[Federal Register Volume 65, Number 128 (Monday, July 3, 2000)]
[Proposed Rules]
[Pages 41266-41267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16454]



[[Page 41265]]

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Part IV





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Parts 8, 15, 44, and 52



Federal Acquisition Regulation; JWOD Subcontract Preference Under 
Service Contracts; Truth in Negotiations Act Threshold; Proposed Rules

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Proposed 
Rules

[[Page 41266]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 44, and 52

[FAR Case 1999-017]
RIN 9000-AI82


Federal Acquisition Regulation; JWOD Subcontract Preference Under 
Service Contracts

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to implement changes relating to 
preferences for award of subcontracts under service contracts to 
nonprofit workshops designated by the Committee for Purchase From 
People Who Are Blind or Severely Disabled (Javits-Wagner-O'Day (JWOD) 
(41 U.S.C. 48)).

DATES: Interested parties should submit comments in writing on or 
before September 1, 2000, to be considered in the formulation of a 
final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVR), 1800 F Street, NW, Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: <a href="/cdn-cgi/l/email-protection#b7d1d6c5d4d6c4d299868e8e8e9a878680f7d0c4d699d0d8c1"><span class="__cf_email__" data-cfemail="264047544547554308171f1f1f0b1617116641554708414950">[email protected]</span></a>.
    Please submit comments only and cite FAR case 1999-017 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mrs. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAR case 1999-017.

SUPPLEMENTARY INFORMATION:

A. Background

    The proposed rule amends--
    <bullet> FAR Part 8 to extend the priority for award of service 
contracts that will satisfy agency requirements that are available from 
the Committee for Purchase From People Who Are Blind or Severely 
Disabled to subcontracts when contractors purchase the services for 
Government use;
    <bullet> FAR part 44 to add purchase from nonprofit workshops 
designated by the Committee for Purchase From People Who Are Blind or 
Severely Disabled to the list of items a contracting officer must 
consider when reviewing a subcontract that is subject to the procedures 
at FAR Subpart 44.2, Consent to Subcontracts; and
    <bullet> The clause at FAR 52.208-9, Contractor Use of Mandatory 
Sources of Supply, to inform offerors and contractors that certain 
services to be provided for use by the Government are required by law 
to be obtained from the Committee for Purchase From People Who Are 
Blind or Severely Disabled.
    These amendments implement changes in the Committee for Purchase 
From People Who Are Blind or Severely Disabled regulations (41 CFR 51-
5.5(e)).
    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 changes may 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 contains a 
priority for subcontracts under services contracts with nonprofit 
workshops designated by the Committee for Purchase From People Who Are 
Blind or Severely Disabled.
    An Initial Regulatory Flexibility Analysis (IRFA) has been prepared 
and will be provided to the Chief Counsel for Advocacy for the Small 
Business Administration. The analysis is summarized as follows:

    The rule implements 41 CFR 51-5.5(e) relating to preferences for 
award of subcontracts under service contracts to nonprofit workshops 
designated by the Committee for Purchase From People Who Are Blind 
or Severely Disabled (Javits-Wagner-O'Day Act (JWOD) (41 U.S.C. 
48)). The proposed rule will apply to all large and small entities 
that seek award of a subcontract under a Government services 
contract. Although awards of subcontracts to certain small entities 
may decrease as a result of the rule, the decrease will be offset by 
an increase in awards to nonprofit workshops. Nonprofit workshops 
meet the size standards for most acquisitions. Therefore, we do not 
expect the total number of subcontract awards to small entities to 
change as a result of this rule.

    A copy of the IRFA may be obtained from the FAR Secretariat. The 
Councils will consider comments from small entities concerning the 
affected FAR parts 8, 44, and 52 in accordance with 5 U.S.C. 610. 
Comments must be submitted separately and should cite 5 U.S.C 601, et 
seq. (FAR case 1999-017), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 8, 44, and 52

    Government procurement.

    Dated: June 21, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA propose that 48 CFR parts 8, 44, and 
52 be amended as set forth below:
    1. The authority citation for 48 CFR parts 8, 44, 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Amend section 8.001 by revising paragraph (c) to read as 
follows:


8.001  Priorities for use of Government supply sources.

* * * * *
    (c) The statutory obligation for Government agencies to satisfy 
their requirements for supplies or services available from the 
Committee for Purchase From People Who Are Blind or Severely Disabled 
also applies when contractors purchase the supplies or services for 
Government use.
    3. Revise section 8.003 to read as follows:


8.003  Contract clause.

    Insert the clause at 52.208-9, Contractor Use of Mandatory
    Sources of Supply and Services, in solicitations and contracts that 
require a contractor to provide supplies or services for Government use 
that are available from the Committee for Purchase From People Who Are 
Blind or Severely Disabled. The contracting officer must identify in 
the contract schedule the supplies or services that must be purchased 
from a mandatory source and the specific source.

PART 44--SUBCONTRACTING POLICIES AND PROCEDURES

    4. In section 44.202-2, amend the introductory text of paragraph 
(a) by

[[Page 41267]]

removing ``shall'' and adding ``must'' in its place; and revising 
paragraph (a)(4) to read as follows:


44.202-2  Considerations.

    (a) * * *
    (4) Has the contractor complied with the prime contract 
requirements regarding--
    (i) Small business subcontracting, including, if applicable, its 
plan for subcontracting with small, small disadvantaged and women-owned 
small business concerns (see part 19); and
    (ii) Purchase from nonprofit agencies designated by the Committee 
for Purchase From People Who Are Blind or Severely Disabled (Javits-
Wagner-O'Day Act (JWOD) (41 U.S.C. 48)) (see part 8)?
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. In section 52.208-9, revise the section and clause headings, 
paragraphs (a) and (b), and the second sentence in paragraph (c) to 
read as follows:


52.208-9  Contractor Use of Mandatory Sources of Supply or Services.

* * * * *

Contractor Use of Mandatory Sources of Supply or Services (Date)

    (a) Certain supplies or services to be provided under this 
contract for use by the Government are required by law to be 
obtained from the Committee for Purchase From People Who Are Blind 
or Severely Disabled (the Committee) under the Javits-Wagner-O'Day 
Act (JWOD) (41 U.S.C. 48). Additionally, certain of these supplies 
are available from the Defense Logistics Agency (DLA), the General 
Services Administration (GSA), or the Department of Veterans Affairs 
(VA). The Contractor shall obtain mandatory supplies or services to 
be provided for Government use under this contract from the specific 
sources indicated in the contract schedule.
    (b) The Contractor shall immediately notify the Contracting 
Officer if a mandatory source is unable to provide the supplies or 
services by the time required, or if the quality of supplies or 
services provided by the mandatory source is unsatisfactory. The 
Contractor shall not purchase the supplies or services from other 
sources until the Contracting Officer has notified the Contractor 
that the Committee or a JWOD central nonprofit agency has authorized 
purchase from other sources.
    (c) * * * For mandatory supplies or services that are not 
available from DLA/GSA/VA, price and delivery information is 
available from the appropriate central nonprofit agency. * * *
* * * * *
(End of clause)

[FR Doc. 00-16454 Filed 6-30-00; 8:45 am]
BILLING CODE 6820-EP-U


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