12930 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 13 and 19 

[FAC 2005–56; FAR Case 2011–004; Item 

IV; Docket 2011–0004, Sequence 1] 

RIN 9000–AL88 

Federal Acquisition Regulation: 

Socioeconomic Program Parity 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA have 

adopted as final, with changes, the 

interim rule amending the Federal 

Acquisition Regulation (FAR) to 

implement a section of the Small 

Business Jobs Act of 2010 that clarifies 

that there is no order of precedence 

among the small business 

socioeconomic contracting programs. 

Accordingly, this final rule amends the 

FAR to clarify the existence of 

socioeconomic parity and that 

contracting officers may exercise 

discretion when determining whether 

an acquisition will be restricted to small 

businesses participating in the 8(a) 

Business Development Program (8(a)), 

Historically Underutilized Business 

Zones (HUBZone) Program, ServiceDisabled Veteran-Owned Small 

Business (SDVOSB) Program, or the 

Women-Owned Small Business (WOSB) 

Program. 

DATES: Effective Date: April 2, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Karlos Morgan, Procurement Analyst, at 

202–501–2364 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at 202–501– 

4755. Please cite FAC 2005–56, FAR 

Case 2011–004. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

76 FR 14566 on March 16, 2011, to 

implement section 1347 of the Small 

Business Jobs Act of 2010 (Pub. L. 111– 

240). (A correcting amendment was 

issued in the Federal Register at 76 FR 

26220 on May 6, 2011, to reinsert text 

that was inadvertently omitted in the 

March 16, 2011, publication.) Section 

1347(b) clarifies at section 31(b)(2)(B) of 

the Small Business Act, 15 U.S.C. 

657a(b)(2)(B), that a contract 

opportunity ‘‘may’’ be awarded on the 

basis of competition restricted to 

qualified Historically Underutilized 

Business Zone (HUBZone) small 

business concerns if the contracting 

officer has a reasonable expectation that 

not less than two qualified HUBZone 

small business concerns will submit 

offers and the award can be made at a 

fair market price. The interim rule 

clarified that there is no order of 

precedence among the small business 

socioeconomic contracting programs 

(i.e., 8(a), HUBZone, SDVOSB, or the 

WOSB programs) and clarified the 

contracting officer’s authority to use 

discretion when determining whether 

an acquisition will be restricted to small 

businesses participating in those 

programs. Eighteen respondents 

submitted comments on the interim 

rule. 

II. Discussion and Analysis 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council (the Councils) 

reviewed the public comments in the 

development of the final rule. A 

discussion of the comments and the 

changes made to the rule are provided 

as follows: 

A. Socioeconomic Program Preferences 

Below the Simplified Acquisition 

Threshold 

Comment: Several respondents 

submitted comments suggesting that the 

Councils misinterpreted the intent of 

section 1347 of the Small Business Jobs 

Act of 2010 by eliminating the 

preference for 8(a), HUBZone, SDVOSB, 

and WOSB programs at or below the 

simplified acquisition threshold (SAT). 

These respondents further suggested 

that FAR 19.203 be amended to include 

language stating that the small business 

socioeconomic contracting programs 

(i.e., 8(a), HUBZone, SDVOSB, and 

WOSB programs) shall be considered 

before a general small business set-aside 

for acquisitions below the SAT. 

Response: The interim rule did not 

change the relationship among the small 

business socioeconomic contracting 

programs (i.e., 8(a), HUBZone, SDVOSB 

and WOSB programs) at or below the 

SAT. It clarified that the mandatory 

requirement to reserve each acquisition 

for supplies or services with an 

anticipated dollar value at or below the 

SAT for small businesses does not 

preclude the contracting officer from 

making an award under the small 

business socioeconomic contracting 

programs. The text provided at FAR 

19.203(b) is consistent with the Small 

Business Administration’s (SBA) 

regulations at 13 CFR 125.2(f)(1), 

124.503(j)(1), 125.19(b)(1), 

126.607(b)(1), and 127.503(d)(1). FAR 

19.203(b) is clarified to reflect that the 

paragraph applies to acquisitions with 

an anticipated value above the micropurchase threshold but not exceeding 

the SAT. 

B. Set-Aside Procedures Over the SAT; 

Omitted Language (FAR 19.502–2(b)) 

Comment: A few respondents 

commented that the reference to setaside procedures over the SAT, 

commonly referred to as ‘‘Rule of Two,’’ 

was omitted. 

Response: As published in the 

Federal Register at 76 FR 14566 on 

March 16, 2011, the regulation 

contained a technical error which 

accidently deleted the Rule of Two in 

the promulgated rule. A correcting 

amendment was issued in the Federal 

Register at 76 FR 26220 on May 6, 2011, 

reinstating the Rule of Two. 

C. Sole Source Dollar Thresholds Vary 

Among the Socioeconomic Programs 

Comment: One respondent noted that 

socioeconomic parity could not be 

implemented until all socioeconomic 

programs had the same sole source 

dollar threshold. 

Response: The sole source dollar 

thresholds associated with the small 

business socioeconomic contracting 

programs (i.e., 8(a), HUBZone, SDVOSB, 

and WOSB programs) were established 

by their applicable statutes and the 

applicable inflationary adjustments that 

occur to acquisition-related thresholds 

(see FAR 1.109). These dollar thresholds 

have no impact on the ability of a 

contracting officer to exercise discretion 

when selecting the type of small 

business socioeconomic contracting 

program to utilize. 

D. Sole Source Authority Under the 

SDVOSB Program 

Comment: A number of respondents 

suggested that the omission of the 

SDVOSB sole source reference at FAR 

13.003 and the revisions to FAR 19.1406 

suggest that the use of a SDVOSB sole 

source before considering a small 

business set-aside is discretionary above 

and below the SAT. It was further 

suggested that FAR 19.1405 should be 

revised to state that the contracting 

officer shall consider SDVOSB setasides before considering SDVOSB sole 

source awards. 

Response: For acquisitions above the 

SAT, the contracting officer shall 

consider a SDVOSB sole source award 

before considering a general small 

business set-aside; however, 

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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12931 

competitive SDVOSB set-asides should 

be considered before a SDVOSB sole 

source. Below the SAT, the contracting 

officer has the discretion to award a 

general small business set-aside or to 

utilize the SDVOSB program. FAR 

13.003(b)(2) is revised to remove the 

reference to SDVOSB concerns and to 

add a reference to the SDVOSB program 

(FAR subpart 19.14). Additionally, FAR 

19.1406(a) was revised to remove the 

discretionary ‘‘may’’ and add ‘‘shall 

consider’’ to be consistent with FAR 

19.203. 

E. Discretionary Use of the 8(a) Program 

Comment: One respondent 

commented that revisions to FAR 

19.800(e) suggest that the use of the 8(a) 

program rather than a small business 

set-aside is discretionary. 

Response: For acquisitions above the 

SAT, the contracting officer shall 

consider an award under the 8(a) 

program before considering a general 

small business set-aside. An acquisition 

offered under the 8(a) program shall be 

awarded on the basis of competition 

when the conditions in FAR 19.805–1 

are met. Below the SAT, the contracting 

officer has the discretion to award a 

general small business set-aside or to 

utilize the 8(a) program. FAR 19.800(e) 

is revised to clarify that the contracting 

officer shall consider 8(a) set-asides or 

sole source awards before considering a 

general small business set-aside. 

F. Discretionary Use of the HUBZone 

Program 

Comment: A number of respondents 

commented that revisions to FAR 

19.1306 suggest that the use of 

HUBZone sole source over a small 

business set-aside is discretionary. It 

was further suggested that FAR 19.1305 

should be revised to state that the 

contracting officer shall consider 

HUBZone set-asides before considering 

HUBZone sole source awards. 

Response: For acquisitions above the 

SAT, the contracting officer shall 

consider a HUBZone sole source award 

before considering a general small 

business set-aside. However, a 

competitive HUBZone set-aside should 

be considered before a HUBZone sole 

source. Below the SAT, the contracting 

officer has the discretion to award a 

general small business set-aside or to 

utilize the HUBZone program. 

Additionally, in accordance with FAR 

19.1306(a)(4), HUBZone sole source 

awards are not permitted at or below the 

simplified acquisition threshold. FAR 

13.003(b)(2) is revised to remove the 

reference to HUBZone small business 

concerns and to add a reference to FAR 

19.1305 and 19.1306(a)(4) for the 

HUBZone program. Additionally, FAR 

19.1306(a) is revised to remove the 

discretionary ‘‘may’’ and add ‘‘shall 

consider’’ to be consistent with FAR 

19.203. 

G. Definition of Term ‘‘Shall First 

Consider’’ 

Comment: A few respondents 

commented that the interim rule 

requires that contracting officers ‘‘shall 

first consider’’ socioeconomic programs; 

however, the rule does not define what 

constitutes consideration. 

Response: FAR 19.203(d) was added 

to include language consistent with 13 

CFR 125.2(f)(2)(ii) regarding the 

minimum elements a contracting officer 

should examine when choosing a 

socioeconomic program: The results of 

market research and progress in 

fulfilling agency small business goals. 

H. Relationship of Small Business 

Socioeconomic Contracting Programs 

(8(a), HUBZone, SDVOSB, and WOSB) 

With Small Businesses 

Comment: A number of respondents 

commented that the parity rule favors 

the small business socioeconomic 

contracting programs over general small 

businesses and that FAR 19.203 could 

be interpreted to mean a contracting 

officer is mandated to make an award 

under one of the small business 

socioeconomic contracting programs, to 

the exclusion of other small businesses. 

Response: SBA’s regulations require 

acquisitions above the micro-purchase 

threshold and at or below the SAT to be 

reserved for small business. This 

requirement does not preclude the 

contracting officer from having the 

discretion to award under one of the 

small business socioeconomic 

contracting programs (8(a), HUBZone, 

SDVOSB, and WOSB). However, above 

the SAT, the contracting officer shall 

consider the small business 

socioeconomic contracting programs 

before a general small business setaside. 

I. Other Changes 

In addition to the changes made in 

response to public comments, an 

introductory statement was added at 

FAR 19.800(e), 19.1305(a), and 

19.1405(a) to clarify that the contracting 

officer must keep in mind the priorities 

and considerations set forth in FAR 

19.203 when planning an acquisition 

under the 8(a), HUBZone, or SDVOSB 

programs. 

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 a significant 

regulatory action and, therefore, was 

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, GSA, and NASA have prepared 

a Final Regulatory Flexibility Analysis 

(FRFA) consistent with the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq. The 

FRFA is summarized as follows: 

The objective of this final rule is to clarify 

that there is no order of precedence among 

the small business socioeconomic programs, 

and to clarify that the contracting officer’s 

authority to use discretion when determining 

whether an acquisition will be restricted to 

small businesses participating in the 8(a), 

HUBZone, SDVOSB, or WOSB programs. 

Small businesses that participate in Federal 

Government contracting are the specific 

group of small entities affected by this final 

rule. 

There were no significant issues raised by 

the public in response to the Initial 

Regulatory Flexibility Analysis provided in 

the interim rule. This final rule adopts the 

interim rule with minor changes. 

Generally, this rule is applicable to all 

current and potential small businesses that 

wish to participate in Federal procurement. 

Firms interested in obtaining Federal 

contract awards must register in the Central 

Contractor Registration (CCR) to be eligible 

for contract award and payment. 

Examination of the CCR reveals there are 

approximately 349,992 small business firms; 

9,303 HUBZone firms, 9,234 8(a) firms, 

18,213 SDVOSB concerns, and 80,477 WOSB 

concerns currently registered that may be 

affected by this final rule. 

This final rule will impose no new 

reporting or record keeping requirements on 

large or small entities. There are no relevant 

Federal rules which duplicate, overlap, or 

conflict with this rule. 

Promulgation of this final rule may have a 

positive impact on small businesses as it 

presents the maximum practicable 

opportunity for small business concerns 

qualified under the socioeconomic programs 

to participate in the performance of contracts, 

and assist Federal agencies in meeting each 

of the Government’s small business 

contracting goals. 

Interested parties may obtain a copy 

of the FRFA from the Regulatory 

Secretariat. The Regulatory Secretariat 

has submitted a copy of the FRFA to the 

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12932 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Chief Counsel for Advocacy of the Small 

Business Administration. 

V. Paperwork Reduction Act 

The final 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 13 and 

19 

Government procurement. 

Dated: February 21, 2012. 

Laura Auletta, 

Director, Office of Governmentwide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Governmentwide Policy. 

Interim Rule Adopted as Final With 

Changes 

Accordingly, the interim rule 

amending 48 CFR parts 13 and 19, 

which was published in the Federal 

Register at 76 FR 14566, March 16, 

2011, is adopted as final with the 

following changes: 

■ 1. The authority citation for 48 CFR 

parts 13 and 19 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 13—SIMPLIFIED ACQUISITION 

PROCEDURES 

■ 2. Amend section 13.003 by revising 

paragraph (b) to read as follows: 

13.003 Policy. 

* * * * * 

(b)(1) Acquisitions of supplies or 

services that have an anticipated dollar 

value exceeding $3,000 ($15,000 for 

acquisitions as described in 

13.201(g)(1)) but not exceeding $150,000 

($300,000 for acquisitions described in 

paragraph (1) of the simplified 

acquisition threshold definition at 

2.101) are reserved exclusively for small 

business concerns and shall be set aside 

(see 19.000, 19.203, and subpart 19.5). 

(2) The contracting officer may make 

an award to a small business concern 

under the— 

(i) 8(a) Program (see subpart 19.8); 

(ii) Historically Underutilized 

Business Zone (HUBZone) Program (but 

see 19.1305 and 19.1306(a)(4)); 

(iii) Service-Disabled Veteran-Owned 

Small Business (SDVOSB) Program (see 

subpart 19.14); or 

(iv) Women-Owned Small Business 

(WOSB) Program (see subpart 19.15). 

(3) The following contracting officer’s 

decisions for acquisitions at or below 

the simplified acquisition threshold are 

not subject to review under subpart 

19.4: 

(i) A decision not to make an award 

under the 8(a) Program. 

(ii) A decision not to set aside an 

acquisition for HUBZone small business 

concerns, service-disabled veteranowned small business concerns, or 

EDWOSB concerns and WOSB concerns 

eligible under the WOSB Program. 

(4) Each written solicitation under a 

set-aside shall contain the appropriate 

provisions prescribed by part 19. If the 

solicitation is oral, however, 

information substantially identical to 

that in the provision shall be given to 

potential quoters. 

* * * * * 

PART 19—SMALL BUSINESS 

PROGRAMS 

■ 3. Amend section 19.203 by revising 

paragraphs (b) and (c); redesignating 

paragraph (d) as paragraph (e); and 

adding a new paragraph (d) to read as 

follows: 

19.203 Relationship among small 

business programs. 

* * * * * 

(b) At or below the simplified 

acquisition threshold. For acquisitions 

of supplies or services that have an 

anticipated dollar value exceeding 

$3,000 ($15,000 for acquisitions as 

described in 13.201(g)(1)), but not 

exceeding $150,000 ($300,000 for 

acquisitions described in paragraph (1) 

of the simplified acquisition threshold 

definition at 2.101), the requirement at 

19.502–2(a) to exclusively reserve 

acquisitions for small business concerns 

does not preclude the contracting officer 

from awarding a contract to a small 

business under the 8(a) Program, 

HUBZone Program, SDVOSB Program, 

or WOSB Program. 

(c) Above the simplified acquisition 

threshold. For acquisitions of supplies 

or services that have an anticipated 

dollar value exceeding the simplified 

acquisition threshold definition at 

2.101, the contracting officer shall first 

consider an acquisition for the small 

business socioeconomic contracting 

programs (i.e., 8(a), HUBZone, SDVOSB, 

or WOSB programs) before considering 

a small business set-aside (see 19.502– 

2(b)). However, if a requirement has 

been accepted by the SBA under the 8(a) 

Program, it must remain in the 8(a) 

Program unless the SBA agrees to its 

release in accordance with 13 CFR parts 

124, 125, and 126. 

(d) In determining which 

socioeconomic program to use for an 

acquisition, the contracting officer 

should consider, at a minimum— 

(1) Results of market research that was 

done to determine if there are 

socioeconomic firms capable of 

satisfying the agency’s requirement; and 

(2) Agency progress in fulfilling its 

small business goals. 

* * * * * 

■ 4. Amend section 19.800 by revising 

paragraph (e) to read as follows: 

19.800 General. 

* * * * * 

(e) The contracting officer shall 

comply with 19.203 before deciding to 

offer an acquisition to a small business 

concern under the 8(a) Program. For 

acquisitions above the simplified 

acquisition threshold, the contracting 

officer shall consider 8(a) set-asides or 

sole source awards before considering 

small business set-asides. 

* * * * * 

■ 5. Amend section 19.1305 by revising 

paragraph (a) to read as follows: 

19.1305 HUBZone set-aside procedures. 

(a) The contracting officer— 

(1) Shall comply with 19.203 before 

deciding to set aside an acquisition 

under the HUBZone Program; 

(2) May set aside acquisitions 

exceeding the micro-purchase threshold 

for competition restricted to HUBZone 

small business concerns when the 

requirements of paragraph (b) of this 

section can be satisfied; and 

(3) Shall consider HUBZone set-asides 

before considering HUBZone sole 

source awards (see 19.1306) or small 

business set-asides (see subpart 19.5). 

* * * * * 

■ 6. Amend section 19.1306 by revising 

the introductory text of paragraph (a) to 

read as follows: 

19.1306 HUBZone sole source awards. 

(a) A contracting officer shall consider 

a contract award to a HUBZone small 

business concern on a sole source basis 

(see 6.302–5(b)(5)) before considering a 

small business set-aside (see 19.203 and 

subpart 19.5), provided none of the 

exclusions at 19.1304 apply; and— 

* * * * * 

■ 7. Amend section 19.1405 by revising 

paragraph (a) to read as follows: 

19.1405 Service-disabled veteran-owned 

small business set-aside procedures. 

(a) The contracting officer— 

(1) Shall comply with 19.203 before 

deciding to set aside an acquisition 

under the SDVOSB Program; 

(2) May set-aside acquisitions 

exceeding the micro-purchase threshold 

for competition restricted to SDVOSB 

concerns when the requirements of 

paragraph (b) of this section can be 

satisfied; and 

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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12933 

(3) Shall consider SDVOSB set-asides 

before considering SDVOSB sole source 

awards (see 19.1406) or small business 

set-asides (see subpart 19.5). 

* * * * * 

■ 8. Amend section 19.1406 by revising 

the introductory text of paragraph (a) to 

read as follows: 

19.1406 Sole source awards to servicedisabled veteran-owned small business 

concerns. 

(a) A contracting officer shall consider 

a contract award to a SDVOSB concern 

on a sole source basis (see 6.302– 

5(b)(6)), before considering small 

business set-asides (see 19.203 and 

subpart 19.5) provided none of the 

exclusions of 19.1404 apply and— 

* * * * * 

[FR Doc. 2012–4488 Filed 3–1–12; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 22, 25, and 52 

[FAC 2005–56; FAR Case 2012–002; Item 

V; Docket 2012–0002, Sequence 1] 

RIN 9000–AM17 

Federal Acquisition Regulation: Trade 

Agreements Thresholds 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

incorporate adjusted thresholds for 

application of the World Trade 

Organization Government Procurement 

Agreement and the Free Trade 

Agreements, as determined by the 

United States Trade Representative. 

DATES: Effective Date: March 2, 2012. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Cecelia L. Davis, Procurement Analyst, 

at 202–219–0202 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at 202–501– 

4755. Please cite FAC 2005–56, FAR 

Case 2012–002. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Every two years, the trade agreements 

thresholds are adjusted according to a 

pre-determined formula set forth in the 

agreements. The United States Trade 

Representative has specified the 

following new thresholds in the Federal 

Register (see 76 FR 76808, published on 

December 8, 2011): 

Trade agreement 

Supply contract 

(equal to or 

exceeding) 

Service contract 

(equal to or 

exceeding) 

Construction 

contract 

(equal to or 

exceeding) 

WTO GPA .................................................................................................................. $202,000 $202,000 $7,777,000 

FTAs: 

Australia FTA ...................................................................................................... 77,494 77,494 7,777,000 

Bahrain FTA ....................................................................................................... 202,000 202,000 10,074,262 

CAFTA–DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) .................................................................................... 77,494 77,494 7,777,000 

Chile FTA ............................................................................................................ 77,494 77,494 7,777,000 

Morocco FTA ...................................................................................................... 202,000 202,000 7,777,000 

NAFTA: .............................. .............................. ..............................

—Canada .................................................................................................... 25,000 77,494 10,074,262 

—Mexico ...................................................................................................... 77,494 77,494 10,074,262 

Oman FTA ................................................................................................... 202,000 202,000 10,074,262 

Peru FTA ..................................................................................................... 202,000 202,000 7,777,000 

Singapore FTA ................................................................................................... 77,494 77,494 7,777,000 

Israeli Trade Act ........................................................................................................ 50,000 .............................. ..............................

II. Discussion and Analysis 

This final rule implements the new 

thresholds in FAR subpart 25.4, Trade 

Agreements, and other sections in the 

FAR that include trade agreements 

thresholds (i.e., 22.1503, 25.202, 25.603, 

25.1101, and 25.1102). 

In addition, changes are required to 

FAR clause 52.204–8, Annual 

Representations and Certifications, and 

FAR clause 52.222–19, Child LaborCooperation with Authorities and 

Remedies. Conforming changes are also 

required to the clause dates in FAR 

clause 52.212–5, Contract Terms and 

Conditions Required to Implement 

Statutes or Executive OrdersCommercial Items, and FAR clause 

52.213–4, Terms and ConditionsSimplified Acquisitions (Other Than 

Commercial Items). 

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 

The Regulatory Flexibility Act does 

not apply to this rule because this final 

rule does not constitute a significant 

FAR revision within the meaning of 

FAR 1.501–1 and 41 U.S.C. 1707 and 

does not require publication for public 

comment. 

V. Paperwork Reduction Act 

The final 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 22, 25, 

and 52 

Government procurement. 

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