35726 Federal Register / Vol. 63, No. 125 /Tuesday, June 30, 1998 /Rules and Regulations

the contracting officer] percent to the price of

all offers, except—

(i) Offers from small disadvantaged

business concerns that have not waived the

adjustment;

(ii) For DOD, NASA, and Coast Guard

acquisitions, otherwise successful offers from

historically black colleges or universities or

minority institutions;

(iii) Otherwise successful offers of eligible

products under the Trade Agreements Act

when the dollar threshold for application of

the Act is equaled or exceeded (see section

25.402 of the Federal Acquisition Regulation

(FAR));

(iv) Otherwise successful offers where

application of the factor would be

inconsistent with a Memorandum of

Understanding or other international

agreement with a foreign government; and

(v) For DOD acquisitions, otherwise

successful offers of qualifying country end

products (see sections 225.000–70 and

252.225–7001 of the Defense FAR

Supplement).

(2) The factor shall be applied on a line

item basis or to any group of items on which

award may be made. Other evaluation factors

described in the solicitation shall be applied

before application of the factor. The factor

may not be applied if using the adjustment

would cause the contract award to be made

at a price that exceeds the fair market price

by more than the factor in paragraph (b)(1)

of this clause.

(c) Waiver of evaluation adjustment. A

small disadvantaged business concern may

elect to waive the adjustment, in which case

the factor will be added to its offer for

evaluation purposes. The agreements in

paragraph (d) of this clause do not apply to

offers that waive the adjustment.

llOfferor elects to waive the adjustment.

(d) Agreements. (1) A small disadvantaged

business concern, that did not waive the

adjustment, agrees that in performance of the

contract, in the case of a contract for—

(i) Services, except construction, at least 50

percent of the cost of personnel for contract

performance will be spent for employees of

the concern;

(ii) Supplies (other than procurement from

a nonmanufacturer of such supplies), at least

50 percent of the cost of manufacturing,

excluding the cost of materials, will be

performed by the concern;

(iii) General construction, at least 15

percent of the cost of the contract, excluding

the cost of materials, will be performed by

employees of the concern; or

(iv) Construction by special trade

contractors, at least 25 percent of the cost of

the contract, excluding the cost of materials,

will be performed by employees of the

concern.

(2) A small disadvantaged business

concern submitting an offer in its own name

agrees to furnish in performing this contract

only end items manufactured or produced by

small disadvantaged business concerns in the

United States. This paragraph does not apply

in connection with construction or service

contracts.

(End of clause)

Alternate I (Oct 1998). As prescribed in

19.1104, substitute the following paragraph

(d)(2) for paragraph (d)(2) of the basic clause:

(2) A small disadvantaged business

concern submitting an offer in its own name

agrees to furnish in performing this contract

only end items manufactured or produced by

small business concerns in the United States.

This paragraph does not apply in connection

with construction or service contracts.

[FR Doc. 98–17197 Filed 6–26–98; 8:45 am]

BILLING CODE 6820–EP–P

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–

06 which amends the Federal

Acquisition Regulation (FAR). Further

information regarding this rule may be

obtained by referring to FAC 97–06

which precedes this document. 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 97–06/FAR Case 97–004A. The

interim rule amends FAR Parts 1, 12, 14,

15, 19, 33, and 52 to establish a

mechanism to benefit small

disadvantaged business concerns at the

prime contract level. This mechanism is

a price evaluation adjustment of up to

ten percent in certain Standard

Industrial Classification (SIC) Major

Groups as determined by the

Department of Commerce. This price

evaluation adjustment conforms 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. This price evaluation

adjustment is mandatory for those

competitive procurements to which it

applies. It does not, however, apply to

several major categories of acquisition,

including, for example, acquisitions

within the simplified acquisition

threshold, acquisitions set aside for

small business, and acquisitions

conducted pursuant to the 8(a) program.

Dated: June 23, 1998.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

[FR Doc. 98–17198 Filed 6–26–98; 8:45 am]

BILLING CODE 6820–EP–P

SMALL BUSINESS ADMINISTRATION

13 CFR Parts 121, 124, and 134

Small Business Size Regulations; 8(a)

Business Development/Small

Disadvantaged Business Status

Determinations; Rules of Procedure

Governing Cases Before the Office of

Hearings and Appeals

AGENCY: Small Business Administration.

ACTION: Final rule.

SUMMARY: In response to President

Clinton’s government-wide regulatory

reform initiative, the Small Business

Administration (SBA) amends both the

eligibility requirements for, and

contractual assistance provisions

within, the SBA’s 8(a) Business

Development (8(a) BD) program. This

final rule changes the name of the

program from the Minority Small

Business and Capital Ownership

Development program to the 8(a) BD

program to better reflect the purpose of

the program. This rule streamlines the

operation of the 8(a) BD program, eases

certain restrictions perceived to be

burdensome on Program Participants,

clarifies certain eligibility requirements,

and deletes obsolete regulations.

DATES: Effective Date: This rule is

effective on July 30, 1998.

Compliance Dates: Subpart A applies

to all applications for the 8(a) Business

Development program pending as of

July 30, 1998 and all 8(a) procurement

requirements accepted by SBA on or

after July 30, 1998. These rules do not

apply to any appeals pending before

SBA’s Office of Hearings and Appeals.

The revisions to 13 CFR part 121 apply

with respect to all solicitations issued

on or after June 30, 1998. Except for 13

CFR 134.408(c), the procedural

revisions to 13 CFR part 134 apply to all

appeals served or filed on or after June