36128 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

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.

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