Federal Register / Vol. 90, No. 9 / Wednesday, January 15, 2025 / Proposed Rules 3753 

remaining in this Administration, the 

Department is focused on several 

critical child support priorities, 

including the recently passed H.R. 9076 

Supporting America’s Children and 

Families Act, the recently published 

Final Rule on Employment and Training 

Services, recently issued sub-regulatory 

guidance on Systems Modernization, 

and other sub-regulatory guidance 

documents. The Department’s reasons 

for withdrawing this NPRM are 

independently sufficient. 

Importantly, the Department 

continues to believe that the NPRM is 

authorized by the Secretary’s 

longstanding and existing authority 

under the Act, as explained in the 

NPRM. 

Dated: January 8, 2025. 

Xavier Becerra, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2025–00638 Filed 1–14–25; 8:45 am] 

BILLING CODE 4184–41–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 1, 7, 12, 16, 19, and 52 

[FAR Case 2023–011, Docket No. FAR– 

2023–0011, Sequence No. 1] 

RIN 9000–AO59 

Federal Acquisition Regulation: Small 

Business Participation on Certain 

Multiple-Award Contracts 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to issue 

policy on small business participation 

on certain multiple-award contracts. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat Division at the address 

shown below on or before March 17, 

2025, to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to FAR Case 2023–011 to the 

Federal eRulemaking portal at https://

www.regulations.gov by searching for 

‘‘FAR Case 2023–011’’. Select the link 

‘‘Comment Now’’ that corresponds with 

‘‘FAR Case 2023–011’’. Follow the 

instructions provided on the ‘‘Comment 

Now’’ screen. Please include your name, 

company name (if any), and ‘‘FAR Case 

2023–011’’ on your attached document. 

If your comment cannot be submitted 

using https://www.regulations.gov, call 

or email the points of contact in the FOR

FURTHER INFORMATION CONTACT section of 

this document for alternate instructions. 

Instructions: Please submit comments 

only and cite ‘‘FAR Case 2023–011’’ in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. Public comments 

may be submitted as an individual, as 

an organization, or anonymously (see 

frequently asked questions at https://

www.regulations.gov/faq). To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov, 

approximately two to three days after 

submission to verify posting. 

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, publication 

schedules, or alternate instructions for 

submitting comments if https://

www.regulations.gov cannot be used, 

contact the Regulatory Secretariat 

Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAR 

Case 2023–011. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to revise the FAR to issue policy to 

update market research, acquisition 

planning, small business specialist 

coordination, and the use of set-asides 

during the award of, and placement of 

orders against, certain multiple-award 

contracts. This proposed rule 

implements recommendations of the 

Office of Federal Procurement Policy 

(OFPP) in its memorandum entitled, 

Increasing Small Business Participation 

on Multiple Award Contracts, dated 

January 25, 2024. 

This policy would expand the use of 

small business set-asides for orders 

against multiple-award contracts; 

increase coordination with the 

cognizant small business specialist and 

the Small Business Administration 

(SBA) procurement center 

representative (PCR) during acquisition 

planning for multiple-award contracts 

and when placing orders against 

multiple-award contracts, and provide 

additional criteria to consider or address 

in documentation provided to the 

cognizant small business specialist and 

PCR. This proposed rule is being 

published in conjunction with an SBA 

proposed rule regarding, ‘‘Assuring a 

Fair Proportion of Government 

Purchases are Awarded to Small 

Business Concerns,’’ to help the public 

and the acquisition workforce better 

understand how the two rules will 

implement the policy. This proposed 

rule would impact both acquisition 

planning and order placement, as 

discussed below. 

A. Acquisition Planning 

To increase small business 

opportunities when developing 

acquisition strategies for multiple-award 

contracts, this proposed rule would 

increase and enhance small business 

documentation requirements and 

facilitate greater coordination and 

communication between agencies and 

their cognizant small business 

specialists during the acquisition 

planning process. Currently, agencies 

coordinate acquisitions with their 

respective Office of Small and 

Disadvantaged Business Utilization 

(OSDBU), or the Office of Small 

Business Programs (OSBP), for 

recommendations as to whether the 

acquisition should be set aside or 

reserved for small business concerns, in 

accordance with agency procedures. 

This proposed rule is intended to 

increase OSDBU and OSBP insight into 

acquisition planning for multiple-award 

contracts by requiring agencies, when 

contemplating the issuance of such a 

contract, to consider totally or partially 

setting aside the acquisition for small 

business or including a small business 

reserve. If a set-aside or reserve for small 

business is not planned, the agency 

would be required to document the 

reason, including any pertinent market 

research, for this decision in its 

acquisition strategy or plan, and 

coordinate the reason with the agency’s 

cognizant small business specialist. (See 

FAR 7.105(b)(1)(iii)(A)). 

In addition, when an acquisition is 

anticipated to meet or exceed the dollar 

threshold for substantial bundling at 

FAR 7.107–4(a)(1), the acquisition 

planner is currently required at FAR 

7.104(d) to coordinate the acquisition 

with the agency’s cognizant small 

business specialist. This coordination 

provides the specialist with insight into 

any decision to not set aside the 

acquisition for small business concerns, 

as well as an opportunity to ensure the 

acquisition is structured to maximize 

small business competition and award 

opportunities. This proposed rule 

would incorporate a higher level of 


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coordination into the current process by 

requiring the agency’s cognizant small 

business specialist to notify the PCR, if 

the acquisition plan involves a multipleaward contract that meets or exceeds the 

agency’s respective threshold for 

substantial bundling and the number of 

small business contract awardees is 

anticipated to be less than 30 percent of 

all contract awardees. This higher-level 

coordination is proposed to reinforce 

careful consideration of small business 

equities on multiple-award contracts 

and increase the probability of 

participation by small business. 

Finally, this proposed rule would also 

require agencies to consider the use of 

on-ramps when planning for the award 

of a long-term, multiple-award contract. 

On-ramps are a tool used with multipleaward contracts to permit large and 

small businesses to be added as 

awardees during the period of 

performance of the contract. To 

encourage the continued participation 

of small business concerns on long-term 

(i.e., more than five years in duration, 

including options, see 19.301–2(a)) 

multiple-award contracts, this proposed 

rule would require acquisition planners 

to discuss the use of on-ramps for these 

contracts in the acquisition plan. (See 

7.105 (b)(1)(iii)(B)). If no on-ramps are 

planned for the contract but small 

businesses are expected to enter the 

market after the award of the contract, 

and the work anticipated under the 

contract is sufficient to provide 

meaningful opportunities for additional 

contract awardees, the planner would be 

required to explain in the acquisition 

plan why on-ramps will not be included 

in the contract. 

B. Orders Against Multiple-Award 

Contracts 

In accordance with 15 U.S.C. 644(r), 

contracting officers have the discretion 

to decide whether to set aside an order 

against a multiple-award contract. To 

increase small business opportunities 

and maximize their participation under 

multiple-award contracts, this proposed 

rule would require contracting officers 

to exercise their discretion to set aside 

an order for small business if the 

contracting officer determines that, 

under an applicable multiple-award 

contract, there is a reasonable 

expectation of obtaining offers from two 

or more responsible small business 

contract awardees that are competitive 

in terms of fair market price, quality, 

capability, ability to comply with the 

delivery or performance schedule, and 

past performance. (See FAR 

16.505(b)(1)(i)(C).) This set-aside 

requirement for the contracting officer 

to exercise their discretion would not 

apply to orders against the Federal 

Supply Schedule (FSS), or when an 

exception to fair opportunity or an 

agency-specific exception applies to the 

order (See FAR 16.505(a)(14)). 

This proposed rule would permit 

agencies to establish procedures for 

contracting officers to exercise agencyspecific exceptions. However, agencies 

must coordinate their procedures for 

granting those exceptions with their 

OSDBU or OSBP, as well as SBA, and 

make the procedures publicly available. 

The establishment of these procedures 

and their coordination with SBA and 

the agency OSDU or OSBP is not a 

requirement for their review and 

approval, as approval remains entirely 

within the discretion of the agency 

establishing the procedures. This 

proposed rule would also clarify that 

the set-aside requirement applies to 

existing contracts only to the extent that 

doing so is consistent with the ordering 

procedures of the contract and there is 

adequate time remaining on the contract 

to permit a small business concern to 

fully perform or deliver under the 

contract (See FAR 16.505(b)(1)(i)(C)(2)). 

If an order is not set aside when there 

is a reasonable expectation of obtaining 

competitive offers from two or more 

responsible small business contract 

awardees under the multiple-award 

contract, the contracting officer would 

be required to document the reason for 

that decision and coordinate it with the 

agency’s cognizant small business 

specialist. This proposed rule would 

require the small business specialist to 

coordinate the decision with the PCR 

when the order exceeds a dollar value 

threshold negotiated between SBA and 

the agency. 

Alternatively, when an order is to be 

placed against a multiple-award 

contract with only one or no small 

business contract awardees, this 

proposed rule at FAR 16.505(a)(13) 

would require contracting officers to 

document the reason for choosing the 

contract, coordinate it with the agency’s 

cognizant small business specialist, and 

provide the specialist with a reasonable 

opportunity to respond. This would not 

be a requirement for approval from the 

cognizant small business specialist. The 

documentation would need to discuss 

the following: how the market research 

of small business contract awardees, 

including small businesses that are not 

contract awardees, on the multipleaward contract against which the order 

will be placed, and how mission needs 

informed the agency’s reason for 

selecting the multiple-award contract to 

fulfill its needs; and the market research 

the agency conducted within the past 18 

months to support the decision, which 

may include the market research 

supporting the strategy to establish a 

multiple-award contract or deciding to 

use another agency’s multiple-award 

contract on a repetitive basis. This 

documentation and coordination 

requirement will would not apply when 

placing an order against the FSS, an 

exception to fair opportunity applies, or 

to repetitive orders, including orders 

placed using automated procedures, 

issued by that agency (i.e., when an 

order was issued by that agency under 

the same contract and that order was 

documented in accordance with FAR 

16.505(a)(13) and coordinated within 

the prior 18 months). 

II. Discussion and Analysis 

The proposed changes to the FAR and 

the rationale are summarized as follows: 

• Revise part 1 to emphasize that the 

small business community is part of the 

acquisition team; 

• Revise part 7 to: require agencies to 

document and coordinate the decision 

to not include a set-aside or reserve for 

small business when planning for the 

award of multiple-award contract; 

identify the agency cognizant small 

business specialist’s responsibility for 

coordination when reviewing 

acquisition plans or strategies for certain 

multiple-award contracts; and specify 

the additional considerations the agency 

acquisition planner must make and 

document in an acquisition plan or 

strategy when contemplating the award 

of a long-term, multiple-award contract. 

• Revise part 12 to focus text that 

refers to the contracting officer’s 

discretion to set aside orders. 

• Revise part 16 to: require 

contracting officers to use their 

discretionary authority to set aside 

orders against certain multiple-award 

contracts and to incorporate set-asides 

in the ordering procedures of any new 

multiple-award contracts; specify the 

criteria to be considered when making 

a set-aside determination and when the 

set-aside requirement may not apply; 

identify the documentation and 

coordination requirements when the 

order is not set aside, and when placing 

an order against certain multiple-award 

contracts that have only one or no small 

business contract awardees; discuss 

how the set-aside requirement will 

apply to existing contracts; and remove 

the contracting officer’s discretion to set 

aside an order from the list of 

exceptions to fair opportunity. 

• Revise part 19 to: reiterate the 

requirement to set aside orders for small 

business contract awardees against 

certain multiple-award contracts; 

remove the discretionary authority for 

set-asides from the list of exclusions to 


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fair opportunity; clarify that the 

contracting officer may provide the PCR 

with a proposed acquisition package 

more than 30 days in advance of the 

solicitation, upon agreement between 

the PCR and the agency; and revise the 

prescriptions for applicable clauses to 

ensure proper incorporation into 

contracts as a result of this rule. 

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 proposes to amend the 

prescriptions at FAR 19.507(c), 

19.507(e)(1), 19.507(h)(1), 19.1309(a), 

19.1408(a), and 19.1508(a) and (b). This 

rule also proposes to amend the 

following clauses: 52.212–5, Contract 

Terms and Conditions Required To 

Implement Statutes or Executive 

Orders—Commercial Products and 

Commercial Services; 52.219–3, Notice 

of HUBZone Set-Aside or Sole-Source 

Award; 52.219–6, Notice of Total Small 

Business Set-Aside; 52.219–14, 

Limitations on Subcontracting; 52.219– 

27, Notice of Set-Aside for, or SoleSource Award to, Service-Disabled 

Veteran-Owned Small Business 

(SDVOSB) Concerns Eligible Under the 

SDVOSB Program; 52.219–29, Notice of 

Set-Aside for, or Sole-Source Award to, 

Economically Disadvantaged WomenOwned Small Business Concerns; 

52.219–30, Notice of Set-Aside for, or 

Sole-Source Award to, Women-Owned 

Small Business Concerns Eligible Under 

the Women-Owned Small Business 

Program; and 52.219–33, 

Nonmanufacturer Rule. 

However, this rule would not impose 

any new requirements on contracts at or 

below the SAT, for commercial products 

(including COTS items), or for 

commercial services. The clauses would 

continue to apply to acquisitions at or 

below the SAT, acquisitions for 

commercial products (including COTS 

items), and commercial services. 

IV. Expected Impact of the Rule 

This proposed rule supports 

Governmentwide efforts to leverage the 

small business growth occurring in the 

nation’s supply chains that support 

agency missions, reverse the decline of 

small business participation in the 

Federal supplier base, and increase 

contracting opportunities for small 

business concerns. In its January 25, 

2024 memo, OFPP identified several 

actions to strengthen small business 

participation on multiple-award 

contracts, including: earlier 

involvement of SBA PCRs and the 

agency small business specialists in the 

development of multiple-award 

contracts; express consideration during 

acquisition planning of on-ramps and 

the relative proportion of anticipated 

small business contract awardees on 

multiple-award contracts; and new 

requirements for order set-asides against 

multiple-award contracts. 

A. Benefits 

Competitive small businesses that can 

participate on multiple-award contracts 

may find it easier to compete for work 

under the reduced administrative 

burden and simpler evaluation 

procedures used to support order 

competitions rather than pursuing 

competitions on the open market. 

Additionally, this proposed rule may 

result in an increased number of 

multiple-award contracts being set aside 

exclusively for small business concerns, 

and since small business concerns often 

grow to become large businesses, this 

rule may result in an increase in 

competition in unrestricted multipleaward contracts and further build the 

economic strength of the country. 

B. Estimated Costs 

1. Public Costs 

This rule affects the internal operating 

procedures of the Government when 

performing acquisition planning. This 

rule does not directly impose any 

burden on the public. This proposed 

rule may result in a greater percentage 

of orders being awarded to small 

business contract awardees under 

certain multiple-award contracts. The 

costs and benefits of this rule have not 

been realized yet; therefore, there is no 

data with which to quantify these 

impacts. Instead, this proposed rule has 

the potential to impact existing and 

future contract awardees under certain 

multiple-award contracts, depending on 

several factors, including the following: 

the primary industry of the entity; the 

Government’s future needs for supplies 

and services; the entity’s submission of 

proposals and offers for multiple-award 

contracts and the orders to be placed 

under those contracts; and agency 

budget. 

2. Government Costs 

The total estimated Government costs 

associated with this FAR proposed rule, 

if finalized, in millions, over a ten-year 

period, are as follows: 

Government 

cost Undiscounted 2 Percent 

Present Value $117 $105 

Annualized .... 11.7 10.5 

Undiscounted Government costs (in 

millions) by year over a ten-year period 

are summarized as follows: 

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 

$11.7 ............................................................................. $11.7 $11.7 $11.7 $11.7 $11.7 $11.7 $11.7 $11.7 $11.7 

i. Acquisition Planning. First, this rule 

proposes to require agencies to 

document the reason a set-aside or 

reserve for small business is not 

planned for in the solicitation of a new 

multiple-award contract at any dollar 

value. Agencies would also be required 

to coordinate the documentation with 

the agency’s cognizant small business 

specialist. The cost accounts for the 

time it takes an acquisition planner to 

document the reason for not including 

a set-aside or reserve for small business 

in the solicitation and the results of 

small business market research to 

support that decision and discuss the 

documentation with the agency’s 

cognizant small business specialist. 

According to data from the Federal 

Procurement Data System (FPDS) for 

Fiscal Years (FYs) 2021 to 2023, the 

Government awards an average of 

approximately 3,700 multiple-award 

contracts that do not contain a set-aside 

or reserve for small business concerns 

annually. The Government does not 

collect data on each solicitation issued 

and, therefore, assumes that an average 

of 3 contracts are awarded from a 

solicitation for a multiple-award 

contract. This accounts for an average of 

1,233 solicitations (3,700 contracts/3 

contracts awarded per solicitation) for 

multiple-award contracts issued by the 

Government each year. It is estimated 

that it will take one GS–14, step 5, 

Government employee, on average, 1.5 

hours to document and coordinate the 

rationale. Based on the Office of 

Personnel Management (OPM) 2024 

General Schedule (GS) 14/step 5 salary 

for the rest of the United States ($66.36 

per hour), a fringe rate of 36.25 percent 

(OMB memorandum M–08–13 for use in 

public-private competition), and an 

overhead rate of 12% (A–76 revised 

supplemental handbook), the average 

loaded wage rate for a GS–14, step 5 


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employee is $101 (rounded to the 

nearest dollar). As a result, the total 

annual estimated cost for the 

Government to document and 

coordinate the reason for not including 

a set-aside or reserve for small business 

in a multiple-award contract is $186,800 

(1,233 solicitations * 1.5 hours * $101). 

The Government acknowledges that this 

cost could be slightly increased by those 

solicitations that are issued but 

cancelled prior to award, or slightly 

decreased when more than 3 contracts 

are awarded from a single solicitation. 

Second, this rule proposes to require 

the cognizant small business specialist 

to coordinate with the PCR, if an 

acquisition plan or strategy involves a 

multiple-award contract that meets or 

exceeds the thresholds for substantial 

bundling and the number of small 

business contract awardees is 

anticipated to be less than 30 percent of 

all contract awardees. The cost accounts 

for the time it takes the agency’s 

cognizant small business specialist to 

contact and discuss the acquisition with 

the SBA PCR. According to data from 

FPDS for FYs 2021 to 2023, the 

Government awards an average of 

approximately 2,900 multiple-award 

contracts that exceed an agency’s 

respective substantial bundling 

threshold, and do not contain a set-aside 

or reserve for small business concerns. 

The Government estimates that 

approximately 50 percent, or 1,450 

(2,900 * .50), of these contracts 

anticipate the number of small business 

contract awardees to be less than 30 

percent of all contract awardees. The 

Government further assumes that one 

solicitation yielded two multiple-award 

contracts meeting the respective 

substantial bundling threshold. This 

accounts for an average of 725 

solicitations (1,450 contracts/2 contracts 

awarded per solicitation) for multipleaward contracts valued over the 

substantial bundling threshold issued 

by the Government each year. It is 

estimated that it would take one GS–14, 

step 5, Government employee, on 

average, 0.5 hour to coordinate and 

discuss the acquisition plan or strategy 

with the SBA PCR. Using the average 

loaded wage rate for a GS–14, step 5, 

employee, the total annual estimated 

cost for the Government to coordinate 

the acquisition plan or strategy with the 

PCR is $36,613 (725 solicitations * .5 

hour * $101). 

Finally, this rule proposes to require 

acquisition planners to document the 

use of on-ramps in long-term, multipleaward contracts, or the rationale for not 

including on-ramps in such contracts 

when small businesses are expected to 

enter the market after the award of the 

contract and the work anticipated under 

the contract is sufficient to provide 

meaningful opportunities for additional 

contract awardees. The cost accounts for 

the time it takes an acquisition planner 

to research and document the rationale 

behind including or not including onramps in the acquisition. Based on the 

discussion above, the Government 

issues an average of 1,233 solicitations 

for multiple-award contracts each year. 

The Government estimates that 

approximately 5 percent, or 62, of those 

solicitations are for long-term contracts. 

It is estimated that it would take one 

GS–14, step 5, Government employee, 

on average, 1 hour to research and 

document the rationale. Using the 

average loaded wage rate for a GS–14, 

step 5, employee, the total annual 

estimated cost for the Government to 

document and coordinate the reason for 

not including an on-ramp in a multipleaward contract is $6,262 (62 

solicitations * 1 hour * $101). The 

Government acknowledges that this cost 

could be slightly increased by those 

solicitations that are issued but 

cancelled prior to award, or slightly 

decreased when more than 3 contracts 

are awarded from a single solicitation. 

ii. Orders against multiple-award 

contracts. First, this rule proposes to 

require contracting officers to set aside 

an order for small business if they 

determine that, under an applicable 

multiple-award contract, there is a 

reasonable expectation of obtaining 

offers from two or more responsible 

small business contract awardees that 

are competitive in terms of fair market 

price, quality, capability, ability to 

comply with the delivery or 

performance schedule, and past 

performance. The cost accounts for the 

time it takes a contracting officer to 

research the specific criteria for each 

small business contract awardee under 

the selected contract. According to data 

from FPDS for FYs 2021 to 2023, the 

Government awards an average of 

63,700 task orders or delivery orders 

against multiple-award contracts, 

excluding FSS, that are awarded to two 

or more small businesses annually. It is 

estimated that it would take one GS–14, 

step 5, Government employee, on 

average, 1 hour to research and 

document the criteria for each small 

business contract awardee. Using the 

average loaded wage rate for a GS–14, 

step 5, employee, the total annual 

estimated cost for the Government to 

research and document the criteria for 

each small business contract awardee is 

$6,433,700 (63,700 orders * 1 hour * 

$101). 

Second, when an order is not set 

aside, this rule proposes to require the 

contracting officer to document the 

reason for such a decision and 

coordinate it with the agency’s 

cognizant small business specialist. The 

cost accounts for the time it takes a 

contracting officer to document and 

coordinate the reason for not setting 

aside an order. Based on the discussion 

above, the Government awards 

approximately 63,700 task orders or 

delivery orders against multiple-award 

contracts, excluding FSS, awarded to 

two or more small businesses annually. 

Of those 63,700 task orders and delivery 

orders, approximately 14,900 of them 

are awarded to large businesses each 

year. It is estimated that approximately 

half, or 7,450 (14,900 task orders and 

delivery orders * .5), of these orders 

were competed amongst all contract 

awardees, although a set-aside may have 

been available. It is estimated that it will 

take one GS–14, step 5, Government 

employee, on average, 1.5 hours to 

document and coordinate the reason for 

not setting aside the order. Using the 

average loaded wage rate for a GS–14, 

step 5, employee, the total annual 

estimated cost for the Government to 

document and coordinate the reason for 

not setting aside an order is $1,128,675 

(7,450 orders * 1.5 hours * $101). 

This proposed rule would also require 

that the small business specialist 

coordinate the decision with the PCR 

when the order exceeds a dollar value 

threshold negotiated between SBA and 

the agency. While these thresholds have 

not been negotiated, the Government 

assumes that 30 percent, or 2,235 (7,450 

* .3), of the orders not set aside when 

a set-aside is available may need to be 

coordinated with the PCR. The cost 

accounts for the time it takes a small 

business specialist to coordinate and 

discuss the reason for not setting aside 

an order, when doing so is possible. It 

is estimated that it would take one GS– 

14, step 5, Government employee, on 

average, .5 hour to coordinate with the 

SBA PCR the reason for not setting aside 

the order. Using the average loaded 

wage rate for a GS–14, step 5, employee, 

the total annual estimated cost for the 

Government to coordinate the reason 

with the SBA PCR is $112,868 (2,235 

orders * .5 hour * $101). 

Finally, when an order is to be placed 

against a multiple-award contract with 

only one or no small business contract 

awardees, this rule proposes to require 

contracting officers to document the 

reason for choosing the contract, 

coordinate it with the agency’s 

cognizant small business specialist, and 

provide the specialist with a reasonable 

opportunity to respond. The cost 

accounts for the time it takes a 

contracting officer to research and 


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document the rationale behind choosing 

the contract and reach out and discuss 

the reason with the specialist. 

According to data from FPDS for FYs 

2021 to 2023, the Government awards 

an average of 15,000 task orders or 

delivery orders against multiple-award 

contracts that were awarded to one or 

no small business awardees annually. It 

is estimated that it would take one GS– 

14, step 5, Government employee, on 

average, 2.5 hours to research, 

document, and coordinate the rationale. 

Using the average loaded wage rate for 

a GS–14, step 5, employee, the total 

annual estimated cost for the 

Government to document and 

coordinate the reason for choosing a 

multiple-award contract with only one 

or no small business contract awardees 

is $3,787,500 (15,000 solicitations * 2.5 

hours * $101). 

C. Alternatives 

Several alternatives were considered 

in the drafting of this proposed rule, 

including requiring set-asides for small 

business prior to selecting a contract 

vehicle, requiring set-asides for agencies 

that do not meet their annual small 

business contracting goals, and 

maintaining contracting officer 

discretion to set aside an order for a 

small business contract awardee. 

However, each of these alternatives 

misses some portion of the small 

business community that may be able to 

compete for such requirements and 

therefore, do not provide the maximum 

opportunity for small business 

participation under certain multipleaward contracts. 

V. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 (as 

amended by E.O. 14094) and 13563 

direct agencies to assess the 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 a significant 

regulatory action under section 3(f)(1) of 

E.O. 12866 and, therefore, was subject to 

review under Section 6(b) of E.O. 12866, 

Regulatory Planning and Review, dated 

September 30, 1993. 

VI. Regulatory Flexibility Act 

DoD, GSA, and NASA do not expect 

this proposed rule, if finalized, to have 

a significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601–612. This 

rule only revises the internal operating 

procedures of the Government. 

However, an Initial Regulatory 

Flexibility Analysis (IRFA) has been 

performed and is summarized as 

follows: 

DoD, GSA, and NASA are proposing to 

amend the Federal Acquisition Regulation 

(FAR) to update and clarify policy on market 

research, acquisition planning, small 

business specialist coordination, and the use 

of set asides during the award of and orders 

placed against certain multiple-award 

contracts. 

The objective of this rule is to support 

Governmentwide efforts to leverage the small 

business growth occurring in the nation’s 

supply chains that support agency missions, 

reverse the decline of small business 

participation in the Federal supplier base, 

and increase contracting opportunities for 

small business concerns. Promulgation of 

FAR regulations is authorized by 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. 

This proposed rule would impact small 

business contract awardees under certain 

existing multiple-award contracts, as well as 

small business concerns that anticipate 

becoming a contract awardee under certain 

multiple-award contracts. The impacts of this 

rule have not been realized yet; therefore, 

there is no data with which to accurately 

reflect the number of small entities to which 

this rule would apply. Instead, this rule has 

the potential to benefit any small entity 

looking to do business with the Government 

under certain multiple-award contracts. 

According to data from the System for Award 

Management (SAM), there are approximately 

384,100 small entities currently registered in 

SAM to do business with the Government. 

This proposed rule has the potential to 

impact any number of these small entities, 

depending on several factors, including the 

following: the primary industry of the entity, 

the Government’s future needs for products 

and services, and the entity’s submission of 

proposals and offers for multiple-award 

contracts and the orders to be placed against 

those contracts. 

The proposed rule would not impose any 

new reporting, recordkeeping, or other 

compliance requirements for small entities. 

The proposed rule does not duplicate, 

overlap, or conflict with any other Federal 

rules. 

There are no known significant alternative 

approaches to the proposed rule that would 

accomplish the stated objectives of the rule 

and further minimize any significant 

economic impact of this proposed rule on 

small entities, as the economic impact is not 

anticipated to be significant. 

The Regulatory Secretariat Division 

has submitted a copy of the IRFA to the 

Chief Counsel for Advocacy of the Small 

Business Administration. A copy of the 

IRFA may be obtained from the 

Regulatory Secretariat Division. DoD, 

GSA, and NASA invite comments from 

small business concerns and other 

interested parties on the expected 

impact of this proposed rule on small 

entities. 

DoD, GSA, and NASA will also 

consider comments from small entities 

concerning the existing regulations in 

subparts affected by the rule in 

accordance with 5 U.S.C. 610. Interested 

parties must submit such comments 

separately and should cite 5 U.S.C. 610 

(FAR Case 2023–011), in 

correspondence. 

VII. 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 1, 7, 12, 

16, 19, 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 

propose amending 48 CFR parts 1, 7, 12, 

16, 19, and 52 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 1, 7, 12, 16, 19, 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 1—FEDERAL ACQUISITION 

REGULATIONS SYSTEM 

1.102 [Amended] 

■ 2. Amend section 1.102 in paragraph 

(c) by removing ‘‘and procurement’’ and 

adding ‘‘procurement, and small 

business’’ in its place. 

PART 7—ACQUISITION PLANNING 

■ 3. Amend section 7.104 by revising 

paragraph (d) to read as follows: 

7.104 General procedures. 

* * * * * 

(d)(1) The planner shall coordinate 

the acquisition plan or strategy with the 

cognizant small business specialist 

when the strategy contemplates an 

acquisition meeting the thresholds in 

7.107–4 for substantial bundling unless 

the contract or task order or delivery 

order is totally set aside for small 

business under part 19. 

(2) The small business specialist shall 

notify— 

(i) The agency Office of Small and 

Disadvantaged Business Utilization or 


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the Office of Small Business Programs if 

the strategy involves— 

(A) Bundling that is unnecessary or 

unjustified; or 

(B) Bundled or consolidated 

requirements not identified as such by 

the agency (see 7.107); and 

(ii) The Small Business 

Administration (SBA) procurement 

center representative (or if one is not 

assigned, see 19.402(a)), early in the 

acquisition process, if the strategy 

involves a multiple-award contract that 

meets the thresholds in 7.107–4 for 

substantial bundling, and the number of 

small business contract awardees is 

anticipated to be under 30 percent of all 

contract awardees. 

* * * * * 

■ 4. Amend section 7.105 by adding 

paragraphs (b)(1)(iii)(A) and (B) to read 

as follows: 

7.105 Contents of written acquisition 

plans. 

* * * * * 

(b) * * * 

(1) * * * 

(iii) * * * 

(A) When a multiple-award contract 

will not be totally or partially set aside 

for small business concerns or will not 

include a small business reserve (see 

19.501(a)), the agency shall document 

the reason for this decision, including a 

description of the market research 

conducted. The agency shall coordinate 

the acquisition plan or strategy with the 

cognizant small business specialist. 

(B) When contemplating the award of 

a multiple-award contract that is a longterm contract, as defined at 19.301–2(a), 

discuss the use of on-ramps during the 

period of performance of the contract 

(i.e., permitting small and large business 

concerns to become contract holders 

during the period of performance of the 

contract). If small businesses are 

expected to enter the market after the 

award of the contract, and the work 

anticipated to be performed under the 

contract is sufficient to provide 

meaningful opportunities for additional 

contract holders, the plan or strategy 

shall explain why on-ramps will not be 

included in the contract. If on-ramps are 

included in the contract, agencies are 

discouraged from using off-ramps to 

remove a contract awardee from a 

contract that was set aside for small 

business concerns because of a change 

in the awardee’s size status, except 

where the awardee’s size status changes 

because of a merger or acquisition. 

* * * * * 

PART 12—ACQUISITION OF 

COMMERCIAL PRODUCTS AND 

COMMERCIAL SERVICES 

■ 5. Amend section 12.207 by revising 

paragraph (b)(1)(i)(C) to read as follows: 

12.207 Contract type. 

* * * * * 

(b)(1) * * * 

(i) * * * 

(C) The fair opportunity procedures in 

16.505 (including small business setasides under 16.505(b)(1)(i)(C)), if 

placing an order under a multiple-award 

delivery-order contract; and 

* * * * * 

PART 16—TYPES OF CONTRACTS 

■ 6. Amend section 16.505 by— 

■ a. Adding paragraphs (a)(13) and (14); 

■ b. In paragraph (b)(1)(i)(A), removing 

‘‘or’’; 

■ c. In paragraph (b)(1)(i)(B), removing 

the period at the end of the sentence 

and adding ‘‘; or’’ in its place; 

■ d. Adding paragraph (b)(1)(i)(C); 

■ e. Revising paragraph (b)(1)(ii)(A); 

■ f. Removing paragraph (b)(2)(i)(F), and 

redesignating paragraph (b)(2)(i)(G) as 

paragraph (b)(2)(i)(F); 

■ g. Revising paragraphs (b)(2)(ii) 

introductory text and (b)(2)(ii)(D)(5). 

The additions and revisions read as 

follows: 

16.505 Ordering. 

(a) * * * 

(13)(i) When placing an order against 

a multiple-award contract that has no or 

only one small business contract 

awardee, the contracting officer shall 

document— 

(A) How the market research of small 

business contract awardees and small 

businesses, that are not contract holders 

on the multiple-award contract against 

which the order would be placed, and 

mission needs (e.g., price, schedule, 

technical and/or past performance of 

potential sources) informed the agency’s 

basis for selecting the multiple-award 

contract to fulfill its needs; and 

(B) The market research the agency 

conducted within the past 18 months, 

which may include the market research 

supporting the acquisition plan or 

strategy to establish a multiple-award 

contract or deciding to use another 

agency’s multiple-award contract on a 

repetitive basis. 

(ii) Contracting officers shall provide 

a copy of the documentation (see 

paragraph (a)(13)(i) of this section) to 

the cognizant small business specialist, 

in accordance with agency procedures, 

and ensure the specialist has a 

reasonable opportunity to respond. 

(iii) The requirements of paragraph 

(a)(13) of this section do not apply— 

(A) To orders under the Federal 

Supply Schedule; 

(B) When an exception to fair 

opportunity applies; 

(C) When an agency exception 

applies; or 

(D) To repetitive orders, including 

orders placed using automated 

procedures, issued by an agency (i.e., 

when an order was issued by that 

agency under the same contract and that 

order was documented and coordinated 

within the prior 18 months in 

accordance with paragraph (a)(13) of 

this section). 

(14) Agencies may establish 

procedures to allow contracting officers 

to exercise exceptions to paragraph 

(a)(13) or (b)(1)(i)(C) of this section. 

Agencies shall coordinate their 

procedures for granting exceptions with 

the Office of Small and Disadvantaged 

Business Utilization, or for the 

Department of Defense, the Director of 

the Office of Small Business Programs, 

and the Small Business Administration 

and make the procedures publicly 

available. 

* * * * * 

(b) * * * 

(1) * * * 

(i) * * * 

(C) In accordance with section 1331 of 

Public Law 111–240 (15 U.S.C. 644(r)), 

contracting officers may, at their 

discretion, set aside an order for any of 

the small business concerns identified 

in 19.000(a)(3). When exercising this 

discretion, the contracting officer shall 

determine if there is a reasonable 

expectation of obtaining offers from two 

or more responsible small business 

contract awardees under the multipleaward contract that are competitive in 

terms of fair market price, quality, 

capability, ability to comply with the 

delivery or performance schedule, and 

past performance. If the contracting 

officer determines at least two small 

business contract awardees meet the 

criteria in this paragraph, the 

contracting officer shall set aside the 

order, unless the contracting officer 

determines that an exception applies 

(see paragraphs (a)(14) and (b)(2)(i) of 

this section). 

(1) Unless an exception applies, 

contracting officers shall document the 

reason for not setting aside an order and 

provide it to the cognizant small 

business specialist in accordance with 

agency procedures. The small business 

specialist shall notify the SBA 

procurement center representative (PCR) 

(or if one is not assigned, see 19.402(a)) 

when the value of the order exceeds the 

dollar threshold negotiated between the 

agency and the PCR and reflected in 

agency procedures. 


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(2) Paragraph (b)(1)(i)(C) of this 

section shall also apply to existing 

multiple-award contracts awarded 

before [EFFECTIVE DATE OF FINAL 

RULE], to the extent that setting aside 

an order is consistent with the order 

placement procedures of the multipleaward contract and there is adequate 

time remaining on the multiple-award 

contract to permit small business 

contract awardees to fully perform or 

deliver under the contract. 

(ii) * * * 

(A) Develop placement procedures 

that will— 

(1) Provide each awardee a fair 

opportunity to be considered for each 

order and that reflect the requirement 

and other aspects of the contracting 

environment; and 

(2) Except for FSS contracts, allow for 

orders to be set aside for small business 

awardees when the conditions of 

paragraph (b)(1)(i)(C) of this section are 

met, (unless an exception applies in 

accordance with paragraph (a)(14) or 

(b)(2)(i) of this section). 

* * * * * 

(2) * * * 

(ii) The justification for an exception 

to fair opportunity shall be in writing as 

specified in paragraph (b)(2)(ii)(A) or (B) 

of this section. 

* * * * * 

(D) * * * 

(5) The posting requirement of this 

section does not apply when disclosure 

would compromise the national security 

(e.g., would result in disclosure of 

classified information) or create other 

security risks. 

* * * * * 

PART 19—SMALL BUSINESS 

PROGRAMS 

■ 7. Amend section 19.202–1 by 

revising paragraph (e)(1) introductory 

text to read as follows: 

19.202–1 Encouraging small business 

participation in acquisitions. 

* * * * * 

(e)(1) Provide a copy of the proposed 

acquisition package and other 

reasonably obtainable information 

related to the acquisition to the SBA 

PCR (or, if a PCR is not assigned, see 

19.402(a)) at least 30 days (or earlier as 

agreed upon by the agency and the SBA 

PCR) prior to the issuance of the 

solicitation if— 

* * * * * 

■ 8. Amend section 19.504 by revising 

paragraphs (a) introductory text and 

(a)(1) to read as follows: 

19.504 Orders under multiple-award 

contracts. 

(a) General. Contracting officers shall 

use their discretion under 15 U.S.C. 

644(r) to set aside orders under 

multiple-award contracts for any of the 

small business concerns identified in 

19.000(a)(3) when the circumstances at 

16.505(b)(1)(i)(C) are met, except as 

provided in 8.405–5, when placing an 

order outside the United States and its 

outlying areas (19.000(b)(1)(ii)), or 

where an exception applies in 

accordance with 16.505(a)(14) or 

(b)(2)(i). In accordance with section 

1331 of the Small Business Jobs Act of 

2010 (15 U.S.C. 644(r)(2)), contracting 

officers may, at their discretion, set 

aside orders under the Federal Supply 

Schedule (see subpart 8.4) for any of the 

small business concerns identified in 

19.000(a)(3). 

(1) The contracting officer shall state 

in the solicitation and resulting contract 

that order set-asides will be mandatory 

when the conditions in 19.502–2 and 

16.505(b)(1)(i)(C) are met at the time of 

order set-aside, and the specific program 

eligibility requirements, as applicable, 

are also then met. 

* * * * * 

19.505 [Amended] 

■ 9. Amend section 19.505 in paragraph 

(a)(2)(iii) by removing ‘‘and 

16.505(b)(2)(i)(F)’’ and adding ‘‘and 

16.505(b)(1)(i)(C)’’ in its place. 

19.506 [Amended] 

■ 10. Amend section 19.506 in 

paragraph (a)(2) by removing ‘‘been 

used’’ and adding ‘‘been used (see 

7.105(b)(1)(iii)(A))’’ in its place. 

■ 11. Amend section 19.507 by revising 

paragraphs (c) and (e)(1) and paragraph 

(h)(1) introductory text to read as 

follows: 

19.507 Solicitation provisions and 

contract clauses. 

* * * * * 

(c) The contracting officer shall insert 

the clause at 52.219–6, Notice of Total 

Small Business Set-Aside, in 

solicitations and contracts involving 

total small business set-asides. This 

includes multiple-award contracts when 

orders will be set aside for contract 

awardees that are any of the small 

business concerns identified in 

19.000(a)(3), as described in 

16.505(b)(1)(i)(C), and when orders may 

be set aside as described in 8.405–5. Use 

the clause at 52.219–6 with its Alternate 

I when including FPI in the competition 

in accordance with 19.502–7. 

* * * * * 

(e) * * * 

(1) For supplies, services, and 

construction, if any portion of the 

requirement is to be set aside for small 

business and the contract amount is 

expected to exceed the simplified 

acquisition threshold, and in any 

solicitations and contracts that are set 

aside or awarded on a sole-source basis 

in accordance with subpart 19.8, 19.13, 

19.14, or 19.15, regardless of dollar 

value. This includes multiple-award 

contracts when orders will be set aside 

for small business contract awardees, as 

described in 16.505(b)(1)(i)(C), and 

when orders may be set aside as 

described in 8.405–5, and when orders 

may be issued directly to a small 

business concern as described in 

19.504(c)(1)(ii). For contracts that are set 

aside, the contracting officer shall 

indicate in paragraph (f) of the clause 

whether compliance with the 

limitations on subcontracting is 

required at the contract or order level; 

* * * * * 

(h)(1) The contracting officer shall 

insert the clause at 52.219–33, 

Nonmanufacturer Rule, in solicitations 

and contracts, including multiple-award 

contracts, when orders will be set aside 

for small business contract awardees as 

described in 16.505(b)(1)(i)(C), and 

when orders may be set aside as 

described in 8.405–5, and when orders 

may be issued directly to a small 

business concern as described in 

19.504(c)(1)(ii), when— 

* * * * * 

19.1304 [Amended] 

■ 12. Amend section 19.1304 in 

paragraph (b) by removing 

‘‘16.505(b)(2)(i)(F) for discretionary’’ 

and adding ‘‘16.505(b)(1)(i)(C) for’’ in its 

place. 

■ 13. Amend section 19.1309 by 

revising paragraph (a) to read as follows: 

19.1309 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 52.219–3, Notice of 

HUBZone Set-Aside or Sole-Source 

Award, in solicitations and contracts for 

acquisitions that are set aside or 

awarded on a sole-source basis to, 

HUBZone small business concerns 

under 19.1305 or 19.1306. This includes 

multiple-award contracts when orders 

will be set aside for contract awardees 

that are HUBZone small business 

concerns as described in 

16.505(b)(1)(i)(C), when orders may be 

set aside as described in 8.405–5, or 

when orders may be issued directly to 

one HUBZone small business concern in 

accordance with 19.504(c)(1)(ii). 

* * * * * 


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19.1404 [Amended] 

■ 14. Amend section 19.1404 in 

paragraph (b) by removing 

‘‘16.505(b)(2)(i)(F) for discretionary’’ 

and adding ‘‘16.505(b)(1)(i)(C) for’’ in its 

place. 

■ 15. Amend section 19.1408 by 

revising paragraph (a) to read as follows: 

19.1408 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 52.219–27, Notice of SetAside for, or Sole-Source Award to, 

Service-Disabled Veteran-Owned Small 

Business (SDVOSB) Concerns Eligible 

Under the SDVOSB Program, in 

solicitations and contracts for 

acquisitions that are set aside or 

awarded on a sole-source basis to, 

service-disabled veteran-owned small 

business concerns under 19.1405 and 

19.1406. This includes multiple-award 

contracts when orders will be set aside 

for contract awardees that are servicedisabled veteran-owned small business 

concerns as described in 

16.505(b)(1)(i)(C), when orders may be 

set aside as described in 8.405–5, or 

when orders may be issued directly to 

one service-disabled veteran-owned 

small business contractor in accordance 

with 19.504(c)(1)(ii). 

* * * * * 

19.1504 [Amended] 

■ 16. Amend section 19.1504 in 

paragraph (c) by removing 

‘‘16.505(b)(2)(i)(F) for discretionary’’ 

and adding ‘‘16.505(b)(1)(i)(C) for’’ in its 

place. 

■ 17. Amend section 19.1508 by 

revising paragraphs (a) and (b) to read 

as follows: 

19.1508 Contract clauses. 

(a) The contracting officer shall insert 

the clause at 52.219–29, Notice of SetAside for, or Sole-Source Award to, 

Economically Disadvantaged Womenowned Small Business Concerns, in 

solicitations and contracts for 

acquisitions that are set aside or 

awarded on a sole-source basis to, 

EDWOSB concerns under 19.1505(b) or 

19.1506(a). This includes multipleaward contracts when orders will be set 

aside for contract awardees that are 

EDWOSB concerns as described in 

16.505(b)(1)(i)(C), when orders may be 

set aside as described in 8.405–5, or 

when orders may be issued directly to 

one EDWOSB contractor in accordance 

with 19.504(c)(1)(ii). 

(b) The contracting officer shall insert 

the clause at 52.219–30, Notice of SetAside for, or Sole-Source Award to, 

Women-Owned Small Business 

Concerns Eligible Under the WomenOwned Small Business Program, in 

solicitations and contracts for 

acquisitions that are set aside or 

awarded on a sole-source basis to WOSB 

concerns under 19.1505(c) or 

19.1506(b). This includes multipleaward contracts when orders will be set 

aside for contract awardees that are 

WOSB concerns eligible under the 

WOSB Program as described in 

16.505(b)(1)(i)(C), when orders may be 

set aside as described in 8.405–5, or 

when orders may be issued directly to 

one WOSB contractor in accordance 

with 19.504(c)(1)(ii). 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 18. Amend section 52.212–5 by— 

■ a. Revising the date of the clause; 

■ b. Removing from paragraph (b)(15) 

‘‘OCT 2022’’ and adding ‘‘DATE’’ in its 

place; 

■ c. Removing from paragraph (b)(18)(i) 

‘‘NOV 2020’’ and adding ‘‘DATE’’ in its 

place; 

■ d. Removing from paragraph (b)(23) 

‘‘OCT 2022’’ and adding ‘‘DATE’’ in its 

place; 

■ e. Removing from paragraph (b)(25) 

‘‘FEB 2024’’ and adding ‘‘DATE’’ in its 

place; 

■ f. Removing from paragraphs (b)(27) 

and (28) ‘‘OCT 2022’’ and adding 

‘‘DATE’’ in their places, respectively; 

and 

■ g. Removing from paragraph (b)(30) 

‘‘SEP 2021’’ and adding ‘‘DATE’’ 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. 

* * * * * 

Contract Terms and Conditions Required To 

Implement Statutes or Executive Orders— 

Commercial Products and Commercial 

Services (DATE) 

* * * * * 

■ 19. Amend section 52.219–3 by 

revising the date of the clause and 

paragraph (b)(3) to read as follows: 

52.219–3 Notice of HUBZone Set-Aside or 

Sole-Source Award. 

* * * * * 

Notice of HUBZone Set-Aside or Sole-Source 

Award (DATE) 

* * * * * 

(b) * * * 

(3) Orders set aside for contract 

awardees that are HUBZone small 

business concerns under multipleaward contracts as described in 8.405– 

5 and 16.505(b)(1)(i)(C); and 

* * * * * 

■ 20. Amend section 52.219–6 by 

revising the date of the clause and 

paragraph (b)(2) to read as follows: 

52.219–6 Notice of Total Small Business 

Set-Aside. 

* * * * * 

Notice of Total Small Business Set-Aside 

(DATE) 

* * * * * 

(b) * * * 

(2) Orders set aside for contract 

awardees that are small business 

concerns under multiple-award 

contracts as described in 8.405–5 and 

16.505(b)(1)(i)(C). 

* * * * * 

■ 21. Amend section 52.219–14 by— 

■ a. Revising the date of the clause and 

paragraph (c)(4)(i); and 

■ b. In paragraph (c)(5)(i) removing 

‘‘16.505(b)(2)(i)(F)’’ and adding 

‘‘16.505(b)(1)(i)(C)’’ in its place. 

The revisions read as follows: 

52.219–14 Limitations on Subcontracting. 

* * * * * 

Limitations on Subcontracting (DATE) 

* * * * * 

(c) * * * 

(4) * * * 

(i) Set aside for contract awardees that 

are small business concerns under 

multiple-award contracts, as described 

in 8.405–5 and 16.505(b)(1)(i)(C); or 

* * * * * 

■ 22. Amend section 52.219–27 by 

revising the date of clause and 

paragraph (b)(3) to read as follows: 

52.219–27 Notice of Set-Aside for, or SoleSource Award to, Service-Disabled VeteranOwned Small Business (SDVOSB) 

Concerns Eligible Under the SDVOSB 

Program. 

* * * * * 

Notice of Set-Aside for, or Sole-Source 

Award to, Service-Disabled Veteran-Owned 

Small Business (SDVOSB) Concerns Eligible 

Under the SDVOSB Program (DATE) 

* * * * * 

(b) * * * 

(3) Orders set aside for contract 

awardees that are SDVOSB concerns 

eligible under the SDVOSB Program, 

under multiple-award contracts as 

described in 8.405–5 and 

16.505(b)(1)(i)(C); and 

* * * * * 

■ 23. Amend section 52.219–29 by 

revising the date of clause and 

paragraph (b)(3) to read as follows: 

52.219–29 Notice of Set-Aside for, or SoleSource Award to, Economically 

Disadvantaged Women-Owned Small 

Business Concerns. 

* * * * * 


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Notice of Set-Aside for, or Sole-Source 

Award to, Economically Disadvantaged 

Women-Owned Small Business Concerns 

(DATE) 

* * * * * 

(b) * * * 

(3) Orders set aside for contract 

awardees that are EDWOSB concerns 

under multiple-award contracts as 

described in 8.405–5 and 

16.505(b)(1)(i)(C); and 

* * * * * 

■ 24. Amend section 52.219–30 by 

revising the date of clause and 

paragraph (b)(3) to read as follows: 

52.219–30 Notice of Set-Aside for, or SoleSource Award to, Women-Owned Small 

Business Concerns Eligible Under the 

Women-Owned Small Business Program. 

* * * * * 

Notice of Set-Aside for, or Sole-Source 

Award to, Women-Owned Small Business 

Concerns Eligible Under the Women-Owned 

Small Business Program (DATE) 

* * * * * 

(b) * * * 

(3) Orders set aside for contract 

awardees that are WOSB concerns 

eligible under the WOSB Program, 

under multiple-award contracts as 

described in 8.405–5 and 

16.505(b)(1)(i)(C); and 

* * * * * 

■ 25. Amend section 52.219–33 by— 

■ a. Revising the date of the clause and 

paragraph (b)(2)(iii)(A); and 

■ b. In paragraph (b)(2)(iv)(A) removing 

‘‘16.505(b)(2)(i)(F)’’ and adding 

‘‘16.505(b)(1)(i)(C)’’ in its place. 

The revisions read as follows: 

52.219–33 Nonmanufacturer Rule. 

* * * * * 

Nonmanufacturer Rule (DATE) 

* * * * * 

(b) * * * 

(2) * * * 

(iii) * * * 

(A) Set aside for contract awardees 

that are small business concerns under 

multiple-award contracts, as described 

in 8.405–5 and 16.505(b)(1)(i)(C); or 

* * * * * 

[FR Doc. 2025–00615 Filed 1–14–25; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 16 

[FAR Case 2024–007, Docket No. FAR– 

2024–0007, Sequence No. 1] 

RIN 9000–AO76 

Federal Acquisition Regulation: 

Protests of Orders Under Certain 

Multiple-Award Contracts 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Proposed rule. 

SUMMARY: DoD, GSA, and NASA are 

proposing to amend the Federal 

Acquisition Regulation (FAR) to clarify 

protest rights for orders set aside under 

certain multiple-award contracts. 

DATES: Interested parties should submit 

written comments to the Regulatory 

Secretariat Division at the address 

shown below on or before March 17, 

2025, to be considered in the formation 

of the final rule. 

ADDRESSES: Submit comments in 

response to FAR Case 2024–007 to the 

Federal eRulemaking portal at https://

www.regulations.gov by searching for 

‘‘FAR Case 2024–007’’. Select the link 

‘‘Comment Now’’ that corresponds with 

‘‘FAR Case 2024–007’’. Follow the 

instructions provided on the ‘‘Comment 

Now’’ screen. Please include your name, 

company name (if any), and ‘‘FAR Case 

2024–007’’ on your attached document. 

If your comment cannot be submitted 

using https://www.regulations.gov, call 

or email the points of contact in the FOR

FURTHER INFORMATION CONTACT section of 

this document for alternate instructions. 

Instructions: Please submit comments 

only and cite ‘‘FAR Case 2024–007’’ in 

all correspondence related to this case. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal and/or business confidential 

information provided. Public comments 

may be submitted as an individual, as 

an organization, or anonymously (see 

frequently asked questions at https://

www.regulations.gov/faq). To confirm 

receipt of your comment(s), please 

check https://www.regulations.gov, 

approximately two to three days after 

submission to verify posting. 

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, publication 

schedules, or alternate instructions for 

submitting comments if https://

www.regulations.gov cannot be used, 

contact the Regulatory Secretariat 

Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAR 

Case 2024–007. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA are proposing 

to revise the FAR to clarify protest 

rights, in accordance with existing 

statute and regulations, when an order 

is or is not set aside. This includes 

whether the action was taken in 

accordance with the policy proposed in 

FAR Case 2023–011, Small Business 

Participation on Certain MultipleAward Contracts, published at XX FR 

XXX, on January XX, 2025. 

To increase small business 

opportunities and maximize their 

participation on multiple-award 

contracts, FAR Case 2023–011 proposes 

guidance for contracting officers 

regarding how to exercise the statutory 

grant of discretion to set aside an order 

for a small business under a multipleaward contract. Under that proposed 

rule, if the contracting officer 

determines that there is a reasonable 

expectation of obtaining offers from two 

or more responsible small business 

awardees that are competitive in terms 

of various criteria under the applicable 

multiple-award contract, then the order 

should be set aside for small business. 

This proposed rule for FAR Case 2024– 

007 clarifies that the proposed rule for 

FAR Case 2023–011 does not alter the 

existing statutory grant of discretion to 

agencies as to whether or not to set 

aside an order. The proposed rule for 

FAR Case 2023–011, if finalized, cannot 

alter the existing protest rights in 

connection with the issuance or 

proposed issuance of an order under a 

multiple-award contract. (See FAR 

16.505(a)(10), 41 U.S.C. 4106, and 10 

U.S.C. 3406.) 

II. Discussion and Analysis 

This proposed rule adds clarifying 

text to FAR part 16 to specify that a 

contracting officer’s decision to set aside 

or not set aside an order under a 

multiple-award contract is not grounds 

for protest. 

Specifically, under 15 U.S.C. 644(r), 

Federal agencies, and contracting 

officers acting on behalf of those 

agencies, are granted discretion as to 

whether to set aside an order under a 

multiple-award contract for small 


lotter on DSK11XQN23PROD with PROPOSALS1