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

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; 

Introduction 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Summary presentation of final 

rules. 

SUMMARY: This document summarizes 

the Federal Acquisition Regulation 

(FAR) rules agreed to by the Civilian 

Agency Acquisition Council and the 

Defense Acquisition Regulations 

Council (Councils) in this Federal 

Acquisition Circular (FAC) 2025–03. A 

companion document, the Small Entity 

Compliance Guide (SECG), follows this 

FAC. 

DATES: For effective dates see the 

separate documents, which follow. 

ADDRESSES: The FAC, including the 

SECG, is available at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: The 

analyst whose name appears in the table 

below in relation to the FAR case. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat Division at 202– 

501–4755 or GSARegSec@gsa.gov. 

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. 

Item III—Subcontracting to Puerto 

Rican and Covered Territory Small 

Businesses (FAR Case 2023–001) 

This final rule amends the FAR to 

implement regulatory changes made by 

the Small Business Administration to 

implement section 861 of Public Law 

115–232 and section 866 of Public Law 

116–283, which add incentives for 

certain U.S. territories under the Small 

Business Administration mentor-prote ́ge ́

program. This final rule also specifies 

the entities that are not required to 

submit subcontracting plans as 

subcontractors. This final rule is not 

expected to have a significant impact on 

a substantial number of small entities; 

however, it 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 mentorprote ́ge ́ agreements. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

Federal Acquisition Circular (FAC) 2025– 

03 is issued under the authority of the 

Secretary of Defense, the Administrator of 

General Services, and the Administrator of 

National Aeronautics and Space 

Administration. 

Unless otherwise specified, all Federal 

Acquisition Regulation (FAR) and other 


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Federal Register / Vol. 90, No. 2 / Friday, January 3, 2025 / Rules and Regulations 507 

directive material contained in FAC 2025–03 

are effective January 17, 2025. 

John M. Tenaglia, 

Principal Director, Defense Pricing, 

Contracting, and Acquisition Policy, 

Department of Defense. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy, 

U.S. General Services Administration. 

Marvin L. Horne, 

Deputy Assistant Administrator for NASA 

Procurement, National Aeronautics and 

Space Administration. 

[FR Doc. 2024–31409 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 Parts 2, 3, 9, 22, 25, 26, 33, and 

52 

[FAC 2025–03; FAR Case 2019–015, Item 

I; Docket No. FAR–2019–0015; Sequence 

No. 1] 

RIN 9000–AN98 

Federal Acquisition Regulation: 

Improving Consistency Between 

Procurement and Nonprocurement 

Procedures on Suspension and 

Debarment 

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 

improve consistency between the 

procurement and nonprocurement 

procedures on suspension and 

debarment, based on the 

recommendations of the Interagency 

Suspension and Debarment Committee. 

DATES: Effective January 17, 2025. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Zenaida Delgado, Procurement Analyst, 

at 202–969–7207 or by email at 

zenaida.delgado@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 

2019–015. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published a 

proposed rule at 89 FR 1043 on January 

9, 2024, to improve consistency between 

procurement and nonprocurement 

procedures on suspension and 

debarment, based on the 

recommendations of the Interagency 

Suspension and Debarment Committee 

(ISDC). The procurement procedures on 

suspension and debarment are covered 

in the FAR. The nonprocurement 

procedures on suspension and 

debarment (i.e., Nonprocurement 

Common Rule (NCR)) are covered in 2 

CFR part 180 and agency implementing 

regulations. For further details please 

see the proposed rule. Five 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 and the 

changes made to the rule as a result of 

those comments are provided as 

follows: 

A. Summary of significant changes: 

No changes to the FAR text have been 

made from the proposed to final rule 

that have a significant negative effect on 

contractors. Minor changes and 

clarifications have been made to the 

final rule. These changes are outlined 

below: 

1. Revised FAR 9.406–1(a) to provide 

clarification regarding which mitigating 

and aggravating factors may apply to 

individuals. 

2. Revised FAR 9.406–3(b)(1) and 

9.407–3(b)(1) to clarify that if the 

suspending and debarring official (SDO) 

extends the opportunity for the 

contractor to submit material in 

opposition, then the SDO should also 

give a deadline for submission of 

materials. 

3. Revised FAR 9.406–3(c)(1)(i) to 

allow the notice of proposed debarment, 

or the notice of suspension, to be sent 

by U.S. mail or private delivery service 

to the last known street address, with 

delivery notification service. 

4. Revised FAR 9.406–3(c)(1)(ii) to 

allow the notice of proposed debarment, 

or the notice of suspension, to be sent 

by email to the point of contact email 

address in the contractor’s registration 

in the System for Award Management 

(SAM), if any, or to the last known 

email address as confirmed by the 

agency. 

5. Revised FAR 9.406–3(d)(1) to 

clarify that the official record closes 

upon the expiration of the contractor’s 

time to submit information and 

argument in opposition, including any 

extensions. 

B. Analysis of Public Comments 

1. Outside the Scope of the Rule 

Comment: A respondent 

recommended adding FAR language to 

address applicability of the suspension 

and debarment rules to Other 

Transaction Authority (OTA) 

Agreements and to grants. 

Response: This comment is outside 

the scope of this rule. Neither OTA 

Agreements nor grants are covered in 

the FAR. 

Comment: A respondent 

recommended adding a definition of 

‘‘present responsibility.’’ 

Response: This issue was previously 

considered in a notice issued by the 

Office of Management and Budget 

(OMB) regarding guidelines for 

Nonprocurement Debarment and 

Suspension at 52 FR 20360 on May 29, 

1987, and it was concluded that the 

definition is unnecessary. The 

suggestion has been referred to the ISDC 

for further consideration. 

2. Immediate Exclusionary Effect of a 

Notice of Proposed Debarment Under 

the FAR 

Comment: A respondent stated that 

the term ‘‘notice of proposed 

debarment’’ under the FAR is 

misleading because the debarment is not 

‘‘proposed’’—it is ‘‘imposed.’’ Most of 

the respondents recommended that the 

immediate exclusionary effect of 

proposed debarment be removed from 

the FAR to align better with the NCR, 

and disagree with the Government’s 

rationale for retaining it in the FAR. 

These respondents indicated that if the 

risk to the Government in a specific case 

requires immediate exclusion to protect 

the Government’s business interests, an 

SDO can issue a notice of suspension 

under FAR 9.407. Where immediate 

exclusion is not necessary and the 

Government would not choose to 

suspend the contractor, the proposal for 

debarment should not have an 

exclusionary effect. Immediate 

exclusion is particularly unwarranted in 

cases where the proposed debarment is 

not based on a conviction or civil 

judgment, and fact-finding proceedings 

are necessary. These respondents 

indicated that there is no increased 

business risk to the Government in the 

procurement context than in 

nonprocurement transactions. The 

respondents stated that the Government 

enters into procurement contracts for 

public purposes of equal importance 


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