Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Proposed Rules 52081

presented in the comments will be

considered.

21. IRFA Comments. The Commission

requests written public comment on the

foregoing Initial Regulatory Flexibility

Analysis. Comments must have a

separate and distinct heading

designating them as responses to the

IRFA and must be filed by the deadlines

provided in the Memorandum and

Order/Further Notice of Proposed

Rulemaking.

22. Paperwork Reduction. The

FNPRM has been analyzed with respect

to the Paperwork Reduction Act of 1995

and was found to impose no new or

modified information collection

requirement on the public.

Implementation of any new or modified

requirement will be subject to approval

by the Office of Management and

Budget, as prescribed by the Act.

23. Authority. This action is taken

pursuant to sections 4(i), 5(b), 5(c)(1),

303(r), and 309(j) of the

Communications Act of 1934, as

amended, 47 U.S.C. 154(i), 155(b),

156(c)(1), 303(r), and 309(j).

Federal Communications Commission.

William F. Caton,

Acting Secretary.

[FR Doc. 97–26414 Filed 10–3–97; 8:45 am]

BILLING CODE 6712–01–P

DEPARTMENT OF AGRICULTURE

48 CFR Parts 426 and 452

[AGAR Case 96–01]

RIN 0599–AA00

Office of Procurement and Property

Management; Agriculture Acquisition

Regulation; Preference for Selected

Biobased Products

AGENCY: Office of Procurement and

Property Management, USDA.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document invites written

comments on a proposed amendment to

the Department of Agriculture’s

Acquisition Regulation (AGAR). We are

proposing to amend the AGAR to

establish policy and procedures for setasides and preferences for products

developed with assistance provided by

the Alternative Agricultural Research

and Commercialization Corporation

(AARC).

DATES: Submit comments on or before

December 5, 1997.

ADDRESSES: Submit written comments

to U.S. Department of Agriculture,

Office of Procurement and Property

Management, Procurement Policy

Division, STOP 9303, 1400

Independence Avenue SW, Washington,

DC 20250–9303. See SUPPLEMENTARY

INFORMATION section for electronic

access addresses for comments.

FOR FURTHER INFORMATION CONTACT: J. R.

Holcombe, Jr., (202) 720–8484.

SUPPLEMENTARY INFORMATION:

I. Background

II. Procedural Requirements

A. Executive Order Nos. 12866 and 12988.

B. Regulatory Flexibility Act.

C. Paperwork Reduction Act.

III. Public Comments

IV. Electronic Access Addresses

I. Background

The AGAR implements the Federal

Acquisition Regulation (FAR) (48 CFR

Ch. 1) where further implementation is

needed, and supplements the FAR when

coverage is needed for subject matter

not covered by the FAR. This proposed

rule would amend the AGAR to

establish acquisition preferences for

selected biobased products; i.e.,

nonfood, nonfeed products made from

agricultural and forestry materials and

animal by-products (AGAR Case 96–01).

The Alternative Agricultural Research

and Commercialization Corporation

(AARC), a wholly-owned government

corporation of the Department of

Agriculture (USDA), provides financial

assistance to private companies and

other parties to commercialize biobased

products. Section 1665 of the Food,

Agriculture, Conservation, and Trade

Act of 1990 (7 U.S.C. 5909), added by

section 729 of the Federal Agricultural

Improvement and Reform Act of 1996,

authorizes Federal executive agencies to

establish set asides and preferences for

biobased products that have been

commercialized with assistance

provided by AARC. Pursuant to the

authority provided by Section 1665,

USDA proposes to add subpart 426.70 to

the AGAR to establish policies and

procedures for AARC preferences and

set-asides.

The following changes to the AGAR

are proposed:

(a) AGAR part 426 is proposed to be

added, with a subpart 426.70,

Preference for Selected Biobased

Products. This proposed subpart

establishes policy and procedures for

preferences and set-asides for products

developed with AARC assistance.

(b) Provisions 452.226–70, Preferred

Products, 452.226–71, Set-aside for

Mandatory Products, and 452.226–72,

Price Preference for Award, are

proposed to be added to AGAR part 452.

II. Procedural Requirements

A. Executive Order Nos. 12866 and

12988

A work plan was prepared for this

proposed regulation and submitted to

the Office of Management and Budget

pursuant to Executive Order No. 12866.

The proposed rule has been determined

to be not significant for the purposes of

Executive Order No. 12866. Therefore,

the proposed rule has not been reviewed

by the Office of Management and

Budget. This rule has been reviewed in

accordance with Executive Order No.

12988, Civil Justice Reform. The

proposed rule meets the applicable

standards in section 3 of Executive

Order No. 12988.

B. Review Under the Regulatory

Flexibility Act

This rule was reviewed under the

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

611, which requires preparation of a

regulatory flexibility analysis for any

rule which is likely to have significant

economic impact on a substantial

number of small entities. USDA certifies

that this proposed rule will not have a

significant economic effect on a

substantial number of small entities,

and, therefore, no regulatory flexibility

analysis has been prepared. However,

comments from small entities

concerning parts affected by the

proposed rule will be considered. Such

comments must be submitted separately

and cite 5 U.S.C. 609 (AGAR Case 96–

01) in correspondence.

C. Paperwork Reduction Act

No information collection or

recordkeeping requirements are

imposed on the public by this proposed

rule. Accordingly no OMB clearance is

required by section 350(h) of the

Paperwork Reduction Act, 44 U.S.C.

3501, et. seq., or OMB’s implementing

regulation at 5 CFR Part 1320.

III. Public Comments

Interested persons are invited to

participate in this rule making by

submitting views and comments with

respect to the proposed AGAR revision

set out in this notice. All written

comments will be carefully assessed and

fully considered prior to publication of

the final rule.

IV. Electronic Access Addresses

You may submit comments by

sending electronic mail (E-mail) to

RHOLCOMBE@USDA.GOV, or via fax at

(202) 720–8972.
52082 Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Proposed Rules

List of Subjects in 48 CFR Parts 426 and

452

Agriculture, Government

procurement.

For the reasons set out in this

preamble, the Department proposes to

amend Chapter 4 of Title 48 of the Code

of Federal Regulations as follows:

Add Part 426 to subchapter D to read

as follows:

PART 426—OTHER SOCIOECONOMIC

PROGRAMS

Subpart 426.70—Preference for

Selected Biobased Products

Sec.

426.7000 Scope of subpart.

426.7001 Applicability.

426.7002 Authority.

426.7003 Policy.

426.7004 Definitions.

426.7005 Preference list.

426.7006 Use of a set-aside or a price

preference.

426.7007 Use of a technical evaluation

preference.

426.7008 Identification of preferred

products.

426.7009 Contract provisions.

Authority: 5 U.S.C. 301; 7 U.S.C. 5909; 40

U.S.C. 486(c)

Subpart 426.70—Preference for

Selected Biobased Products

426.7000 Scope of subpart.

This subpart supplements the FAR to

implement the set-asides and

preferences described in section 1665 of

the Food, Agriculture, Conservation and

Trade Act of 1990 (7 U.S.C. 5909).

426.7001 Applicability.

This subpart applies to USDA and all

of its components, including

corporations.

426.7002 Authority.

Section 1665 of the Food, Agriculture,

Conservation and Trade Act of 1990 (7

U.S.C. 5909) authorizes USDA to

establish set-asides and other

preferences for products that have been

assisted by the Alternative Agricultural

Research and Commercialization

Corporation (AARC).

426.7003 Policy.

(a) AARC provides financial

assistance to private companies and

other parties to commercialize nonfood,

nonfeed products made from

agricultural and forestry materials and

animal by-products (biobased products).

Biobased products by their nature are

environmentally friendly, and, in many

instances, use agricultural material that

otherwise would be wasted. It is the

policy of USDA to acquire AARC

products to the maximum extent

practicable. This policy applies to all

acquisitions of products regardless of

dollar value.

(b) USDA shall satisfy its

requirements for products the same or

essentially the same as AARC products

by applying the preferences or set-asides

described by this subpart.

426.7004 Definitions.

As used in this subpart—

AARC products are products

developed with assistance provided by

AARC as authorized by 7 U.S.C. 5905.

Acquisitions involving the use of

products means an acquisition in which

a Government contractor uses products

in contract performance.

Acquisitions of products means an

acquisition of one or more products for

the use of the Government.

Price preference means an amount,

expressed as a percentage, to be used in

the evaluation of offers in an acquisition

of products.

Set-aside means a requirement that

vendors responding to a solicitation

offer AARC products.

Solicitation includes actions taken

under parts 12, 13, 14, 15, and 36 of the

Federal Acquisition Regulation.

Technical evaluation preference

means the use of an award factor or

subfactor in which the Government

expresses its preference for AARC

products.

426.7005 Preference list.

(a) The Office of Procurement and

Policy Management (OPPM) and AARC

jointly shall establish and maintain a

Preference List for AARC products.

(b) The Preference List shall contain

the list of preferred products, source

information for these products, the

type(s) of preference to be applied, the

beginning and ending dates for the use

of preferences, and other terms

established to define the preference

given to a product.

(c) The Preference List will be

publicized within USDA by means of

AGAR Advisories (see 401.371). Copies

of the Preference List may be obtained

from OPPM. The Preference List will

also be posted on the World Wide Web

at the USDA Procurement Home Page.

426.7006 Use of a set-aside or a price

preference.

Acquisitions for products the same or

essentially the same as those products

appearing on the Preference List shall

either be set-aside exclusively or shall

include a price preference for those

products shown on the Preference List.

The actual price preference to be used

shall be determined by the requiring

office but may not exceed the

percentage shown on the Preference

List.

426.7007 Use of a technical evaluation

preference.

Acquisitions involving the use of

products the same or essentially the

same as those products appearing on the

Preference List shall include a technical

evaluation preference, if authorized in

the Preference List. The technical

evaluation preference may be

determined by the contracting officer

specifically for each acquisition.

426.7008 Identification of preferred

products.

(a) Products subject to a set-aside or

technical preference shall be separately

listed in the schedule, specification, or

performance work statement.

(b) Products subject to a price

preference shall be separately listed in

the schedule.

426.7009 Contract provisions.

(a) Each solicitation containing a price

or technical preference under this

subpart shall contain the provision

452.226–70, Preferred Products.

(b) Each solicitation for products

subject to a set-aside shall include the

provision 452.226–71, Set-Aside For

Mandatory Products.

(c) Each solicitation for products

subject to a price preference shall

include the provision 452.226–72, Price

Preference for Award.

(d) Solicitations for products may

contain both the provision in 452.226–

71 and the provision found in 452.226–

72.

(e) The provisions prescribed in this

section are not required for acquisitions

accomplished using the purchase card

as a stand alone tool.

PART 452—SOLICITATION

PROVISIONS AND CONTRACT

CLAUSES

1. The authority citation for Part 452

continues to read as follows:

Authority: 5 U.S.C. 301 and 40 U.S.C.

486(c).

2. Add sections 452.226–70, 452.226–

71, and 452.226–72 to read as follows:

452.226–70 Preferred Products.

As prescribed in 426.7009(a), include

the following provision:

PREFERRED PRODUCTS (XXXX 1997)

Specific products required by this

solicitation and resulting contract, are subject

to a price or a technical preference. A list of

these products, the specific preference, and
Federal Register / Vol. 62, No. 193 / Monday, October 6, 1997 / Proposed Rules 52083

the manufacturer or producer is included

below.

Contract Line Item (or other location in this

solicitation):*

lllllllllllllllllllll

Product:* llllllllllllllll

Manufacturer/Producer:* lllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Preference:*

Qlllllllllllllllllllll

lllllllllllllllllllll

(End of provision)

*For each line item to which a preference

applies. Contracting officer shall insert

appropriate information.

452.26–71 Set-aside for Mandatory

Products.

As prescribed in 426.7009(b), include

the following provision.

SET-ASIDE FOR MANDATORY PRODUCTS

(XXXX 1997)

Specific products are set-aside as

mandatory products. These are separately

listed in the schedule, specifications, or

performance work statement. Specific terms

governing the set-aside, and source

information for the products are shown

below.

Contract Line Item (or other location in this

solicitation):*

lllllllllllllllllllll

lllllllllllllllllllll

Product:* llllllllllllllll

Manufacturer/Producer:*

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

lllllllllllllllllllll

Set-Aside Terms:* llllllllllll

lllllllllllllllllllll

(End of provision)

* For each line item to which a set-aside

applies, Contracting officer shall insert

appropriate information.

452.226–72 Price Preference for Award.

As prescribed in 426.7009(c), include the

following provision:

Price Preference for Award (XXXX 1997)

Certain products listed in the schedule of

this solicitation are subject to a price

preference. A list of these products, the

amount of the preference, and source

information is included in provision

452.226–70, Preferred Products. For purposes

of evaluation of offers only, the offered prices

for these products will be reduced by the

price preference listed in the solicitation.

(End of provision)

W.R. Ashworth,

Director, Office of Procurement and Property

Management.

[FR Doc. 97–26287 Filed 10–3–97; 8:45 am]

BILLING CODE 3410–XE–P