Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 523 

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. 

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-prote ́ge ́

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 

carrie.moore@gsa.gov. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. 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, evidencebased 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-prote ́ge ́ 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. 


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524 Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 

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 mentorprote ́ge ́ 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-prote ́ge ́

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-prote ́ge ́ 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-prote ́ge ́ 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 mentorprote ́ge ́ program for mentor-prote ́ge ́ pairs in 

which the prote ́ge ́ 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 prote ́ge ́ is able to receive positive 

consideration for the mentor’s past 

performance evaluation and is able to apply 

the costs of training its prote ́ge ́ 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-prote ́ge ́ 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-prote ́ge ́

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 


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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 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: 

■ 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 

■ 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 

■ 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-prote ́ge ́ agreement (see 13 CFR 

125.9) that provides a subcontract to its 

prote ́ge ́ may apply the costs incurred for 

training it provides to its prote ́ge ́ toward 

its subcontracting plan goals, provided 

that prote ́ge ́ is a covered territory 

business or that prote ́ge ́ has its principal 

office located in the Commonwealth of 

Puerto Rico. 

■ 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, servicedisabled veteran-owned small business, 

HUBZone small business, or a womenowned 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, servicedisabled veteran-owned small business, 

HUBZone small business, or a womenowned small business in the System for 

Award Management (SAM) if— 

* * * * * 

■ 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 

■ 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-prote ́ge ́

agreement (see 13 CFR 125.9) that 

subcontracts to its prote ́ge ́, and that 

prote ́ge ́ is a covered territory business or 

that prote ́ge ́’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 

■ 7. Amend section 52.212–5 by— 

■ a. Removing from paragraph (b)(20) 

‘‘(FEB 2024)’’ and adding ‘‘(JAN 2025)’’ 

in its place; 

■ b. Removing from paragraphs 

(b)(21)(i) and (v) ‘‘(SEP 2023)’’ and 

adding ‘‘(JAN 2025)’’ in their places, 

respectively; 

■ c. Removing from paragraph 

(e)(1)(viii) ‘‘(FEB 2024)’’ and adding 

‘‘(JAN 2025)’’ in its place; and 

■ d. In Alternate II: 

■ i. Revising the date of the Alternate; 

and 

■ 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).* * * 

* * * * * 

■ 8. Amend section 52.213–4 by— 

■ a. Revising the date of the clause; and 

■ 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) 

* * * * * 

■ 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) 

* * * * * 


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526 Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 

(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, servicedisabled 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— 

* * * * * 

■ 10. Amend section 52.219–9 by— 

■ a. Revising the date of the clause and 

paragraphs (c)(2)(i), (c)(2)(ii) 

introductory text, (d)(1) introductory 

text, and (d)(9); 

■ b. Removing from paragraph (d)(10)(ii) 

‘‘Offeror’’ and adding ‘‘Contractor’’ in its 

place; 

■ c. Removing from paragraph (d)(15) 

‘‘offeror’’ and adding ‘‘Contractor’’ in its 

place; 

■ d. In Alternate III: 

■ i. Revising the date of the Alternate; 

and 

■ ii. Removing from paragraph 

(d)(10)(ii) ‘‘Offeror’’ and adding 

‘‘Contractor’’ in its place; and 

■ e. In Alternate IV: 

■ 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 

■ 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, servicedisabled 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 veteranowned 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 mentorprote ́ge ́ agreement (see 13 CFR 125.9) 

that provides a subcontract to its prote ́ge ́

may apply the costs incurred for 

training it provides to its prote ́ge ́ toward 

its subcontracting plan goals, provided 

that prote ́ge ́ is a covered territory 

business or that prote ́ge ́ 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, servicedisabled 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 veteranowned 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 mentorprote ́ge ́ agreement (see 13 CFR 125.9) 

that provides a subcontract to its prote ́ge ́

may apply the costs incurred for 

training it provides to its prote ́ge ́ toward 

its subcontracting plan goals, provided 

that prote ́ge ́ is a covered territory 

business or that prote ́ge ́ has its principal 

office located in the Commonwealth of 

Puerto Rico. In accordance with 43 

U.S.C. 1626— 

* * * * * 


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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 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. 

* * * * * 

■ 11. Amend section 52.244–6 by— 

■ a. Revising the date of the clause; and 

■ 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 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR–2024–0051, Sequence No. 

8] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2025–03; 

Small Entity Compliance Guide 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide 

(SECG). 

SUMMARY: This document is issued 

under the joint authority of DoD, GSA, 

and NASA. This Small Entity 

Compliance Guide has been prepared in 

accordance with section 212 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. It consists of a 

summary of the rules appearing in 

Federal Acquisition Circular (FAC) 

2025–03, which amends the Federal 

Acquisition Regulation (FAR). 

Interested parties may obtain further 

information regarding these rules by 

referring to FAC 2025–03, which 

precedes this document. 

DATES: January 3, 2025. 

ADDRESSES: The FAC, including the 

SECG, is available at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact the 

analyst whose name appears in the table 

below. Please cite FAC 2025–03 and the 

FAR Case number. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. An asterisk (*) 

next to a rule indicates that a regulatory 

flexibility analysis has been prepared. 

RULES LISTED IN FAC 2025–03 

Item Subject FAR case Analyst 

* I ....... Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment.2019–015 Delgado. 

* II ...... Rerepresentation of Size and Socioeconomic Status .......................................................................................... 2020–016 Bowman. 

* III ..... Subcontracting to Puerto Rican And Covered Territory Small Businesses ......................................................... 2023–001 Moore. 

SUPPLEMENTARY INFORMATION: 

Summaries for each FAR rule follow. 

For the actual revisions and/or 

amendments made by these FAR rules, 

refer to the specific item numbers and 

subjects set forth in the documents 

following these item summaries. FAC 

2025–03 amends the FAR as follows: 

Item I—Improving Consistency 

Between Procurement and 

Nonprocurement Procedures on 

Suspension and Debarment (FAR Case 

2019–015) 

This final rule amends the FAR to 

improve consistency between the 

procurement and nonprocurement 

procedures on suspension and 

debarment, based on recommendations 

of the Interagency Suspension and 

Debarment Committee. The changes in 

the FAR bring the two systems into 

closer alignment, enhancing 

transparency and consistency within the 

Government’s suspension and 

debarment procedures. This allows 

contractors a better understanding of 

how the two systems’ procedures relate 

to each other. The changes are not 

expected to have a significant economic 

impact on a substantial number of small 

entities. It is anticipated that this rule 

will have a positive impact on small 

businesses with increased transparency 

in the process. 

Item II—Rerepresentation of Size and 

Socioeconomic Status (FAR Case 2020– 

016) 

This final rule amends the FAR to 

implement regulatory changes made by 

the Small Business Administration to 

size and socioeconomic status 

rerepresentation requirements for orders 

placed against multiple-award contracts. 

Specifically, business concerns that 

represented their status as any of the 

small business concerns identified at 

FAR 19.000(a)(3) are required to 

rerepresent their size and/or 

socioeconomic status for orders set 

aside— 

(1) Under unrestricted multiple-award 

contracts, unless the order is issued 

against a reserve for which size and/or 

status was required. 

(2) Under a multiple-award contract 

that was totally or partially set aside for 

small businesses, and the order requires 

a different socioeconomic status. 

Federal Supply Schedules (FSS) are 

exempt from these requirements. 

The final rule will help to validate 

that small businesses qualify for the size 

and/or socioeconomic status associated 

with orders placed under certain 

multiple-award contracts. Also, entities 

that no longer qualify under the 

applicable North American Industry 

Classification System (NAICS) code or 

the socioeconomic status they claim 

may not qualify under the applicable 

NAICS code or socioeconomic status for 

set-aside orders under the multipleaward contracts subject to this rule. 

The final rule is not expected to have 

a significant economic impact on a 

substantial number of small entities. 


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