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[Federal Register Volume 80, Number 100 (Tuesday, May 26, 2015)]
[Rules and Regulations]
[Pages 30115-30117]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12338]

[[Page 30115]]

Vol. 80

Tuesday,

No. 100

May 26, 2015

Part II

Department of Defense

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Defense Acquisition Regulations System

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48 CFR Parts 212, 213, 219 et al.

Defense Federal Acquisition Regulation Supplement; Final Rules and 
Proposed Rule

Federal Register / Vol. 80, No. 100 / Tuesday, May 26, 2015 / Rules 
and Regulations

[[Page 30116]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 219, and 252

RIN 0750-A142

Defense Federal Acquisition Regulation Supplement: Advancing 
Small Business Growth (DFARS Case 2014-D009)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to clarify that entering into 
a contract award may cause a small business to eventually exceed the 
applicable small business size standard.

DATES: Effective May 26, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Lee Renna, telephone 571-372-6095.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 79 FR 
65917 on November 6, 2014, to implement policy to ensure that a small 
business contractor is made aware that entering into a covered contract 
conveys its acknowledgement that doing so may cause it to eventually 
exceed the small business size standard of the North American Industry 
Classification System (NAICS) code identified in the solicitation and 
contract. This clarification is required by section 1611 of the 
National Defense Authorization Act for Fiscal Year 2014, Public Law 
113-66, (10 U.S.C. 2419).
    There were no public comments submitted in response to the proposed 
rule.

II. Discussion and Analysis

    Minor editorial changes have been made from the proposed rule as 
follows: (1) In the heading at 219.303, the acronym ``(NAICS) was 
removed; (2) At DFARS 219.309, paragraph (a) was renumbered as 
paragraph (1), and a reference was changed from ``$70,000,000'' to read 
``$70 million''; and (3) DFARS 252.219-7000, paragraph (b), was revised 
slightly in the first sentence to reflect more standardized provision 
language and to spell out ``NAICS'' to reflect the North American 
Industry Classification System.

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

    DoD has certified that this 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. This 
conclusion is based on the following:
    This rule does not create or alleviate any financial burden on 
small businesses. The purpose of the rule is only to advise small 
businesses that entering into a DoD contract may eventually cause such 
businesses to exceed the small business size standard associated with 
the applicable NAICS code, and to encourage these businesses to develop 
the competencies typically desired of other than small businesses.

V. Paperwork Reduction Act

    The 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 212, 219, and 252

    Government procurement.

Amy G. Williams,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 219, and 252 are amended as follows:

0
1. The authority citation for 48 CFR parts 212 and 252 continues to 
read as follows:

     Authority: 41. U.S.C. 1303 and 48 CFR chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
2. Amend section 212.301 by adding a new paragraph (f)(vi)(C) to read 
as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (vi) * * *
    (C) Use the provision at 252.219-7000, Advancing Small Business 
Growth, as prescribed in 219.309(1), to comply with 10 U.S.C. 2419.
* * * * *

PART 219--SMALL BUSINESS PROGRAMS

0
3. The authority citation for 48 CFR part 219 is revised to read as 
follows:

    Authority:  41. U.S.C. 1303 and 48 CFR chapter 1.

0
4. Amend section 219.303 by revising the section heading to read as 
follows:

219.303  Determining North American Industry Classification System 
codes and size standards.

* * * * *

0
5. Add section 219.309 to subpart 219.3 to read as follows:

219.309  Solicitation provisions and contract clauses.

    (1) Use the provision at 252.219-7000, Advancing Small Business 
Growth, in solicitations, including solicitations using FAR part 12 
procedures for acquisition of commercial items, when the estimated 
annual value of the contract is expected to exceed--
    (i) The small business size standard, if expressed in dollars, for 
the North American Industry Classification System (NAICS) code assigned 
by the contracting officer; or
    (ii) $70 million, if the small business size standard is expressed 
as number of employees for the NAICS code assigned by the contracting 
officer.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. Add section 252.219-7000 to read as follows:

252.219-7000  Advancing Small Business Growth.

    As prescribed in 219.309(1), use the following provision:

Advancing Small Business Growth (May 2015)

    (a) This provision implements 10 U.S.C. 2419.

[[Page 30117]]

    (b) The Offeror acknowledges by submission of its offer that by 
acceptance of the contract resulting from this solicitation, the 
Offeror may exceed the applicable small business size standard of 
the North American Industry Classification System (NAICS) code 
assigned to the contract and would no longer qualify as a small 
business concern for that NAICS code. (Small business size standards 
matched to industry NAICS codes are published by the Small Business 
Administration and are available at http://www.sba.gov/content/table-small-business-size-standards.) The Offeror is therefore 
encouraged to develop the capabilities and characteristics typically 
desired in contractors that are competitive as other-than-small 
contractors in this industry.
    (c) For procurement technical assistance, the Offeror may 
contact the nearest Procurement Technical Assistance Center (PTAC). 
PTAC locations are available at www.dla.mil/SmallBusiness/Pages/ptac.aspx.

(End of provision)

[FR Doc. 2015-12338 Filed 5-22-15; 8:45 am]
BILLING CODE 5001-06-P
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