Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44821

(c) Consider denying a COC for

reasons of nonresponsibility not

originally cited by the contracting

officer.

(d) When the Area Director

determines that a COC is warranted (for

contracts valued at $25,000,000 or less),

notify the contracting officer and

provide the following options:

(1) Accept the Area Director’s

decision to issue a COC and award the

contract to the concern. The COC

issuance letter will then be sent,

including as an attachment a detailed

rationale for the decision; or

(2) Ask the Area Director to suspend

the case for one or more of the following

purposes:

(i) To permit the SBA to forward a

detailed rationale for the decision to the

contracting officer for review within a

specified period of time.

(ii) To afford the contracting officer

the opportunity to meet with the Area

Office to review all documentation

contained in the case file and to attempt

to resolve any issues.

(iii) To submit any information to the

SBA Area Office that the contracting

officer believes the SBA did not

consider (at which time the SBA Area

Office will establish a new suspense

date mutually agreeable to the

contracting officer and the SBA).

(iv) To permit resolution of an appeal

by the contracting agency to SBA

Headquarters under 19.602–3. However,

there is no contracting officer’s appeal

when the Area Office proposes to issue

a COC valued at $100,000 or less.

(e) At the completion of the process,

notify the concern and the contracting

officer that the COC is denied or is being

issued.

(f) Refer recommendations for issuing

a COC on contracts greater than

$25,000,000 to SBA Headquarters.

12. Section 19.602–3 is revised to read

as follows:

19.602–3 Resolving differences between

the agency and the Small Business

Administration.

(a) COCs valued between $100,000

and $25,000,000. (1) When

disagreements arise about a concern’s

ability to perform, the contracting

officer and the SBA shall make every

effort to reach a resolution before the

SBA takes final action on a COC. This

shall be done through the complete

exchange of information and in

accordance with agency procedures. If

agreement cannot be reached between

the contracting officer and the SBA Area

Office, the contracting officer shall

request that the Area Office suspend

action and refer the matter to SBA

Headquarters for review. The SBA Area

Office shall honor the request for a

review if the contracting officer agrees

to withhold award until the review

process is concluded. Without an

agreement to withhold award, the SBA

Area Office will issue the COC in

accordance with applicable SBA

regulations.

(2) SBA Headquarters will furnish

written notice to the procuring agency’s

Director, Office of Small and

Disadvantaged Business Utilization

(OSDBU) or other designated official

(with a copy to the contracting officer)

that the case file has been received and

that an appeal decision may be

requested by an authorized official.

(3) If the contracting agency decides

to file an appeal, it must notify SBA

Headquarters through its procuring

agency’s Director, OSDBU, or other

designated official, within 10 business

days (or a time period agreed upon by

both agencies) that it intends to appeal

the issuance of the COC.

(4) The appeal and any supporting

documentation shall be filed by the

procuring agency’s Director, OSDBU, or

other designated official, within 10

business days (or a period agreed upon

by both agencies) after SBA

Headquarters receives the agency’s

notification in accordance with

paragraph (a)(3) of this subsection.

(5) The SBA Associate Administrator

for Government Contracting will make a

final determination, in writing, to issue

or to deny the COC.

(b) SBA Headquarters’ decisions on

COCs valued over $25,000,000. (1) Prior

to taking final action, SBA Headquarters

will contact the contracting agency and

offer it the following options:

(i) To request that the SBA suspend

case processing to allow the agency to

meet with SBA Headquarters personnel

and review all documentation contained

in the case file; or

(ii) To submit to SBA Headquarters

for evaluation any information that the

contracting agency believes has not been

considered.

(2) After reviewing all available

information, the SBA will make a final

decision to either issue or deny the

COC.

(c) Reconsideration of a COC after

issuance. (1) The SBA reserves the right

to reconsider its issuance of a COC,

prior to contract award, if—

(i) The COC applicant submitted false

information or omitted materially

adverse information; or

(ii) The COC has been issued for more

than 60 days (in which case the SBA

may investigate the firm’s current

circumstances).

(2) When the SBA reconsiders and

reaffirms the COC, the procedures in

subsection 19.602–2 do not apply.

(3) Denial of a COC by the SBA does

not preclude a contracting officer from

awarding a contract to the referred

concern, nor does it prevent the concern

from making an offer on any other

procurement.

[FR Doc. 97–21494 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 19

[FAC 97–01; FAR Case 97–008; Item X]

RIN 9000–AH65

Federal Acquisition Regulation;

Economically Disadvantaged

Individuals

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

update the definition of ‘‘small

disadvantaged business concern’’ for

conformance with Small Business

Administration regulations. This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993. This is not a

major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

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 97–01,

FAR case 97–008.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends the definition

of ‘‘small disadvantaged business

concern’’ at FAR 19.001 to update the

categories of individuals considered to

be socially and economically
44822 Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations

disadvantaged. In accordance with the

Small Business Administration

regulations at 13 CFR 124.105, the

Maldives Islands has been added to the

category of ‘‘Subcontinent Asian

Americans’’; and Macao, Hong Kong,

Fiji, Tonga, Kirabati, Tuvalu, and Nauru

have been added to the category of

‘‘Asian Pacific Americans.’’

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

comment is not required. However,

comments from small entities

concerning the affected FAR subpart

will be considered in accordance with 5

U.S.C. 610. Such comments must be

submitted separately and cite 5 U.S.C.

601, et seq. (FAC 97–01, FAR case 97–

008), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 19

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 19 is amended

as set forth below:

PART 19—SMALL BUSINESS

PROGRAMS

1. The authority citation for 48 CFR

Part 19 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. Section 19.001 is amended by

revising paragraphs (b)(1) and (b)(2)

under the definition ‘‘Small

disadvantaged business concern’’ to

read as follows:

19.001 Definitions.

* * * * *

Small disadvantaged business

concern * * *

(b) * * * (1) Subcontinent Asian

Americans means United States citizens

whose origins are in India, Pakistan,

Bangladesh, Sri Lanka, Bhutan, the

Maldives Islands, or Nepal.

(2) Asian Pacific Americans means

United States citizens whose origins are

in Japan, China, the Philippines,

Vietnam, Korea, Samoa, Guam, the U.S.

Trust Territory of the Pacific Islands

(Republic of Palau), the Northern

Mariana Islands, Laos, Kampuchea

(Cambodia), Taiwan, Burma, Thailand,

Malaysia, Indonesia, Singapore, Brunei,

Republic of the Marshall Islands, the

Federated States of Micronesia, Macao,

Hong Kong, Fiji, Tonga, Kiribati,

Tuvalu, or Nauru.

* * * * *

[FR Doc. 97–21495 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 19 and 52

[FAC 97–01; FAR Case 95–028; Item XI]

RIN 9000–AH34

Federal Acquisition Regulation;

Minority Small Business and Capital

Ownership

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule adopted as final

with changes.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed to adopt as final, with changes,

the interim rule that was published as

Item VII of Federal Acquisition Circular

90–43 on December 20, 1996. The rule

amends the Federal Acquisition

Regulation (FAR) to reflect changes to

the Small Business Administration’s

(SBA) regulations at 13 CFR Parts 121

and 124, which address the Minority

Small Business and Capital Ownership

Development Program. The rule clarifies

eligibility and procedural requirements

for procurements under the 8(a)

program. This regulatory action was not

subject to Office of Management and

Budget review under Executive Order

12866, dated September 30, 1993, and is

not a major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

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 97–01,

FAR case 95–028.

SUPPLEMENTARY INFORMATION:

A. Background

On June 7, 1995, SBA published, as a

final rule, changes to its regulations at

13 CFR Parts 121 and 124, which cover

the Minority Small Business and Capital

Ownership Development Program. As a

result of these modifications, the FAR

had some inconsistencies regarding who

was eligible for a particular 8(a)

procurement. An interim FAR rule was

published in the Federal Register at 61

FR 67420, December 20, 1996 to correct

these inconsistencies. This rule finalizes

the interim rule with minor

amendments to reflect changes that SBA

is making in its processing of 8(a)

requirements. One comment was

received in response to the interim rule.

This comment was considered in the

development of the final rule.

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 does not impose any new

requirements on offerors or contractors.

The rule amends the FAR to reflect

changes to Small Business

Administration (SBA) regulations

designed to streamline the operation of

the 8(a) program and to ease certain

restrictions perceived to be burdensome

on program participants. The SBA has

certified that the changes to its

regulations will not have a significant

economic impact on a substantial

number of small entities.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which 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 19 and

52

Government procurement.