82196 Federal Register / Vol. 89, No. 197 / Thursday, October 10, 2024 / Proposed Rules 

PART 242—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 5. Revise section 242.503–2 to read as 

follows: 

242.503–2 Postaward conference 

procedure. 

DD Form 1484, Post-Award 

Conference Record, may be used in 

conducting the conference and in 

preparing the conference report. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

252.234–7003 [Removed and Reserved] 

■ 6. Remove and reserve section 

252.234–7003. 

■ 7. Revise section 252.234–7004 to 

read as follows: 

252.234–7004 Cost and Software Data 

Reporting. 

As prescribed in 234.7105(a), use the 

following basic clause: 

Cost and Software Data Reporting—Basic 

(DATE) 

(a) Definition. As used in this clause— 

Undefinitized contract action means any 

contract action for which the contract terms, 

specifications, or price are not agreed upon 

before performance is begun under the 

action. Examples are letter contracts, orders 

under basic ordering agreements, and 

provisioned item orders, for which the price 

has not been agreed upon before performance 

has begun. 

(b) Requirements. In the performance of 

this contract, the Contractor shall— 

(1) Use cost and software data reporting 

(CSDR) processes and procedures that 

accomplish the requirements contained in 

the contract CSDR Plan (DD Form 2794) and 

applicable data item description(s); 

(2) Establish, implement, and maintain 

processes and procedures that provide for the 

consistent collection and generation of 

reliable actual cost data required by the 

contract CSDR Plan (DD Form 2794) and 

applicable data item description(s); and 

(3)(i) Within 60 days of contract award or 

the definitization of an undefinitized contract 

action, complete a CSDR-readiness review 

with the Cost Assessment and Program 

Evaluation, Deputy Director for Cost 

Assessment and the cost estimating 

component of the relevant military 

department or defense agency in order to 

review CSDR requirements. 

(ii) During the CSDR-readiness review, the 

Contractor shall— 

(A) Describe the processes and procedures 

the Contractor will use to— 

(1) Provide for the consistent collection 

and generation of reliable CSDR data; and 

(2) Deliver timely CSDR data deliverables 

required by the contract CSDR Plan (DD 

Form 2794) and applicable data item 

description(s); 

(B) Identify any subcontractor whose 

contract is expected to exceed $50 million; 

and 

(C) Identify any potential revisions to 

CSDR requirements that may better align data 

reporting to the Contractor’s procedures. 

(c) Notification. For subcontracts expected 

to exceed $50 million, if the Contractor 

changes subcontractors or awards new 

subcontracts, the Contractor shall notify the 

Contracting Officer within 10 days of award. 

(d) Subcontracts. The Contractor shall 

include this clause in subcontracts at any tier 

that are expected to exceed $50 million. 

(End of clause) 

Alternate I. As prescribed in 

234.7105(b), use the following clause, 

which uses different paragraphs 

(b)(3)(ii)(B), (c), and (d) than the basic 

clause: 

Cost and Software Data Reporting— 

Alternate I (DATE) 

(a) Definition. As used in this clause— 

Undefinitized contract action means any 

contract action for which the contract terms, 

specifications, or price are not agreed upon 

before performance is begun under the 

action. Examples are letter contracts, orders 

under basic ordering agreements, and 

provisioned item orders, for which the price 

has not been agreed upon before performance 

has begun. 

(b) Requirements. In the performance of 

this contract, the Contractor shall— 

(1) Use cost and software data reporting 

(CSDR) processes and procedures that 

accomplish the requirements contained in 

the contract CSDR Plan (DD Form 2794) and 

applicable data item description(s); 

(2) Establish, implement, and maintain 

processes and procedures that provide for the 

consistent collection and generation of 

reliable actual cost data required by the 

contract CSDR Plan (DD Form 2794) and 

applicable data item description(s); and 

(3)(i) Within 60 days of contract award or 

the definitization of an undefinitized contract 

action, complete a CSDR-readiness review 

with the Cost Assessment and Program 

Evaluation, Deputy Director for Cost 

Assessment and the cost estimating 

component of the relevant military 

department or defense agency in order to 

review CSDR requirements. 

(ii) During the CSDR-readiness review, the 

Contractor shall— 

(A) Describe the processes and procedures 

the Contractor will use to— 

(1) Provide for the consistent collection 

and generation of reliable CSDR data; and 

(2) Deliver timely CSDR data deliverables 

required by the contract CSDR Plan (DD 

Form 2794) and applicable data item 

description(s); 

(B) Identify any subcontractor whose 

contract is expected to exceed $20 million; 

and 

(C) Identify any potential revisions to 

CSDR requirements that may better align data 

reporting to the Contractor’s procedures. 

(c) Notification. For subcontracts expected 

to exceed $20 million, if the Contractor 

changes subcontractors or awards new 

subcontracts, the Contractor shall notify the 

Contracting Officer within 10 days of award. 

(d) Subcontracts. The Contractor shall 

include this clause in subcontracts at any tier 

that are expected to exceed $20 million. 

(End of clause) 

[FR Doc. 2024–23229 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–2024–0032] 

RIN 0750–AM22 

Defense Federal Acquisition 

Regulation Supplement: 8(a) Program 

(DFARS Case 2024–D025) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

revise joint venture eligibility 

requirements and nonmanufacturer rule 

applicability to 8(a) contracts awarded 

pursuant to the 8(a) Partnership 

Agreement between DoD and the Small 

Business Administration. These changes 

are necessary to align the DFARS with 

the Federal Acquisition Regulation 

(FAR). 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before 

December 9, 2024, to be considered in 

the formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2024–D025, 

using either of the following methods: 

Æ Federal eRulemaking Portal: 

https://www.regulations.gov. Search for 

DFARS Case 2024–D025. Select 

‘‘Comment’’ and follow the instructions 

to submit a comment. Please include 

‘‘DFARS Case 2024–D025’’ on any 

attached documents. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2024–D025 in the subject 

line of the message. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check https://

www.regulations.gov, approximately 

two to three days after submission to 

verify posting. 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 89, No. 197 / Thursday, October 10, 2024 / Proposed Rules 82197 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Snyder, telephone 703–508– 

7524. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise the DFARS 

to align with changes made to the FAR 

via the final rules published in the 

Federal Register on August 11, 2021 (86 

FR 44233) and on September 23, 2022 

(87 FR 58219). The final rule for FAR 

Case 2016–011, Revision of Limitations 

on Subcontracting, published on August 

11, 2021, standardized the application 

of the nonmanufacturer rule 

requirements for the socioeconomic 

programs identified at FAR 19.000(a)(3). 

The final rule for FAR Case 2017–019, 

Policy on Joint Ventures, published on 

September 23, 2022, clarified the 

eligibility of joint ventures under the 

8(a) Program. 

This rule is also proposing to revise 

the DFARS to align with the proposed 

rule for FAR Case 2021–020, Limitations 

on Subcontracting Revisions, published 

on January 17, 2024 (89 FR 2910). This 

FAR rule proposed to remove the 

nonmanufacturer rule requirements for 

8(a) participants from FAR 19.809–2 as 

was intended to be accomplished via 

the final rule published on August 11, 

2021, and to remove the kit assembler 

rule set from the nonmanufacturer rule. 

This DFARS rule proposes to make 

similar changes. 

II. Discussion and Analysis 

This rule proposes to modify the 

contract clause at DFARS 225.219–7010, 

Notification of Competition Limited to 

Eligible 8(a) Participants—Partnership 

Agreement, to add joint ventures to the 

list of concerns from whom offers are 

solicited for 8(a) Program acquisitions 

that are processed in accordance with 

the 8(a) Partnership Agreement between 

DoD and the Small Business 

Administration (SBA) (the Agreement). 

This proposed rule also includes the 

removal of the kit assembler rule set and 

the nonmanufacturer rule requirements 

addressed in paragraphs (d)(1), (d)(2), 

and (d)(3) of the clause at DFARS 

252.219–7010 to align with the clause at 

FAR 52.219–33, Nonmanufacturer Rule, 

which specifies the nonmanufacturer 

rule requirements for all socioeconomic 

categories. 

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 proposed rule amends the clause 

at DFARS 225.219–7010, Notification of 

Competition Limited to Eligible 8(a) 

Participants—Partnership Agreement; 

however, this proposed 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 including COTS 

items, and to acquisitions of commercial 

services. 

IV. Expected Impact of the Rule 

This proposed rule, when finalized, is 

expected to impact 8(a) participants, 

including 8(a) joint ventures, who enter 

into contracts with DoD that are 

processed in accordance with the 

Agreement. These participants will be 

required to comply with the 

nonmanufacturer rule requirements in 

the clause at FAR 52.219–33. As a 

result, DoD may see an increase in the 

number of 8(a) participants that submit 

proposals for contracts processed in 

accordance with the Agreement, which 

may expand the defense industrial base. 

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 

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. Regulatory Flexibility Act 

DoD does not expect this proposed 

rule, when finalized, to 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 this rule merely updates the 

DFARS to align with the FAR. However, 

an initial regulatory flexibility analysis 

has been performed and is summarized 

as follows: 

This proposed rule is necessary to 

revise the contract clause at DFARS 

252.219–7010, Notification of 

Competition Limited to Eligible 8(a) 

Participants—Partnership Agreement, to 

align with changes made to the FAR 

regarding joint venture eligibility for 

8(a) Program acquisitions processed in 

accordance with the 8(a) Partnership 

Agreement between DoD and the Small 

Business Administration (SBA). This 

proposed rule also removes the 

nonmanufacturer rule requirements 

from the clause to align with changes 

made to the FAR. 

The objective of the rule is to revise 

the DFARS to align with amendments 

made to the FAR. The legal basis for the 

rule is 41 U.S.C. 1303. 

According to data from the 

Procurement Business Intelligence 

Service, in the last three fiscal years 

DoD awarded contracts that included 

the clause at DFARS 252.219–7010 to 

unique small entities as follows: 848 in 

fiscal year 2021; 553 in fiscal year 2022; 

600 in fiscal year 2023. This averages 

out to 667 per fiscal year. Therefore, 

DoD estimates that the number of small 

entities to which this rule will apply is 

approximately 667. 

This proposed rule does not impose 

any new reporting, recordkeeping, or 

other compliance requirements for small 

entities. 

This proposed rule does not 

duplicate, overlap, or conflict with any 

other Federal rules. 

DoD did not identify any significant 

alternatives to the proposed rule. Any 

impact is expected to be beneficial. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

proposed rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this proposed rule in accordance 

with 5 U.S.C. 610. Interested parties 

must submit such comments separately 

and should cite 5 U.S.C. 610 (DFARS 

Case 2024–D025), in correspondence. 

VII. Paperwork Reduction Act 

This proposed 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 Part 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, the Defense Acquisition 

Regulations System proposes to amend 

48 CFR part 252 as follows: 


lotter on DSK11XQN23PROD with PROPOSALS1
82198 Federal Register / Vol. 89, No. 197 / Thursday, October 10, 2024 / Proposed Rules 

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 

252.219–7010 to read as follows: 

252.219–7010 Notification of Competition 

Limited to Eligible 8(a) Participants— 

Partnership Agreement. 

As prescribed in 219.811–3(2), use the 

following clause: 

Notification of Competition Limited to 

Eligible 8(a) Participants—Partnership 

Agreement (DATE) 

(a) Offers are solicited only from— 

(1) Small business concerns expressly 

certified by the Small Business 

Administration (SBA) for participation in 

SBA’s 8(a) Program and which meet the 

following criteria at the time of submission 

of offer: 

(i) The Offeror is in conformance with the 

8(a) support limitation set forth in its 

approved business plan. 

(ii) The Offeror is in conformance with the 

Business Activity Targets set forth in its 

approved business plan or any remedial 

action directed by SBA. 

(iii) If the competition is to be limited to 

8(a) concerns within one or more specific 

SBA regions or districts, then the Offeror’s 

approved business plan is on file and 

serviced by lll. [Contracting Officer 

completes by inserting the appropriate SBA 

District and/or Regional Office(s) as 

identified by SBA.] 

(2) A joint venture, in which at least one 

of the 8(a) program participants that is a 

party to the joint venture complies with the 

criteria set forth in paragraph (a)(1) of this 

clause, and that has a joint venture agreement 

that complies with 13 CFR 124.513(c); or 

(3) A joint venture— 

(i) That is comprised of a mentor and an 

8(a) prote ́ge ́ with an approved mentorprote ́ge ́ agreement under an SBA mentorprote ́ge ́ program; 

(ii) In which at least one of the 8(a) 

program participants that is a party to the 

joint venture complies with the criteria set 

forth in paragraph (a)(1) of this clause; and 

(iii) With a joint venture agreement that 

complies with 13 CFR 124.513(c). 

(b) By submission of its offer, the Offeror 

represents that it meets the applicable criteria 

set forth in paragraph (a) of this clause. 

(c) Any award resulting from this 

solicitation will be made directly by the 

Contracting Officer to the successful 8(a) 

offeror selected through the evaluation 

criteria set forth in this solicitation. 

(d) The lll [insert name of SBA’s 

contractor] will notify the lll [insert 

name of contracting agency] Contracting 

Officer in writing immediately upon entering 

an agreement (either oral or written) to 

transfer all or part of its stock or other 

ownership interest to any other party. 

(End of clause) 

[FR Doc. 2024–23230 Filed 10–9–24; 8:45 am] 

BILLING CODE 6001–FR–P 


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