Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 49141 

Rule 54 Sulfur Compounds (Adopted 06/ 

14/94) 

Rule 56 Open Burning (Adopted 11/11/03) 

Rule 57 Incinerators (Adopted 01/11/05) 

Rule 57.1 Particulate Matter Emissions from 

Fuel Burning Equipment (Adopted 01/11/ 

05) 

Rule 62.7 Asbestos—Demolition and 

Renovation (Adopted 09/01/92) 

Rule 63 Separation and Combination of 

Emissions (Adopted 11/21/78) 

Rule 64 Sulfur Content of Fuels (Adopted 

04/13/99) 

Rule 67 Vacuum Producing Devices 

(Adopted 07/05/83) 

Rule 68 Carbon Monoxide (Adopted 04/13/ 

04) 

Rule 71 Crude Oil and Reactive Organic 

Compound Liquids (Adopted 12/13/94) 

Rule 71.1 Crude Oil Production and 

Separation (Adopted 06/16/92) 

Rule 71.2 Storage of Reactive Organic 

Compound Liquids (Adopted 09/26/89) 

Rule 71.3 Transfer of Reactive Organic 

Compound Liquids (Adopted 06/16/92) 

Rule 71.4 Petroleum Sumps, Pits, Ponds, 

and Well Cellars (Adopted 06/08/93) 

Rule 71.5 Glycol Dehydrators (Adopted 12/ 

13/94) 

Rule 72 New Source Performance Standards 

(NSPS) (Adopted 09/13/05) 

Rule 73 National Emission Standards for 

Hazardous Air Pollutants (NESHAPS) 

(Adopted 09/13/05) 

Rule 74 Specific Source Standards 

(Adopted 07/06/76) 

Rule 74.1 Abrasive Blasting (Adopted 11/ 

12/91) 

Rule 74.2 Architectural Coatings (Adopted 

11/13/01) 

Rule 74.6 Surface Cleaning and Degreasing 

(Adopted 11/11/03—effective 07/01/04) 

Rule 74.6.1 Batch Loaded Vapor Degreasers 

(Adopted 11/11/03—effective 07/01/04) 

Rule 74.7 Fugitive Emissions of Reactive 

Organic Compounds at Petroleum 

Refineries and Chemical Plants (Adopted 

10/10/95) 

Rule 74.8 Refinery Vacuum Producing 

Systems, Waste-water Separators and 

Process Turnarounds (Adopted 07/05/83) 

Rule 74.9 Stationary Internal Combustion 

Engines (Adopted 11/08/05) 

Rule 74.10 Components at Crude Oil 

Production Facilities and Natural Gas 

Production and Processing Facilities 

(Adopted 03/10/98) 

Rule 74.11 Natural Gas-Fired Residential 

Water Heaters-Control of NOX (Adopted 

04/09/85) 

Rule 74.11.1 Large Water Heaters and Small 

Boilers (Adopted 09/14/99) 

Rule 74.12 Surface Coating of Metal Parts 

and Products (Adopted 04/08/08) 

Rule 74.15 Boilers, Steam Generators and 

Process Heaters (Adopted 11/08/94) 

Rule 74.15.1 Boilers, Steam Generators and 

Process Heaters (Adopted 06/13/00) 

Rule 74.16 Oil Field Drilling Operations 

(Adopted 01/08/91) 

Rule 74.20 Adhesives and Sealants 

(Adopted 01/11/05) 

Rule 74.23 Stationary Gas Turbines 

(Adopted 1/08/02) 

Rule 74.24 Marine Coating Operations 

(Adopted 11/11/03) 

Rule 74.24.1 Pleasure Craft Coating and 

Commercial Boatyard Operations (Adopted 

01/08/02) 

Rule 74.26 Crude Oil Storage Tank 

Degassing Operations (Adopted 11/08/94) 

Rule 74.27 Gasoline and ROC Liquid 

Storage Tank Degassing Operations 

(Adopted 11/08/94) 

Rule 74.28 Asphalt Roofing Operations 

(Adopted 05/10/94) 

Rule 74.30 Wood Products Coatings 

(Adopted 06/27/06) 

Rule 75 Circumvention (Adopted 11/27/78) 

Rule 101 Sampling and Testing Facilities 

(Adopted 05/23/72) 

Rule 102 Source Tests (Adopted 04/13/04) 

Rule 103 Continuous Monitoring Systems 

(Adopted 02/09/99) 

Rule 154 Stage 1 Episode Actions (Adopted 

09/17/91) 

Rule 155 Stage 2 Episode Actions (Adopted 

09/17/91) 

Rule 156 Stage 3 Episode Actions (Adopted 

09/17/91) 

Rule 158 Source Abatement Plans (Adopted 

09/17/91) 

Rule 159 Traffic Abatement Procedures 

(Adopted 09/17/91) 

Rule 220 General Conformity (Adopted 05/ 

09/95) 

Rule 230 Notice to Comply (Adopted 11/09/ 

99) 

* * * * * 

[FR Doc. E8–19336 Filed 8–19–08; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Parts 802, 804, 808, 809, 810, 

813, 815, 819, 828, and 852 

RIN 2900–AM92 

VA Acquisition Regulation: Supporting 

Veteran-Owned and Service-Disabled 

Veteran-Owned Small Businesses 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement portions of the Veterans 

Benefits, Health Care, and Information 

Technology Act of 2006 and Executive 

Order 13360, Providing Opportunities 

for Service-Disabled Veteran Businesses 

to Increase Their Federal Contracting 

and Subcontracting. The Public Law 

and Executive Order authorize the 

Department of Veterans Affairs (VA) to 

establish special methods for 

contracting with service-disabled 

veteran-owned small businesses 

(SDVOSBs) and veteran-owned small 

businesses (VOSBs). Under this 

proposed rule, a VA contracting officer 

could restrict competition in contracting 

for SDVOSBs or VOSBs under certain 

conditions. Likewise, sole source 

contracts with SDVOSBs or VOSBs 

would be permitted under certain 

conditions. The proposed rule would 

implement these special acquisition 

methods as a change to the VA 

Acquisition Regulation (VAAR). 

DATES: Comments on the proposed rule 

should be submitted on or before 

October 20, 2008 to be considered in the 

formulation of the final rule. 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulations 

Management (02REG), Department of 

Veterans Affairs, 810 Vermont Ave., 

NW., Room 1068, Washington, DC 

20420; or by fax to (202) 273–9026. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900–

AM92—VA Acquisition Regulation: 

Supporting Veteran-Owned and ServiceDisabled Veteran-Owned Small 

Businesses.’’ All comments received 

will be available for public inspection in 

the Office of Regulation Policy and 

Management, Room 1063B, between the 

hours of 8 a.m. and 4:30 p.m., Monday 

through Friday (except holidays). Please 

call (202) 461–4902 for an appointment. 

This is not a toll-free number. In 

addition, during the comment period, 

comments are available online through 

the Federal Docket Management System 

(FDMS) at www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Derek Underwood, Acquisition Policy 

Division (049P1A), Office of Acquisition 

and Logistics, Department of Veterans 

Affairs, 810 Vermont Ave., NW., 

Washington, DC, 20420, telephone 

number (202) 461–6865 (not a toll-free 

number) or e-mail 

Derek.Underwood@va.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

VA’s mission is to serve veterans. 

Buying from SDVOSBs and VOSBs 

directly supports VA’s mission. 

Supporting service-disabled veterans 

who own businesses contributes 

significantly in restoring their quality of 

life while enhancing transition from 

active duty to civilian life. Such 

acquisitions maintain the 

socioeconomic well-being of the Nation 

and carry out VA’s strategic goals. 

Section 1.102–2(d) of the Federal 

Acquisition Regulation (FAR) (codified 

at 48 CFR chapter 1) provides that the 

Federal Acquisition System ‘‘must 

support the attainment of public policy 

goals adopted by the Congress and the 

President.’’ It is public policy, as 

expressed in 15 U.S.C. 637 and 644 that 

SDVOSBs and VOSBs, among others, 

shall have the maximum practicable 

opportunity to participate in the 


dwashington3 on PRODPC61 with PROPOSALS
49142 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 

performance of contracts let by any 

Federal agency. 

Sections 502 and 503 of Public Law 

109–461, the Veterans Benefits, Health 

Care, and Information Technology Act 

of 2006, (codified at 38 U.S.C. 8127 and 

8128) contain provisions that authorize 

VA to create a unique procurement 

program among Federal agencies. This 

program would permit VA contracting 

officers to conduct acquisition actions 

limited to SDVOSBs or VOSBs for the 

Department’s requirements. The law 

requires the Secretary to give priority to 

a small business concern owned and 

controlled by veterans. 

On October 20, 2004, the President 

issued Executive Order 13360, 

Providing Opportunities for ServiceDisabled Veteran Businesses to Increase 

Their Federal Contracting and 

Subcontracting. The Executive Order 

directs the heads of agencies to 

significantly increase opportunities for 

service-disabled veteran businesses in 

Federal prime contracting and 

subcontracting actions. To achieve that 

objective, the Executive Order requires 

agencies to more effectively implement 

section 15(g) of the Small Business Act 

(15 U.S.C. 644(g)) through various 

efforts, including the development of a 

strategic plan to implement Executive 

Order 13360. VA has developed its 

strategic plan, which is posted at the 

following Internet Web site: http:// 

www.vetbiz.gov/fpp/fpp.htm. 

VA proposes to amend the VAAR to 

implement the changes required by 38 

U.S.C. 8127 and 8128 and some 

rulemaking aspects of VA’s strategic 

plan for Executive Order 13360. 

Specifically, this proposed rule would 

allow VA contracting officers to: 

• Under certain conditions, permit 

non-competitive sourcing under the 

simplified acquisition threshold with 

SDVOSBs or VOSBs. 

• Require set-asides for SDVOSBs or 

VOSBs above the simplified acquisition 

threshold when the contracting officer 

has a reasonable expectation that two or 

more eligible SDVOSBs or VOSBs will 

submit offers and that the award can be 

made at a fair and reasonable price that 

offers the best value to the United 

States. 

• Under certain conditions, permit 

non-competitive sourcing for SDVOSBs 

or VOSBs above the simplified 

acquisition threshold when the 

contracting officer determines that a fair 

and reasonable price will be obtained as 

a result of negotiations for requirements 

not to exceed $5 million. 

• Include evaluation factors in 

negotiated acquisitions that give 

preference to SDVOSBs and VOSBs and 

preference to offerors who propose to 

include such businesses as 

subcontractors. 

• Require offerors who propose to use 

SDVOSBs or VOSBs as subcontractors to 

utilize eligible businesses. 

• Require VOSBs participating in the 

Department’s acquisitions to register in 

VetBiz.gov’s Vendor Information Pages 

(VIP) database and verify that the 

business meets eligibility requirements. 

• Establish a VA Mentor-Prote ́ge ́

Program and give large businesses that 

participate in the program a preference 

in the award of VA prime contracts. 

• Encourage prime contractors and 

mentors to assist SDVOSBs and VOSBs 

in obtaining bonding when required. 

• Revise the eligibility definition for 

‘‘service-disabled veteran-owned small 

business concerns’’ to include a spouse 

who obtains ownership rights upon the 

death of a 100 percent service-disabled 

veteran or a veteran who died as a direct 

result of a service-connected injury for 

a period of 10 years unless the spouse 

remarries or sells the interest in the 

business. 

• Recommend debarment of any 

business that willfully or deliberately 

misrepresents ownership and control of 

the business for purposes of registering 

in the VetBiz.gov Vendor Information 

Pages database or other Federal 

databases. 

• Under certain conditions, authorize 

Contracting Officers to acquire supplies 

and services from SDVOSBs and VOSBs 

in lieu of Federal Prison Industries (FPI) 

and the Government Printing Office 

(GPO). 

Section 802.101 Definitions 

In proposed section 802.101, VA 

adopts and incorporates various 

statutory definitions. FAR 2.101 defines 

‘‘service-disabled veteran-owned small 

business (SDVOSB) concern’’ and 

‘‘veteran-owned small business (VOSB) 

concern.’’ Prime and subcontracting 

actions conducted under the authority 

of 38 U.S.C. 8127, as implemented in 

VAAR subpart 819.70, revise the 

definition of ‘‘service-disabled veteranowned small business concern’’ and 

require that SDVOSBs and VOSBs must 

be registered in the Vendor Information 

Pages (VIP) and that the ownership and 

control of such businesses has been 

verified by VA. In addition, section 

8127(h) enables a surviving spouse who 

obtains ownership rights to a business 

upon the death of a veteran with a 

service-connected disability rated at 100 

percent, or a veteran who dies as a 

direct result of a service-connected 

disability, to have VA treat the business 

as a ‘‘service-disabled veteran-owned 

small business’’ for a 10-year period 

after the death of the veteran, unless the 

surviving spouse remarries, sells the 

interest in the business or the business 

outgrows the small business size 

standards. This section also includes a 

definition of VIP. 

Section 804.1102 Vendor Information 

Pages 

FAR 4.1102 currently requires all 

businesses to be registered in the 

Central Contractor Registration (CCR). 

Proposed section 804.1102 would 

require VOSBs, including SDVOSBs, to 

register in the VIP database, available at 

http://www.VetBiz.gov, in order to be 

eligible to participate in set-asides for 

SDVOSBs and VOSBs issued by VA 

contracting officers. In completing 

registration, businesses would provide 

information establishing that the 

business is owned and controlled by 

eligible parties, according to the criteria 

defined in 38 U.S.C. 8127 and FAR 

19.1403. 

Section 808.603 Purchase Priorities 

Under certain conditions, this section 

would authorize contracting officers to 

purchase supplies and services 

produced or provided by FPI from 

eligible SDVOSBs and VOSBs, in 

accordance with procedures set forth in 

proposed VAAR subpart 819.70, 

without seeking a waiver from FPI. We 

interpret section 8128 and the 

legislative history to mean that 

SDVOSBs and VOSBs must receive 

priority in VA contracting opportunities 

without regard to other provisions of 

law concerning contracting preferences. 

This interpretation conflicts with the 

current contracting priorities in law, 

and as implemented in the FAR, for 

Federal agencies buying from FPI. VA 

finds that section 8128, being directly 

applicable solely to VA and providing 

authority without regard to any other 

provision of law, requires VA 

contracting officers to have the authority 

to override other statutory contracting 

preferences to provide priority to 

SDVOSBs and VOSBs to meet VA’s 

socioeconomic goals for such concerns. 

Therefore, proposed section 808.603 is 

the only means available to VA to 

implement the requirement in section 

8128 that veterans’ small businesses 

have priority in VA acquisitions that 

would normally be awarded under FPI. 

Section 808.803 Priority for 

Acquisition of Printing and Related 

Supplies 

This section would authorize 

contracting officers to acquire 

government printing from eligible 

service-disabled veteran-owned small 

businesses and veteran-owned small 

businesses, in accordance with 


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Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 49143 

procedures set forth in VAAR subpart 

819.70, in lieu of the Government 

Printing Office (GPO). We interpret 

section 8128 and the relevant legislative 

history as authorizing VA to give 

priority in contracting to SDVOSBs and 

VOSBs without regard to other 

provisions of law concerning 

contracting preferences. This 

interpretation conflicts with the current 

contracting priority in law, and as 

implemented in the FAR, which 

provides that Federal agencies buying 

printing services must procure such 

services from GPO. VA finds that 

section 8128, being directly applicable 

solely to VA and providing authority for 

priority in VA contracting without 

regard to any other provision of law, 

requires VA contracting officers to have 

the authority to override the statutory 

contracting preference for GPO services 

and instead provide priority in 

contracting to SDVOSBs and VOSBs for 

printing services and related supplies. 

Therefore, proposed section 808.803 is 

the only means available to VA to 

implement section 8128. 

Section 809.406–2 Causes for 

Debarment 

FAR 9.406–2 lists several reasons for 

which a debarring official may initiate 

a debarment action. Proposed VAAR 

809.406–2 adds one additional reason: 

misrepresentation of status as an 

SDVOSB or a VOSB, in accordance with 

section 8127(g). 

Section 810.001 Market Research 

Policy 

FAR 10.001 requires agencies to 

conduct market research on an ongoing 

basis and to effectively identify the 

capabilities of small businesses to meet 

agency requirements. VAAR section 

810.001 would establish that, when 

conducting market research, VA 

contracting teams shall use the VIP 

database, in addition to other sources of 

information. 

Section 810.002 Market Research 

Procedures 

This section would require 

contracting officers to record VIP 

queries in the solicitation file. 

Section 813.106 Soliciting 

Competition, Evaluation of Quotations 

or Offers, Award and Documentation 

This section would clarify that 

contracting officers may use other than 

competitive procedures to enter into a 

contract with an SDVOSB or VOSB 

when the amount is less than the 

simplified acquisition threshold not to 

exceed $5 million. Contracting officers 

would give first consideration to 

SDVOSBs. 

Section 813.202 Purchase Guidelines 

FAR 13.202(a)(1) provides that, to the 

extent practicable, open market micropurchases shall be distributed equitably 

among qualified suppliers. The set-aside 

provisions of FAR Part 19 do not apply 

to micro-purchases. However, in 

accordance with sections 8127 and 

8128, VA would make an exception to 

this FAR requirement when supplies are 

available from SDVOSBs or VOSBs. We 

would add section 813.202 to allow 

preference for SDVOSB and VOSB 

sources when making local open market 

micro-purchases using the purchase 

card. In such cases, equitable 

distribution of open market micropurchases among all qualified suppliers 

would not be required. Instead, open 

market micro-purchases would be 

equitably distributed among all 

qualified SDVOSBs or VOSBs, 

respectively, to the maximum extent 

practicable. We believe that this change 

would assist VA in meeting its statutory 

goals for award of contracts to SDVOSBs 

and VOSBs. 

Sections 815.304 and 852.215–70

Evaluation Factors and Significant 

Subfactors 

To implement sections 8127 and 

8128, VA would add sections 815.304 

and 852.215–70 to require VA 

contracting officers to: (1) Include 

provisions in negotiated solicitations 

giving preference to offers received from 

VOSBs and additional preference to 

offers received from SDVOSBs; (2) use 

past performance in meeting SDVOSB 

subcontracting goals as a non-price 

evaluation factor in selecting offers for 

award; (3) use the proposed inclusion of 

SDVOSBs or VOSBs as subcontractors 

as an evaluation factor when 

competitively negotiating the award of 

contracts or task or delivery orders; and 

(4) consider participation in VA’s 

Mentor-Prote ́ge ́ Program as an 

evaluation factor when competitively 

negotiating the award of contracts or 

task or delivery orders. VA is 

particularly interested in receiving 

comments on the proposed mandatory 

inclusion of evaluation preferences for 

SDVOSBs and VOSBs in negotiated 

acquisitions. 

Section 815.304–70 Evaluation Factor 

Commitments 

In accordance with section 8127(a)(4), 

we propose to require prime contractors 

who offer to use one or more SDVOSBs 

or VOSBs as subcontractors in 

accordance with proposed section 

852.215–70, Veteran-Owned Small 

Business Evaluation Factors, to actually 

use those subcontractors or to replace 

any proposed subcontractor who is not 

used for the specified subcontract with 

another SDVOSB or VOSB 

subcontractor. This subsection would be 

implemented under proposed new 

sections 815.304–70 and 852.215–71. 

Further, this subsection would help 

ensure that SDVOSBs and VOSBs 

receive subcontract awards under VA 

prime contracts, as prime contractors 

will be required to report only 

utilization of companies appearing in 

the VIP database as ‘‘verified’’ to be 

owned and controlled by eligible 

veterans or surviving spouses. 

Section 815.304–71 Solicitation 

Clauses 

This section would prescribe 

insertion of certain contract clauses in 

acquisitions from SDVOSBs and VOSBs, 

including section 852.215–70, ServiceDisabled Veteran-Owned and VeteranOwned Small Business Evaluation 

Factors, and section 852.215–71, 

Evaluation Factor Commitments, for 

applicable solicitations and contracts. 

Section 819.201 General Policy 

This section would authorize the 

Secretary to establish goals for each 

fiscal year for participation in 

Department contracts by SDVOSBs and 

VOSBs. Furthermore, in order to 

establish contracting priority for 

veteran-owned and -controlled small 

businesses in accordance with section 

8128, the Secretary may decrease other 

status-specific small business goals set 

forth by section 15(g)(1) of the Small 

Business Act (15 U.S.C. 644(g)(1)) upon 

consultation with the Administrator of 

the U.S. Small Business Administration. 

Section 819.307 Protests 

FAR 19.307 contains instructions for 

processing protests of status as a 

SDVOSB concern. Section 8127 

contains additional eligibility criteria 

for VA’s processing of protests and 

authorizes VA to conduct VOSB setasides. Proposed VAAR section 819.307 

would address protest procedures and 

other information specific to VA’s 

unique acquisition program. 

Section 819.704 Subcontracting Plan 

Requirements 

In accordance with section 8127, 

proposed section 819.704 would require 

contracting officers to include suggested 

subcontracting goals in acquisitions that 

may require a subcontracting plan. To 

receive subcontracting plan 

accomplishment credit for 

subcontracting with SDVOSBs and 

VOSBs, prime contractors would be 


dwashington3 on PRODPC61 with PROPOSALS
49144 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 

required to use eligible businesses 

identified in the VIP database. 

Section 819.705 Appeals of 

Contracting Officer Decisions 

This section would prescribe 

procedures for appeals of VA 

contracting officers’ SDVOSB set-aside 

decisions, VOSB set-aside decisions, 

and prime contractor credits for 

subcontracting. 

Section 819.709 Contract Clause 

This section would require 

contracting officers to insert the clause 

in section 852.219–9, Small Business 

Subcontracting Plan Minimum 

Requirements, for solicitations and 

contracts that include the FAR clause at 

52.219–9, Small Business 

Subcontracting Plan. 

Subpart 819.70 Service-Disabled 

Veteran-Owned and Veteran-Owned 

Small Business Acquisition Program 

This subpart would establish sole 

source contracting procedures for 

acquisitions under $5 million and create 

a new set-aside program for SDVOSBs 

and VOSBs. 

Subpart 819.71 VA Mentor-Prote ́ge ́

Program 

In accordance with paragraph (3)(a) of 

VA’s Executive Order 13360 strategic 

plan, we propose to establish a SDVOSB 

mentor-prote ́ge ́ program within VA 

under new subpart 819.71, consisting of 

sections 819.7101 through 819.7115, 

and at sections 852.219–71 and 

852.219–72. We propose to establish 

this program to help SDVOSBs receive 

developmental support from VA prime 

contractors in order to increase the base 

of SDVOSBs eligible to perform VA 

prime contracts and to participate as 

subcontractors on VA prime contracts. 

Sections 828.106–71, 828.106–72, and 

852.228–72 Assisting Service-Disabled 

Veteran-Owned and Veteran-Owned 

Small Businesses in Obtaining Bonds 

In accordance with paragraph (3)(f) of 

VA’s Executive Order 13360 strategic 

plan, we propose to add new sections 

828.106–71, 828.107–72, and 852.228–

72, to encourage prime contractors to 

assist SDVOSBs and VOSBs in obtaining 

subcontractor performance and payment 

bonds and to encourage mentor firms to 

assist prote ́ge ́ SDVOSBs and VOSBs in 

obtaining acceptable bid, payment, and 

performance bonds as prime 

contractors. The ability to obtain 

acceptable surety bonds is one of the 

major concerns for small businesses in 

contracting with the Federal 

government for construction. 

Regulatory Flexibility Act 

This regulation may 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 the 

law provides that the Secretary shall 

give priority to small business concerns 

owned and controlled by veterans. 

Service-disabled veteran-owned small 

businesses (SDVOSBs) and veteranowned small businesses (VOSBs) may 

benefit from this regulation. Other small 

businesses may be indirectly affected if 

a greater portion of VA’s small business 

contracts are awarded to SDVOSBs and 

VOSBs. However, this regulation may 

result in an increase in VA contracts 

awarded to the overall total of small 

businesses. 

An Initial Regulatory Flexibility 

Analysis (IRFA) has been prepared and 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration in accordance with 5 

U.S.C. 603. Interested parties are invited 

to submit comments on VA’s regulatory 

flexibility analysis. The analysis is as 

follows: 

1. Description of the reasons why 

action by the agency is being 

considered. 

These proposed changes to the 

Veterans Affairs Acquisition Regulation 

(VAAR) implement sections 502 and 

503 of Public Law 109–461, the 

Veterans Benefits, Health Care, and 

Information Technology Act of 2006 (38 

U.S.C. 8127 and 8128). The changes will 

also implement the rulemaking portions 

of VA’s Strategic Plan for Executive 

Order 13360, Providing Opportunities 

for Service-Disabled Veteran Businesses 

to Increase Their Federal Contracting 

and Subcontracting (http:// 

www.vetbiz.gov/fpp/fpp.htm). VA exists 

to serve veterans, and buying from 

SDVOSBs and VOSBs directly supports 

that mission. Such acquisitions support 

the socioeconomic well-being of the 

Nation and support VA’s Strategic 

Goals. The proposed changes to the VA 

Acquisition Regulation reflect the intent 

of Congress that VA fulfill its special 

mission to serve veterans and enable 

them to realize the American dream that 

they fought to protect, especially those 

who became disabled while serving 

their country. 

2. Succinct statement of the objectives 

of, and legal basis for, the proposed rule. 

Sections 502 and 503 of Public Law 

109–461 require VA to create a unique 

acquisition program among Federal 

agencies that permits preferences for 

SDVOSBs and VOSBs. This proposed 

rule would permit VA contracting 

officers to conduct acquisition actions 

with preferences for SDVOSBs or 

VOSBs. Specifically, this proposed rule 

will allow VA contracting officers to: 

a. Under certain conditions, permit 

non-competitive sourcing under the 

simplified acquisition threshold with 

SDVOSBs or VOSBs; 

b. Require set-asides for SDVOSBs or 

VOSBs above the simplified acquisition 

threshold when the contracting officer 

has a reasonable expectation that two or 

more eligible SDVOSBs or VOSBs will 

submit offers and that the award can be 

made at a fair and reasonable price that 

offers the best value to the United 

States; 

c. Under certain conditions, permit 

non-competitive sourcing for SDVOSBs 

or VOSBs above the simplified 

acquisition threshold when the 

contracting officer determines that a fair 

and reasonable price will be obtained as 

a result of negotiations for requirements 

not to exceed $5 million; 

d. Include evaluation factors in 

negotiated acquisitions that give 

preference to SDVOSBs and VOSBs and 

preference to offerors who propose to 

include such businesses as 

subcontractors; 

e. Require offerors who propose to use 

SDVOSBs or VOSBs as subcontractors to 

utilize eligible businesses; 

f. Require VOSBs participating in the 

Department’s acquisitions to register in 

VetBiz.gov’s Vendor Information Pages 

(VIP) database and verify that the 

business meets eligibility requirements; 

g. Establish a VA Mentor-Prote ́ge ́

Program and give large businesses that 

participate in the program a preference 

in the award of VA prime contracts; 

h. Encourage prime contractors and 

mentors to assist SDVOSBs and VOSBs 

in obtaining bonding when required; 

i. Recommend debarment of any 

business that willfully or deliberately 

misrepresents ownership and control of 

the business for purposes of registering 

in the VetBiz.gov VIP database or other 

federal databases; and 

j. Under certain conditions, acquire 

supplies and services from SDVOSBs 

and VOSBs in lieu of FPI and GPO. 

3. Description of, and, where feasible, 

estimate of the number of small entities 

to which the proposed rule will apply. 

VA cannot accurately determine how 

many concerns would be participating 

in these SDVOSB/VOSB contract 

awards because there is insufficient data 

on SDVOSBs/VOSBs that are ready and 

able to perform under VA requirements 

to support a reasonable estimate. 

To establish the likely number of 

SDVOSBs or VOSBs that may benefit 

from VA’s unique procurement 

authority there are two principal data 

sources, the Central Contractor 


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Registration (CCR) database, in which a 

business must be listed to receive a 

payment from a Federal agency, and 

VA’s VetBiz.gov VIP database. A CCR 

Dynamic Small Business Search query 

conducted on March 13, 2008, returned 

40,163 VOSBs, including 11,465 

SDVOSBs. A VIP query returned 10,695 

VOSBs, including 6,354 SDVOSBs. The 

VIP database requires that businesses 

answer eligibility questions before they 

are permitted to register their business. 

The CCR is a self-representation 

database. 

Under this proposed rule, VA 

contracting teams will be required to 

give priority consideration to SDVOSBs 

and VOSBs when using other 

contracting programs, like set-asides for 

the Historically Underutilized Business 

(HUB) Zone Program or 8(a) Business 

Development Program reserved actions 

or the Small Business Set-aside 

program. A CCR Dynamic Small 

Business Search conducted on March 

13, 2008, returned 13,848 active 

HUBZone firms. Of this population, 

2,565, or 19 percent, are also VOSBs. A 

search of active 8(a) businesses 

identified 9,822 current firms, which 

includes 1,285 VOSBs, or 14 percent of 

the total population. There are 63,395 

woman-owned small businesses 

(WOSBs) in the Central Contractor 

Registration, of which 4,471 appear to 

also be VOSBs. VA notes that the SBA 

is in the process of establishing a WOSB 

set-aside program, making the 

percentage of WOSBs who are also 

VOSB eligible of interest to the 

Department. 

There are some concerns that the 

proposed rule will displace business 

opportunities for non-veteran-owned 

businesses, based on the following 

speculations: 

• Additional businesses may be 

opened by veterans seeking to 

participate in the sole source or setaside procurement actions; 

• Veteran-owned small businesses 

not currently in the Federal market may 

be expected to explore selling to VA; 

• The VOSB population may increase 

as these businesses register in the 

VetBiz.gov VIP database; 

• Public Law 109–461 procurement 

authority also requires that VA’s large 

prime contractors use eligible 

businesses in order to receive 

subcontracting program credit for 

VOSBs and SDVOSBs; and 

• On June 6, 2008, the Office of 

Federal Procurement Policy issued new 

guidance regarding Interagency 

Agreements. Under this policy, other 

Federal agencies with which VA 

executes such agreements will be 

governed by the procurement rules 

contained in this regulation. In FY 2007, 

interagency acquisitions were 

approximately $15,444,709.39, or 0.13% 

of total contract dollars. 

The Department of Veterans Affairs 

has a strong commitment to supporting 

all types of small businesses, as 

demonstrated in the procurement chart 

below: 

FY 2006 FY 2007 

($) (%) ($) (%) 

Total Procurement ........................................................................................... 10,282,566,304 .................... 11,784,896,886 ....................

Total Small Business ....................................................................................... 3,028,055,461 29.45 3,878,901,724 32.91 

Small and Disadvantaged Business ................................................................ 507,442,123 4.93 603,502,602 5.12 

8(a) ................................................................................................................... 402,659,565 3.92 406,996,187 3.45 

Woman-Owned Small Business ...................................................................... 513,104,216 4.99 573,355,381 4.87 

Veteran-Owned Small Business ...................................................................... 666,825,417 6.49 1,193,853,547 10.13 

Service-Disabled Veteran-Owned Small Business ......................................... 348,077,159 3.39 818,698,785 6.95 

HUBZone ......................................................................................................... 336,856,889 3.28 381,875,493 3.24 

The preliminary Total Small Business 

procurement for FY2007 was 

$3,878,901,724.00 or 32.91%. 

Procurement totals for SDVOSBs and 

VOSBs were $2,012,552,332.00 or 

17.08% and procurement totals for nonveteran-owned businesses were 

$1,965,729,663.00 or 16.68%, a mere 

.40% difference. Although, SDVOSBs 

and VOSBs gained 7.2% of 

procurements from FY2006 to FY2007 

and non-veteran-owned businesses lost 

.44% of procurements, the non-veteranowned businesses still received 

increased procurement dollars totaling 

$205,666,870.00 from FY2006 to 

FY2007. Assuming this trend and/or 

this new procurement authority does 

increase procurement percentages for 

SDVOSBs and VOSBs and the 

procurement percentages for nonveteran-owned businesses decrease, as 

previously demonstrated from FY2006 

to FY2007, the contracting dollars and/ 

or opportunities for non-veteran-owned 

businesses were not adversely impacted 

economically. VA also estimates that it 

would be unrealistic for SDVOSBs and 

VOSBs to absorb the entire 16.68% of 

procurements that are currently being 

awarded to the non-veteran-owned 

businesses. The SDVOSBs and VOSBs 

are more likely to sub-contract with the 

non-veteran-owned businesses with 

existing contracts rather than investing 

in costly business expansions. Based on 

prior procurement trends, VA believes 

there would not be an adverse economic 

impact on non-veteran-owned 

businesses, but requests comment from 

the public on other possible impacts 

this rule may have on small entities. 

This rule also creates a MentorProte ́ge ́ Program for SDVOSBs and 

VOSBs. It is the expectation that at such 

time as this rule is finalized, those 

Prote ́ge ́ entities would directly benefit 

from the forms of Mentoring described 

in this proposed rule. VA believes there 

would not be an adverse economic 

impact on small contractors or 

subcontractors, but requests comment 

from the public on other possible 

impacts this rule may have on small 

entities. Comments will be used as a 

factual basis upon which VA would 

certify that this rule will not have a 

significant economic impact on a 

substantial number of small entities. 

For the reasons outlined above, given 

the relatively small number of 

businesses owned and controlled by 

veterans in the Federal marketplace and 

with the understanding that this rule 

would apply only to VA and its large 

prime contractors, VA believes this rule 

would not have a major impact on small 

entities doing business in the Federal 

marketplace. 

VA welcomes comments concerning 

the potential number of small entities 

that could become eligible under this 

rule. VA also specifically requests 

comments concerning the rule’s impact 

on small entities that are not VOSBs. 

4. Description of projected reporting, 

recordkeeping, and other compliance 

requirements of the proposed rule, 

including an estimate of the classes of 

small entities which will be subject to 

the requirement and the type of 

professional skills necessary for 

preparation of the report or record. 


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49146 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 

There are two categories of coverage 

in this proposed rule that could 

potentially require the collection of 

information from contractors. VA will 

collect information from prime 

contractors seeking a preference for 

subcontracting with SDVOSBs or 

VOSBs. That information would include 

identity of the SDVOSBs or VOSBs, the 

approximate dollar value of the 

proposed subcontracts, and 

confirmation that the proposed 

subcontractors are eligible SDVOSBs or 

VOSBs as verified by the VetBiz.gov VIP 

database. VA estimates the cost to an 

individual business to be less than 

$100.00 for 70–75% of the businesses 

seeking verification, and the average 

cost to the entire population of veterans 

seeking to become verified is less than 

$325.00 on average. VA also will collect 

information in conjunction with 

preferences associated with the VA 

Mentor-Prote ́ge ́ Program. That 

information would include the program 

agreement, developmental plan, and 

reports on the success of the program. 

5. Identification, to the extent 

practicable, of all relevant Federal rules 

which may duplicate, overlap, or 

conflict with the proposed rule. 

The VAAR (48 CFR chapter 8) 

supplements the FAR (48 CFR chapter 

1). This proposed rule would affect 48 

CFR parts 802, 804, 808, 809, 810, 813, 

815, 819, 828, and 852 and 

corresponding parts of the FAR. 

6. Description of any significant 

alternatives to the proposed rule which 

would accomplish the stated objectives 

of applicable statutes and which would 

minimize any significant economic 

impact of the proposed rule on small 

entities. This proposed rule is designed 

to benefit SDVOSBs and VOSBs. There 

are no alternatives which would 

accomplish the stated objectives of 

sections 502 and 503 of Public Law 

109–461 to give contracting priority to 

SDVOSBs and VOSBs. 

Executive Order 12866 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety, and other advantages; 

distributive impacts; and equity). The 

Executive Order classifies a ‘‘significant 

regulatory action,’’ requiring review by 

the Office of Management and Budget 

(OMB) unless OMB waives such review, 

as any regulatory action that is likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more or adversely affect in a 

material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this proposed rule have 

been examined, and it has been 

determined to be a significant regulatory 

action under Executive Order 12866 

because it is likely to result in a rule that 

may raise novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or principles set 

forth in the Executive Order. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

developing any rule that may result in 

an expenditure by State, local, or tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

given year. This proposed rule would 

have no such effect on State, local, or 

tribal governments, or the private sector. 

Paperwork Reduction Act 

Under the Paperwork Reduction Act 

(PRA) of 1995 (44 U.S.C. 3501–3521), 

collections of information are contained 

in this proposed rule. These collections 

are contained in new sections that were 

not previously contained in the VAAR. 

This notice is to obtain an OMB control 

number for these new sections. As 

required under section 3507(d) of the 

Act, VA has submitted a copy of this 

rulemaking action to OMB for its review 

of the collection of information. 

OMB assigns control numbers to 

collections of information it approves. 

VA may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. 

Comments on the collection of 

information should be submitted to 

OMB, Attention: Desk Officer for the 

Department of Veterans Affairs, Office 

of Information and Regulatory Affairs, 

Office of Management and Budget, 

Washington, DC 20503, with copies to 

the Director, Regulations Management 

(00REG), Department of Veterans 

Affairs, 810 Vermont Ave., NW., 

Washington, DC 20420. Comments 

should indicate that they are submitted 

in response to ‘‘RIN 2900–AM92.’’

There are categories of coverage in 

this proposed rule that could potentially 

require the collection of information 

from contractors: (1) Section 852.215–

70, Veteran-Owned Small Business 

Evaluation Factors; and (2) subpart 

819.71, VA Mentor-Prote ́ge ́ Program, 

specifically sections 819.7101 through 

819.7115 and the related clauses at 

sections 852.219–71 and 852.219–72. 

There is no information available upon 

which to judge the impact of these PRA 

requirements, but since the provisions 

are limited to SDVOSBs and VOSBs, 

rather than to all small businesses, 

collection efforts are estimated to be 

minimal. 

Title and section number: 852.215–70, 

Veteran-Owned Small Business 

Evaluation Factors. 

Summary of collection of information: 

VA is proposing to give preference to 

prime contractors who offer to 

subcontract with SDVOSBs or VOSBs. 

VA must collect information from 

offerors regarding: (1) Proposed 

SDVOSB and VOSB subcontractors; (2) 

the approximate dollar value of the 

proposed subcontracts; and (3) 

eligibility of the proposed 

subcontractors as verified in VetBiz.gov 

VIP database (http://www.VetBiz.gov). 

Description of need for information 

and proposed use of information: The 

information is submitted on a voluntary 

basis by those offerors who wish to 

qualify for this evaluation factor. The 

information will be used by the 

contracting officer to determine whether 

or not the offeror qualifies for extra 

credit in the selection of the contract 

awardee. Those offerors who qualify 

will be afforded a preference in the 

selection. 

Description of likely respondents: Any 

offeror, on a negotiated solicitation that 

includes the applicable evaluation 

factor, who intends to subcontract with 

one or more SDVOSBs or VOSBs and 

who wishes to obtain a preference in the 

award selection. 

Estimated number of respondents: 

125. 

Estimated frequency of responses: 1 

response for each solicitation. 

Estimated average burden per 

collection: 5 minutes. 

Estimated total annual reporting and 

recordkeeping burden: 10 hours. 

Title and section number: Subpart 

819.71, VA Mentor-Prote ́ge ́ Program, 

subpart 819.71’s related sections 


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819.7101 through 819.7115, and the 

related clauses at section 852.219–71, 

VA Mentor-Prote ́ge ́ Program, and 

section 852.219–72, Evaluation Factor 

for Participation in the VA MentorProte ́ge ́ Program. 

Summary of collection of information: 

VA is proposing to institute a MentorProte ́ge ́ Program, whereby a large 

business agrees to provide 

developmental support to a VOSB or 

SDVOSB. VA must approve the MentorProte ́ge ́ Agreement entered into by the 

two parties, and VA requires both 

parties to report on the success of the 

program. Mentors can qualify for 

additional preference on negotiated 

solicitations by furnishing evidence of 

participation in the program with their 

offer. 

Description of need for information 

and proposed use of information: The 

information is needed for the review 

and evaluation of mentor applications 

for realism, validity, and accuracy of 

provided information and for 

conducting a mid-term evaluation at the 

mid-point interval to measure prote ́ge ́

progress against the developmental plan 

contained in the approved agreement. 

The information will also be used to 

evaluate the status of a business as a 

participant in VA’s Mentor-Prote ́ge ́

Program for possible credit in negotiated 

contracts. 

Description of likely respondents: 

Large business prime contractors and 

SDVOSBs or VOSBs. 

Estimated number of respondents: 50. 

Estimated frequency of responses: 

Each prote ́ge ́ program participant will 

be required to submit 3 sets of data 

consisting of the application and the 

mid- and end-term reports. Each mentor 

program participant will be required to 

submit 4 sets of data consisting of the 

application, the mid- and end-term 

reports, and, when submitting an offer, 

information to verify their participation 

in the program in order to receive 

evaluation credit. 

Estimated average burden per 

collection: 1 hour weighted average per 

data submission. 

Estimated total annual reporting and 

recordkeeping burden: 200 hours (4 data 

submissions @ 1 hour each times 50 

program participants). 

The Department considers comments 

by the public on collections of 

information in—

• Evaluating whether the collections 

of information are necessary for the 

proper performance of the functions of 

the Department, including whether the 

information will have practical utility; 

• Evaluating the accuracy of the 

Department’s estimate of the burden of 

the collections of information, including 

the validity of the methodology and 

assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collections of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

OMB is required to make a final 

decision concerning the collection of 

information contained in this proposed 

rule between 30 and 60 days after 

publication of this document in the 

Federal Register. Therefore, a comment 

to OMB is best assured of having its full 

effect if OMB receives it within 30 days 

of publication. This does not affect the 

deadline for the public to comment on 

the proposed rule. 

List of Subjects 

48 CFR Parts 802, 804, 809, 810, 813, 

and 815 

Government procurement, Reporting 

and recordkeeping requirements. 

48 CFR Part 819 

Administrative practice and 

procedure, Government procurement, 

Reporting and recordkeeping 

requirements, Small business, Veterans. 

48 CFR Part 828 

Government procurement, Insurance, 

Surety bonds. 

48 CFR Part 852 

Government procurement, Reporting 

and recordkeeping requirements. 

Approved: April 21, 2008. 

James B. Peake, 

Secretary of Veterans Affairs. 

Editorial Note: This document was 

received at the Office of the Federal Register 

on August 15, 2008. 

For the reasons set out in the 

preamble, the Department of Veterans 

Affairs proposes to amend 48 CFR 

Chapter 8 as follows: 

CHAPTER 8—DEPARTMENT OF VETERANS 

AFFAIRS 

Subchapter A—General 

PART 802—DEFINITIONS OF WORDS 

AND TERMS 

1. The authority citation for part 802 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

2. Section 802.101 is amended by 

adding in alphabetical order the 

following terms: 

802.101 Definitions. 

* * * * * 

Service-disabled veteran-owned small 

business concern (SDVOSB) has the 

same meaning as defined in FAR Part 

2.101, except for businesses 

participating in set-asides or 

subcontracts authorized by VAAR 

subpart 819.70. These businesses must 

be listed as verified on the Vendor 

Information Pages (VIP) at http:// 

www.vetbiz.gov. In addition, some 

businesses may be owned and 

controlled by a surviving spouse. 

* * * * * 

Surviving Spouse means an 

individual who has been listed in the 

Department of Veterans Affairs’ (VA) 

Veterans Benefits Administration (VBA) 

database of veterans and family 

members. To be eligible for inclusion in 

the VetBiz.gov VIP database, the 

following conditions must apply: 

(1) If the death of the veteran causes 

the small business concern to be less 

than 51 percent owned by one or more 

service-disabled veterans, the surviving 

spouse of such veteran who acquires 

ownership rights in such small business 

shall, for the period described below, be 

treated as if the surviving spouse were 

that veteran for the purpose of 

maintaining the status of the small 

business concern as a service-disabled 

veteran-owned small business. 

(2) The period referred to above is the 

period beginning on the date on which 

the veteran dies and ending on the 

earliest of the following dates: 

(i) The date on which the surviving 

spouse remarries; 

(ii) The date on which the surviving 

spouse relinquishes an ownership 

interest in the small business concern; 

(iii) The date that is 10 years after the 

date of the veteran’s death; or 

(iv) The date on which the business 

concern is no longer small under 

Federal small business size standards. 

(3) The veteran must have had a 100 

percent service-connected disability 

rating or the veteran died as a direct 

result of a service-connected disability. 

* * * * * 

Vendor Information Pages (VIP) 

means the VetBiz.gov Vendor 

Information Pages at http:// 

www.vetbiz.gov. 

Veteran-owned small business 

concern (VOSB) has the same meaning 

as defined in FAR Part 2.101, except for 

businesses participating in set-asides or 

subcontracts authorized by VAAR Part 

819.7001. These businesses must be 


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listed as verified on the VetBiz.gov VIP 

database. 

* * * * * 

PART 804—ADMINISTRATIVE 

MATTERS 

3. The authority citation for part 804 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

4. Section 804.1102 is added to read 

as follows: 

804.1102 Vendor Information Pages (VIP) 

Database. 

In addition to registering in the 

Central Contractor Registration (CCR), 

all VOSBs, including SDVOSBs, must 

register in the VIP database, available at 

http://www.VetBiz.gov, to be eligible to 

participate in VA’s Veteran-owned 

Small Business prime contracting and 

subcontracting opportunities programs. 

PART 808—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

5. The authority citation for part 808 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

6. Subpart 808.6 and section 808.603 

are added to read as follows: 

Subpart 808.6—Acquisition From 

Federal Prison Industries, Inc. (FPI) 

808.603 Purchase priorities. 

Contracting officers may purchase 

supplies and services produced or 

provided by FPI from eligible servicedisabled veteran-owned small 

businesses and veteran-owned small 

businesses, in accordance with 

procedures set forth in VAAR subpart 

819.70, without seeking a waiver from 

FPI, in accordance with 38 U.S.C. 8128, 

Small business concerns owned and 

controlled by veterans: Contracting 

priority. 

Subpart 808.8—Acquisition of Printing 

and Related Supplies 

7. Section 808.803 is added to read as 

follows: 

808.803 Priority for acquisition of printing 

and related supplies. 

Contracting officers may acquire 

government printing from eligible 

service-disabled veteran-owned small 

businesses and veteran-owned small 

businesses, in accordance with 

procedures set forth in VAAR subpart 

819.70, in lieu of the Government 

Printing Office (GPO), in accordance 

with 38 U.S.C. 8128, small business 

concerns owned and controlled by 

veterans: Contracting priority (See FAR 

8.802(a)(4)). 

PART 809—CONTRACTOR 

QUALIFICATIONS 

8. The authority citation for part 809 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

9. Section 809.406–2 is added to read 

as follows: 

809.406–2 Cause for debarment. 

Misrepresentations of VOSB or 

SDVOSB eligibility may result in action 

taken by VA officials to debar the 

business concern for a period not to 

exceed 5 years from contracting with 

VA as a prime contractor or a 

subcontractor. 

10. Part 810 is added to read as 

follows: 

PART 810—MARKET RESEARCH 

Sec. 

810.001 Market research policy. 

810.002 Market research procedures. 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

810.001 Market research policy. 

When conducting market research, 

VA contracting teams shall use the VIP 

database, at http://www.VetBiz.gov, in 

addition to other sources of information. 

810.002 Market research procedures. 

Contracting officers shall record VIP 

queries in the solicitation file by 

printing the results of the search(es) 

along with specific query used to 

generate the search(es). 

PART 813—SIMPLIFIED ACQUISITION 

PROCEDURES 

11. The authority citation for part 813 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); and 48 CFR 1.301–

1.304. 

12. Section 813.106 is revised to read 

as follows: 

813.106 Soliciting competition, evaluation 

of quotations or offers, award and 

documentation. 

Contracting officers may use other 

than competitive procedures to enter 

into a contract with an SDVOSB or 

VOSB when the amount is less than the 

simplified acquisition threshold. 

Contracting officers shall give first 

consideration to SDVOSBs. 

13. Section 813.202 is added to read 

as follows: 

813.202 Purchase guidelines. 

Open market micro-purchases shall be 

equitably distributed among all 

qualified SDVOSBs or VOSBs, 

respectively, to the maximum extent 

practicable. 

PART 815—CONTRACTING BY 

NEGOTIATION 

14. The authority citation for part 815 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c); and 48 CFR 1.301–1.304. 

15. Section 815.304 is added to read 

as follows: 

815.304 Evaluation factors and significant 

subfactors. 

(a) In an effort to assist SDVOSBs and 

VOSBs, contracting officers shall 

include evaluation factors in 

competitively negotiated solicitations 

that are not set aside for SDVOSBs or 

VOSBs. 

(b) Additional consideration shall also 

be given to any offeror, regardless of size 

status, that proposes to subcontract with 

SDVOSBs or VOSBs. 

16. Section 815.304–70 is added to 

read as follows: 

815.304–70 Evaluation factor 

commitments. 

(a) VA contracting officers shall: 

(1) Include provisions in negotiated 

solicitations giving preference to offers 

received from VOSBs and additional 

preference to offers received from 

SDVOSBs; 

(2) Use past performance in meeting 

SDVOSB subcontracting goals as a nonprice evaluation factor in selecting 

offers for award; 

(3) Use the proposed inclusion of 

SDVOSBs or VOSBs as subcontractors 

as an evaluation factor when 

competitively negotiating the award of 

contracts or task or delivery orders; and 

(4) Consider participation in VA’s 

Mentor-Prote ́ge ́ Program as an 

evaluation factor when competitively 

negotiating the award of contracts or 

task or delivery orders. 

(b) If an offeror proposes to use an 

SDVOSB or VOSB subcontractor in 

accordance with the clause at 852.215–

70, Service-Disabled Veteran-owned and 

Veteran-owned Small Business 

Evaluation Factors, the contracting 

officer shall ensure that the offeror, if 

awarded the contract, actually does use 

the proposed subcontractor or another 

SDVOSB or VOSB subcontractor for that 

subcontract or for work of similar value. 

17. Section 815.304–71 is added to 

read as follows: 


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815.304–71 Solicitation provision and 

clause. 

(a) The contracting officer shall insert 

the provision at 852.215–70, ServiceDisabled Veteran-owned and Veteranowned Small Business Evaluation 

Factors, in competitively negotiated 

solicitations that are not set aside for 

SDVOSBs or VOSBs. 

(b) The contracting officer shall insert 

the clause at 852.215–71, Evaluation 

Factor Commitments, in solicitations 

and contracts that include the clause at 

852.215–70, Service-Disabled Veteranowned and Veteran-owned Small 

Business Evaluation Factors. 

PART 819—SMALL BUSINESS 

PROGRAMS 

18. The authority citation for part 819 

is revised to read as follows: 

Authority: 38 U.S.C. 8127 and 8128; 40 

U.S.C. 121(c) and (d); 48 CFR 1.301–1.304; 

and 15 U.S.C. 637(d)(4)(E). 

Subpart 819.2—Policies 

19. Section 819.201 is revised to read 

as follows: 

819.201 General policy. 

The Secretary shall establish goals for 

each fiscal year for participation in 

Department contracts by SDVOSBs and 

VOSBs. In order to establish contracting 

priority for veteran owned and 

controlled small businesses in 

accordance with 38 U.S.C. 8128, the 

Secretary may decrease other statusspecific small business goals set forth by 

section 15(g)(1) of the Small Business 

Act (15 U.S.C. 644(g)(1)) upon 

consultation with the Administrator of 

the U.S. Small Business Administration. 

20. Section 819.307 is added to read 

as follows: 

819.307 Protests. 

For acquisitions under the authority 

of VAAR part 819.70, regarding 

eligibility of SDVOSB and VOSB 

concerns, contracting officers shall 

forward all protests to the Associate 

Administrator for Government 

Contracting AA/GC, U.S. Small 

Business Administration (ATTN: 

Veterans Business Program Protest), 409 

3rd Street, SW., Washington, DC 20416, 

for disposition. 

21. Section 819.704 is added to read 

as follows: 

819.704. Subcontracting plan 

requirements. 

(a) The contracting officer shall 

ensure that any subcontracting plans 

submitted by offerors include a goal that 

is at least commensurate with the 

annual VA SDVOSB prime contracting 

goal for the total value of planned 

subcontracts. 

(b) The contracting officer shall 

ensure that any subcontracting plans 

submitted by offerors include a goal that 

is at least commensurate with the 

annual VA VOSB prime contracting goal 

for the total value of all planned 

subcontracts. 

(c) VA’s Office of Small and 

Disadvantaged Business Utilization 

(OSDBU) shall review all prime 

contractors’ subcontracting plan 

achievement reports to ensure that, in 

the case of a subcontract that is counted 

for purposes of meeting a goal in 

accordance with subparagraphs (a) and 

(b) above, the subcontract was actually 

awarded to a business concern that is 

eligible to be counted toward meeting 

the goal, as provided in VAAR 

804.1102. 

22. Section 819.705 is added as 

follows: 

819.705 Appeal of Contracting Officer 

Decisions. 

(a) Acquisitions not exceeding the 

SAT and sections 819.7007 and 

819.7008 are excluded from this section. 

(b) When an interested party intends 

to appeal a contracting officer’s decision 

to not use the set-aside authority 

contained in VAAR 819.70, the party 

shall notify the contracting officer, in 

writing, of its intent to challenge the 

decision. The contracting officer has 5 

working days to reply to the challenge 

by either revising the strategy or 

indicating the rationale for not settingaside the requirement. Upon receipt of 

the decision, the interested party may 

appeal to the Head of the Contracting 

Activity (HCA). Such appeal shall be 

filed within 5 working days of receipt of 

the contracting officer’s decision. The 

HCA has 5 working days to respond to 

the appeal. The contracting officer shall 

suspend action on the acquisition 

unless the HCA makes a written 

determination that urgent circumstances 

exist which would significantly affect 

the interests of the Government. The 

decision of the HCA shall be final. 

(c) Prime contractors submitting 

businesses declared ineligible for credit 

in SDVOSB and/or VOSB 

subcontracting plans may appeal to the 

Director, Office of Small and 

Disadvantaged Business Utilization 

(OSDBU), within 5 working days of 

receipt of information declaring their 

subcontractor ineligible. The Director, 

OSDBU, shall have 5 working days to 

respond. The decision of the Director, 

OSDBU, may be appealed to the Senior 

Procurement Executive (SPE) within 5 

working days. The SPE shall have 15 

working days to respond and that 

decision shall be final. 

23. Section 819.709 is added to read 

as follows: 

819.709 Contract clause. 

The contracting officer shall insert the 

clause at 852.219–9, Small Business 

Subcontracting Plan Minimum 

Requirements, in solicitations and 

contracts that include the FAR clause at 

52.219–9, Small Business 

Subcontracting Plan. 

24. Subpart 819.70 is revised to read 

as follows: 

Subpart 819.70—Service-Disabled 

Veteran-Owned and Veteran-Owned 

Small Business Acquisition Program 

819.7001 General. 

(a) The Veterans Benefits, Health 

Care, and Information Technology Act 

of 2006 (38 U.S.C. 8127) created an 

acquisition program for small business 

concerns owned and controlled by 

service-disabled veterans and those 

owned and controlled by veterans for 

VA. 

(b) The purpose of the program is to 

provide contracting assistance to 

SDVOSBs and VOSBs. 

819.7002 Applicability. 

This subpart applies to VA 

contracting activities and to its prime 

contractors. 

819.7003 Eligibility. 

(a) Eligibility of SDVOSBs and VOSBs 

continues to be governed by the Small 

Business Administration regulations, 13 

CFR subparts 125.8 through 125.13, as 

well as the FAR, except where expressly 

directed otherwise by the VAAR, and 38 

CFR verification regulations for 

SDVOSBs and VOSBs. 

(b) At the time of submission of offer, 

the offeror must represent to the 

contracting officer that it is a—

(1) Service-disabled veteran-owned 

small business concern or veteranowned small business concern; 

(2) Small business concern under the 

North American Industry Classification 

System (NAICS) code assigned to the 

acquisition; and 

(3) Verified for eligibility in the 

Vendor Information Pages database. 

(c) A joint venture may be considered 

an SDVOSB or VOSB concern if—

(1) At least one member of the joint 

venture is an SDVOSB or VOSB 

concern, and makes the representations 

in paragraph (b) of this section; 

(2) Each other concern is small under 

the size standard corresponding to the 

NAICS code assigned to the 

procurement; 


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(3) The joint venture meets the 

requirements of paragraph 7 of the size 

standard explanation of Affiliates in 

FAR 19.101; and 

(4) The joint venture meets the 

requirements of 13 CFR 125.15(b), 

modified to include veteran-owned 

small businesses where this CFR section 

refers to SDVOSB concerns. 

(d) Any SDVOSB or VOSB concern 

(nonmanufacturer) must meet the 

requirements in FAR 19.102(f) to receive 

a benefit under this program. 

819.7004 Contracting order of priority. 

In determining the acquisition 

strategy applicable to an acquisition, the 

contracting officer shall consider, in the 

following order of priority, contracting 

preferences that ensure contracts will be 

awarded: 

(a) To SDVOSBs; 

(b) To VOSB, including but not 

limited to SDVOSBs; 

(c) Pursuant to—

(1) Section 8(a) of the Small Business 

Act (15 U.S.C. 637(a)); or 

(2) The Historically-Underutilized 

Business Zone (HUBZone) Program (15 

U.S.C. 657a); and 

(d) Pursuant to any other small 

business contracting preference. 

819.7005 Service-disabled veteran-owned 

small business set-aside procedures. 

(a) The contracting officer shall 

consider SDVOSB set-asides before 

considering VOSB set-asides. Except as 

authorized by 819.7007 and 819.7008, 

the contracting officer shall set-aside an 

acquisition for competition restricted to 

SDVOSB concerns upon a reasonable 

expectation that—

(1) Offers will be received from two or 

more eligible SDVOSB concerns; and 

(2) Award will be made at a fair and 

reasonable price. 

(b) When conducting SDVOSB setasides, the contracting officer shall 

ensure—

(1) Eligibility is extended to 

businesses owned and operated by 

surviving spouses; and 

(2) Businesses are registered and 

verified as eligible in Vendor 

Information Pages prior to making an 

award. 

(c) If the contracting officer receives 

only one acceptable offer at a fair and 

reasonable price from an eligible 

SDVOSB concern in response to a 

SDVOSB set-aside, the contracting 

officer should make an award to that 

concern. If the contracting officer 

receives no acceptable offers from 

eligible SDVOSB concerns, the set-aside 

shall be withdrawn and the 

requirement, if still valid, set aside for 

VOSB competition, if appropriate. 

819.7006 Veteran-owned small business 

set-aside procedures. 

(a) The contracting officer shall 

consider SDVOSB set-asides before 

considering VOSB set-asides. Except as 

authorized by 819.7007 and 819.7008, 

the contracting officer shall set aside an 

acquisition for competition restricted to 

VOSB concerns upon a reasonable 

expectation that—

(1) Offers will be received from two or 

more eligible VOSB concerns; and 

(2) Award will be made at a fair and 

reasonable price. 

(b) If the contracting officer receives 

only one acceptable offer at a fair and 

reasonable price from an eligible VOSB 

concern in response to a VOSB setaside, the contracting officer should 

make an award to that concern. If the 

contracting officer receives no 

acceptable offers from eligible VOSB 

concerns, the set-aside shall be 

withdrawn and the requirement, if still 

valid, set aside for other small business 

programs, as appropriate. 

(c) When conducting VOSB set-asides, 

the contracting officer shall ensure the 

business is registered and verified as 

eligible in the Vendor Information Pages 

prior to making an award. 

819.7007. Sole source awards to servicedisabled veteran-owned small business 

concerns. 

(a) A contracting officer may award 

contracts to SDVOSB concerns on a sole 

source basis provided—

(1) The anticipated award price of the 

contract (including options) will not 

exceed $5 million; 

(2) The requirement is synopsized in 

accordance with FAR part 5; 

(3) The SDVOSB concern has been 

determined to be a responsible 

contractor with respect to performance; 

and 

(4) Award can be made at a fair and 

reasonable price. 

(b) The contracting officer’s 

determination whether to make a sole 

source award is a business decision 

wholly within the discretion of the 

contracting officer. A determination that 

only one service-disabled veteranowned small business concern is 

available to meet the requirement is not 

required. No protest is authorized in 

connection with the issuance or 

proposed issuance of a contract under 

this section, on the basis that more than 

one service-disabled veteran-owned 

small business concern is available to 

meet the requirement. 

(c) When conducting a SDVOSB sole 

source acquisition, the contracting 

officer shall ensure businesses are 

registered and verified as eligible in the 

Vendor Information Pages prior to 

making an award. 

819.7008 Sole source awards to veteranowned small business concerns. 

(a) A contracting officer may award 

contracts to VOSB concerns on a sole 

source basis provided—

(1) The anticipated award price of the 

contract (including options) will not 

exceed $5 million; 

(2) The requirement is synopsized in 

accordance with FAR part 5; 

(3) The VOSB concern has been 

determined to be a responsible 

contractor with respect to performance; 

(4) Award can be made at a fair and 

reasonable price; and 

(5) No responsible SDVOSB concern 

has been identified. 

(b) The contracting officer’s 

determination whether to make a sole 

source award is a business decision 

wholly within the discretion of the 

contracting officer. A determination that 

only one veteran-owned small business 

concern is available to meet the 

requirement is not required. No protest 

is authorized in connection with the 

issuance or proposed issuance of a 

contract under this section, on the basis 

that more than one veteran-owned small 

business concern is available to meet 

the requirement. 

(c) When conducting a VOSB sole 

source acquisition, the contracting 

officer shall ensure businesses are 

registered and verified as eligible in the 

Vendor Information Pages prior to 

making an award. 

819.7009 Contract clauses. 

The contracting officer shall insert the 

clause 852.219–10, Notice of Total 

Service-Disabled Veteran-Owned Small 

Business Set-Aside or 852.219–11, 

Notice of Total Veteran-Owned Small 

Business Set-Aside in solicitations and 

contracts for acquisitions under this 

subpart. 

25. Subpart 819.71, consisting of 

sections 819.7101 through 819.7115, is 

added to read as follows: 

Subpart 819.71—VA Mentor-Prote ́ge ́

Program 

Sec. 

819.7101 Purpose. 

819.7102 Definitions. 

819.7103 Non-affiliation. 

819.7104 General policy. 

819.7105 Incentives for mentor 

participation. 

819.7106 Eligibility of Mentor and Prote ́ge ́

firms. 

819.7107 Selection of Prote ́ge ́ firms. 

819.7108 Application process. 

819.7109 VA review of application. 

819.7110 Developmental assistance. 

819.7111 Obligations under the MentorProte ́ge ́ Program. 

819.7112 Internal controls. 

819.7113 Reports. 

819.7114 Measurement of program success. 


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819.7115 Solicitation provisions. 

Authority: 38 U.S.C. 501. 

Subpart 819.71—VA Mentor-Prote ́ge ́

Program 

819.7101 Purpose. 

The VA Mentor-Prote ́ge ́ Program is 

designed to assist service-disabled 

veteran-owned small businesses 

(SDVOSBs) and veteran-owned small 

businesses (VOSBs) in enhancing their 

capabilities to perform contracts and 

subcontracts for VA. The MentorProte ́ge ́ Program is also designed to 

improve the performance of VA 

contractors and subcontractors by 

providing developmental assistance to 

Prote ́ge ́ entities, fostering the 

establishment of long-term business 

relationships between SDVOSBs, 

VOSBs and prime contractors, and 

increasing the overall number of 

SDVOSBs and VOSBs that receive VA 

contract and subcontract awards. A 

firm’s status as a Prote ́ge ́ under a VA 

contract shall not have an effect on the 

firm’s eligibility to seek other prime 

contracts or subcontracts. 

819.7102 Definitions. 

(a) A Mentor is a prime contractor that 

elects to promote and develop SDVOSB 

and/or VOSB subcontractors by 

providing developmental assistance 

designed to enhance the business 

success of the Prote ́ge ́. A mentor may be 

a large or small business concern. 

(b) OSDBU is the Office of Small and 

Disadvantaged Business Utilization. 

This is the VA office responsible for 

administering, implementing and 

coordinating the Department’s small 

business programs, including the 

Mentor-Prote ́ge ́ Program. 

(c) Program refers to the VA MentorProte ́ge ́ Program as described in this 

Chapter. 

(d) Prote ́ge ́ means a service-disabled 

veteran-owned small business or 

veteran-owned small business, as 

defined in VAAR 802.101, which meets 

Federal small business size standards in 

its primary North American Industrial 

Classification System (NAICS) code and 

which is the recipient of developmental 

assistance pursuant to a Mentor-Prote ́ge ́

agreement. 

819.7103 Non-affiliation. 

A Prote ́ge ́ firm will not be considered 

an affiliate of a Mentor firm solely on 

the basis that the Prote ́ge ́ firm is 

receiving developmental assistance from 

the Mentor firm under VA’s MentorProte ́ge ́ Program. The determination of 

affiliation is a function of the Small 

Business Administration. 

819.7104 General policy. 

(a) To be eligible, Mentors and 

Prote ́ge ́s must not be listed on the 

Excluded Parties List System, located at 

http://www.epls.gov. Mentors will 

provide appropriate developmental 

assistance to enhance the capabilities of 

Prote ́ge ́s to perform as prime contractors 

and/or subcontractors. 

(b) VA reserves the right to limit the 

number of participants in the program 

in order to ensure its effective 

management of the Mentor-Prote ́ge ́

Program. 

819.7105 Incentives for prime contractor 

participation. 

(a) Under the Small Business Act, 15 

U.S.C. 637(d)(4)(e), VA is authorized to 

provide appropriate incentives to 

encourage subcontracting opportunities 

for small business consistent with the 

efficient and economical performance of 

the contract. This authority is limited to 

negotiated procurements. FAR 19.202–1 

provides additional guidance. 

(b) Costs incurred by a Mentor to 

provide developmental assistance, as 

described in 819.7110 to fulfill the 

terms of their agreement(s) with a 

Prote ́ge ́ firm(s), are not reimbursable as 

a direct cost under a VA contract. If VA 

is the Mentor’s responsible audit agency 

under FAR 42.703–1, VA will consider 

these costs in determining indirect cost 

rates. If VA is not the responsible audit 

agency, Mentors are encouraged to enter 

into an advance agreement with their 

responsible audit agency on the 

treatment of such costs when 

determining indirect cost rates. 

(c) In addition to subparagraph (b) of 

this section, contracting officers may 

give Mentors evaluation credit under 

852.219–52, Evaluation Factor for 

Participation in the VA Mentor-Prote ́ge ́

Program, considerations for 

subcontracts awarded pursuant to their 

Mentor-Prote ́ge ́ Agreements and their 

subcontracting plans. Therefore: 

(1) Contracting officers may evaluate 

subcontracting plans containing MentorProte ́ge ́ arrangements more favorably 

than subcontracting plans without 

Mentor-Prote ́ge ́ Agreements. 

(2) Contracting officers may assess the 

prime contractor’s compliance with the 

subcontracting plans submitted in 

previous contracts as a factor in 

evaluating past performance under FAR 

15.305(a)(2)(v) and determining 

contractor responsibility 19.705–5(a)(1). 

(d) OSDBU Mentoring Award. A nonmonetary award will be presented 

annually to the Mentoring firm 

providing the most effective 

developmental support of a Prote ́ge ́. The 

Mentor-Prote ́ge ́ Program Manager will 

recommend an award winner to the 

OSDBU Director. 

(e) OSDBU Mentor-Prote ́ge ́ Annual 

Conference. At the conclusion of each 

year in the Mentor-Prote ́ge ́ Program, 

Mentor firms will be invited to brief 

contracting officers, program leaders, 

office directors and other guests on 

Program progress. 

819.7106 Eligibility of Mentor and Prote ́ge ́

firms. 

Eligible business entities approved as 

Mentors may enter into agreements 

(hereafter referred to as ‘‘Mentor-Prote ́ge ́

Agreement’’ or ‘‘Agreement’’ and 

explained in 819.7108) with eligible 

Prote ́ge ́s. Mentors provide appropriate 

developmental assistance to enhance 

the capabilities of Prote ́ge ́s to perform as 

contractors and/or subcontractors. 

Eligible small business entities capable 

of providing developmental assistance 

may be approved as Mentors. Prote ́ge ́s 

may participate in the Program in 

pursuit of a prime contract or as 

subcontractors under the Mentor’s 

prime contract with VA, but are not 

required to be a subcontractor to a VA 

prime contractor or be a VA prime 

contractor. 

(a) Eligibility. A Mentor: (1) May be 

either a large or small business entity; 

(2) Must be able to provide 

developmental assistance that will 

enhance the ability of Prote ́ge ́s to 

perform as prime contractors or 

subcontractors; and 

(3) Will be encouraged to enter into 

arrangements with entities with which 

it has established business 

relationships. 

(b) Eligibility. A Prote ́ge ́: 

(1) Must be a service-disabled veteranowned small business or veteran-owned 

small business as defined in VAAR 

802.101; 

(2) Must meet the size standard 

corresponding to the NAICS code that 

the Mentor prime contractor believes 

best describes the product or service 

being acquired by the subcontract; and 

(c) Prote ́ge ́s may have multiple 

Mentors. Prote ́ge ́s participating in 

Mentor-Prote ́ge ́ programs in addition to 

VA’s Program should maintain a system 

for preparing separate reports of 

mentoring activity so that results of 

VA’s Program can be reported separately 

from any other agency program. 

(d) A Prote ́ge ́ firm shall self-represent 

to a Mentor firm that it meets the 

requirements set forth in paragraph (b) 

of this section. Mentors shall confirm 

eligibility by documenting the verified 

status of the prote ́ge ́ in the VetBiz.gov 

Vendor Information Pages database. 

Prote ́ge ́s must maintain verified status 

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Prote ́ge ́ Agreement. Failure to do so 

shall result in cancellation of the 

Agreement. 

819.7107 Selection of Prote ́ge ́ firms. 

(a) Mentor firms will be solely 

responsible for selecting Prote ́ge ́ firms. 

Mentors are encouraged to select from a 

broad base of service-disabled veteranowned small business or veteran-owned 

small business firms whose core 

competencies support VA’s mission; 

and choose SDVOSB and/or VOSB 

prote ́ge ́s in addition to firms with whom 

they have established business 

relationships. 

(b) Mentors may have multiple 

Prote ́ge ́s. However, to preserve the 

integrity of the Program and assure the 

quality of developmental assistance 

provided to Prote ́ge ́s, VA reserves the 

right to limit the total number of 

Prote ́ge ́s participating under each 

Mentor firm for the Mentor-Prote ́ge ́

Program. 

(c) The selection of Prote ́ge ́ firms by 

Mentor firms may not be protested, 

except that any protest regarding the 

size or eligibility status of an entity 

selected by a Mentor shall be handled 

in accordance with the Federal 

Acquisition Regulation (FAR) and the 

Small Business Administration 

regulations. 

819.7108 Application process. 

(a) Firms interested in becoming 

approved Mentor-Prote ́ge ́ participants 

must submit a joint written VA MentorProte ́ge ́ Agreement to the VA OSDBU 

for review and approval. The proposed 

Mentor-Prote ́ge ́ Agreement will be 

evaluated on the extent to which the 

Mentor plans to provide developmental 

assistance. Evaluations will consider the 

nature and extent of technical and 

managerial support as well as any 

proposed financial assistance in the 

form of equity investment, loans, jointventure, and traditional subcontracting 

support. 

(b) The Mentor-Prote ́ge ́ Agreement 

must contain: 

(1) Names, addresses, phone numbers, 

and e-mail addresses (if available) of the 

Mentor and Prote ́ge ́ firm(s) and a point 

of contact for both Mentor and Prote ́ge ́

who will oversee the agreement; 

(2) A statement from the Prote ́ge ́ firm 

that the firm is currently eligible as a 

SDVOSB or VOSB to participate in VA’s 

Mentor-Prote ́ge ́ Program; 

(3) A description of the Mentor’s 

ability to provide developmental 

assistance to the Prote ́ge ́ and the type of 

developmental assistance that will be 

provided, to include a description of the 

types and dollar amounts of subcontract 

work, if any, that may be awarded to the 

Prote ́ge ́ firm; 

(4) Duration of the Agreement, 

including rights and responsibilities of 

both parties (Mentor and Prote ́ge ́), with 

bi-annual reviews; 

(5) Termination procedures, including 

procedures for the parties’ voluntary 

withdrawal from the Program. The 

Agreement shall require the Mentor or 

the Prote ́ge ́ to notify the other firm and 

VA OSDBU in writing at least 30 days 

in advance of its intent to voluntarily 

terminate the Agreement; 

(6) A schedule with milestones for 

providing assistance; 

(7) Criteria for evaluation of the 

Prote ́ge ́’s developmental success; 

(8) A plan addressing how the Mentor 

will increase the quality of the Prote ́ge ́

firm’s technical capabilities and 

contracting and subcontracting 

opportunities; 

(9) An estimate of the total cost of the 

planned mentoring assistance to be 

provided to the Prote ́ge ́; 

(10) An agreement by both parties to 

comply with the reporting requirements 

of VAAR 819.7113; 

(11) A plan for accomplishing 

unfinished work should the agreement 

be voluntarily cancelled; 

(12) Other terms and conditions, as 

appropriate; and 

(13) Signatures and date(s). 

(c) The Agreement defines the 

relationship between the Mentor and 

the Prote ́ge ́ firms only. The Agreement 

does not create any privity of contract 

between the Mentor and VA or the 

Prote ́ge ́ and VA. 

819.7109 VA review of application. 

(a) VA OSDBU will review the 

information to establish the Mentor and 

Prote ́ge ́ eligibility and to ensure that the 

information that is in section 819.7108 

is included. If the application relates to 

a specific contract, then OSDBU will 

consult with the responsible contracting 

officer on the adequacy of the proposed 

Agreement, as appropriate. OSDBU will 

complete its review no later than 30 

calendar days after receipt of the 

application or after consultation with 

the contracting officer, whichever is 

later. There is no charge to apply for the 

Mentor-Prote ́ge ́ Program. 

(b) After OSDBU completes its review 

and provides written approval, the 

Mentor may execute the Agreement and 

implement the developmental 

assistance as provided under the 

Agreement. OSDBU will provide a copy 

of the Mentor-Prote ́ge ́ Agreement to the 

VA contracting officer for any VA 

contracts affected by the Agreement. 

(c) If the application is disapproved, 

the Mentor may provide additional 

information for reconsideration. OSDBU 

will complete review of any 

supplemental material no later than 30 

days after its receipt. Upon finding 

deficiencies that VA considers 

correctable, OSDBU will notify the 

Mentor and Prote ́ge ́ and request 

correction of deficiencies to be provided 

within 15 days. 

819.7110 Developmental assistance. 

The forms of developmental 

assistance a Mentor can provide to a 

Prote ́ge ́ include, but are not limited to, 

the following: 

(a) Guidance relating to—

(1) Financial management; 

(2) Organizational management; 

(3) Overall business management/ 

planning; 

(4) Business development; and 

(5) Technical assistance. 

(b) Loans. 

(c) Rent-free use of facilities and/or 

equipment. 

(d) Property. 

(e) Temporary assignment of 

personnel to a Prote ́ge ́ for training. 

(f) Any other types of permissible, 

mutually beneficial assistance. 

819.7111 Obligations under the MentorProte ́ge ́ Program. 

(a) A Mentor or Prote ́ge ́ may 

voluntarily withdraw from the Program. 

However, in no event shall such 

withdrawal impact the contractual 

requirements under any prime contract. 

(b) Mentors and prote ́ge ́s shall submit 

reports to VA OSDBU in accordance 

with 819.7113. 

819.7112 Internal controls. 

(a) OSDBU will oversee the Program 

and will work cooperatively with 

relevant contracting officers to achieve 

Program objectives. OSDBU will 

establish internal controls as checks and 

balances applicable to the Program. 

These controls will include: 

(1) Reviewing and evaluating Mentor 

applications for validity of the provided 

information; 

(2) Reviewing bi-annual progress 

reports submitted by Mentors and 

Prote ́ge ́s on Prote ́ge ́ development to 

measure Prote ́ge ́ progress against the 

plan submitted in the approved 

Agreement; 

(3) Reviewing and evaluating 

financial reports and invoices submitted 

by the Mentor to verify that VA is not 

charged by the Mentor for providing 

developmental assistance to the Prote ́ge ́; 

and 

(4) Limiting the number of 

participants in the Mentor-Prote ́ge ́

Program within a reporting period, in 

order to insure the effective 

management of the Program. 


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(b) VA may rescind approval of an 

existing Mentor-Prote ́ge ́ Agreement if it 

determines that such action is in VA’s 

best interest. The rescission shall be in 

writing and sent to the Mentor and 

Prote ́ge ́ after approval by the OSDBU 

Director. Rescission of an Agreement 

does not change the terms of any 

subcontract between the Mentor and the 

Prote ́ge ́. 

819.7113 Reports. 

(a) Mentor and Prote ́ge ́ entities shall 

submit to VA’s Office of Small and 

Disadvantaged Business Utilization biannual reports on progress under the 

Mentor-Prote ́ge ́ Agreement. VA will 

evaluate reports by considering the 

following: 

(1) Specific actions taken by the 

Mentor during the evaluation period to 

increase the participation of their 

Prote ́ge ́(s) as suppliers to VA, other 

government agencies and to commercial 

entities; 

(2) Specific actions taken by the 

Mentor during the evaluation period to 

develop technical and administrative 

expertise of a Prote ́ge ́ as defined in the 

Agreement; 

(3) The extent to which the Prote ́ge ́

has met the developmental objectives in 

the Agreement; 

(4) The extent to which the Mentor’s 

participation in the Mentor-Prote ́ge ́

Program impacted the Prote ́ge ́’(s’) ability 

to receive contract(s) and subcontract(s) 

from private firms and Federal agencies 

other than VA; and, if deemed 

necessary; 

(5) Input from the Prote ́ge ́ on the 

nature of the developmental assistance 

provided by the Mentor. 

(b) OSDBU will submit annual reports 

to the relevant contracting officer 

regarding participating prime 

contractor’(s’) performance in the 

Program. 

(c) In addition to the written progress 

report in paragraph (a) of this section, at 

the mid-term point in the MentorProte ́ge ́ agreement, the Mentor and the 

Prote ́ge ́ shall formally brief the VA 

OSDBU regarding program 

accomplishments as pertains to the 

approved agreement. 

(d) Mentor and Prote ́ge ́ firms shall 

submit an evaluation to OSDBU at the 

conclusion of the mutually agreed upon 

Program period, the conclusion of the 

contract, or the voluntary withdrawal by 

either party from the Program, 

whichever comes first. 

819.7114 Measurement of program 

success. 

The overall success of the VA MentorProte ́ge ́ Program encompassing all 

participating mentors and prote ́ge ́s will 

be measured by the extent to which it 

results in: 

(a) An increase in the quality of the 

technical capabilities of the prote ́ge ́

firm. 

(b) An increase in the number and 

dollar value of contract and subcontract 

awards to prote ́ge ́ firms since the time 

of their entry into the program 

attributable to the Mentor-Prote ́ge ́

relationship (under VA contracts, 

contracts awarded by other Federal 

agencies and under commercial 

contracts.) 

819.7115 Solicitation provisions. 

(a) Insert the provision at 852.219–71, 

VA Mentor-Prote ́ge ́ Program, in 

solicitations that include the FAR clause 

at 52.219–9, Small Business 

Subcontracting Plan. 

(b) Insert the provision at 852.219–72, 

Evaluation Factor for Participation in 

the VA Mentor-Prote ́ge ́ Program, in 

solicitations that include an evaluation 

factor for participation in VA’s MentorProte ́ge ́ Program in accordance with 

819.7105 and that also include the FAR 

clause at 52.219–9, Small Business 

Subcontracting Plan. 

PART 828—BONDS AND INSURANCE 

26. The authority citation for part 828 

is revised to read as follows: 

Authority: 38 U.S.C. 501, 8127, 8128 and 

8151–8153; 40 U.S.C. 121(c); and 48 CFR 

1.301–1.304. 

27. Section 828.106–71 is added to 

read as follows: 

828.106–71 Assisting service-disabled 

veteran-owned and veteran-owned small 

businesses in obtaining bonding. 

VA prime contractors are encouraged 

to assist SDVOSB concerns and VOSB 

concerns in obtaining subcontractor 

performance and payment bonds. 

Mentors are especially encouraged to 

assist their Prote ́ge ́s in obtaining bid, 

payment, and performance bonds as 

prime contractors and bonds as 

subcontractors when bonds are 

required. 

28. Section 828.106–72 is added to 

read as follows: 

828.106–72 Contract provision. 

Insert the provision at 852.228–72, 

Assisting Service-Disabled VeteranOwned and Veteran-Owned Small 

Businesses in Obtaining Bonds, in 

solicitations that include the FAR clause 

at 52.228–1, Bid Guarantee. 

PART 852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

29. The authority citation for part 852 

is revised to read as follows: 

Authority: 38 U.S.C. 501, 8127, 8128, and 

8151–8153; 40 U.S.C. 121(c); and 48 CFR 

1.301–1.304. 

30. Section 852.215–70 is added to 

read as follows: 

852.215–70 Service-Disabled VeteranOwned and Veteran-Owned Small Business 

Evaluation Factors. 

As prescribed in 815.304–71(a), insert 

the following clause: 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors (Date) 

(a) In an effort to achieve socioeconomic 

small business goals, depending on the 

evaluation factors included in the 

solicitation, VA may evaluate offerors based 

on their service-disabled veteran-owned or 

veteran-owned small business status and 

their proposed use of eligible servicedisabled veteran-owned small businesses and 

veteran-owned small businesses as 

subcontractors. 

(b) Eligible service-disabled veteran-owned 

offerors will receive full credit, and offerors 

qualifying as veteran-owned small businesses 

will receive partial credit for the ServiceDisabled Veteran-Owned and Veteran-Owned 

Small Business Status evaluation factor. To 

receive credit, an offeror must be registered 

and verified in Vendor Information Pages. 

(http://www.VetBiz.gov). 

(c) Non-veteran offerors proposing to use 

service-disabled veteran-owned small 

businesses or veteran-owned small 

businesses as subcontractors will receive 

some consideration under this evaluation 

factor. Offerors must state in their proposals 

the names of the SDVOSBs and VOSBs with 

whom they intend to subcontract and 

provide a brief description of the proposed 

subcontracts and the approximate dollar 

values of the proposed subcontracts. In 

addition, the proposed subcontractors must 

be registered and verified in the VetBiz.gov 

Vendor Information Pages (VIP) (http:// 

www.vetbiz.gov). 

(End of Clause) 

31. Section 852.215–71 is added to 

read as follows: 

852.215–71 Evaluation Factor 

Commitments. 

As prescribed in 815.304–71(b), insert 

the following clause: 

Evaluation Factor Commitments (Date) 

The offeror agrees, if awarded a contract, 

to use the service-disabled veteran-owned 

small businesses or veteran-owned small 

businesses proposed as subcontractors in 

accordance with clause 852.215–70, ServiceDisabled Veteran-Owned and Veteran-Owned 

Small Business Evaluation Factors, or to 

substitute one or more service-disabled 

veteran-owned small businesses or veteranowned small businesses for subcontract work 

of the same or similar value. 

(End of Clause) 

32. Section 852.219–9 is added to 

read as follows: 


dwashington3 on PRODPC61 with PROPOSALS
49154 Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 

852.219–9 VA Small Business 

Subcontracting Plan Minimum 

Requirements. 

As prescribed in 819.9, insert the 

following clause: 

VA Small Business Subcontracting Plan 

Minimum Requirements (Date) 

(a) This clause does not apply to small 

business concerns. 

(b) If the offeror is required to submit an 

individual subcontracting plan, the 

minimum goals for award of subcontracts to 

service-disabled veteran-owned small 

business concerns and veteran-owned small 

business concerns shall be at least 

commensurate with the Department’s annual 

service-disabled veteran-owned small 

business and veteran-owned small business 

prime contracting goals for the total dollars 

planned to be subcontracted. 

(c) For a commercial plan, the minimum 

goals for award of subcontracts to servicedisabled veteran-owned small business 

concerns and veteran-owned small 

businesses shall be at least commensurate 

with the Department’s annual servicedisabled veteran-owned small business and 

veteran-owned small business prime 

contracting goals for the total value of 

projected subcontracts to support the sales 

for the commercial plan. 

(d) To be credited toward goal 

achievements, businesses must be verified as 

eligible in the Vendor Information Pages 

database. The contractor shall annually 

submit a listing of service-disabled veteranowned small businesses and veteran-owned 

small businesses for which credit toward goal 

achievement is to be applied for the review 

of personnel in the Office of Small and 

Disadvantaged Business Utilization. 

(e) The contractor may appeal any 

businesses determined not eligible for 

crediting toward goal achievements by 

following the procedures contained in VAAR 

subpart 819.407. 

(End of Clause) 

33. Section 852.219–10 is added to 

read as follows: 

852.219–10 VA Notice of Total ServiceDisabled Veteran-Owned Small Business 

Set-Aside. 

As prescribed in 819.7009, insert the 

following clause: 

VA Notice of Total Service-Disabled 

Veteran-Owned Small Business SetAside (Date) 

(a) Definition. For the Department of 

Veterans Affairs, ‘‘Service-disabled veteranowned small business concern’’—

(1) Means a small business concern—

(i) Not less than 51 percent of which is 

owned by one or more service-disabled 

veterans or, in the case of any publicly 

owned business, not less than 51 percent of 

the stock of which is owned by one or more 

service-disabled veterans (or eligible 

surviving spouses); 

(ii) The management and daily business 

operations of which are controlled by one or 

more service-disabled veterans (or eligible 

surviving spouses) or, in the case of a servicedisabled veteran with permanent and severe 

disability, the spouse or permanent caregiver 

of such veteran; 

(iii) The business meets Federal small 

business size standards for the applicable 

North American Industry Classification 

System (NAICS) code identified in the 

solicitation document; and 

(iv) The business has been verified for 

ownership and control and is so listed in the 

Vendor Information Pages, (http:// 

www.VetBiz.gov). 

(2) ‘‘Service-disabled veteran’’ means a 

veteran, as defined in 38 U.S.C. 101(2), with 

a disability that is service-connected, as 

defined in 38 U.S.C. 101(16). 

(b) General. 

(1) Offers are solicited only from servicedisabled veteran-owned small business 

concerns. Offers received from concerns that 

are not service-disabled veteran-owned small 

business concerns shall not be considered. 

(2) Any award resulting from this 

solicitation shall be made to a servicedisabled veteran-owned small business 

concern. 

(c) Agreement. A service-disabled veteranowned small business concern agrees that in 

the performance of the contract, in the case 

of a contract for—

(1) Services (except construction), at least 

50 percent of the cost of personnel for 

contract performance will be spent for 

employees of the concern or employees of 

other eligible service-disabled veteran-owned 

small business concerns; 

(2) Supplies (other than acquisition from a 

nonmanufacturer of the supplies), at least 50 

percent of the cost of manufacturing, 

excluding the cost of materials, will be 

performed by the concern or other eligible 

service-disabled veteran-owned small 

business concerns; 

(3) General construction, at least 15 percent 

of the cost of the contract performance 

incurred for personnel will be spent on the 

concern’s employees or the employees of 

other eligible service-disabled veteran-owned 

small business concerns; or 

(4) Construction by special trade 

contractors, at least 25 percent of the cost of 

the contract performance incurred for 

personnel will be spent on the concern’s 

employees or the employees of other eligible 

service-disabled veteran-owned small 

business concerns. 

(d) A joint venture may be considered a 

service-disabled veteran-owned small 

business concern if—

(1) At least one member of the joint venture 

is a service-disabled veteran-owned small 

business concern, and makes the following 

representations: That it is a service-disabled 

veteran-owned small business concern, and 

that it is a small business concern under the 

North American Industry Classification 

Systems (NAICS) code assigned to the 

procurement; 

(2) Each other concern is small under the 

size standard corresponding to the NAICS 

code assigned to the procurement; and 

(3) The joint venture meets the 

requirements of paragraph 7 of the 

explanation of Affiliates in 19.101 of the 

Federal Acquisition Regulation. 

(4) The joint venture meets the 

requirements of 13 CFR 125.15(b). 

(e) Any service-disabled veteran-owned 

small business concern (nonmanufacturer) 

must meet the requirements in 19.102(f) of 

the Federal Acquisition Regulation to receive 

a benefit under this program. 

(End of Clause) 

34. Section 852.219–11 is added to 

read as follows: 

852.219–11 VA Notice of Total VeteranOwned Small Business Set-Aside. 

As prescribed in 819.7009, insert the 

following clause: 

VA Notice of Total Veteran-Owned 

Small Business Set-Aside (Date) 

(a) Definition. For the Department of 

Veterans Affairs, ‘‘Veteran-owned small 

business concern’’—

(1) Means a small business concern—

(i) Not less than 51 percent of which is 

owned by one or more veterans or, in the 

case of any publicly owned business, not less 

than 51 percent of the stock of which is 

owned by one or more veterans; 

(ii) The management and daily business 

operations of which are controlled by one or 

more veterans; 

(iii) The business meets Federal small 

business size standards for the applicable 

North American Industry Classification 

System (NAICS) code identified in the 

solicitation document; and 

(iv) The business has been verified for 

ownership and control and is so listed in the 

Vendor Information Pages (http:// 

www.VetBiz.gov). 

(2) ‘‘Veteran’’ is defined in 38 U.S.C. 

101(2). 

(b) General. 

(1) Offers are solicited only from veteranowned small business concerns. All servicedisabled veteran-owned small businesses are 

also determined to be veteran-owned small 

businesses if they meet the criteria identified 

in paragraph (a)(1) of this section. Offers 

received from concerns that are not veteranowned small business concerns shall not be 

considered. 

(2) Any award resulting from this 

solicitation shall be made to a veteran-owned 

small business concern. 

(c) Agreement. A veteran-owned small 

business concern agrees that in the 

performance of the contract, in the case of a 

contract for—

(1) Services (except construction), at least 

50 percent of the cost of personnel for 

contract performance will be spent for 

employees of the concern or employees of 

other eligible veteran-owned small business 

concerns; 

(2) Supplies (other than acquisition from a 

nonmanufacturer of the supplies), at least 50 

percent of the cost of manufacturing, 

excluding the cost of materials, will be 

performed by the concern or other eligible 

veteran-owned small business concerns; 

(3) General construction, at least 15 percent 

of the cost of the contract performance 

incurred for personnel will be spent on the 

concern’s employees or the employees of 

other eligible veteran-owned small business 

concerns; or 


dwashington3 on PRODPC61 with PROPOSALS
Federal Register / Vol. 73, No. 162 / Wednesday, August 20, 2008 / Proposed Rules 49155 

(4) Construction by special trade 

contractors, at least 25 percent of the cost of 

the contract performance incurred for 

personnel will be spent on the concern’s 

employees or the employees of other eligible 

veteran-owned small business concerns. 

(d) A joint venture may be considered a 

veteran-owned small business concern if—

(1) At least one member of the joint venture 

is a veteran-owned small business concern, 

and makes the following representations: 

That it is a veteran-owned small business 

concern, and that it is a small business 

concern under the NAICS code assigned to 

the procurement; 

(2) Each other concern is small under the 

size standard corresponding to the NAICS 

code assigned to the procurement; 

(3) The joint venture meets the 

requirements of paragraph 7 of the 

explanation of Affiliates in 19.101 of the 

Federal Acquisition Regulation; and 

(4) The joint venture meets the 

requirements of 13 CFR 125.15(b), except that 

the principal company may be a veteranowned small business concern or a servicedisabled veterans-owned small business 

concern. 

(e) Any veteran-owned small business 

concern (nonmanufacturer) must meet the 

requirements in 19.102(f) of the Federal 

Acquisition Regulation to receive a benefit 

under this program. 

(End of Clause) 

35. Section 852.219–71 is added to 

read as follows: 

852.219–71 VA Mentor-Prote ́ge ́ Program. 

As prescribed in 819.7115(a), insert 

the following clause: 

VA Mentor-Prote ́ge ́ Program (Date) 

(a) Large businesses are encouraged to 

participate in the VA Mentor-Prote ́ge ́

Program for the purpose of providing 

developmental assistance to eligible servicedisabled veteran-owned small businesses and 

veteran-owned small businesses to enhance 

the small businesses’ capabilities and 

increase their participation as VA prime 

contractors and as subcontractors. 

(b) The program consists of: 

(1) Mentor firms, which are prime 

contractors capable of providing 

developmental assistance; 

(2) Prote ́ge ́ firms, which are servicedisabled veteran-owned small business 

concerns or veteran-owned small business 

concerns; and 

(3) Mentor-Prote ́ge ́ Agreements approved 

by the VA Office of Small and Disadvantaged 

Business Utilization. 

(c) Mentor participation in the program 

means providing business developmental 

assistance to aid Prote ́ge ́s in developing the 

requisite expertise to effectively compete for 

and successfully perform VA prime contracts 

and subcontracts. 

(d) Large business prime contractors 

serving as Mentors in the VA Mentor-Prote ́ge ́

Program are eligible for an incentive for 

subcontracting plan credit. VA will recognize 

the costs incurred by a Mentor firm in 

providing assistance to a Prote ́ge ́ firm and 

apply those costs for purposes of determining 

whether the mentor firm attains its 

subcontracting plan participation goals under 

a VA contract. The amount of credit given to 

a Mentor firm for these Prote ́ge ́

developmental assistance costs shall be 

calculated on a dollar-for-dollar basis and 

reported by the large business prime 

contractor via the Electronic Subcontracting 

Reporting System (eSRS). 

(e) Contractors interested in participating 

in the program are encouraged to contact the 

VA Office of Small and Disadvantaged 

Business Utilization for more information. 

(End of Clause) 

36. Section 852.219–72 is added to 

read as follows: 

852.219–72 Evaluation Factor for 

Participation in the VA Mentor-Prote ́ge ́

Program. 

As prescribed in 819.7115(b), insert 

the following clause: 

Evaluation Factor for Participation in 

the VA Mentor-Prote ́ge ́ Program (Date) 

This solicitation contains an evaluation 

factor or sub-factor regarding participation in 

the VA Mentor-Prote ́ge ́ Program. In order to 

receive credit under the evaluation factor or 

sub-factor, the offeror must provide with its 

proposal a copy of a signed letter issued by 

the VA Office of Small and Disadvantaged 

Business Utilization approving the offeror’s 

Mentor-Prote ́ge ́ Agreement. 

(End of Clause) 

37. Section 852.228–72 is added to 

read as follows: 

852.228–72 Assisting Service-Disabled 

Veteran-owned and Veteran-owned Small 

Businesses in Obtaining Bonds. 

As prescribed in 828.106–71, insert 

the following clause: 

Assisting Service-Disabled VeteranOwned Small Businesses and VeteranOwned Small Businesses in Obtaining 

Bonds (Date) 

Prime contractors are encouraged to assist 

service-disabled veteran-owned and veteranowned small business potential 

subcontractors in obtaining bonding, when 

required. Mentor firms are encouraged to 

assist Prote ́ge ́ firms under VA’s MentorProte ́ge ́ Program in obtaining acceptable bid, 

payment, and performance bonds, when 

required, as a prime contractor under a 

solicitation or contract and in obtaining any 

required bonds under subcontracts. 

(End of Provision) 

[FR Doc. E8–19261 Filed 8–19–08; 8:45 am] 

BILLING CODE 8320–01–P 

NATIONAL TRANSPORTATION 

SAFETY BOARD 

49 CFR Part 830 

Notification and Reporting of Aircraft 

Accidents or Incidents and Overdue 

Aircraft, and Preservation of Aircraft 

Wreckage, Mail, Cargo, and Records 

AGENCY: National Transportation Safety 

Board (NTSB). 

ACTION: Proposed rule; extension of 

comment period. 

SUMMARY: On March 31, 2008, the NTSB 

published a Notice of Proposed 

Rulemaking to amend its regulations 

concerning notification and reporting 

requirements with regard to unmanned 

aircraft accidents, found at 49 Code of 

Federal Regulations (CFR) Part 830, 

‘‘Notification and Reporting of Aircraft 

Accidents or Incidents and Overdue 

Aircraft, and Preservation of Aircraft 

Wreckage, Mail, Cargo, and Records.’’

This Notice of Proposed Rulemaking is 

available at 73 FR 16826 (Mar. 31, 

2008). The NTSB is publishing this 

notice to inform the public that it is 

extending the comment period for the 

Notice of Proposed Rulemaking to 

September 30, 2008. 

DATES: Submit comments on or before 

September 30, 2008. 

ADDRESSES: You may send written 

comments using any of the following 

methods: 

1. Government-wide rulemaking Web 

site: Go to http://www.regulations.gov 

and follow the instructions for sending 

your comments electronically. 

2. Mail: Mail comments concerning 

this proposed rule to Dana Schuize, AS–

b, National Transportation Safety Board, 

490 L’Enfant Plaza, SW., Washington, 

DC 20594–2000. 

3. Fax: (202) 314–6319, Attention: 

Dana Schuize. 

4. Hand Delivery: 6th Floor, 490 

L’Enfant Plaza, SW., Washington, DC, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION, CONTACT: 

Dana Schuize, Office of Aviation Safety, 

(202) 314–6323. 

SUPPLEMENTARY INFORMATION: After 

issuing the March 31, 2008, Notice of 

Proposed Rulemaking concerning 

unmanned aircraft accidents, the NTSB 

discovered that a problem existed with 

the Web site, available at http:// 

www.regulations.gov, that the NTSB 

listed in the Notice as one mechanism 

by which it would receive public 

comments. In particular, the NTSB 

subsequently determined that 

commenters were unable to submit 

comments through that Web site. The 


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