Vol. 80 Tuesday, 

No. 100 May 26, 2015 

Part II 

Department of Defense 

Defense Acquisition Regulations System 

48 CFR Parts 212, 213, 219 et al. 

Defense Federal Acquisition Regulation Supplement; Final Rules and 

Proposed Rule 


asabaliauskas on DSK5VPTVN1PROD with RULES
30116 Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 219, and 252 

RIN 0750–A142 

Defense Federal Acquisition 

Regulation Supplement: Advancing 

Small Business Growth (DFARS Case 

2014–D009) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to clarify that entering into a 

contract award may cause a small 

business to eventually exceed the 

applicable small business size standard. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Lee Renna, telephone 571–372–6095. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 65917 on 

November 6, 2014, to implement policy 

to ensure that a small business 

contractor is made aware that entering 

into a covered contract conveys its 

acknowledgement that doing so may 

cause it to eventually exceed the small 

business size standard of the North 

American Industry Classification 

System (NAICS) code identified in the 

solicitation and contract. This 

clarification is required by section 1611 

of the National Defense Authorization 

Act for Fiscal Year 2014, Public Law 

113–66, (10 U.S.C. 2419). 

There were no public comments 

submitted in response to the proposed 

rule. 

II. Discussion and Analysis 

Minor editorial changes have been 

made from the proposed rule as follows: 

(1) In the heading at 219.303, the 

acronym ‘‘(NAICS) was removed; (2) At 

DFARS 219.309, paragraph (a) was 

renumbered as paragraph (1), and a 

reference was changed from 

‘‘$70,000,000’’ to read ‘‘$70 million’’; 

and (3) DFARS 252.219–7000, 

paragraph (b), was revised slightly in 

the first sentence to reflect more 

standardized provision language and to 

spell out ‘‘NAICS’’ to reflect the North 

American Industry Classification 

System. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

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

804. 

IV. Regulatory Flexibility Act 

DoD has certified that this 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. This 

conclusion is based on the following: 

This rule does not create or alleviate 

any financial burden on small 

businesses. The purpose of the rule is 

only to advise small businesses that 

entering into a DoD contract may 

eventually cause such businesses to 

exceed the small business size standard 

associated with the applicable NAICS 

code, and to encourage these businesses 

to develop the competencies typically 

desired of other than small businesses. 

V. Paperwork Reduction Act 

The rule does not contain any 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Parts 212, 

219, and 252 

Government procurement. 

Amy G. Williams, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 212, 219, and 

252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 212 and 252 continues to read as 

follows: 

Authority: 41. U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 2. Amend section 212.301 by adding 

a new paragraph (f)(vi)(C) to read as 

follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(vi) * * * 

(C) Use the provision at 252.219– 

7000, Advancing Small Business 

Growth, as prescribed in 219.309(1), to 

comply with 10 U.S.C. 2419. 

* * * * * 

PART 219—SMALL BUSINESS 

PROGRAMS 

■ 3. The authority citation for 48 CFR 

part 219 is revised to read as follows: 

Authority: 41. U.S.C. 1303 and 48 CFR 

chapter 1. 

■ 4. Amend section 219.303 by revising 

the section heading to read as follows: 

219.303 Determining North American 

Industry Classification System codes and 

size standards. 

* * * * * 

■ 5. Add section 219.309 to subpart 

219.3 to read as follows: 

219.309 Solicitation provisions and 

contract clauses. 

(1) Use the provision at 252.219–7000, 

Advancing Small Business Growth, in 

solicitations, including solicitations 

using FAR part 12 procedures for 

acquisition of commercial items, when 

the estimated annual value of the 

contract is expected to exceed— 

(i) The small business size standard, 

if expressed in dollars, for the North 

American Industry Classification 

System (NAICS) code assigned by the 

contracting officer; or 

(ii) $70 million, if the small business 

size standard is expressed as number of 

employees for the NAICS code assigned 

by the contracting officer. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 6. Add section 252.219–7000 to read 

as follows: 

252.219–7000 Advancing Small Business 

Growth. 

As prescribed in 219.309(1), use the 

following provision: 

Advancing Small Business Growth 

(May 2015) 

(a) This provision implements 10 U.S.C. 

2419. 


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Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules and Regulations 30117 

(b) The Offeror acknowledges by 

submission of its offer that by acceptance of 

the contract resulting from this solicitation, 

the Offeror may exceed the applicable small 

business size standard of the North American 

Industry Classification System (NAICS) code 

assigned to the contract and would no longer 

qualify as a small business concern for that 

NAICS code. (Small business size standards 

matched to industry NAICS codes are 

published by the Small Business 

Administration and are available at http://

www.sba.gov/content/table-small-businesssize-standards.) The Offeror is therefore 

encouraged to develop the capabilities and 

characteristics typically desired in 

contractors that are competitive as otherthan-small contractors in this industry. 

(c) For procurement technical assistance, 

the Offeror may contact the nearest 

Procurement Technical Assistance Center 

(PTAC). PTAC locations are available at 

www.dla.mil/SmallBusiness/Pages/

ptac.aspx. 

(End of provision) 

[FR Doc. 2015–12338 Filed 5–22–15; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 213, and 252 

RIN 0750–AI40 

Defense Federal Acquisition 

Regulation Supplement: Past 

Performance Information Retrieval 

System—Statistical Reporting (PPIRS– 

SR) (DFARS Case 2014–D015) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to require contracting officers 

to consider information in the Statistical 

Reporting module of the Past 

Performance Information Retrieval 

System when evaluating past 

performance of offerors under 

competitive solicitations for supplies 

using simplified acquisition procedures. 

DATES: Effective May 26, 2015. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer Hawes, telephone 571–372– 

6115. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 80 FR 4848 on 

January 29, 2015, to revise the DFARS 

to add a new provision at DFARS 

252.213–7000, Notice to Prospective 

Suppliers on the Use of Past 

Performance Information Retrieval 

System—Statistical Reporting in Past 

Performance Evaluations, for use in 

competitive solicitations for supplies 

using FAR part 13 simplified 

acquisition procedures, including those 

for acquisitions valued at less than or 

equal to $1 million under FAR 13.5. 

One respondent submitted a public 

comment in response to the proposed 

rule. 

II. Discussion and Analysis 

DoD reviewed the public comment in 

the development of the final rule. A 

discussion of the comment and the 

changes made to the rule is provided 

below: 

A. Analysis of Public Comment 

Comment: A respondent commented 

that streamlining a formal and 

systematic process will improve the 

opportunities for small businesses and 

reduce bias in the award of Government 

contracts. 

Response: No changes were made a 

result of this comment. 

B. Other Changes 

The final rule includes a clarification 

in the prescription at DFARS 213.106– 

2–70 that the provision is applicable for 

use in competitive solicitations using 

FAR part 12 procedures for the 

acquisition of commercial items. A 

minor editorial change is also made at 

212.301(f)(v) to address the reference to 

the DFARS provision 252.213–7000, 

Notice to Prospective Suppliers on Use 

of Past Performance Information 

Retrieval System—Statistical Reporting 

in Past Performance Evaluations, in the 

same manner as the other content of this 

section. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

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

804. 

IV. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

has been prepared consistent with the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., and is summarized as follows: 

This rule amends the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to require contracting officers 

to consider information available in Past 

Performance Information Retrieval 

System-Statistical Reporting (PPIRS–SR) 

when evaluating the past performance 

of offerors under competitive 

solicitations for supplies using FAR part 

13 simplified acquisition procedures 

(including acquisitions under the 

authority of FAR subpart 13.5 valued at 

less than or equal to $1 million). 

This rule will help fill the gap 

between the higher DoD threshold for 

the collection and evaluation of past 

performance information and the 

thresholds at FAR 15.304(c)(3)(i). 

PPIRS–SR collects quantifiable delivery 

and quality data from existing systems 

and uses that data to classify each 

supplier’s performance by Federal 

supply class and product service code. 

Contracting officers will use this 

objective data to help make betterinformed best value award decisions for 

supply contracts valued at less than or 

equal to $1 million. 

No comments were received from the 

public regarding the initial regulatory 

flexibility analysis. 

This rule will apply to small 

businesses submitting offers on 

competitive solicitations for supplies 

issued using simplified acquisition 

procedures valued at less than $1 

million. According to a report generated 

in the Federal Procurement Data 

System, in fiscal year 2013, DoD made 

15,258 new competitive awards for 

commercial supplies valued at less than 

or equal to $1 million to 4,018 unique 

small businesses. 

The rule creates no new reporting, 

recordkeeping, or other compliance 

requirements. There are no known 

significant alternatives to the rule. The 

impact of this rule on small business is 

not expected to be significant. 

V. Paperwork Reduction Act 

The rule does not contain any 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 


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