41266 Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Proposed Rules

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.

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 (JavitsWagner-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: farcase.1999–017@gsa.gov.

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—

• 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;

• 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

• 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 (JavitsWagner-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

Federal Register / Vol. 65, No. 128 / Monday, July 3, 2000 / Proposed Rules 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-WagnerO’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 JavitsWagner-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

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 15

[FAR Case 2000–300]

RIN 9000–AI83

Federal Acquisition Regulation; Truth

in Negotiations Act Threshold

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) are proposing to amend the

Federal Acquisition Regulation (FAR) to

implement the requirements of 10

U.S.C. 2306a(a)(7) and 41 U.S.C.

254b(a)(7). These statutes require review

of the Truth in Negotiations Act

threshold every 5 years, starting October

1, 1995.

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 (MVRS), 1800 F Street,

NW, Room 4035, ATTN: Laurie Duarte,

Washington, DC 20405. Submit

electronic comments via the Internet to:

farcase.2000–300@gsa.gov

Please submit comments only and cite

FAR case 2000–300 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 Mr. Jeremy Olson, at (202) 501–

0692. Please cite FAR case 2000–300.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends FAR

15.403–4 to implement the requirements

of 10 U.S.C. 2306a(a)(7) and 41 U.S.C.

254b(a)(7). These statutes require review

of the Truth in Negotiations Act

threshold every 5 years, starting October

1, 1995. The proposed increase of

$50,000 is based on escalation of 10.22

percent from 1994 to 2000, calculated

using the gross domestic product

deflators from the fiscal year 2001

budget.

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 Councils do not expect this

proposed rule 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 most

contracts and subcontracts with small

entities do not require the submission of

cost or pricing data. An Initial

Regulatory Flexibility Analysis has,

therefore, not been performed. We invite

comments from small businesses and

other interested parties. The Councils

will consider comments from small

entities concerning the affected FAR

Part 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. (FAR case 2000–300),

in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act

applies; however, the proposed changes

to the FAR do not significantly change

the information collection requirements

that have been approved by the Office

of Management and Budget under 44

U.S.C. 3501, et seq., under OMB

Clearance Number 9000–0045.

List of Subjects in 48 CFR Part 15

Government procurement.

Dated: June 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

propose that 48 CFR part 15 be amended

as set forth below:

PART 15—CONTRACTING BY

NEGOTIATION

1. The authority citation for 48 CFR

part 15 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).

2. Amend section 15.403–4 by

revising paragraph (a)(1) to read as

follows:

15.403–4 Requiring cost or pricing data

(10 U.S.C. 2306a and 41 U.S.C. 254b).

(a)(1) The contracting officer must

obtain cost or pricing data only if the

contracting officer concludes that none

of the exceptions in 15.403–1(b) applies.

However, if the contracting officer has

sufficient information available to