[Federal Register Volume 63, Number 126 (Wednesday, July 1, 1998)]
[Rules and Regulations]
[Page 36128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17299]



[[Page 36128]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Chapter 1


Federal Acquisition Regulation; Small Entity Compliance Guide

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Small Entity Compliance Guide.

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SUMMARY: This document is issued under the joint authority of the 
Secretary of Defense, the Administrator of General Services, and the 
Administrator for the National Aeronautics and Space Administration as 
the Federal Acquisition Regulatory Council. This Small Entity 
Compliance Guide has been prepared in accordance with Section 212 of 
the Small Business Regulatory Enforcement Fairness Act of 1996 (Public 
Law 104-121). It consists of a summary of the rule appearing in Federal 
Acquisition Circular (FAC) 97-07 which amends the Federal Acquisition 
Regulation (FAR). Further information regarding this rule may be 
obtained by referring to FAC 97-07 which precedes this notice. This 
document may be obtained from the Internet at http://www.arnet.gov/far.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, (202) 501-4755.

Reform of Affirmative Action in Federal Procurement

    FAC 97-07/FAR Case 97-004B. This interim rule amends FAR Parts 1, 
12, 14, 15, 19, 52, and 53 to establish two mechanisms to benefit small 
disadvantaged business concerns at the subcontract level. The first 
mechanism is a source selection evaluation factor or subfactor for 
planned SDB participation, primarily at the subcontract level, in the 
performance of a contract in the SIC Major Groups as determined by the 
Department of Commerce. This evaluation factor or subfactor will be 
used in competitive, negotiated acquisitions expected to exceed 
$500,000 ($1,000,000 for construction). This mechanism will not be 
applied to certain major categories of acquisition, including, for 
example, small business set-asides, 8(a) acquisitions, and acquisitions 
using the lowest price technically acceptable source selection process.
    The second mechanism provides for a monetary incentive for 
subcontracting with SDBs. Contracts resulting from solicitations in 
which SDB participation is evaluated may provide for a monetary payment 
to those prime contractors that meet specified targets for SDB 
participation as subcontractors in the SIC Major Groups as determined 
by the Department of Commerce.
    These mechanisms conform to the Department of Justice proposal to 
reform affirmative action in Federal procurement and to regulations 
issued by the Small Business Administration regarding small 
disadvantaged business programs.
    The interim rule also adds to the FAR a requirement to evaluate the 
past performance of offerors in complying with targets for SDB 
participation and subcontracting plan goals for SDBs whenever past 
performance is to be evaluated.

    Dated: June 23, 1998
Edward C. Loeb,
Director,
Federal Acquisition Policy Division.
[FR Doc. 98-17299 Filed 6-30-98; 8:45 am]
BILLING CODE 6820-EP-P