[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31642-31643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14524]



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DEPARTMENT OF DEFENSE
48 CFR Parts 19 and 52

[FAC 90-39; FAR Case 92-039; Item IX]
RIN 9000-AG07


Federal Acquisition Regulation; Master 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 on a final rule to amend 
the Federal Acquisition Regulation (FAR) to permit master 
subcontracting plans to be written for a three-year period and to 
emphasize that it is incumbent upon contractors to maintain and update 
master plans. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993, and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 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 90-39, FAR case 92-039.

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register on September 
8, 1994 (59 FR 46385). The proposed rule amended FAR 19.704(b) and 
52.219-9 to permit master subcontracting plans to be written for a 
three-year period with contractors making changes/updates to master 
subcontracting plans as necessary. After evaluating public comments, 
the Councils have agreed to add language at FAR 19.704(b) stating that 
changes required to update master subcontracting plans are not 
effective until approved by the contracting officer.

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 within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because small businesses are 
exempt from subcontracting plan requirements, and the rule does not 
change the contractor's obligation to maximize subcontracting 
opportunities for small business concerns. No comments were received on 
the impact of this rule on small entities during the public comment 
period.

C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (Public Law 104-13) is deemed 
to apply because the final rule contains information collection 
requirements. This final rule will result in an estimated reduction in 
the number of subcontract plans per year and associated hours. 
Consequently, a revised clearance for OMB Control Number 9000-0006 was 
submitted to OMB. The revised clearance has been approved through 
October 31, 1997. OMB Control Number 9000-0006 has recently been 
further revised by FAR case 94-780, and approval has been extended 
through March 31, 1998.

List of Subjects in 48 CFR Parts 19 and 52

    Government procurement.

    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 19 and 52 are amended as set forth below:

[[Page 31643]]

    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 19.704 is amended in paragraph (b) by revising the 
second sentence and adding a third and fourth sentence to read as 
follows:


19.704   Subcontracting plan requirements.

* * * * *
    (b) * * * Master plans shall be effective for a 3-year period after 
approval by the contracting officer; however, it is incumbent upon 
contractors to maintain and update master plans. Changes required to 
update master plans are not effective until approved by the contracting 
officer. A master plan, when incorporated in an individual plan, shall 
apply to that contract throughout the life of the contract.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.219-9 is amended by revising the date of the clause 
to read ``(AUG 1996)''; in paragraph (f) introductory text by removing 
``(d) above,'' and inserting ``paragraph (d) of this clause,'' in its 
place; and revising paragraph (f)(2) of the clause to read as follows:


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

* * * * *

Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan (Aug 1996)

* * * * *
    (f) * * *
    (2) the offeror ensures that the master plan is updated as 
necessary and provides copies of the approved master plan, including 
evidence of its approval, to the Contracting Officer, and
* * * * *
[FR Doc. 96-14524 Filed 6-19-96; 8:45 am]
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