 

into contracts for the following: 

Scarce medical specialist services 

through contracts with 1) schools and 

colleges of medicine, osteopathy, 

dentistry, podiatry, optometry, and 

nursing; 2) clinics; and 3) any other 

group or individual capable of 

furnishing such scarce medical 

specialist services at VA facilities, to 

include the services of physicians, 

dentists, podiatrists, optometrists, 

chiropractors, nurses, physician 

assistants, expanded-function dental 

auxiliaries, technicians, and other 

medical support personnel, in 

accordance with the authority of 38 

U.S.C. 7409. We also propose to remove 

language that was previously codified 

that restricted such contracts to 

institutions affiliated with VA under 38 

U.S.C. 7302 as no such restriction is 

contained in the statute for 38 U.S.C. 

7409; 

Purchase or sell merchandise, 

equipment, fixtures, supplies and 

services for the operation of the 

Veterans Canteen Service under the 

authority of 38 U.S.C. 7802(f); 

Contracts or leases for the operation of 

parking facilities authorized by the 

Secretary or designee under the 

authority of 38 U.S.C. 8109(f); 

Contracts for laundry and other 

common services, such as the purchase 

of steam, negotiated with non-profit, 

tax-exempt educational, medical, or 

community institutions, under the 

authority of 38 U.S.C. 8122(c), when 

specifically approved by the Secretary 

or designee and when such services are 

not reasonably available from private 

commercial sources; and 

Contracts or agreements with private 

or public agencies or persons, including 

contracts for services of translators 

under the authority of 38 U.S.C. 513. 

We propose to remove the authority 

currently listed in 806.302–5(a)(1), 

concerning VA ability to procure scarce 

medical specialist services, as an 

exception to full and open competition 

and place this authority in 806.302– 

571(d)(1) to require a written 

justification and approval before 

procuring services using the 38 U.S.C. 

7409 authority. While 38 U.S.C. 7409 

states that VA may procure scarce 

medical specialist services from certain 

persons and institutions identified in 

the statute, the statute does not contain 

language which expressly exempts these 

types of procurements from the 

competition requirements found in 41 

U.S.C. 3301 et. seq. We propose to 

require that the use of this authority 

comply with written justification and 

approval requirements set forth in FAR 

6.303 and 6.304 and cite 41 U.S.C. 

3304(a)(5) and 38 U.S.C. 7409.We 

propose to remove 806.302–7, Public 

interest, as it provides internal 

procedural guidance not having a 

significant effect beyond the internal 

operating procedures of the VA (see 

FAR 1.301(b)) and which will be moved 

to the VAAM. 

We propose to remove 806.304, 

Approval of the justification, as it 

provides internal procedural guidance 

not having a significant effect beyond 

the internal operating procedures of the 

VA (see FAR 1.301(b)) and which will 

be moved to the VAAM. 

We propose to revise subpart 806.5— 

Competition Advocates, to amend the 

title to Advocates for Competition to 

conform to the revised title in FAR part 

6. 

We propose to revise 806.501, 

Requirement, to identify the Deputy 

Senior Procurement Executive as the VA 

Advocate for Competition. 

We propose to remove 806.570, 

Planning requirements, as it provides 

internal procedural guidance not having 

a significant effect beyond the internal 

operating procedures of the VA (see 

FAR 1.301(b)) and which will be moved 

to the VAAM. 

Effect of Rulemaking 

Title 48, Federal Acquisition 

Regulations System, Chapter 8, 

Department of Veterans Affairs, of the 

Code of Federal Regulations, as 

proposed to be revised by this 

rulemaking, would represent VA’s 

implementation of its legal authority 

and publication of the VAAR for the 

cited applicable parts. Other than future 

amendments to this rule or governing 

statutes for the cited applicable parts, or 

as otherwise authorized by approved 

deviations or waivers in accordance 

with FAR subpart 1.4, Deviations from 

the FAR, and as implemented by VAAR 

subpart 801.4, Deviations from the FAR 

or VAAR, no contrary guidance or 

1044 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 

procedures would be authorized. All 

existing or subsequent VA guidance 

would be read to conform with the 

rulemaking if possible or, if not 

possible, such guidance would be 

superseded by this rulemaking as 

pertains to the cited applicable VAAR 

parts. 

Executive Orders 12866, 13563 and 

13771 

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. E.O. 12866, Regulatory 

Planning and Review defines 

‘‘significant regulatory action’’ to mean 

any regulatory action that is likely to 

result in a rule that may: ‘‘(1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) Create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

order.’’ 

VA has examined the economic, 

interagency, budgetary, legal, and policy 

implications of this regulatory action, 

and it has been determined this rule is 

a significant regulatory action under 

E.O. 12866, because it may create a 

serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency and raises 

novel legal or policy issues arising out 

of legal mandates, the President’s 

priorities, or the principles set forth in 

this Executive order. 

VA’s impact analysis can be found as 

a supporting document at http://

www.regulations.gov, usually within 48 

hours after the rulemaking document is 

published. Additionally, a copy of the 

rulemaking and its impact analysis are 

available on VA’s website at http://

www.va.gov/orpm by following the link 

for VA Regulations Published from FY 

2004 Through Fiscal Year to Date. 

This proposed rule is not expected to 

be subject to the requirements of E.O. 

13771 because this proposed rule is 

expected to result in no more than de 

minimis costs. 

Paperwork Reduction Act 

This proposed rule contains no 

provisions constituting a collection of 

information under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521). 

Regulatory Flexibility Act 

This proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. This 

proposed rule would generally be small 

business neutral. The overall impact of 

the proposed rule would be of benefit to 

small businesses owned by Veterans or 

service-disabled Veterans as the VAAR 

is being updated to remove extraneous 

procedural information that applies 

only to VA’s internal operating 

procedures. VA estimates that no cost 

impact to individual business would 

result from these rule updates. On this 

basis, the adoption of this proposed rule 

would not have a significant economic 

impact on a substantial number of small 

entities as they are defined in the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. Therefore, under 5 U.S.C. 605(b), 

this regulatory action is exempt from the 

initial and final regulatory flexibility 

analysis requirements of sections 603 

and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

Governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal Governments or on the private 

sector. 

List of Subjects in 48 CFR Part 806 

Government procurement. 

Signing Authority 

The Secretary of Veterans Affairs 

approved this document and authorized 

the undersigned to sign and submit the 

document to the Office of the Federal 

Register for publication electronically as 

an official document of the Department 

of Veterans Affairs. Robert L. Wilkie, 

Secretary, Department of Veterans 

Affairs, approved this document on 

October 29, 2018, for publication. 

Dated: December 21, 2018. 

Consuela Benjamin, 

Regulations Development Coordinator, Office 

of Regulation Policy & Management, Office 

of the Secretary, Department of Veterans 

Affairs. 

■ For the reasons set out in the 

preamble, VA proposes to revise 48 CFR 

part 806 to read as follows: 

PART 806—COMPETITION 

REQUIREMENTS 

Sec. 

806.004–70 Definition. 

Subpart 806.1—Full and Open Competition 

806.102 Use of competitive procedures. 

Subpart 806.2—Full and Open Competition 

After Exclusion of Sources 

806.203 Set-asides for small business 

concerns. 

806.270 Set-asides for verified Veteranowned small businesses. 

Subpart 806.3—Other Than Full and Open 

Competition 

806.302 Circumstances permitting other 

than full and open competition. 

806.302–5 Authorized or required by 

statute. 

806.302–570 Noncompetitive procedures 

for verified Veteran-owned small 

businesses. 

806.302–571 Authorized or required by 

statute—VA unique authorities. 

Subpart 806.5—Advocates for Competition 

806.501 Requirement. 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1121(c)(3); 41 U.S.C. 1303; 41 U.S.C. 1702; 41 

U.S.C. 3304; and 48 CFR 1.301–1.304. 

806.004–70 Definition. 

As used in this part— 

Health-care resources has the same 

definition as that provided in VAAR 

873.102. 

Subpart 806.1—Full and Open 

Competition 

806.102 Use of competitive procedures. 

(d)(3) Awards made using General 

Services Administration (GSA) or 

Department of Veterans Affairs (VA) 

Federal Supply Schedules (FSS) are 

considered competitive when awarded 

in accordance with the procedures 

specified in FAR part 8 and this part. 

Subpart 806.2—Full and Open 

Competition After Exclusion of 

Sources 

806.203 Set-asides for small business 

concerns. 

(c) Subpart 819.5 and subpart 819.70 

prescribe the policies and procedures 

Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 1045 

that shall be followed with respect to 

set-asides for small business and 

Veteran-owned small business concerns. 

806.270 Set-asides for verified Veteranowned small businesses. 

(a) To fulfill the statutory 

requirements relating to Public Law 

109–461, the Veterans Benefits, Health 

Care and Information Technology Act of 

2006 (38 U.S.C. 8127–8128), contracting 

officers shall set aside solicitations in 

accordance with 819.70 and the VA 

Rule of Two (see 802.101) for Vendor 

Information Pages (VIP) verified servicedisabled Veteran-owned small 

businesses (SDVOSBs) and Veteranowned small businesses (VOSBs) (see 

819.7005 and 819.7006). (38 U.S.C. 

8127–8128) 

(b) This requirement to set aside 

procurements for VIP verified SDVOSBs 

and VOSBs applies to all types of 

contracts, including orders placed under 

GSA’s Federal Supply Schedules (FSS) 

and indefinite-delivery contracts, 

including Governmentwide acquisition 

contracts (GWACs). (38 U.S.C. 8127– 

8128) 

Subpart 806.3—Other Than Full and 

Open Competition 

806.302 Circumstances permitting other 

than full and open competition. 

806.302–5 Authorized or required by 

statute. 

806.302–570 Noncompetitive procedures 

for verified Veteran-owned small 

businesses. 

(a) Full and open competition need 

not be provided for when awarding a 

sole source contract under (b) or (c) of 

this section, to a verified SDVOSB or 

VOSB in accordance with 819.7007 or 

819.7008, respectively, as authorized. 

Contracts awarded using this authority 

shall be supported by justification and 

approval requirements of FAR 6.302– 

5(c)(2)(ii), 6.303 and 6.304. 

(b) Sole source awards below the 

Simplified Acquisition Threshold. 

(Citation: 41 U.S.C. 3304(a)(5), as 

authorized by 38 U.S.C. 8127(b)). A 

contracting officer may award a contract 

under this authority to a VIP verified 

SDVOSB first, then VOSB if no 

SDVOSBs can fulfill the need, for an 

amount less than the simplified 

acquisition threshold, using procedures 

other than full and open competition. 

(38 U.S.C. 8127) 

(c) Sole source awards above the 

Simplified Acquisition Threshold. 

(Citation: 41 U.S.C. 3304(a)(5), as 

authorized by 38 U.S.C. 8127(c)). A 

contracting officer may award a contract 

to a VIP verified SDVOSB first, then 

VOSB if no SDVOSB can satisfy the 

need, using procedures other than full 

and open competition when— 

(1) Such concern is determined to be 

a responsible source with respect to 

performance of such contract 

opportunity; 

(2) The anticipated award price of the 

contract (including options) will exceed 

the simplified acquisition threshold, but 

will not exceed $5 million; and 

(3) Contract award can be made at a 

fair and reasonable price that offers best 

value to the United States. (38 U.S.C. 

8127) 

806.302–571 Authorized or required by 

statute—VA unique authorities. 

(a) Authority. (1) Citation: 41 U.S.C. 

3304(a)(5). Contracting officers shall 

also cite the specific authorities in 

paragraph (b) below for the statutes 

related to the products and services 

procured. 

(2) Full and open competition need 

not be provided for when—a statute 

expressly authorizes or requires that the 

acquisition be made through another 

agency or from a specified source. 

(b) Application. The following 

products and services are authorized to 

be acquired from a specified source: 

(1) Prosthetic appliances and services. 

Contracting activities may procure 

prosthetic appliances and necessary 

services required in the fitting, 

supplying, and training and use of 

prosthetic appliances by purchase, 

manufacture, contract, or in such other 

manner as determined to be proper, 

without regard to any other provision of 

law as set forth in VA directives 

governing prosthetic appliances, 

sensory aids and services supporting the 

same. (38 U.S.C. 8123) 

(2) Commercial health-care resources, 

the use of medical equipment or space, 

or research, and acquired from an 

institution affiliated with the 

Department of Veterans Affairs. 

Contracting activities may procure 

health care resources, including medical 

practice groups and other approved 

entities associated with affiliated 

institutions, blood banks, organ banks, 

or research centers from an affiliated 

institution affiliated with VA in 

accordance with 38 U.S.C. 7302. 

Medical practice groups and other 

entities shall be approved when 

determined by the contracting activity 

to be legally associated with affiliated 

institutions. The justification and 

approval requirements of FAR 6.303 and 

paragraph (c) of this section do not 

apply. (38 U.S.C. 8153(a)(3)(A)) 

(3) Commercial health-care resources, 

the use of medical equipment or space, 

and is not to be acquired from an entity 

described in (b)(2) of this section. 

Contracting activities may procure 

health care resources from a nonaffiliated institution only if the 

procurement is conducted in 

accordance with the simplified 

procedures prescribed in part 873. The 

justification and approval requirements 

of FAR 6.303 shall apply. (38 U.S.C. 

8153(a)(3)(B)) 

(4) Commercial health-care resources, 

the use of medical equipment or space, 

when not acquired from an affiliated 

institution described in (b)(2) of this 

section and to be conducted on a sole 

source basis. This authority applies if 

not acquired from an affiliated 

institution in accordance with part 873. 

The justification and approval 

requirements of FAR 6.303 shall apply. 

(38 U.S.C. 8153(a)(3)(C)) 

(c) Contracts awarded using this 

authority, with the exception of 

acquisitions authorized under paragraph 

(b)(2) of this section, shall be supported 

by the written justifications and 

approvals described in FAR 6.303 and 

6.304. 

(d) When a contracting officer enters 

into a contract without providing full 

and open competition for any of the 

following items or services, the 

contracting officer must cite 41 U.S.C. 

3304(a)(5) and the following authorities 

that apply, in the written justifications 

and approvals as required by FAR 6.303 

and 6.304: 

(1) Contracts for scarce medical 

specialist services. (Citation: 41 U.S.C. 

3304(a)(5), as authorized by 38 U.S.C. 

7409). Contracting officers may enter 

into contracts with (1) schools and 

colleges of medicine, osteopathy, 

dentistry, podiatry, optometry, and 

nursing; (2) clinics; and (3) any other 

group or individual capable of 

furnishing such scarce medical 

specialist services at VA facilities, to 

include the services of physicians, 

dentists, podiatrists, optometrists, 

chiropractors, nurses, physician 

assistants, expanded-function dental 

auxiliaries, technicians, and other 

medical support personnel. (38 U.S.C. 

7409) 

(2) Contracts or agreements to 

purchase or sell merchandise, 

equipment, fixtures, supplies and 

services for the operation of the 

Veterans Canteen Service. (Citation: 41 

U.S.C. 3304(a)(5), as authorized by 38 

U.S.C. 7802(f)). Contracts or agreements 

may be entered into without regard to 

41 U.S.C. 6101(b) through (d). 

(3) Contracts or leases for the 

operation of parking facilities 

established under authority of 38 U.S.C. 

8109(b). (Citation: 41 U.S.C. 3304(a)(5), 

as authorized by 38 U.S.C. 8109(f)). 

Contracts or leases may be entered into 

1046 Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Proposed Rules 

provided that the establishment, 

operation, and maintenance of such 

facilities have been authorized by the 

Secretary or designee. 

(4) Contracts for laundry and other 

common services, such as the purchase 

of steam, negotiated with non-profit, 

tax-exempt educational, medical, or 

community institutions. (Citation: 41 

U.S.C. 3304(a)(5), as authorized by 38 

U.S.C. 8122(c)). Contracts may be 

entered into when specifically approved 

by the Secretary or designee and when 

such services are not reasonably 

available from private commercial 

sources. 

(5) Contracts or agreements with 

private or public agencies or persons for 

translator services. (Citation: 41 U.S.C. 

3304(a)(5), as authorized by 38 U.S.C. 

513). 

Subpart 806.5—Advocates for 

Competition 

806.501 Requirement. 

The Deputy Senior Procurement 

Executive (DSPE) is designated as the 

VA Advocate for Competition. The 

DSPE may further delegate this 

authority to other VA officials. A 

complete list of VA procuring activity 

Advocates for Competition can be found 

at https://www.va.gov/oal/business/pps/ 

policy.asp. 

[FR Doc. 2018–28206 Filed 1–31–19; 8:45 am] 

BILLING CODE 8320–01–P 

SURFACE TRANSPORTATION BOARD 

49 CFR Parts 1002 and 1312 

[Docket No. EP 743] 

Water Carrier Tariff Filing Procedures 

AGENCY: Surface Transportation Board. 

ACTION: Notice. 

SUMMARY: The Board provides notice 

that comments to this notice of 

proposed rulemaking due to the Board 

during the partial Federal government 

shutdown period will now be due by 

February 4, 2019. 

DATES: Comments on the proposed rule 

are due by February 4, 2019. Reply 

comments are due by March 4, 2019. 

ADDRESSES: Comments may be 

submitted either via the Board’s e-filing 

format or in paper format. Any person 

using e-filing should attach a document 

and otherwise comply with the 

instructions found on the Board’s 

website at www.stb.gov at the E–FILING 

link. Any person submitting a filing in 

paper format should send an original 

and 10 paper copies of the filing to: 

Surface Transportation Board, Attn: 

Docket No. EP 743, 395 E Street SW, 

Washington, DC 20423–0001. Written 

comments and replies will be posted on 

the Board’s website and can also be 

obtained by contacting the Office of 

Public Assistance, Governmental 

Affairs, and Compliance (OPAGAC) at 

RCPA@stb.gov or (202) 245–0238. 

FOR FURTHER INFORMATION CONTACT: 

Michael Higgins at 202–245–0284. 

Assistance for the hearing impaired is 

available through the Federal 

Information Relay Service (FIRS) at 1– 

800–877–8339. 

SUPPLEMENTARY INFORMATION: In a notice 

of proposed rulemaking (NPRM) served 

on December 21, 2018, the Board 

proposed new procedures for water 

carriers operating in the noncontiguous 

domestic trade to electronically publish, 

file, and keep tariffs available for public 

inspection. Notice of the proposed 

rulemaking was published in the 

Federal Register on December 26, 2018 

(83 FR 66229). 

In the NPRM, the Board directed 

comments to be submitted by January 

25, 2019, and reply comments to be 

submitted by February 25, 2019. During 

the partial shutdown of the Federal 

government from December 22, 2018 

through January 25, 2019, all deadlines 

requiring the submission of material to 

the Board, including the deadlines in 

this proceeding, were tolled. Comments 

on the NPRM will be due by February 

4, 2019, and reply comments will be 

due by March 4, 2019. 

It is ordered: 

1. Comments are due by February 4, 

2019. Reply comments are due by 

March 4, 2019. 

2. Notice of this decision will be 

published in the Federal Register. 

3. This decision is effective on its 

service date. 

Decided: January 29, 2019. 

By the Board, Allison C. Davis, Acting 

Director, Office of Proceedings. 

Jeffrey Herzig, 

Clearance Clerk. 

[FR Doc. 2019–00788 Filed 1–31–19; 8:45 am] 

BILLING CODE 4915–01–P