82188 Federal Register / Vol. 89, No. 197 / Thursday, October 10, 2024 / Rules and Regulations 

Incentivize Contracting with EmployeeOwned Businesses—Subcontracting 

Certification, in solicitations, including 

solicitations using FAR part 12 

procedures for the acquisition of 

commercial products and commercial 

services, except for solicitations solely 

for the acquisition of COTS items, that 

include the clause at 252.270–7002, 

Pilot Program to Incentivize Contracting 

with Employee-Owned Businesses. 

(c) Use the clause at 252.270–7002, 

Pilot Program to Incentivize Contracting 

with Employee-Owned Businesses, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial products and commercial 

services, except for solicitations and 

contracts solely for the acquisition of 

COTS items, for approved pilot program 

acquisitions. 

[FR Doc. 2024–23226 Filed 10–9–24; 8:45 am] 

BILLING CODE 6001–FR–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

[Docket DARS–2024–0018] 

RIN 0750–AM03 

Defense Federal Acquisition 

Regulation Supplement: Procurement 

Technical Assistance Program (DFARS 

Case 2024–D006) 

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 implement a section of the 

National Defense Authorization Act for 

Fiscal Year 2024 that modifies certain 

definitions associated with the 

Procurement Technical Assistance 

Program. 

DATES: Effective October 10, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Snyder, telephone 703–508– 

7524. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 89 FR 46836 on May 

30, 2024, to implement section 853 of 

the National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2024 (Pub. 

L. 118–31; 10 U.S.C. 4951). Section 853 

amends the definitions of ‘‘nonprofit 

organization’’ and ‘‘business entities’’ at 

10 U.S.C. 4951 for the Procurement 

Technical Assistance Program (PTAP). 

One respondent submitted public 

comments in response to the proposed 

rule. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule. A 

discussion of the comments is provided, 

as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

There are no significant changes from 

the proposed rule. 

B. Analysis of Public Comments 

Comment: The respondent indicated 

that the statement: ‘‘In addition, 

business entities, including 

corporations, associations, partnerships, 

limited liability companies, limited 

liability partnerships, consortia, not-forprofit, or other legal entities will also be 

able to be a cooperative agreement 

holder’’ in section IV of the proposed 

rule preamble is inaccurate. The 

respondent indicated that the term 

‘‘eligible entity’’ refers to the entities 

that may be served by cooperative 

agreement holders. The respondent also 

indicated that ‘‘(as defined in 10 U.S.C. 

4951)’’ added to DFARS clause 252.205– 

7000(a) is misleading, as ‘‘business 

entities’’ are the recipients of 

procurement technical assistance, not 

the providers. 

Response: Subsection (1) of 10 U.S.C. 

4951 defines the term ‘‘eligible entity’’ 

to mean a state, local government, 

nonprofit organization, and tribal 

organization. Subsection (5) of 10 U.S.C. 

4951 defines the term ‘‘business entity’’ 

to mean a corporation, association, 

partnership, limited liability company, 

limited liability partnership, consortia, 

not-for-profit, or other legal entity. The 

statute at 10 U.S.C. 4952 specifies that 

the purpose of the PTAP is, in part, to 

increase assistance provided by DoD to 

‘‘eligible entities’’ furnishing 

procurement technical assistance to 

‘‘business entities’’. Therefore, the 

referenced statement in section IV of the 

proposed rule preamble is inaccurate 

and is corrected in this final rule. 

However, the parenthetical ‘‘as defined 

in 10 U.S.C. 4951’’ in the contract clause 

at DFARS 252.205–7000, Provision of 

Information to Cooperative Agreement 

Holders, is accurate as ‘‘business 

entities’’ in this context refers to those 

entities that may receive assistance. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products (Including Commercially 

Available Off-the-Shelf (COTS) Items), 

and for Commercial Services 

This final rule amends the clause at 

DFARS 252.205–7000, Provision of 

Information to Cooperative Agreement 

Holders. However, this final rule does 

not impose any new requirements on 

contracts at or below the SAT, for 

commercial products including COTS 

items, or for commercial services. The 

clause will continue to not apply to 

acquisitions at or below the SAT, and 

will continue to apply to acquisitions of 

commercial products excluding COTS 

items, and to acquisitions of commercial 

services. 

IV. Expected Impact of the Rule 

This final rule is expected to impact 

DoD contractors whose contracts 

include the clause at DFARS 252.205– 

7000. The clause requires contractors to 

provide cooperative agreement holders 

under the PTAP, upon request, with a 

list of the contractor’s employees or 

offices responsible for entering into 

subcontracts under defense contracts. 

As a result of this final rule, such 

contractors may be required to provide 

the list to different entities that are 

cooperative agreement holders under 

the PTAP. 

The changes in section 853 allow any 

type of nonprofit organization to be a 

cooperative agreement holder under the 

PTAP. In addition, section 853 provides 

a definition of ‘‘business entities’’ to 

specify the entities that may receive 

assistance under the PTAP, including 

corporations, associations, partnerships, 

limited liability companies, limited 

liability partnerships, consortia, not-forprofit, or other legal entities. These 

changes are reflected in the revisions to 

the clause at DFARS 252.205–7000. As 

a result, there may be increases in the 

number of entities that become 

cooperative agreement holders and in 

the number of business entities that 

receive assistance under the PTAP. 

V. 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 


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Federal Register / Vol. 89, No. 197 / Thursday, October 10, 2024 / Rules and Regulations 82189 

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, as amended. 

VI. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 

will submit a copy of the interim or 

final rule with the form, Submission of 

Federal Rules under the Congressional 

Review Act, to the U.S. Senate, the U.S. 

House of Representatives, and the 

Comptroller General of the United 

States. A major rule under the 

Congressional Review Act cannot take 

effect until 60 days after it is published 

in the Federal Register. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a major 

rule as defined by 5 U.S.C. 804. 

VII. 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 final rule is necessary to 

implement section 853 of the National 

Defense Authorization Act (NDAA) for 

Fiscal Year (FY) 2024 (Pub. L. 118–31; 

10 U.S.C. 4951). Section 853 modifies 

the definitions of ‘‘nonprofit 

organization’’ and ‘‘business entities’’ at 

10 U.S.C. 4951 for the Procurement 

Technical Assistance Program. The 

objective of this rule is to implement the 

revised definitions in the contract 

clause at DFARS 252.205–7000, 

Provision of Information to Cooperative 

Agreement Holders. The clause requires 

contractors to provide cooperative 

agreement holders under the 

Procurement Technical Assistance 

Program, upon request, with a list of the 

contractor’s employees or offices 

responsible for entering into 

subcontracts under defense contracts. 

There were no significant issues 

raised by the public comments in 

response to the initial regulatory 

flexibility analysis. 

According to data from the 

Procurement Business Intelligence 

Service, in the last three fiscal years, 

DoD awarded contracts that included 

the clause at 252.205–7000 to unique 

small entities as follows: 5,652 in fiscal 

year 2021, 5,127 in fiscal year 2022, and 

5,663 in fiscal year 2023. This averages 

out to approximately 5,480 per fiscal 

year. Therefore, DoD estimates that the 

number of small entities to which this 

rule will apply is approximately 5,480. 

This rule does not include any new 

reporting, recordkeeping, or other 

compliance requirements for small 

entities. 

There are no known significant 

alternative approaches that would 

accomplish the stated objectives. 

VIII. Paperwork Reduction Act 

The Paperwork Reduction Act (44 

U.S.C. chapter 35) applies to this final 

rule. However, these changes to the 

DFARS do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved by the Office of Management 

and Budget (OMB) under OMB Control 

Number 0704–0286, entitled Defense 

FAR Supplement (DFARS) Part 205, 

Publicizing Contract Actions, and 

DFARS 252.205–7000, Provision of 

Information to Cooperative Agreement 

Holders. 

List of Subjects in 48 CFR Part 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System amends 48 CFR part 

252 as follows: 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 1. The authority citation for 48 CFR 

part 252 continues to read as follows: 

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

chapter 1. 

■ 2. Revise and republish section 

252.205–7000 to read as follows: 

252.205–7000 Provision of Information to 

Cooperative Agreement Holders. 

As prescribed in 205.470, use the 

following clause: 

Provision of Information to Cooperative 

Agreement Holders (OCT 2024) 

(a) Definition. As used in this clause— 

Cooperative agreement holder means a 

State or local government; a nonprofit 

organization; a tribal organization (as defined 

in section 4(c) of the Indian SelfDetermination and Education Assistance Act 

(25 U.S.C. 5304(l))); or an economic 

enterprise (as defined in section 3(e) of the 

Indian Financing Act of 1974 (25 U.S.C. 

1452(e))) whether such economic enterprise 

is organized for profit or nonprofit purposes; 

which has an agreement with the Under 

Secretary of Defense for Acquisition and 

Sustainment to furnish procurement 

technical assistance to business entities (as 

defined in 10 U.S.C. 4951). 

(b) The Contractor shall provide 

cooperative agreement holders, upon their 

request, with a list of those appropriate 

employees or offices responsible for entering 

into subcontracts under defense contracts. 

The list shall include the business address, 

telephone number, and area of responsibility 

of each employee or office. 

(c) The Contractor need not provide the 

listing to a particular cooperative agreement 

holder more frequently than once a year. 

(End of clause) 

[FR Doc. 2024–23227 Filed 10–9–24; 8:45 am] 

BILLING CODE 6001–FR–P 


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