24322 Federal Register / Vol. 65, No. 80 / Tuesday, April 25, 2000 / Rules and Regulations

end products as eligible products under

the Trade Agreements Act, with the

exception of the end products from the

Dominican Republic and Honduras.

This rule implements that

determination. The prior determination

expired September 30, 1999, except that

the determination regarding the end

products of Panama extended until

September 30, 2000.

This rule was not subject to Office of

Management and Budget 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 final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comments is not required. However, the

Councils will consider comments from

small entities concerning the affected

FAR parts 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 97–17, FAR

case 2000–003), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose 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 25 and

52

Government procurement.

Dated: April 13, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 25 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 25 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

PART 25—FOREIGN ACQUISITION

2. Revise the definition ‘‘Caribbean

Basin country’’ in section 25.003 to read

as follows:

25.003 Definitions.

* * * * *

Caribbean Basin country means any of

the following countries: Antigua and

Barbuda, Aruba, Bahamas, Barbados,

Belize, British Virgin Islands, Costa

Rica, Dominica, El Salvador, Grenada,

Guatemala, Guyana, Haiti, Jamaica,

Montserrat, Netherlands Antilles,

Nicaragua, Panama, St. Kitts and Nevis,

St. Lucia, St. Vincent and the

Grenadines, Trinidad and Tobago.

* * * * *

3. In section 25.400, revise paragraph

(a)(2) to read as follows:

25.400 Scope of subpart.

(a) * * *

(2) The Caribbean Basin Trade

Initiative (the determination of the U.S.

Trade Representative that end products

granted duty-free entry from countries

designated by the President as

beneficiaries under the Caribbean Basin

Economic Recovery Act (19 U.S.C. 2701,

et seq.), with the exception of the

Dominican Republic and Honduras,

must be treated as eligible products

under the Trade Agreements Act);

* * * * *

4. Revise section 25.404 to read as

follows:

25.404 Caribbean Basin Trade Initiative.

Under the Caribbean Basin Trade

Initiative, the United States Trade

Representative has determined that, for

acquisitions subject to the Trade

Agreements Act, Caribbean Basin

country end products must be treated as

eligible products. This determination is

effective until September 30, 2000. The

U.S. Trade Representative may extend

these dates through a document in the

Federal Register.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.225–5 [Amended]

5. Amend section 52.225–5 by

revising the date of the clause to read

‘‘(APR 2000)’’; and in paragraph (a), in

the definition ‘‘Caribbean Basin

country’’, by removing ‘‘Dominican

Republic,’’ and ‘‘Honduras,’’.

[FR Doc. 00–10133 Filed 4–24–00; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 26 and 52

[FAC 97–17; FAR Case 1999–301 (99–301);

Item IV]

RIN 9000–AI52

Federal Acquisition Regulation;

Utilization of Indian Organizations and

Indian-Owned Economic Enterprises

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to delete DoD-unique

language pertaining to incentive

payments made to prime contractors for

the utilization of Indian organizations

and Indian-owned economic

enterprises.

DATES: Effective Date: June 26, 2000.

Applicability Date: The FAR, as

amended by this rule, is applicable to

solicitations issued on or after June 26,

2000.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, (202)

501–4755, for information pertaining to

status or publication schedules. For

clarification of content, contact Ms.

Victoria Moss, Procurement Analyst, at

(202) 501–4764. Please cite FAC 97–17,

FAR case 1999–301.

SUPPLEMENTARY INFORMATION:

A. Background

DoD, GSA, and NASA published a

proposed rule in the Federal Register on

October 27, 1999 (64 FR 57964). Six

sources submitted comments in

response to the proposed rule. The

Councils considered all comments in

the development of the final rule.

Section 504 of the Indian Financing

Act of 1974 (25 U.S.C. 1544) established

the Indian Incentive Program. Annual

DoD appropriations acts have restricted

DoD payments under the Program to

those contractors that submitted

subcontracting plans pursuant to 15

U.S.C. 637(d) and those contractors

participating in the test program for

comprehensive small business

Federal Register / Vol. 65, No. 80 / Tuesday, April 25, 2000 / Rules and Regulations 24323

subcontracting plans established by

Section 854 of Public Law 101–189.

Section 8024 of the DoD Appropriations

Act for Fiscal Year 1999 (Public Law

105–262) eliminated the link between a

DoD contractor’s subcontracting plan

requirement and the contractor’s

eligibility for participation in the Indian

Incentive Program. This change now

allows DoD to make incentive payments

to small businesses that subcontract to

Indian organizations or Indian-owned

economic enterprises when the contract

includes the clause at FAR 52.226–1,

Utilization of Indian Organizations and

Indian-Owned Economic Enterprises.

This rule removes obsolete DoD-unique

implementing guidance from the FAR.

The Defense Acquisition Regulations

Council is adding guidance to the

Defense Federal Acquisition Regulation

Supplement under a separate case to

implement the change made in Section

8024 of Public Law 105–262.

This rule was not subject to Office of

Management and Budget 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 Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify 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 merely deletes obsolete DoD-unique

implementing guidance from the FAR.

The rule will have no effect on small

entities doing business with civilian

agencies.

C. Paperwork Reduction Act

The Paperwork Reduction Act (Pub.

L. 104–13) does not apply because the

changes to the FAR do not impose

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 26 and

52

Government procurement.

Dated: April 13, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 26 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 26 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

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

PART 26—OTHER SOCIOECONOMIC

PROGRAMS

26.101 [Amended]

2. Amend section 26.101 as follows:

a. In the definition ‘‘Indian’’, remove

‘‘which’’ and insert ‘‘that’’ in its place;

b. In the definition ‘‘Indian-owned

economic enterprise’’, remove ‘‘shall

constitute’’ and insert ‘‘constitutes’’ in

its place; and

c. In the definition ‘‘Indian tribe’’,

remove ‘‘which’’ and insert ‘‘that’’ in its

place.

3. Revise section 26.104 to read as

follows:

26.104 Contract clause.

Contracting officers in civilian

agencies may insert the clause at

52.226–1, Utilization of Indian

Organizations and Indian-Owned

Economic Enterprises, in solicitations

and contracts if—

(a) In the opinion of the contracting

officer, subcontracting possibilities exist

for Indian organizations or Indianowned economic enterprises; and

(b) Funds are available for any

increased costs as described in

paragraph (b)(2) of the clause at 52.226–

1.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

4. Amend section 52.226–1 as follows:

a. Revise the date of the clause;

b. Remove paragraph (a);

c. Redesignate paragraphs (b) through

(d) as (a) through (c), respectively;

d. In the newly designated paragraph

(a):

(1) Remove ‘‘which’’ from the

definition ‘‘Indian’’ and insert ‘‘that’’ in

its place;

(2) Remove ‘‘shall constitute’’ from

the definition ‘‘Indian-owned economic

enterprise’’ and insert ‘‘constitutes’’ in

its place; and

(3) Remove ‘‘which’’ from the

definition ‘‘Indian tribe’’ and insert

‘‘that’’ in its place.

e. Revise newly designated

paragraphs (b) and (c).

The revised text reads as follows:

52.226–1 Utilization of Indian

Organizations and Indian-Owned Economic

Enterprises.

* * * * *

Utilization of Indian Organizations and

Indian-Owned Economic Enterprises (June

2000)

* * * * *

(b) The Contractor shall use its best efforts

to give Indian organizations and Indianowned economic enterprises (25 U.S.C. 1544)

the maximum practicable opportunity to

participate in the subcontracts it awards to

the fullest extent consistent with efficient

performance of its contract.

(1) The Contracting Officer and the

Contractor, acting in good faith, may rely on

the representation of an Indian organization

or Indian-owned economic enterprise as to

its eligibility, unless an interested party

challenges its status or the Contracting

Officer has independent reason to question

that status. In the event of a challenge to the

representation of a subcontractor, the

Contracting Officer will refer the matter to

the U.S. Department of the Interior, Bureau

of Indian Affairs (BIA), Attn: Chief, Division

of Contracting and Grants Administration,

1849 C Street, NW., MS 2626–MIB,

Washington, DC 20240–4000.

The BIA will determine the eligibility and

notify the Contracting Officer. No incentive

payment will be made within 50 working

days of subcontract award or while a

challenge is pending. If a subcontractor is

determined to be an ineligible participant, no

incentive payment will be made under the

Indian Incentive Program.

(2) The Contractor may request an

adjustment under the Indian Incentive

Program to the following:

(i) The estimated cost of a cost-type

contract.

(ii) The target cost of a cost-plus-incentivefee prime contract.

(iii) The target cost and ceiling price of a

fixed-price incentive prime contract.

(iv) The price of a firm-fixed-price prime

contract.

(3) The amount of the adjustment to the

prime contract is 5 percent of the estimated

cost, target cost, or firm-fixed-price included

in the subcontract initially awarded to the

Indian organization or Indian-owned

economic enterprise.

(4) The Contractor has the burden of

proving the amount claimed and must assert

its request for an adjustment prior to

completion of contract performance.

(c) The Contracting Officer, subject to the

terms and conditions of the contract and the

availability of funds, will authorize an

incentive payment of 5 percent of the amount

paid to the subcontractor. The Contracting

Officer will seek funding in accordance with

agency procedures.

(End of clause)

[FR Doc. 00–10134 Filed 4–24–00; 8:45 am]

BILLING CODE 6820–EP–P