[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2638-2639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1025]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 19 and 52

[FAC 90-37; FAR Case 92-019; Item XI]
RIN 9000-AF45


Federal Acquisition Regulation; Subcontracting Plans

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed to amend the Federal 
Acquisition Regulation (FAR) to expand the circumstances when 
subcontracting plans may be required from and negotiated with more than 
the apparently successful offeror and to add a clause alternate for use 
when subcontracting plans are required with initial proposals. This 
regulatory action was not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-37, 
FAR case 92-019.

SUPPLEMENTARY INFORMATION:

A. Background

    An amendment to FAR 19.705-2, 19.708, and 52.219-9 was published in 
the Federal Register at 59 FR 16390, April 6, 1994, as a proposed rule 
with a request for comments. Two responses were received. The Councils' 
analysis of those comments did not result in any revisions to the 
proposed rule.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because subcontracting plans are not required from small 
business concerns.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Public Law 96-511) is deemed to apply 
because the final rule contains information collection requirements. 
Accordingly, a request for approval of a revised information collection 
requirement concerning 9000-0006 was submitted to the Office of 
Management and Budget under 44 U.S.C. 3501, et seq., and approved 
through March 31, 1998.

List of Subjects in 48 CFR Parts 19 and 52

    Government procurement.
    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR Parts 19 and 52 are amended as set forth below:
    1. The authority citation for 48 CFR Parts 19 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 19--SMALL BUSINESS PROGRAMS

    2. Section 19.705-2 is amended by revising paragraph (d) to read as 
follows:


19.705-2  Determining the need for a subcontracting plan.

* * * * *
    (d) In solicitations for negotiated acquisitions, the contracting 
officer may require the submission of subcontracting plans with initial 
offers, or at any other time prior to award. In determining when 
subcontracting plans should be required, as well as when and 

[[Page 2639]]
with whom plans should be negotiated, the contracting officer shall 
consider the integrity of the competitive process, the goal of 
affording maximum practicable opportunity for small, small 
disadvantaged and women-owned small business concerns to participate, 
and the burden placed on offerors.
    3. Section 19.708 is amended in paragraph (b)(1)(iii) by revising 
``has been'' to read ``is'' and by adding a sentence at the end of the 
paragraph to read as follows:


19.708  Solicitation provisions and contract clauses.

* * * * *
    (b)(1) * * *
    (iii) * * * When contracting by negotiation, and subcontracting 
plans are required with initial proposals as provided for in 19.705-
2(d), the contracting officer shall use the clause with its Alternate 
II.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 52.219-9 is amended by adding Alternate II at the end of 
the section to read as follows:


52.219-9  Small, Small Disadvantaged, and Women-Owned Small Business 
Subcontracting Plan.

* * * * *
    Alternate II (MAR 1996). As prescribed in 19.708(b)(1), 
substitute the following paragraph (c) for paragraph (c) of the 
basic clause:
    (c) Proposals submitted in response to this solicitation shall 
include a subcontracting plan, which separately addresses 
subcontracting with small business concerns, small disadvantaged 
business concerns and women-owned small business concerns. If the 
offeror is submitting an individual contract plan, the plan must 
separately address subcontracting with small business concerns, 
small disadvantaged business concerns and women-owned small business 
concerns with a separate part for the basic contract and separate 
parts for each option (if any). The plan shall be included in and 
made a part of the resultant contract. The subcontracting plan shall 
be negotiated within the time specified by the Contracting Officer. 
Failure to submit and negotiate a subcontracting plan shall make the 
offeror ineligible for award of a contract.

[FR Doc. 96-1025 Filed 1-25-96; 8:45 am]
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