[Federal Register Volume 69, Number 224 (Monday, November 22, 2004)]
[Rules and Regulations]
[Page 67855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25825]


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DEPARTMENT OF DEFENSE

48 CFR Parts 217 and 219

[DFARS Case 2003-D092]


Defense Federal Acquisition Regulation Supplement; Small 
Disadvantaged Businesses and Leader Company Contracting

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to revise text pertaining to 
DoD review of small business subcontracting plans, and to remove text 
pertaining to leader company contracting. This rule is a result of a 
transformation initiative undertaken by DoD to dramatically change the 
purpose and content of the DFARS.

DATES: Effective November 22, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. Robin Schulze, Defense Acquisition 
Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0326; 
facsimile (703) 602-0350. Please cite DFARS Case 2003-D092.

SUPPLEMENTARY INFORMATION: 

A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 
http://www.acq.osd.mil/dpap/dfars/transf.htm.
    This final rule is a result of the DFARS Transformation initiative. 
The DFARS changes--
    <bullet> Remove DFARS Subpart 217.4, which addresses the 
participation of small disadvantaged business concerns in leader 
company contracting. DoD rarely uses leader company contracting. 
Incentives for major DoD contractors to assist small disadvantaged 
business concerns are provided through the DoD Pilot Mentor-
Prot[eacute]g[eacute] Program, in accordance with DFARS Subpart 219.71 
and Appendix I.
    <bullet> Lower the approval level at DFARS 219.705-4(d), from two 
levels above the contracting officer to one level above the contracting 
officer, for small business subcontracting plans that contain a small 
disadvantaged business goal of less than five percent.
    DoD published a proposed rule at 69 FR 21996 on April 23, 2004. DoD 
received no comments on the proposed rule. Therefore, DoD has adopted 
the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the rule deletes text that is seldom used and revises review 
procedures that are internal to DoD.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Parts 217 and 219

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

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Therefore, 48 CFR Parts 217 and 219 are amended as follows:
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1. The authority citation for 48 CFR Parts 217 and 219 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

PART 217--SPECIAL CONTRACTING METHODS

Subpart 217.4--[Removed]

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2. Subpart 217.4 is removed.

PART 219--SMALL BUSINESS PROGRAMS

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3. Section 219.705-4 is amended in paragraph (d) by revising the second 
sentence to read as follows:


219.705-4  Reviewing the subcontracting plan.

    (d) * * * A small disadvantaged business goal of less than five 
percent must be approved one level above the contracting officer.

[FR Doc. 04-25825 Filed 11-19-04; 8:45 am]
BILLING CODE 5001-08-P