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[Federal Register Volume 81, Number 93 (Friday, May 13, 2016)]
[Rules and Regulations]
[Pages 29793-29798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11378]

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ENVIRONMENTAL PROTECTION AGENCY

48 CFR Parts 1519 and 1552

[EPA-HQ-OARM-2015-0550; FRL 9945-69-OARM]

Environmental Protection Agency Acquisition Regulation; Small 
Business Programs, Solicitation Provisions and Contract Clauses

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is issuing a final 
rule to remove outdated information and make administrative changes to 
the Environmental Protection Agency Acquisition Regulation (EPAAR). EPA 
does not anticipate any adverse comments.

DATES: This rule is effective on July 12, 2016 without further action, 
unless EPA receives adverse comment by June 13, 2016. If EPA receives 
adverse comment, a timely withdrawal will be published in the Federal 
Register informing the public that the rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OARM-2015-0550, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be

[[Page 29794]]

edited or removed from Regulations.gov. The EPA may publish any comment 
received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e. on the Web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Julianne Odend'hal, Policy, Training, 
and Oversight Division, Acquisition Policy and Training Service Center 
(3802R), Environmental Protection Agency, 1200 Pennsylvania Avenue NW., 
Washington, DC 20460; telephone number: (202) 564-5218; email address: 
odend'hal.julianne@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Why is EPA using a direct final rule?

    EPA is publishing this rule without a prior proposed rule because 
EPA views this as a noncontroversial action and anticipates no adverse 
comments. EPAAR Parts 1519 and 1552 are being amended to remove 
outdated information and to make administrative changes. If EPA 
receives adverse comment, a timely withdrawal will be published in the 
Federal Register informing the public that the rule will not take 
effect. Any parties interested in commenting must do so at this time.

II. Does this action apply to me?

    The EPAAR applies to contractors who have a contract with the EPA.

III. What should I consider as I prepare my comments for EPA?

    A. Submitting CBI. Do not submit this information to EPA through 
http://www.regulations.gov or email. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information in a disk 
or CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM 
as CBI, and then identify electronically within the disk or CD-ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    B. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree, suggest alternatives, 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

IV. Background

    EPAAR Parts 1519 and 1552 are being amended to remove outdated 
information and to make administrative changes.

V. Final Rule

    This direct final rule makes the following changes: (1) Updates 
outdated terms throughout EPAAR Parts 1519 and 1552 by removing 
``Office of Small and Disadvantaged Business Utilization (OSDBU)'' and 
adding ``Office of Small Business Programs (OSBP)'' in its place, 
removing ``Small and Disadvantaged Business Utilization Specialists'' 
and adding ``Small Business Specialists'' in its place, removing 
``Subcontracting with Small Business and Small Disadvantaged Business 
Concerns'' and adding ``Small Business Subcontracting Program'' in its 
place; (2) amends section 1519.201 by removing the words ``and the 
local'' and adding the words ``(CCO)s or Regional Acquisitions Managers 
(RAMs), the assigned'' in its place; (3) amends section 1519.201-72, 
paragraph (a), by removing the words ``for each contracting office'', 
and adding the words ``The appointing authorities for regional SBS are 
the RAMs. The SBSs for EPA headquarters, Research Triangle Park (RTP), 
and Cincinnati shall be appointed by the OSBP Director.'', and removing 
the words ``The appointing authorities are the Chiefs of the 
Contracting Offices.''; (4) Amends Section 1519.201-72, paragraph (c), 
by removing subparagraph (6) and re-numbering subparagraphs (7) through 
(10) to read (6) through (9), and amends re-numbered subparagraph (9) 
to read ``Act as liaison with the appropriate SBA office or 
representative in connection with matters concerning the small business 
programs including set-asides.''; (5) amends section 1519.202-5, Data 
Collection and Reporting Requirements, by removing and reserving the 
section because this section is outdated; (6) amends section 1519.204, 
Small Disadvantaged Business Participation, by removing and reserving 
the section to conform to the FAR; (7) amends section 1552.219-70, 
paragraph (f), by removing the words ``Standard Form 294, Subcontracts 
Report for Individual Contracts'' and adding the words ``Individual 
Subcontract Reports (ISR)'' in its place; (8) amends section 1552.219-
71, paragraph (e), by removing from subparagraph (4) the words ``If 
recently required to submit a SF 295, provide copies of the two 
preceding year's reports;'' (9) amends section 1552.219-71, paragraph 
(k) by removing the text and adding new text in its place; (10) amends 
section 1552.219-72, Small Disadvantaged Business Participation 
Program, section 1552.219-73, Small Disadvantaged Business Targets, 
section 1552.219-74, Small Disadvantaged Business Participation 
Evaluation Factor, by removing and reserving the sections to conform to 
the FAR.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the PRA because it does not contain any information collection 
activities.

[[Page 29795]]

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et 
seq.

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. This action amends EPAAR parts 1519 and 
1552 to remove outdated information and to make administrative changes. 
We have therefore concluded that this action will have no net 
regulatory burden for all directly regulated small entities.

D. Unfunded Mandates Reform Act

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. The action imposes 
no enforceable duty on any state, local or tribal governments or the 
private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175 (65 FR 67249, November 9, 2000). Thus, Executive 
Order 13175 does not apply to this action. In the spirit of Executive 
Order 13175, and consistent with EPA policy to promote communication 
between EPA and Tribal governments, EPA specifically solicits 
additional comment on this rule from Tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997) 
as applying only to those regulatory actions that concern health or 
safety risks, such that the analysis required under section 5-501 of 
the Executive Order has the potential to influence the regulation. This 
action is not subject to Executive Order 13045 because it does not 
establish an environmental standard intended to mitigate health or 
safety risks.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355 
(May 22, 2001)), because it is not a significant regulatory action 
under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (February 16, 1994)) establishes 
federal executive policy on environmental justice. Its main provision 
directs federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States. EPA has determined that this final 
rule will not have disproportionately high and adverse human health or 
environmental effects on minority or low-income populations because it 
does not affect the level of protection provided to human health or the 
environment.

K. Congressional Review

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. Section 804 exempts from section 801 the following types 
of rules (1) rules of particular applicability; (2) rules relating to 
agency management or personnel; and (3) rules of agency organization, 
procedure, or practice that do not substantially affect the rights or 
obligations of non-agency parties. 5 U.S.C. 804(3). EPA is not required 
to submit a rule report regarding this action under section 801 because 
this is a rule of agency organization, procedure, or practice that does 
not substantially affect the rights or obligations of non-agency 
parties.

List of Subjects in 48 CFR Parts 1519 and 1552

    Government procurement.

    Dated: May 2, 2016.
John R. Bashista,
Director, Office of Acquisition Management.

    For the reasons stated in the preamble, 48 CFR parts 1519 and 1552 
are amended as set forth below:

0
1. Revise part 1519 to read as follows:

PART 1519--SMALL BUSINESS PROGRAMS

Subpart 1519.2--Policies
Sec.
1519.201 Policy.
1519.201-71 Director of the Office of Small Business Programs.
1519.201-72 Small business specialists.
1519.202-5 [Reserved]
1519.203 Mentor-prot[eacute]g[eacute].
1519.204 [Reserved]
Subpart 1519.5--Set-Asides for Small Business
1519.501 Review of acquisitions.
1519.503 Class set-aside for construction.
Subpart 1519.7--The Small Business Subcontracting Program
1519.705-2 Determining the need for a subcontract plan.
1519.705-4 Reviewing the subcontracting plan.
1519.705-70 Synopsis of contracts containing Pub. L. 95-507 
subcontracting plans and goals.

    Authority:  Sec. 205(c), 63 Stat. 390, as amended, 40 U.S.C. 
486(c).

Subpart 1519.2--Policies

1519.201  Policy.

    Each program's Assistant or Associate Administrator shall be 
responsible for developing its socioeconomic goals on a fiscal year 
basis. The goals shall be developed in collaboration with the 
supporting Chiefs of Contracting Offices (CCOs) or Regional Acquisition 
Managers (RAMs), the assigned Small Business Specialist (SBS), and the 
Office of Small Business Programs (OSBP). The goals will be based on 
advance procurement plans and past performance. The goals shall be 
submitted to the Director of OSBP, at least thirty (30) days prior to 
the start of the fiscal year.

1519.201-71  Director of the Office of Small Business Programs.

    The Director of the Office of Small Business Programs (OSBP) 
provides guidance and advice, as appropriate, to

[[Page 29796]]

Agency program and contracts officials on small business programs. The 
OSBP Director is the central point of contact for inquiries concerning 
the small business programs from industry, the Small Business 
Administration (SBA), and the Congress; and shall advise the 
Administrator and staff of such inquiries as required. The OSBP 
Director shall represent the Agency in the negotiations with the other 
Government agencies on small business programs matters.

1519.201-72  Small business specialists.

    (a) Small Business Specialists (SBSs) shall be appointed in 
writing. Regional SBSs will normally be appointed from members of 
staffs of the appointing authority. The appointing authorities for 
regional SBSs are the RAMs. The SBSs for EPA headquarters, Research 
Triangle Park (RTP), and Cincinnati shall be appointed by the OSBP 
Director. The SBS is administratively responsible directly to the 
appointing authority and, on matters relating to small business 
programs activities, receives technical guidance from the OSBP 
Director.
    (b) A copy of each appointment and termination of all SBSs shall be 
forwarded to the OSBP Director. In addition to performing the duties 
outlined in paragraph (c) of this section that are normally performed 
in the activity to which assigned, the SBS shall perform such 
additional functions as may be prescribed from time to time in 
furtherance of overall small business programs goals. The SBS may be 
appointed on either a full- or part-time basis; however, when appointed 
on a part-time basis, small business duties shall take precedence over 
collateral responsibilities.
    (c) The SBS appointed pursuant to paragraph (a) of this section 
shall perform the following duties as appropriate:
    (1) Maintain a program designed to locate capable small business 
sources for current and future acquisitions;
    (2) Coordinate inquiries and requests for advice from small 
business concerns on acquisition matters;
    (3) Review all proposed solicitations in excess of the simplified 
acquisition threshold, assure that small business concerns will be 
afforded an equitable opportunity to compete, and, as appropriate, 
initiate recommendations for small business set-asides, or offers of 
requirements to the Small Business Administration (SBA) for the 8(a) 
program, and complete EPA Form 1900-37, ``Record of Procurement Request 
Review,'' as appropriate;
    (4) Take action to assure the availability of adequate 
specifications and drawings, when necessary, to obtain small business 
participation in an acquisition. When small business concerns cannot be 
given an opportunity on a current acquisition, initiate action, in 
writing, with appropriate technical and contracting personnel to ensure 
that necessary specifications and/or drawings for future acquisitions 
are available;
    (5) Review proposed contracts for possible breakout of items or 
services suitable for acquisition from small business concerns;
    (6) Participate in the evaluation of a prime contractor's small 
business subcontracting programs;
    (7) Assure that adequate records are maintained, and accurate 
reports prepared, concerning small business participation in 
acquisition programs;
    (8) Make available to SBA copies of solicitations when so 
requested;
    (9) Act as liaison with the appropriate SBA office or 
representative in connection with matters concerning the small business 
programs including set-asides.

1519.202-5  [Reserved]

1519.203  Mentor-prot[eacute]g[eacute].

    (a) The contracting officer shall insert the clause at 1552.219-70, 
Mentor-Prot[eacute]g[eacute] Program, in all contracts under which the 
contractor has been approved to participate in the EPA Mentor-
Prot[eacute]g[eacute] Program.
    (b) The contracting officer shall insert the provision at 1552.219-
71, Procedures for Participation in the EPA Mentor-
Prot[eacute]g[eacute] Program, in all solicitations valued at $500,000 
or more which will be cost-plus-award-fee or cost-plus fixed-fee 
contracts.

1519.204  [Reserved]

Subpart 1519.5--Set-Asides for Small Business

1519.501  Review of acquisitions.

    (a) If no Small Business Administration (SBA) representative is 
available, the Small Business Specialist (SBS) shall initiate 
recommendations to the contracting officer for small business set-
asides with respect to individual acquisitions or classes of 
acquisitions or portions thereof.
    (b) When the SBS has recommended that all, or a portion, of an 
individual acquisition or class of acquisitions be set aside for small 
business, the contracting officer shall:
    (1) Promptly concur in the recommendation; or
    (2) Promptly disapprove the recommendation, stating in writing the 
reasons for disapproval. If the contracting officer disapproves the 
recommendation of the SBS, the SBS may appeal to the appropriate 
appointing authority, whose decision shall be final.

1519.503  Class set-aside for construction.

    (a) Each proposed acquisition for construction estimated to cost 
between $10,000 and $1,000,000 shall be set-aside for exclusive small 
business participation. Such set-asides shall be considered to be 
unilateral small business set-asides, and shall be withdrawn in 
accordance with the procedure of FAR 19.506 only if found not to serve 
the best interest of the Government.
    (b) Small business set-aside preferences for construction 
acquisitions in excess of $1,000,000 shall be considered on a case-by-
case basis.

Subpart 1519.7--The Small Business Subcontracting Program

1519.705-2  Determining the need for a subcontract plan.

    One copy of the determination required by FAR 19.705-2(c) shall be 
placed in the contract file and one copy provided to the Director of 
the Office of Small Business Programs.

1519.705-4  Reviewing the subcontracting plan.

    In determining the acceptability of a proposed subcontracting plan, 
the contracting officer shall obtain advice and recommendations from 
the Office of Small Business Programs, which shall in turn coordinate 
review by the Small Business Administration Procurement Center 
Representative (if any).

1519.705-70  Synopsis of contracts containing Pub. L. 95-507 
subcontracting plans and goals.

    The synopsis of contract award, where applicable, shall include a 
statement identifying the contract as one containing Public Law 95-507 
subcontracting plans and goals.

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
2. The authority citation for part 1552 continues to read as follows:

    Authority:  5 U.S.C 301; Sec. 205(c), 63 Stat. 390, as amended, 
40 U.S.C. 486(c); and 41 U.S.C. 418b.

0
3. Revise section 1552.219-70 to read as follows:

1552.219-70  Mentor-Prot[eacute]g[eacute] Program.

    As prescribed in 1519.203(a), insert the following clause:

[[Page 29797]]

Mentor-Prot[eacute]g[eacute] Program (JUL 2016)

    (a) The Contractor has been approved to participate in the EPA 
Mentor-Prot[eacute]g[eacute] Program. The purpose of the Program is 
to increase the participation of small disadvantaged businesses 
(SDBs) as subcontractors, suppliers, and ultimately as prime 
contractors; establish a mutually beneficial relationship with SDBs 
and EPA's large business prime contractors (although small 
businesses may participate as Mentors); develop the technical and 
corporate administrative expertise of SDBs which will ultimately 
lead to greater success in competition for contract opportunities; 
promote the economic stability of SDBs; and aid in the achievement 
of goals for the use of SDBs in subcontracting activities under EPA 
contracts.
    (b) The Contractor shall submit an executed Mentor-
Prot[eacute]g[eacute] agreement to the Contracting Officer, with a 
copy to the Office of Small Business Programs (OSBP) or the Small 
Business Specialist, within thirty (30) calendar days after the 
effective date of the contract. The Contracting Officer will notify 
the Contractor within thirty (30) calendar days from its submission 
if the agreement is not accepted.
    (c) The Contractor as a Mentor under the Program agrees to 
fulfill the terms of its agreement(s) with the Prot[eacute]g[eacute] 
firm(s).
    (d) If the Contractor or Prot[eacute]g[eacute] firm is suspended 
or debarred while performing under an approved Mentor-
Prot[eacute]g[eacute] agreement, the Contractor shall promptly give 
notice of the suspension or debarment to the OSBP and the 
Contracting Officer.
    (e) Costs incurred by the Contractor in fulfilling their 
agreement(s) with the Prot[eacute]g[eacute] firm(s) are not 
reimbursable on a direct basis under this contract.
    (f) In an attachment to Individual Subcontract Reports (ISR), 
the Contractor shall report on the progress made under their Mentor-
Prot[eacute]g[eacute] agreement(s), providing:
    (1) The number of agreements in effect; and
    (2) The progress in achieving the developmental assistance 
objectives under each agreement, including whether the objectives of 
the agreement have been met, problem areas encountered, and any 
other appropriate information.

(End of clause)

0
4. Revise section 1552.219-71 to read as follows:

1552.219-71  Procedures for Participation in the EPA Mentor-
Prot[eacute]g[eacute] Program.

    As prescribed in 1519.203(b), insert the following provision:

Procedures for Participation in the EPA Mentor-Prot[eacute]g[eacute] 
Program (JUL 2016)

    (a) This provision sets forth the procedures for participation 
in the EPA Mentor-Prot[eacute]g[eacute] Program (hereafter referred 
to as the Program). The purpose of the Program is to increase the 
participation of concerns owned and/or controlled by socially and 
economically disadvantaged individuals as subcontractors, suppliers, 
and ultimately as prime contractors; to establish a mutually 
beneficial relationship between these concerns and EPA's large 
business prime contractors (although small businesses may 
participate as Mentors); to develop the technical and corporate 
administrative expertise of these concerns, which will ultimately 
lead to greater success in competition for contract opportunities; 
to promote the economic stability of these concerns; and to aid in 
the achievement of goals for the use of these concerns in 
subcontracting activities under EPA contracts. If the successful 
offeror is accepted into the Program they shall serve as a Mentor to 
a Prot[eacute]g[eacute] firm(s), providing developmental assistance 
in accordance with an agreement with the Prot[eacute]g[eacute] 
firm(s).
    (b) To participate as a Mentor, the offeror must receive 
approval in accordance with paragraph (h) of this section.
    (c) A Prot[eacute]g[eacute] must be a concern owned and/or 
controlled by socially and economically disadvantaged individuals 
within the meaning of section 8(a)(5) and (6) of the Small Business 
Act (15 U.S.C. 637(a)(5) and (6)), including historically black 
colleges and universities. Further, in accordance with Public Law 
102-389 (the 1993 Appropriation Act), for EPA's contracting 
purposes, economically and socially disadvantaged individuals shall 
be deemed to include women.
    (d) Where there may be a concern regarding the 
Prot[eacute]g[eacute] firm's eligibility to participate in the 
program, the prot[eacute]g[eacute]'s eligibility will be determined 
by the contracting officer after the SBA has completed any formal 
determinations.
    (e) The offeror shall submit an application in accordance with 
paragraph (k) of this section as part of its proposal which shall 
include as a minimum the following information.
    (1) A statement and supporting documentation that the offeror is 
currently performing under at least one active Federal contract with 
an approved subcontracting plan and is eligible for the award of 
Federal contracts;
    (2) A summary of the offeror's historical and recent activities 
and accomplishments under any disadvantaged subcontracting programs. 
The offeror is encouraged to include any initiatives or outreach 
information believed pertinent to approval as a Mentor firm;
    (3) The total dollar amount (including the value of all option 
periods or quantities) of EPA contracts and subcontracts received by 
the offeror during its two preceding fiscal years. (Show prime 
contracts and subcontracts separately per year);
    (4) The total dollar amount and percentage of subcontract awards 
made to all concerns owned and/or controlled by disadvantaged 
individuals under EPA contracts during its two preceding fiscal 
years.
    (5) The number and total dollar amount of subcontract awards 
made to the identified Prot[eacute]g[eacute] firm(s) during the two 
preceding fiscal years (if any).
    (f) In addition to the information required by paragraph (e) of 
this section, the offeror shall submit as a part of the application 
the following information for each proposed Mentor-
Prot[eacute]g[eacute] relationship:
    (1) Information on the offeror's ability to provide 
developmental assistance to the identified Prot[eacute]g[eacute] 
firm and how the assistance will potentially increase contracting 
and subcontracting opportunities for the Prot[eacute]g[eacute] firm.
    (2) A letter of intent indicating that both the Mentor firm and 
the Prot[eacute]g[eacute] firm intend to enter into a contractual 
relationship under which the Prot[eacute]g[eacute] will perform as a 
subcontractor under the contract resulting from this solicitation 
and that the firms will negotiate a Mentor-Prot[eacute]g[eacute] 
agreement. The letter of intent must be signed by both parties and 
contain the following information:
    (i) The name, address and phone number of both parties;
    (ii) The Prot[eacute]g[eacute] firm's business classification, 
based upon the NAICS code(s) which represents the contemplated 
supplies or services to be provided by the Prot[eacute]g[eacute] 
firm to the Mentor firm;
    (iii) A statement that the Prot[eacute]g[eacute] firm meets the 
eligibility criteria;
    (iv) A preliminary assessment of the developmental needs of the 
Prot[eacute]g[eacute] firm and the proposed developmental assistance 
the Mentor firm envisions providing the Prot[eacute]g[eacute]. The 
offeror shall address those needs and how their assistance will 
enhance the Prot[eacute]g[eacute]. The offeror shall develop a 
schedule to assess the needs of the Prot[eacute]g[eacute] and 
establish criteria to evaluate the success in the Program;
    (v) A statement that if the offeror or Prot[eacute]g[eacute] 
firm is suspended or debarred while performing under an approved 
Mentor-Prot[eacute]g[eacute] agreement the offeror shall promptly 
give notice of the suspension or debarment to the EPA Office of 
Small Business Programs (OSBP) and the Contracting Officer. The 
statement shall require the Prot[eacute]g[eacute] firm to notify the 
Contractor if it is suspended or debarred.
    (g) The application will be evaluated on the extent to which the 
offeror's proposal addresses the items listed in paragraphs (e) and 
(f) of this section. To the maximum extent possible, the application 
should be limited to not more than 10 single pages, double spaced. 
The offeror may identify more than one Prot[eacute]g[eacute] in its 
application.
    (h) If the offeror is determined to be in the competitive range, 
or is awarded a contract without discussions, the offeror will be 
advised by the Contracting Officer whether their application is 
approved or rejected. The Contracting Officer, if necessary, may 
request additional information in connection with the offeror's 
submission of its revised or best and final offer. If the successful 
offeror has submitted an approved application, they shall comply 
with the clause titled ``Mentor-Prot[eacute]g[eacute] Program.''
    (i) Subcontracts of $1,000,000 or less awarded to firms approved 
as Prot[eacute]g[eacute]s under the Program are exempt from the 
requirements for competition set forth in FAR 44.202-2(a)(5), and 
52.244-5(b). However, price reasonableness must still be determined 
and the requirements in FAR 44.202-2(a)(8) for cost and price 
analysis continue to apply.
    (j) Costs incurred by the offeror in fulfilling their 
agreement(s) with a Prot[eacute]g[eacute] firm(s) are not 
reimbursable as a direct cost under the contract. Unless EPA is the 
responsible audit agency under FAR 42.703-1, offerors are

[[Page 29798]]

encouraged to enter into an advance agreement with their responsible 
audit agency on the treatment of such costs when determining 
indirect cost rates. Where EPA is the responsible audit agency, 
these costs will be considered in determining indirect cost rates.
    (k) Submission of Application and Questions Concerning the 
Program. The application for the Program shall be submitted to the 
Contracting Officer, and to the EPA Office of Small Business 
Programs at the following address: Socioeconomic Business Program 
Officer, Office of Small Business Programs, U.S. Environmental 
Protection Agency, William Jefferson Clinton Building (1230T), 1200 
Pennsylvania Avenue NW., Washington, DC 20460, Telephone: (202) 566-
2075, Fax: (202) 565-2473.

(End of provision)

1552.219-72 through 1552.219-74  [Removed and Reserved]

0
5. Remove and reserve sections 1552.219-72, 1552.219-73, and 1552.219-
74.

[FR Doc. 2016-11378 Filed 5-12-16; 8:45 am]
 BILLING CODE 6560-50-P
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