2638 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

to this interim rule will be considered

in formulating the final rule. The rule is

necessary to further implement Section

814(c) of Public Law 102–190, which

amended the Small Business Act at 15

U.S.C. 637(d)(11) to authorize certain

costs incurred by a Department of

Defense Mentor-Prote ́ge ́ Program firm to

be credited toward subcontracting goals

for awards to small disadvantaged

businesses, and Section 831(f)(2) of

Public Law 101–510 which permits

mentor firms to award subcontracts on

a noncompetitive basis to its prote ́ge ́s

under Department of Defense or other

contracts.

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 19.702 is amended by

adding paragraph (d) to read as follows:

19.702 Statutory requirements.

* * * * *

(d) As authorized by 15 U.S.C.

637(d)(11), certain costs incurred by a

mentor firm in providing developmental

assistance to a Prote ́ge ́ firm under the

Department of Defense Pilot MentorProte ́ge ́ Program, may be credited as

subcontract awards to a small

disadvantaged business for the purpose

of determining whether the mentor firm

attains a small disadvantaged business

goal under any subcontracting plan

entered into with any executive agency.

However, the mentor firms must have

been approved by the Office of Small

and Disadvantaged Business Utilization,

Office of the Under Secretary of Defense

for Acquisition and Technology, OUSD

(A&T)SADBU, Room 2A340, The

Pentagon, Washington, DC 20301–3061,

(703) 697–1688, before developmental

assistance costs may be credited against

subcontract goals.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

3. 52.244–5 is amended by revising

the clause to read as follows:

52.244–5 Competition in Subcontracting.

* * * * *

Competition in Subcontracting (Jan 1996)

(a) The Contractor shall select

subcontractors (including suppliers) on a

competitive basis to the maximum practical

extent consistent with the objectives and

requirements of the contract.

(b) If the Contractor is an approved mentor

under the Department of Defense Pilot

Mentor-Prote ́ge ́ Program (Pub. L. 101–510,

section 831 as amended), the Contractor may

award subcontracts under this contract on a

noncompetitive basis to its prote ́ge ́s.

(End of clause)

[FR Doc. 96–1024 Filed 1–25–96; 8:45 am]

BILLING CODE 6820–EP–M

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.

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
Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 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]

BILLING CODE 6820–EP–M

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 28 and 52

[FAC 90–37; FAR Case 92–014; Item XII]

RIN 9000–AF78

Federal Acquisition Regulation;

Insurance—Liability to Third Persons

AGENCY: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

delete a solicitation provision and

prescriptive language pertaining to

liability insurance under costreimbursement contracts. 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:

Mr. Peter O’Such at (202) 501–1759 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–

014.

SUPPLEMENTARY INFORMATION:

A. Background

The deleted FAR language applied

only to cost-reimbursement contracts for

research and development awarded to

state agencies or charitable institutions

that claim partial or total immunity

from tort liability. For these entities,

Alternates I and II of 52.228–7,

Insurance—Liability to Third Persons,

limit the contract’s insurance

requirements and the Government’s

obligation to indemnify for third party

liability. A proposed rule was published

in the Federal Register at 59 FR 16392,

April 6, 1994. No substantive comments

were received in response 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 the FAR language being

deleted applies only to costreimbursement contracts for research

and development that are awarded to

entities which, by virtue of their status

as either an agency of the state or as a

charitable institution, claim partial or

total immunity from tort liability under

such contracts. These entities are

believed to be few in number.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 28 and

52

Government procurement.

Dated: January 11, 1996.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

Therefore, 48 CFR Parts 28 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 28 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 28—BONDS AND INSURANCE

28.311–1 [Removed]

28.311–2 and 28.311–3 [28.311–2, 28.311–3

Redesignated as 28.311–1, 28.311–2]

2. Section 28.311–1 is removed and

sections 28.311–2 and 28.311–3 are

redesignated as 28.311–1 and 28.311–2,

respectively.

28.311–1 [Amended]

3. The newly designated 28.311–1 is

amended by removing the last two

sentences.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

52.228–6 [Removed and reserved]

4. Section 52.228–6 is removed and

reserved.

5. Section 52.228–7 is amended in the

introductory paragraph by removing the

citation ‘‘28.311–2’’ and inserting

‘‘28.311–1’’; by revising the date of the

clause heading; by revising paragraphs