76352 Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 

for commercial items, use any 

appropriate combination of the 

procedures in Parts 12, 13, 14, and 15 

(see paragraph (d) of this section).

* * * * *

■ 6. Amend section 13.201 by removing 

‘‘$15,000.’’ from the end of paragraph 

(g)(1) and adding ‘‘—’’ in its place; and 

adding paragraphs (g)(1)(i) and (g)(1)(ii) 

to read as follows:

13.201 General.

* * * * *

(g)(1) * * *

(i) $15,000 in the case of any contract 

to be awarded and performed, or 

purchase to be made, inside the United 

States; and

(ii) $25,000 in the case of any contract 

to be awarded and performed, or 

purchase to be made, outside the United 

States.

* * * * *

■ 7. Amend section 13.303–5 by revising 

paragraph (b)(2) to read as follows:

13.303–5 Purchases under BPAs.

* * * * *

(b) * * *

(2) The limitation for individual 

purchases for commercial item 

acquisitions conducted under Subpart 

13.5 is $5 million ($10 million for 

acquisitions as described in 13.500(e)).

* * * * *

■ 8. Amend section 13.500 by revising 

the first sentence of paragraph (a); and 

adding paragraph (e) to read as follows:

13.500 General.

(a) This subpart authorizes, as a test 

program, use of simplified procedures 

for the acquisition of supplies and 

services in amounts greater than the 

simplified acquisition threshold but not 

exceeding $5 million ($10 million for 

acquisitions as described in 13.500(e)), 

including options, if the contracting 

officer reasonably expects, based on the 

nature of the supplies or services 

sought, and on market research, that 

offers will include only commercial 

items. * * *

* * * * *

(e) Under 41 U.S.C. 428a, the 

simplified acquisition procedures 

authorized by this test program may be 

used for acquisitions that do not exceed 

$10 million when—

(1) The acquisition is for commercial 

items that, as determined by the head of 

the agency, are to be used in support of 

a contingency operation or to facilitate 

the defense against or recovery from 

nuclear, biological, chemical, or 

radiological attack; or

(2) The acquisition will be treated as 

an acquisition of commercial items in 

accordance with 12.102(f)(1).

■ 9. Amend section 13.501 by revising 

paragraph (a)(1)(ii) to read as follows:

13.501 Special documentation 

requirements.

(a) * * *

(1) * * *

(ii) Prepare sole source justifications 

using the format at 6.303–2, modified to 

reflect an acquisition under the 

authority of the test program for 

commercial items (section 4202 of the 

Clinger-Cohen Act of 1996) or the 

authority of the Services Acquisition 

Reform Act of 2003 (41 U.S.C. 428a).

* * * * *

PART 15—CONTRACTING BY 

NEGOTIATION

15.403–1 [Amended]

■ 10. Amend section 15.403–1 in 

paragraph (c)(3)(ii) by removing ‘‘(Pub. 

L. 108–136, Sec. 1443)’’ and adding ‘‘(41 

U.S.C. 428a)’’ in its place.

[FR Doc. 04–27635 Filed 12–17–04; 8:45 am]

BILLING CODE 6820–EP–S

DEPARTMENT OF DEFENSE

GENERAL SERVICES 

ADMINISTRATION

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION

48 CFR Parts 2, 22, and 52

[FAC 2001–26; FAR Case 2004–010; Item 

IV]

RIN 9000–AK04

Federal Acquisition Regulation; 

Notification of Employee Rights 

Concerning Payment of Union Dues or 

Fees

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA).

ACTION: Interim rule with request for 

comments.

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on an interim 

rule amending the Federal Acquisition 

Regulation (FAR) to implement 

Executive Order 13201, Notification of 

Employee Rights Concerning Payment 

of Union Dues or Fees. The rule requires 

Government contractors and 

subcontractors to post notices, in all 

plants and offices, whether or not used 

in performing work that supports a 

Federal contract, informing their 

employees that under Federal law they 

cannot be required to join a union or 

maintain membership in a union to 

retain their jobs. The required notice 

also advises employees who are not 

union members that they can object to 

the use of their union dues for certain 

purposes.

DATES: Effective Date: December 20, 

2004.

The Department of Labor’s final rule 

implementing Executive Order 13201 

was published on March 29, 2004, with 

an effective date of April 28, 2004. This 

rule amending the FAR is the formal 

notification to contracting officers to 

insert the Executive Order 13201 clause 

in covered solicitations issued on or 

after the effective date of this rule.

Comment Date: Interested parties 

should submit comments to the FAR 

Secretariat at the address shown below 

on or before February 18, 2005 to be 

considered in the formulation of a final 

rule.

ADDRESSES: Submit comments 

identified by FAC 2001–26, FAR case 

2004–010, by any of the following 

methods:

• Federal eRulemaking Portal: http:/

/www.regulations.gov. Follow the 

instructions for submitting comments.

• Agency Web Site: http://

www.acqnet.gov/far/ProposedRules/

proposed.htm. Click on the FAR case 

number to submit comments.

• E-mail: farcase.2004–010@gsa.gov. 

Include FAC 2001–26, FAR case 2004–

010 in the subject line of the message.

• Fax: 202–501–4067.

• Mail: General Services 

Administration, Regulatory Secretariat 

(VIR), 1800 F Street, NW, Room 4035, 

ATTN: Laurie Duarte, Washington, DC 

20405.

Instructions: Please submit comments 

only and cite FAC 2001–26, FAR case 

2004–010, in all correspondence related 

to this case. All comments received will 

be posted without change to http://

www.acqnet.gov/far/ProposedRules/

proposed.htm, including any personal 

information provided.

FOR FURTHER INFORMATION CONTACT: The 

FAR Secretariat at (202) 501–4755 for 

information pertaining to status or 

publication schedules. For clarification 

of content, contact Mr. Craig Goral, 

Procurement Analyst, at (202) 501–

3856. Please cite FAC 2001–26, FAR 

case 2004–010.

SUPPLEMENTARY INFORMATION:

A. Background

On April 13, 1992, President George 

H. W. Bush issued Executive Order 

(E.O.) 12800. E.O. 12800 required 

unionized Federal contractors to post a 

notice in the workplace that workers are 

Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 76353

not required to join or support a union 

and threatened sanctions against 

contractors who did not comply. The 

next month, the Councils issued an 

interim rule implementing E.O. 12800 

(57 FR 20373–20375, May 12, 1992).

However, E.O. 12800 was revoked on 

February 1, 1993, by President Clinton’s 

E.O. 12836 (58 FR 7045, February 3, 

1993). On March 2, 1993, the Councils 

issued a final rule (58 FR 12140) 

eliminating the interim rule.

On February 17, 2001, President 

George W. Bush issued E.O. 13201 (66 

FR 11221, February 22, 2001). This 

Executive order revoked President 

Clinton’s E.O. 12836 and reasserts the 

notification provisions and sanctions of 

E.O. 12800.

On October 1, 2001, the Department 

of Labor (DoL) published a proposed 

rule implementing E.O. 13201 (66 FR 

50010). DoL finalized its implementing 

rule on March 29, 2004 (69 FR 16376).

E.O. 13201 is designed to promote 

economy and efficiency in Government 

procurement due to a better-informed 

American workforce. E.O. 13201 

contains requirements similar, but not 

identical, to those in E.O. 12800.

The interim rule amends the FAR to—

• Provide a new FAR subpart on 

Notification of Employee Rights 

Concerning Payment of Union Dues or 

Fees;

• Add a clause at 52.222–39 to be 

included in every solicitation and 

contract, other than purchases that do 

not exceed the simplified acquisition 

threshold and contracts covered by an 

exemption granted by the Secretary of 

Labor. The new clause applies to 

contracts (commercial or noncommercial) and subcontracts 

(commercial or non-commercial) that 

exceed the simplified acquisition 

threshold;

• Amend the clause at 52.212–5, 

Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items, 

in order to include the new 52.222–39 

clause; and

• Amend the clause at 52.244–6, 

Subcontracts for Commercial Items, in 

order to include the new 52.222–39 

clause.

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804.

B. Regulatory Flexibility Act

The interim rule is not expected to 

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 merely requires 

contractors to post notices and to insert 

a clause in subcontracts and purchase 

orders requiring subcontractors and 

vendors to post the notices also. The 

notices advise the contractors’ and 

subcontractors’ nonunion member 

employees of their rights under existing 

law concerning use of their union dues 

or fees where a union security 

agreement is in place. The rule provides 

sanctions for noncompliance, but full 

compliance with the Executive order 

and any related rules, regulations, and 

orders of the Secretary of Labor is 

expected of all contractors. Further, this 

interim rule is only implementing the 

DoL final rule. The Secretary of Labor 

has certified to the Chief Counsel for 

Advocacy at the Small Business 

Administration that the DoL final rule 

will not substantially change existing 

obligations for Federal contractors. 

Therefore, an Initial Regulatory 

Flexibility Analysis has not been 

performed. The Councils will consider 

comments from small entities 

concerning the affected FAR Parts 2, 22, 

and 52 in accordance with 5 U.S.C. 610. 

Interested parties must submit such 

comments separately and should cite 5 

U.S.C 601, et seq. (FAC 2001–26, FAR 

case 2004–010), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub. 

L. 104–13) applies because the interim 

rule contains information collection 

requirements; however, this rule’s 

changes do not impose additional 

information collection requirements to 

the paperwork burden previously 

submitted to the Office of Management 

and Budget (OMB) and approved on 

November 15, 2004, under OMB Control 

Number 1215–0203. The DoL has 

identified the burdens associated with 

the filing and processing of complaints 

by complainants and contractors in the 

notice of final rulemaking at 69 FR 

16376, March 29, 2004. The Councils 

believe that the package submitted by 

DoL meets the requirement imposed by 

the Paperwork Reduction Act and 

sufficiently covers this interim rule and 

no further action is necessary.

D. Determination to Issue an Interim 

Rule

A determination has been made under 

the authority of the Secretary of Defense 

(DoD), the Administrator of General 

Services (GSA), and the Administrator 

of the National Aeronautics and Space 

Administration (NASA) that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. This 

action is necessary to implement 

Executive Order 13201 and the DoL rule 

at 29 CFR part 470 effective April 28, 

2004. However, pursuant to Public Law 

98–577 and FAR 1.501, the Councils 

will consider public comments received 

in response to this interim rule in the 

formation of the final rule.

List of Subjects in 48 CFR Parts 2, 22, 

and 52

Government procurement.

Dated: December 9, 2004.

Laura Auletta,

Director, Contract Policy Division.

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 2, 22, and 52 as set 

forth below:

■ 1. The authority citation for 48 CFR 

parts 2, 22, and 52 is revised to read as 

follows:

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c).

PART 2—DEFINITIONS OF WORDS 

AND TERMS

■ 2. Amend section 2.101 in paragraph 

(b)(2) in the definition ‘‘United States’’

by redesignating paragraphs (4) and (5) 

as (5) and (6), respectively, and adding 

a new paragraph (4) to read as follows:

2.101 Definitions.

* * * * *

(b) * * *

United States, when used in a 

geographic sense, means the 50 States 

and the District of Columbia, except as 

follows:

* * * * *

(4) For use in Subpart 22.16, see the 

definition at 22.1601.

* * * * *

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS

■ 3. Add Subpart 22.16, consisting of 

sections 22.1600 through 22.1605, to 

read as follows:

Subpart 22.16–Notification of 

Employee Rights Concerning Payment 

of Union Dues or Fees

Sec.

22.1600 Scope of subpart.

22.1601 Definitions.

22.1602 Policy.

22.1603 Exemptions granted by the 

Secretary of Labor.

22.1604 Compliance investigations and 

sanctions for violations.

22.1605 Contract clause.

76354 Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 

22.1600 Scope of subpart.

This subpart prescribes policies and 

procedures to implement Executive 

Order 13201, February 17, 2001.

22.1601 Definitions.

As used in this subpart—

Secretary means the Secretary of 

Labor, U.S. Department of Labor.

United States means the 50 States, the 

District of Columbia, Puerto Rico, the 

Northern Mariana Islands, American 

Samoa, Guam, the U.S. Virgin Islands, 

and Wake Island.

22.1602 Policy.

Executive Order 13201 generally 

requires contractors to post a notice 

informing employees of their rights 

concerning payment of union dues or 

fees and to include this requirement in 

subcontracts and purchases that exceed 

the simplified acquisition threshold.

22.1603 Exemptions granted by the 

Secretary of Labor.

(a) The Secretary may grant 

exemptions from the requirements of 

this subpart, including the requirement 

to include the clause at 52.222–39, or 

parts of that clause, in contracts. 

Requests for exemptions may be 

submitted in accordance with 

Department of Labor regulations at 29 

CFR 470.3.

(b) The requirements of this subpart 

do not apply to contracts or 

subcontracts or purchases that do not 

exceed the simplified acquisition 

threshold.

22.1604 Compliance investigations and 

sanctions for violations.

The Secretary may investigate any 

contractor, subcontractor, or vendor to 

determine if any of the requirements of 

the clause at 52.222–39 have been 

violated. The procedures for conducting 

the investigations and effecting the 

sanctions are in 29 CFR part 470, 

Subpart B—Compliance Evaluations, 

Complaint Investigations and 

Enforcement Procedures. If the 

Secretary determines that there has been 

a violation, the Secretary may, to the 

extent authorized by 29 CFR 470.14 

(which, in part, requires coordination 

between the head of the agency and the 

Secretary), direct that the contract be 

cancelled, terminated, or suspended in 

whole or in part. The Secretary may also 

declare the contractor ineligible for 

further Government contracts. Each 

contracting agency shall cooperate with 

the Secretary and provide such 

information and assistance as the 

Secretary may require in the 

performance of the Secretary’s 

functions.

22.1605 Contract clause.

Insert the clause at 52.222–39, 

Notification of Employee Rights 

Concerning Payment of Union Dues or 

Fees, in all solicitations and contracts, 

except—

(a) Acquisitions that do not exceed 

the simplified acquisition threshold. For 

indefinite quantity contracts, include 

the clause only if the value of orders in 

any calendar year of the contract is 

expected to exceed the simplified 

acquisition threshold; or

(b) Contracts covered by an exemption 

granted by the Secretary of Labor. A 

contracting agency may modify the 

clause at 52.222–39, if necessary, to 

reflect an exemption granted by the 

Secretary (see 22.1603(a)).

PART 52—SOLICITATION PROVISONS 

AND CONTRACT CLAUSES

■ 4. Amend section 52.212–5 by—

■ a. Revising the date of the clause;

■ b. Redesignating paragraphs (b)(21) 

through (b)(34) as (b)(22) through (b)(35), 

respectively, and adding a new 

paragraph (b)(21);

■ c. In the introductory text of paragraph 

(e)(1), by removing ‘‘paragraphs (i) 

through (vi)’’ and adding ‘‘paragraphs (i) 

through (vii)’’ in its place; and 

redesignating paragraphs (e)(1)(v) and 

(e)(1)(vi) as (e)(1)(vi) and (e)(1)(vii), 

respectively, and adding a new 

paragraph (e)(1)(v) to read as follows:

52.212–5 Contract Terms and Conditions 

Required to Implement Statutes or 

Executive Orders—Commercial Items.

* * * * *

CONTRACT TERMS AND CONDITIONS 

REQUIRED TO IMPLEMENT STATUTES OR 

EXECUTIVE ORDERS—COMMERCIAL 

ITEMS (DEC 2004))

* * * * *

(b) * * *

ll(21) 52.222–39, Notification of 

Employee Rights Concerning Payment 

of Union Dues or Fees (DEC 2004) (E.O. 

13201).

* * * * *

(e)(1) * * *

(v) 52.222–39, Notification of 

Employee Rights Concerning Payment 

of Union Dues or Fees (DEC 2004) (E.O. 

13201).

* * * * *

52.213–4 [Amended]

■ 5. Amend section 52.213–4 by 

removing from the clause heading ‘‘(Oct 

2004)’’ and adding ‘‘(DEC 2004)’’ in its 

place; and removing ‘‘(July 2004)’’ from 

paragraph (a)(2)(vi) of the clause and 

adding ‘‘(DEC 2004) ’’ in its place.

■ 6. Add section 52.222–39 to read as 

follows:

52.222–39 Notification of Employee Rights 

Concerning Payment of Union Dues or 

Fees.

As prescribed in 22.1605, insert the 

following clause:

NOTIFICATION OF EMPLOYEE RIGHTS 

CONCERNING PAYMENT OF UNION DUES 

OR FEES (DEC 2004)

(a) Definition. As used in this clause—

United States means the 50 States, the 

District of Columbia, Puerto Rico, the 

Northern Mariana Islands, American 

Samoa, Guam, the U.S. Virgin Islands, 

and Wake Island.

(b) Except as provided in paragraph 

(e) of this clause, during the term of this 

contract, the Contractor shall post a 

notice, in the form of a poster, informing 

employees of their rights concerning 

union membership and payment of 

union dues and fees, in conspicuous 

places in and about all its plants and 

offices, including all places where 

notices to employees are customarily 

posted. The notice shall include the 

following information (except that the 

information pertaining to National 

Labor Relations Board shall not be 

included in notices posted in the plants 

or offices of carriers subject to the 

Railway Labor Act, as amended (45 

U.S.C. 151–188)).

Notice to Employees

Under Federal law, employees cannot be 

required to join a union or maintain 

membership in a union in order to retain 

their jobs. Under certain conditions, the law 

permits a union and an employer to enter 

into a union-security agreement requiring 

employees to pay uniform periodic dues and 

initiation fees. However, employees who are 

not union members can object to the use of 

their payments for certain purposes and can 

only be required to pay their share of union 

costs relating to collective bargaining, 

contract administration, and grievance 

adjustment.

If you do not want to pay that portion of 

dues or fees used to support activities not 

related to collective bargaining, contract 

administration, or grievance adjustment, you 

are entitled to an appropriate reduction in 

your payment. If you believe that you have 

been required to pay dues or fees used in part 

to support activities not related to collective 

bargaining, contract administration, or 

grievance adjustment, you may be entitled to 

a refund and to an appropriate reduction in 

future payments.

For further information concerning your 

rights, you may wish to contact the National 

Labor Relations Board (NLRB) either at one 

of its Regional offices or at the following 

address or toll free number:

National Labor Relations Board

Division of Information

1099 14th Street, N.W.

Washington, DC 20570

1–866–667–6572

1–866–316–6572 (TTY)

To locate the nearest NLRB office, see 

NLRB’s website at http://www.nlrb.gov.

Federal Register / Vol. 69, No. 243 / Monday, December 20, 2004 / Rules and Regulations 76355

(c) The Contractor shall comply with 

all provisions of Executive Order 13201 

of February 17, 2001, and related 

implementing regulations at 29 CFR part 

470, and orders of the Secretary of 

Labor.

(d) In the event that the Contractor 

does not comply with any of the 

requirements set forth in paragraphs (b), 

(c), or (g), the Secretary may direct that 

this contract be cancelled, terminated, 

or suspended in whole or in part, and 

declare the Contractor ineligible for 

further Government contracts in 

accordance with procedures at 29 CFR 

part 470, Subpart B—Compliance 

Evaluations, Complaint Investigations 

and Enforcement Procedures. Such 

other sanctions or remedies may be 

imposed as are provided by 29 CFR part 

470, which implements Executive Order 

13201, or as are otherwise provided by 

law.

(e) The requirement to post the 

employee notice in paragraph (b) does 

not apply to—

(1) Contractors and subcontractors 

that employ fewer than 15 persons;

(2) Contractor establishments or 

construction work sites where no union 

has been formally recognized by the 

Contractor or certified as the exclusive 

bargaining representative of the 

Contractor’s employees;

(3) Contractor establishments or 

construction work sites located in a 

jurisdiction named in the definition of 

the United States in which the law of 

that jurisdiction forbids enforcement of 

union-security agreements;

(4) Contractor facilities where upon 

the written request of the Contractor, the 

Department of Labor Deputy Assistant 

Secretary for Labor-Management 

Programs has waived the posting 

requirements with respect to any of the 

Contractor’s facilities if the Deputy 

Assistant Secretary finds that the 

Contractor has demonstrated that—

(i) The facility is in all respects 

separate and distinct from activities of 

the Contractor related to the 

performance of a contract; and

(ii) Such a waiver will not interfere 

with or impede the effectuation of the 

Executive order; or

(5) Work outside the United States 

that does not involve the recruitment or 

employment of workers within the 

United States.

(f) The Department of Labor publishes 

the official employee notice in two 

variations; one for contractors covered 

by the Railway Labor Act and a second 

for all other contractors. The Contractor 

shall—

(1) Obtain the required employee 

notice poster from the Division of 

Interpretations and Standards, Office of 

Labor-Management Standards, U.S. 

Department of Labor, 200 Constitution 

Avenue, NW, Room N–5605, 

Washington, DC 20210, or from any 

field office of the Department’s Office of 

Labor-Management Standards or Office 

of Federal Contract Compliance 

Programs;

(2) Download a copy of the poster 

from the Office of Labor-Management 

Standards website at http://

www.olms.dol.gov; or

(3) Reproduce and use exact duplicate 

copies of the Department of Labor’s 

official poster.

(g) The Contractor shall include the 

substance of this clause in every 

subcontract or purchase order that 

exceeds the simplified acquisition 

threshold, entered into in connection 

with this contract, unless exempted by 

the Department of Labor Deputy 

Assistant Secretary for Labor–

Management Programs on account of 

special circumstances in the national 

interest under authority of 29 CFR 

470.3(c). For indefinite quantity 

subcontracts, the Contractor shall 

include the substance of this clause if 

the value of orders in any calendar year 

of the subcontract is expected to exceed 

the simplified acquisition threshold. 

Pursuant to 29 CFR part 470, Subpart 

B—Compliance Evaluations, Complaint 

Investigations and Enforcement 

Procedures, the Secretary of Labor may 

direct the Contractor to take such action 

in the enforcement of these regulations, 

including the imposition of sanctions 

for noncompliance with respect to any 

such subcontract or purchase order. If 

the Contractor becomes involved in 

litigation with a subcontractor or 

vendor, or is threatened with such 

involvement, as a result of such 

direction, the Contractor may request 

the United States, through the Secretary 

of Labor, to enter into such litigation to 

protect the interests of the United 

States.

(End of clause)

■ 7. Amend section 52.244–6 by revising 

the date of the clause; redesignating 

paragraph (c)(1)(v) as (c)(1)(vi), and 

adding a new paragraph (c)(1)(v) to read 

as follows:

52.244–6 Subcontracts for Commercial 

Items.

* * * * *

SUBCONTRACTS FOR COMMERCIAL 

ITEMS (DEC 2004)

* * * * *

(c)(1) * * *

(v) 52.222–39, Notification of 

Employee Rights Concerning Payment 

of Union Dues or Fees (DEC 2004) (E.O. 

13201). Flow down as required in 

accordance with paragraph (g) of FAR 

clause 52.222–39).

* * * * *

[FR Doc. 04–27636 Filed 12–17–04; 8:45 am]

BILLING CODE 6820–EP–S

DEPARTMENT OF DEFENSE

GENERAL SERVICES 

ADMINISTRATION

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION

48 CFR Part 19

[FAC 2001–26; FAR Case 2003–010; Item 

V]

RIN 9000–AJ90

Federal Acquisition Regulation; Mentor 

Prote ́ge ́ Program—Delegation of 

Approval Authority for Mentor Prote ́ge ́

Agreements

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA).

ACTION: Final rule.

SUMMARY: TheCivilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to change the approval 

authority of Mentor Prote ́ge ́ Agreements 

to the DoD Military Departments or 

Defense Agencies.

DATES: Effective Date: January 19, 2005.

FOR FURTHER INFORMATION CONTACT: The 

FAR Secretariat at (202) 501–4755 for 

information pertaining to status or 

publication schedules. For clarification 

of content, contact Ms. Rhonda Cundiff, 

Procurement Analyst, at (202) 501–

0044. Please cite FAC 2001–26, FAR 

case 2003–010.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 19.702, 

Statutory Requirements, to change the 

approval authority of Mentor Prote ́ge ́

Agreements to the DoD Military 

Departments or Defense Agencies. This 

change is being made in order for DOD 

to streamline and transform itself to 

more effectively achieve its mission. 

The Pilot Mentor-Prote ́ge ́ Program was 

established under Section 831 of Pub. L. 

101–510, the National Defense 

Authorization Act for Fiscal Year 1991 

(10 U. S. C. 2302 note). The purpose of 

the Program is to provide incentives to 

major Department of Defense (DoD) 

contractors to assist prote ́ge ́ firms in