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[Federal Register Volume 90, Number 2 (Friday, January 3, 2025)]
[Rules and Regulations]
[Pages 523-527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-31407]

[[Page 523]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 19, 42, and 52

[FAC 2025-03; FAR Case 2023-001, Item III; Docket No. FAR 2023-0001; 
Sequence No. 1]
RIN 9000-AO50

Federal Acquisition Regulation: Subcontracting to Puerto Rican 
and Covered Territory Small Businesses

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement regulatory changes 
made by the Small Business Administration to add incentives for certain 
United States territories under the Small Business Administration 
mentor-prot[eacute]g[eacute] program.

DATES: Effective January 17, 2025.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Carrie Moore, Procurement Analyst, at 571-300-5917, or by email at 
[email protected]. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755 or [email protected]. Please cite FAC 2025-03, FAR Case 
2023-001.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule at 89 FR 48540 on June 
7, 2024, to implement regulatory changes made by the Small Business 
Administration (SBA) in its final rules published on October 16, 2020 
(85 FR 66146) and on August 19, 2022 (87 FR 50925) to implement section 
861 of Public Law 115-232 and section 866 of Public Law 116-283. For 
further details please see the proposed rule. Two respondents submitted 
comments on the proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council (the Councils) reviewed the public comments in the 
development of the final rule. A discussion of the comments is provided 
as follows; however, no changes were made to the rule as a result of 
those comments.
    A. Summary of significant changes: There are no significant changes 
from the proposed rule.
    B. Analysis of public comments:
    Comment: The respondents expressed support for the rule.
    Response: The Councils acknowledge the respondents' support for the 
rule.
    Comment: The respondents expressed support for the change at 
19.702, which specifies that subcontracting plans are not required from 
Alaska Native Corporations (ANCs).
    Response: The Councils acknowledge the respondents' support for 
this change. SBA clarified that an ANC prime contractor is required to 
submit a subcontracting plan if they are large for the North American 
Industry Classification System (NAICS) code assigned to the contract. 
However, an ANC subcontractor is treated as a small business concern by 
statute and, therefore, cannot be required to submit a subcontracting 
plan (see 13 CFR 125.3(b)(2)).
    Comment: The respondents recommended changes to the proposed rule 
text at FAR 19.703(2)(i) and (ii) and in the clauses at FAR 52.219-8, 
Utilization of Small Business Concerns, and 52.219-9, Small Business 
Subcontracting Plan, which specify that a contractor may rely on a 
subcontractor's representation unless it has reason to question it. A 
respondent recommended the word ``question'' be replaced with ``doubt'' 
to align with SBA's regulations at 13 CFR 121.404(e), indicating the 
word ``doubt'' means, in accordance with the Merriam-Webster 
Dictionary, to call into question the truth of, to lack confidence in, 
and to consider unlikely, whereas ``question'' simply means to ask a 
question. Another respondent recommended the text be amended to 
specify: ``unless the contractor has an objective, evidence-based 
reason to question a representation for clarity''.
    Response: In this context, SBA's term ``doubt'' has the same 
meaning as the FAR term ``question''. The FAR consistently uses the 
term ``question'' when specifying that a contracting officer may rely 
on a representation or certification unless the contracting officer has 
a reason to question the representation or certification. Aligning the 
proposed rule text with text currently used in the FAR for other 
representations or certifications helps promote certainty and avoids 
confusion for the contracting community. Moreover, the FAR does not 
replicate terminology used in SBA's regulations; instead SBA's 
regulations are translated into FAR terminology. This rule implements 
SBA's regulations at 13 CFR 121.404(e), which do not specify that the 
contractor is required to have an objective, evidence-based reason to 
question a representation. There are a variety of reasons why a 
contractor might question a subcontractor's representation and this 
text is written so as to not limit the basis on which a contractor may 
question such a representation.
    C. Other changes. The proposed rule FAR text at 19.702(b)(1) is 
moved in the final rule to FAR 19.704(a)(9) and to paragraph (d)(9) of 
the clause at FAR 52.219-9 and its Alternate IV to specify for 
contractors that subcontracting plans are not required from their 
subcontractors that are treated as small business concerns by statute. 
Conforming changes are made to the clause at FAR 52.219-9 and its 
Alternates III and IV.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items) or for Commercial Services

    This rule amends the clauses at FAR 52.212-5, Contract Terms and 
Conditions Required To Implement Statutes or Executive Orders--
Commercial Products and Commercial Services; 52.213-4, Terms and 
Conditions--Simplified Acquisitions (Other Than Commercial Products and 
Commercial Services); 52.219-8, Utilization of Small Business Concerns; 
and 52.219-9, Small Business Subcontracting Plan. However, this rule 
does not change the applicability of these clauses, which continue to 
apply to contracts valued at or below the SAT, or on contracts for 
commercial products, including COTS items, or commercial services. This 
rule applies paragraphs (a) and (d) of section 861 of the John S. 
McCain National Defense Authorization Act (NDAA) for Fiscal Year (FY) 
2019 (Pub. L. 115-232), and paragraphs (a) and (c) of section 866 of 
the NDAA for FY 2021 (Pub. L. 116-283), to acquisitions at or below the 
SAT and to acquisitions for commercial products, including COTS items, 
and commercial services, as the two new incentives for SBA's mentor-
prot[eacute]g[eacute] program are available to all contractors in the 
program, regardless of the dollar value of the contract awarded or the 
commercial nature of the products and services procured.

[[Page 524]]

A. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold

    The statute at 41 U.S.C. 1905 governs the applicability of laws to 
acquisitions at or below the SAT. Section 1905 generally limits the 
applicability of new laws when agencies are making acquisitions at or 
below the SAT, but provides that such acquisitions will not be exempt 
from a provision of law under certain circumstances, including when the 
Federal Acquisition Regulatory Council (FAR Council) makes a written 
determination and finding that it would not be in the best interest of 
the Federal Government to exempt contracts and subcontracts in amounts 
not greater than the SAT from the provision of law. The FAR Council has 
made a determination to apply this statute to acquisitions at or below 
the SAT.

B. Applicability to Contracts for the Acquisition of Commercial 
Products and Commercial Services, Including Commercially Available Off-
The-Shelf (COTS) Items

    The statute at 41 U.S.C. 1906 governs the applicability of laws to 
contracts for the acquisition of commercial products and commercial 
services, and is intended to limit the applicability of laws to 
contracts for the acquisition of commercial products and commercial 
services. Section 1906 provides that if the FAR Council makes a written 
determination that it is not in the best interest of the Federal 
Government to exempt commercial contracts, the provision of law will 
apply to contracts for the acquisition of commercial products and 
commercial services.
    The statute at 41 U.S.C. 1907 states that acquisitions of COTS 
items will be exempt from certain provisions of law unless the 
Administrator for Federal Procurement Policy makes a written 
determination and finds that it would not be in the best interest of 
the Federal Government to exempt contracts for the procurement of COTS 
items.
    The FAR Council has made a determination to apply this statute to 
acquisitions for commercial products and commercial services. The 
Administrator for Federal Procurement Policy has made a determination 
to apply this statute to acquisitions for COTS items.

IV. Expected Impact of the Rule

    This rule is expected to benefit mentors with an SBA-approved 
mentor-prot[eacute]g[eacute] agreement that subcontract to covered 
territory small businesses and small businesses that have their 
principal office located in the Commonwealth of Puerto Rico. These 
benefits are expected to extend to covered territory small businesses 
and small businesses located in the Commonwealth of Puerto Rico, as 
mentors may be incentivized to enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements with such small businesses and issue 
subcontracts to them.
    This rule is expected to decrease the burden for certain entities 
that are treated as small business concerns by statute for certain 
purposes (e.g., ANCs), as these entities will not be required to submit 
subcontracting plans as subcontractors.

V. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 (as amended by E.O. 14094) and 13563 
direct agencies to assess 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.

VI. Congressional Review Act

    Pursuant to the Congressional Review Act, DoD, GSA, and NASA will 
send this rule to each House of the Congress and to the Comptroller 
General of the United States. The Office of Information and Regulatory 
Affairs (OIRA) in the Office of Management and Budget has determined 
that this rule does not meet the definition in 5 U.S.C. 804(2).

VII. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The FRFA is summarized as follows:

    DoD, GSA, and NASA are issuing a final rule amending the Federal 
Acquisition Regulation (FAR) to implement regulatory changes made by 
the Small Business Administration (SBA) in its final rule published 
on October 16, 2020, at 85 FR 66146, to implement section 861 of the 
John S. McCain National Defense Authorization Act (NDAA) for Fiscal 
Year (FY) 2019 (Pub. L. 115-232). The objective of this rule is to 
implement SBA's final rule and to implement section 861, which 
amended 15 U.S.C. 657r(a) to add Puerto Rico to the list of 
territories from which small businesses are eligible for 
preferential treatment under the SBA mentor-prot[eacute]g[eacute] 
program. This rule also implements SBA's final rule published on 
August 19, 2022, at 87 FR 50925 to implement section 866 of the NDAA 
for FY 2021 (Pub. L. 116-283), which amended 15 U.S.C. 657r(a) and 
15 U.S.C. 632(ff) to add the U.S. Virgin Islands, American Samoa, 
Guam, and the Commonwealth of the Northern Mariana Islands (CNMI) to 
the list of territories from which small businesses are eligible for 
preferential treatment under the SBA mentor-prot[eacute]g[eacute] 
programs. Section 866 also defines a ``covered territory business'' 
as a small business concern that has its principal office located in 
one of the following: (1) the U.S. Virgin Islands; (2) American 
Samoa; (3) Guam; and (4) CNMI. Sections 861 and 866 created two new 
incentives for SBA's small business mentor-prot[eacute]g[eacute] 
program for mentor-prot[eacute]g[eacute] pairs in which the 
prot[eacute]g[eacute] has its principal office located in the 
Commonwealth of Puerto Rico or is a covered territory business. 
Specifically, such a mentor that subcontracts to its 
prot[eacute]g[eacute] is able to receive positive consideration for 
the mentor's past performance evaluation and is able to apply the 
costs of training its prot[eacute]g[eacute] to its subcontracting 
plan goals. This rule also specifies the entities that are not 
required to submit subcontracting plans as subcontractors.
    There were no significant issues raised by the public comments 
in response to the initial regulatory flexibility analysis.
    This final rule will impact small businesses whose principal 
office is in the Commonwealth of Puerto Rico or that are covered 
territory businesses that enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements. According to data from the Federal 
Procurement Data System, in the last three fiscal years, the 
Government awarded contracts to small businesses in the covered 
territories and in the Commonwealth of Puerto Rico as follows: 506 
in fiscal year (FY) 2021, 438 in FY 2022, and 435 in FY 2023, which 
averages out to approximately 460 contracts per year. Each of those 
awards was made to a unique small entity. In addition, and according 
to data from the System for Award Management (SAM), there are 6,318 
small businesses in the Commonwealth of Puerto Rico that are 
currently registered in SAM. Although the Government awarded 
approximately 460 contracts to 460 unique small entities and there 
are 6,318 small entities in the Commonwealth of Puerto Rico, the 
number of small entities to which this rule will apply cannot be 
more precisely estimated as the number of entities that may enter 
into SBA-approved mentor-prot[eacute]g[eacute] agreements is 
unknown.
    The Government does not collect data on subcontracts; therefore, 
the Government cannot estimate the number of small entities that 
will not be required to submit subcontracting plans.
    The proposed rule does not impose any new reporting, 
recordkeeping, or other compliance requirements for small entities.
    There are no known significant alternative approaches that would 
accomplish the stated objectives of the statutes.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory

[[Page 525]]

Secretariat Division. The Regulatory Secretariat Division has submitted 
a copy of the FRFA to the Chief Counsel for Advocacy of the Small 
Business Administration.

VIII. Paperwork Reduction Act

    This 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. 3501-3521).

List of Subjects in 48 CFR Parts 2, 19, 42, and 52

    Government procurement.

William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are amending 48 CFR parts 2, 19, 42, 
and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 2, 19, 42, and 52 continues 
to read as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. 
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 
20113.

PART 2--DEFINITIONS OF WORDS AND TERMS

0
2. Amend section 2.101 by adding in alphabetic order the definition 
``Covered territory business'' to read as follows:

2.101   Definitions.

* * * * *
    Covered territory business, as defined at 15 U.S.C. 632(ff) and 13 
CFR 125.1, means a small business concern that has its principal office 
located in the United States Virgin Islands, American Samoa, Guam, or 
the Commonwealth of the Northern Mariana Islands.
* * * * *

PART 19--SMALL BUSINESS PROGRAMS

0
3. Amend section 19.702 by adding paragraph (e) to read as follows:

19.702   Statutory requirements.

* * * * *
    (e) In accordance with 15 U.S.C. 657r(a), a mentor with an SBA-
approved mentor-prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that 
provides a subcontract to its prot[eacute]g[eacute] may apply the costs 
incurred for training it provides to its prot[eacute]g[eacute] toward 
its subcontracting plan goals, provided that prot[eacute]g[eacute] is a 
covered territory business or that prot[eacute]g[eacute] has its 
principal office located in the Commonwealth of Puerto Rico.

0
4. Amend section 19.703 by revising paragraph (a)(2)(i) and paragraph 
(a)(2)(ii) introductory text to read as follows:

19.703   Eligibility requirements for participating in the program.

    (a) * * *
    (2)(i) Unless the prime contractor has reason to question the 
representation, it may accept a subcontractor's written representations 
of its size and socioeconomic status as a small business, small 
disadvantaged business, veteran-owned small business, service-disabled 
veteran-owned small business, HUBZone small business, or a women-owned 
small business, if the subcontractor represents that the size and 
socioeconomic status representation with its offer are current, 
accurate, and complete as of the date of the offer for the 
subcontracts; or
    (ii) Unless the prime contractor has reason to question the 
representation, it may accept a subcontractor's representation of its 
size and socioeconomic status as a small business, small disadvantaged 
business, veteran-owned small business, service-disabled veteran-owned 
small business, HUBZone small business, or a women-owned small business 
in the System for Award Management (SAM) if--
* * * * *

0
5. Amend section 19.704 by revising paragraph (a)(9) to read as 
follows:

19.704   Subcontracting plan requirements.

    (a) * * *
    (9) Assurances that the offeror will include the clause at 52.219-
8, Utilization of Small Business Concerns (see 19.708(a)), in all 
subcontracts that offer further subcontracting opportunities, and that 
the offeror will require all subcontractors (except small business 
concerns, including entities that are treated as small business 
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR 
125.3(b)(2))) that receive subcontracts in excess of $750,000 ($1.5 
million for construction) to adopt a plan that complies with the 
requirements of the clause at 52.219-9, Small Business Subcontracting 
Plan (see 19.708(b));
* * * * *

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES

0
6. Amend section 42.1501 by revising paragraph (a)(5) to read as 
follows:

42.1501   General.

    (a) * * *
    (5) Complying with the requirements of the small business 
subcontracting plan (see 19.705-7(b)), including favorable 
consideration of a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that subcontracts to 
its prot[eacute]g[eacute], and that prot[eacute]g[eacute] is a covered 
territory business or that prot[eacute]g[eacute]'s principal office is 
located in the Commonwealth of Puerto Rico (see 15 U.S.C. 657r(a));
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
7. Amend section 52.212-5 by--
0
a. Removing from paragraph (b)(20) ``(FEB 2024)'' and adding ``(JAN 
2025)'' in its place;
0
b. Removing from paragraphs (b)(21)(i) and (v) ``(SEP 2023)'' and 
adding ``(JAN 2025)'' in their places, respectively;
0
c. Removing from paragraph (e)(1)(viii) ``(FEB 2024)'' and adding 
``(JAN 2025)'' in its place; and
0
d. In Alternate II:
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (e)(1)(ii)(H) ``(FEB 2024)'' and adding 
``(JAN 2025)'' in its place.
    The revision reads as follows:

52.212-5   Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Products and Commercial Services.

* * * * *
    Alternate II (JAN 2025).* * *
* * * * *

0
8. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(2)(vii) ``(NOV 2024)'' and adding ``(JAN 
2025)'' in its place.
    The revision reads as follows:

52.213-4   Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Products and Commercial Services).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Products and Commercial Services) (JAN 2025)

* * * * *

0
9. Amend section 52.219-8 by revising the date of the clause and 
paragraph (e)(1) and paragraph (e)(2) introductory text to read as 
follows:

52.219-8   Utilization of Small Business Concerns.

* * * * *

Utilization of Small Business Concerns (JAN 2025)

* * * * *

[[Page 526]]

    (e)(1) Unless the Contractor has reason to question the 
representation, it may accept a subcontractor's written representations 
of its size and socioeconomic status as a small business, small 
disadvantaged business, veteran-owned small business, service-disabled 
veteran-owned small business, or a women-owned small business if the 
subcontractor represents that the size and socioeconomic status 
representations with its offer are current, accurate, and complete as 
of the date of the offer for the subcontract.
    (2) Unless the Contractor has reason to question the 
representation, it may accept a subcontractor's representations of its 
size and socioeconomic status as a small business, small disadvantaged 
business, veteran-owned small business, service-disabled veteran-owned 
small business, or a women-owned small business in the System for Award 
Management (SAM) if--
* * * * *

0
10. Amend section 52.219-9 by--
0
a. Revising the date of the clause and paragraphs (c)(2)(i), (c)(2)(ii) 
introductory text, (d)(1) introductory text, and (d)(9);
0
b. Removing from paragraph (d)(10)(ii) ``Offeror'' and adding 
``Contractor'' in its place;
0
c. Removing from paragraph (d)(15) ``offeror'' and adding 
``Contractor'' in its place;
0
d. In Alternate III:
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (d)(10)(ii) ``Offeror'' and adding 
``Contractor'' in its place; and
0
e. In Alternate IV:
0
i. Revising the date of the Alternate and paragraphs (c)(2)(i), 
(c)(2)(ii) introductory text, (d)(1) introductory text, and (d)(9); and
0
ii. Removing from paragraph (d)(15) ``offeror'' and adding 
``Contractor'' in its place.
    The revisions read as follows:

52.219-9   Small Business Subcontracting Plan.

* * * * *

Small Business Subcontracting Plan (JAN 2025)

* * * * *
    (c) * * *
    (2)(i) Unless the Contractor has reason to question the 
representations, it may accept a subcontractor's written 
representations of its size and socioeconomic status as a small 
business, small disadvantaged business, veteran-owned small business, 
service-disabled veteran-owned small business, or a women-owned small 
business if the subcontractor represents that the size and 
socioeconomic status representations with its offer are current, 
accurate, and complete as of the date of the offer for the subcontract.
    (ii) Unless the Contractor has reason to question the 
representations, it may accept a subcontractor's representations of its 
size and socioeconomic status as a small business, small disadvantaged 
business, veteran-owned small business, service-disabled veteran-owned 
small business, or a women-owned small business in the System for Award 
Management (SAM) if--
* * * * *
    (d) * * *
    (1) Separate goals, expressed in terms of total dollars 
subcontracted, and as a percentage of total planned subcontracting 
dollars, for the use of small business, veteran-owned small business, 
service-disabled veteran-owned small business, HUBZone small business, 
small disadvantaged business, and women-owned small business concerns 
as subcontractors. For individual subcontracting plans, and if required 
by the Contracting Officer, goals shall also be expressed in terms of 
percentage of total contract dollars, in addition to the goals 
expressed as a percentage of total subcontract dollars. The Offeror 
shall include all subcontracts that contribute to contract performance, 
and may include a proportionate share of products and services that are 
normally allocated as indirect costs. In accordance with 15 U.S.C. 
657r(a), an Offeror that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a 
subcontract to its prot[eacute]g[eacute] may apply the costs incurred 
for training it provides to its prot[eacute]g[eacute] toward its 
subcontracting plan goals, provided that prot[eacute]g[eacute] is a 
covered territory business or that prot[eacute]g[eacute] has its 
principal office located in the Commonwealth of Puerto Rico. In 
accordance with 43 U.S.C. 1626--
* * * * *
    (9) Assurances that the Offeror will include the clause of this 
contract entitled ``Utilization of Small Business Concerns'' in all 
subcontracts that offer further subcontracting opportunities, and that 
the Offeror will require all subcontractors (except small business 
concerns, including entities that are treated as small business 
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR 
125.3(b)(2))) that receive subcontracts in excess of the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract award, 
with further subcontracting possibilities to adopt a subcontracting 
plan that complies with the requirements of this clause.
* * * * *
    Alternate III (JAN 2025).* * *
* * * * *
    Alternate IV (JAN 2025).* * *
    (c) * * *
    (2)(i) Unless the Contractor has reason to question the 
representations, it may accept a subcontractor's written 
representations of its size and socioeconomic status as a small 
business, small disadvantaged business, veteran-owned small business, 
service-disabled veteran-owned small business, or a women-owned small 
business if the subcontractor represents that the size and 
socioeconomic status representations with its offer are current, 
accurate, and complete as of the date of the offer for the subcontract.
    (ii) Unless the Contractor has reason to question the 
representations, it may accept a subcontractor's representations of its 
size and socioeconomic status as a small business, small disadvantaged 
business, veteran-owned small business, service-disabled veteran-owned 
small business, or a women-owned small business in the System for Award 
Management (SAM) if--
* * * * *
    (d) * * *
    (1) Separate goals, expressed in terms of total dollars 
subcontracted and as a percentage of total planned subcontracting 
dollars, for the use of small business, veteran-owned small business, 
service-disabled veteran-owned small business, HUBZone small business, 
small disadvantaged business, and women-owned small business concerns 
as subcontractors. For individual subcontracting plans, and if required 
by the Contracting Officer, goals shall also be expressed in terms of 
percentage of total contract dollars, in addition to the goals 
expressed as a percentage of total subcontract dollars. The Contractor 
shall include all subcontracts that contribute to contract performance, 
and may include a proportionate share of products and services that are 
normally allocated as indirect costs. In accordance with 15 U.S.C. 
657r(a), a Contractor that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a 
subcontract to its prot[eacute]g[eacute] may apply the costs incurred 
for training it provides to its prot[eacute]g[eacute] toward its 
subcontracting plan goals, provided that prot[eacute]g[eacute] is a 
covered territory business or that prot[eacute]g[eacute] has its 
principal office located in the Commonwealth of Puerto Rico. In 
accordance with 43 U.S.C. 1626--
* * * * *

[[Page 527]]

    (9) Assurances that the Contractor will include the clause of this 
contract entitled ``Utilization of Small Business Concerns'' in all 
subcontracts that offer further subcontracting opportunities, and that 
the Contractor will require all subcontractors (except small business 
concerns, including entities that are treated as small business 
concerns by statute for certain purposes (e.g., ANCs, see 13 CFR 
125.3(b)(2))) that receive subcontracts in excess of the applicable 
threshold specified in FAR 19.702(a) on the date of subcontract award, 
with further subcontracting possibilities to adopt a subcontracting 
plan that complies with the requirements of this clause.
* * * * *

0
11. Amend section 52.244-6 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(x) ``(FEB 2024)'' and adding ``(JAN 
2025)'' in its place.
    The revision reads as follows:

52.244-6   Subcontracts for Commercial Products and Commercial 
Services.

* * * * *

Subcontracts for Commercial Products and Commercial Services (JAN 2025)

* * * * *
[FR Doc. 2024-31407 Filed 1-2-25; 8:45 am]
BILLING CODE 6820-EP-P
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