53996 Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at (202) 501–4755. Please 

cite FAC 2005–27, FAR case 2006–014. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the Federal 

Acquisition Regulation implementing 

amendments to the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act at 42 U.S.C. 5150. 

The Local Community Recovery Act 

of 2006 amended the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act to authorize set-asides 

for major disaster or emergency 

assistance acquisitions to businesses 

that reside or primarily do business in 

the geographic area affected by the 

disaster or emergency. DoD, GSA, and 

NASA published an interim rule in the 

Federal Register at 71 FR 44546, August 

4, 2006, to implement this statutory 

amendment. 

Subsequently, Section 694 of the 

Department of Homeland Security 

Appropriations Act of 2007, Pub. L. 

109–295, amended the Robert T. 

Stafford Disaster Relief and Emergency 

Assistance Act to enact requirements for 

transitioning work under existing 

contracts. A second interim rule was 

published in the Federal Register at 72 

FR 63084, November 7, 2007, to address 

this statutory amendment. The second 

interim rule addressed the public 

comments received on the first interim 

rule. There were no comments received 

on the second interim rule. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Department of Defense, the 

General Services Administration, and 

the National Aeronautics and Space 

Administration certify that this final 

rule will not have a significant 

economic impact on a substantial 

number of small entities within the 

meaning of the Regulatory Flexibility 

Act, 5 U.S.C. 601, et seq. The rule 

implements set-asides for local 

businesses in an area affected by a major 

disaster or emergency to promote 

economic recovery. 

The set-aside does not replace the 

small business set-aside. Both set-asides 

can apply to an acquisition. The local 

set-aside encourages the use of local 

small businesses. 

The rule also implements a new 

requirement that work performed under 

contracts already in effect be 

transitioned to local area organizations, 

firms or individuals, unless the agency 

head determines it is not feasible or 

practicable. The Councils expect that 

more work will be transitioned to small 

businesses than away from them. The 

Government Accountability Office 

(GAO) report on Hurricane Katrina 

Small Business Contracts (GAO–07– 

205) found that businesses in the three 

states primarily affected by the 

hurricane received $1.9 billion, which 

was 18 percent of the $11.6 billion spent 

by DHS, GSA, DoD and the Army Corps 

of Engineers between August 1, 2005 

and June 30, 2006. Small businesses 

received 66 percent of the $1.9 billion 

awarded to those local businesses. The 

Councils believe this shows that small 

businesses would not be hurt by a local 

area set-aside. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq. 

List of Subjects in 48 CFR Parts 5, 6, 12, 

18, 26, and 52 

Government procurement. 

Dated: September 9, 2008. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Accordingly, under the authority of 40 

U.S.C. 121, the interim rule published at 

71 FR 44546, August 4, 2006, is adopted 

as a final rule, and the interim rule 

published at 72 FR 63084, November 7, 

2007, is adopted as a final rule with the 

following change: 

PART 26—OTHER SOCIOECONOMIC 

PROGRAMS 

■ 1. The authority citation for 48 CFR 

part 26 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

■ 2. Revise section 26.202–2 to read as 

follows. 

26.202–2 Evaluation preference. 

The contracting officer may use an 

evaluation preference, when authorized 

in agency regulations or procedures. 

[FR Doc. E8–21387 Filed 9–16–08; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Part 6 

[FAC 2005–27; FAR Case 2007–007; Item 

V; Docket 2008–001; Sequence 17] 

RIN 9000–AL08 

Federal Acquisition Regulation; FAR 

Case 2007–007, Additional 

Requirements for Competition 

Advocate Annual Reports 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to require that annual 

reviews by executive agency 

competition advocates be provided in 

writing to both the agency senior 

procurement executive and the agency 

chief acquisition officer, if designated, 

and that the reports specifically address 

the quality of planning, executing, and 

managing of task and delivery orders 

over $1 million. 

DATES: Effective Date: October 17, 2008. 

FOR FURTHER INFORMATION CONTACT Mr. 

Ernest Woodson, Procurement Analyst, 

at (202) 501–3775 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the FAR Secretariat at (202) 501–4755. 

Please cite FAC 2005–27, FAR case 

2007–007. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The Administrator of the Office of 

Federal Procurement Policy (OFPP) 

issued a memorandum dated May 31, 

2007, entitled ‘‘Enhancing Competition 

in Federal Acquisition’’, to executive 

agency chief acquisition officers and 

senior procurement executives that 

outlined several initiatives for 

enhancing competition in Federal 

acquisition. The agency competition 

advocates are required to describe 

initiatives that ensure task and delivery 

orders over $1,000,000 issued under 

multiple award contracts are properly 

planned, issued, and comply with 8.405 

and 16.505 in a report to the agency 

senior procurement executive and the 


pwalker on PROD1PC71 with RULES3
Federal Register / Vol. 73, No. 181 / Wednesday, September 17, 2008 / Rules and Regulations 53997 

agency chief acquisition officer. An 

attachment to the Administrator’s May 

31, 2007 memorandum entitled, 

Enhancing Competition in Federal 

Acquisition, contains a list of questions 

designed to assist competition advocates 

in assessing the quality of competitive 

practices at their agencies. The policy 

memorandum and attachment can be 

found at http://www.whitehouse.gov/ 

omb/procurement/complcontracting/ 

competitionlmemol053107.pdf. This 

FAR case implements this policy 

change. 

This is not a significant regulatory 

action and, therefore, was not subject to 

review under Section 6(b) of Executive 

Order 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule. This final rule 

does not constitute a significant FAR 

revision within the meaning of FAR 

1.501 and Public Law98–577, and 

publication for public comments is not 

required. However, the Councils will 

consider comments from small entities 

concerning the affected FAR Part 6 in 

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

parties must submit such comments 

separately and should cite 5 U.S.C. 601, 

et seq. (FAC 2005–27, FAR case 2007– 

007), in correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq. 

List of Subjects in 48 CFR Part 6 

Government procurement. 

Dated: September 9, 2008. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR part 6 as set forth below: 

PART 6—COMPETITION 

REQUIREMENTS 

■ 1. The authority citation for 48 CFR 

part 6 continues to read as follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

■ 2. Amend section 6.502 by— 

■ a. Revising the introductory text of 

paragraphs (b)(1) and (b)(2); 

■ b. Removing from the end of the 

paragraph (b)(2)(v) the word ‘‘and’’; 

■ c. Adding to the end of paragraph 

(b)(2)(vi) the word ‘‘and’’; 

■ d. Adding a new paragraph (b)(2)(vii); 

and 

■ e. Revising paragraphs (b)(3) and 

(b)(4) to read as follows: 

6.502 Duties and Responsibilities. 

* * * * * 

(b) * * * 

(1) Review the contracting operations 

of the agency and identify and report to 

the agency senior procurement 

executive and the chief acquisition 

officer— 

* * * * * 

(2) Prepare and submit an annual 

report to the agency senior procurement 

executive and the chief acquisition 

officer in accordance with agency 

procedures, describing— 

* * * * * 

(vii) Initiatives that ensure task and 

delivery orders over $1,000,000 issued 

under multiple award contracts are 

properly planned, issued, and comply 

with 8.405 and 16.505. 

(3) Recommend goals and plans for 

increasing competition on a fiscal year 

basis to the agency senior procurement 

executive and the chief acquisition 

officer; and 

(4) Recommend to the agency senior 

procurement executive and the chief 

acquisition officer a system of personal 

and organizational accountability for 

competition, which may include the use 

of recognition and awards to motivate 

program managers, contracting officers, 

and others in authority to promote 

competition in acquisition. 

[FR Doc. E8–21388 Filed 9–16–08; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 12, 13, 32, 33, 36, 42, and 

52 

[FAC 2005–27; FAR Case 2005–018; Item 

VI; Docket 2006–0020; Sequence 11] 

RIN 9000–AK59 

Federal Acquisition Regulation; FAR 

Case 2005–018, Contract Debts 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to revise the policies 

and procedures for contract debts. 

DATES: Effective Date: October 17, 2008 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, Procurement 

Analyst, at (202) 208–6925 for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the FAR Secretariat 

at (202) 501–4755. Please cite FAC 

2005–27, FAR case 2005–018. 

SUPPLEMENTARY INFORMATION: 

A. Background 

In 2003, the DoD Comptroller 

established the DoD Accounts 

Receivable Workgroup to evaluate the 

processes and procedures for reporting 

accounts receivables. This Workgroup 

concluded that contracting officers may 

not be properly reporting contract debts. 

Based on the Workgroup’s 

recommendations, DoD established a 

Contract Debt Integrated Process Team 

(IPT). 

The mission of the IPT was to 

evaluate the adequacy of DoD’s existing 

controls and procedures for ensuring 

that contract debts are identified and 

recovered in a timely manner, properly 

accounted for in DoD’s books and 

records, and properly coordinated with 

the appropriate Government officials. 

Contract debts result from compliance, 

or a failure to comply, with the terms of 

a contract and include debts identified 

by auditors, contracting officers, 

disbursing officials, and contractors. On 

May 26, 2005, a final report was issued 

that included a number of 

recommended FAR changes to improve 

contract debt controls and procedures, 

and to ensure consistency within/ 

between existing regulations. 

The Councils established this case to 

evaluate the DoD recommendations and 

apply them, where appropriate, 

Governmentwide. The rule makes the 

following changes: 

1. Reorganizes FAR 32.6. Reorganizes 

FAR 32.6 to add clarity and provide a 

logical sequence. The section has been 

reorganized as follows: 

32.600—Scope of subpart. 

32.601—General. 

32.602—Responsibilities. 

32.603—Debt determination. 

32.604—Demand for payment. 

32.605—Final decisions. 

32.606—Debt collection. 

32.607—Installment payments and 

deferment of collection. 

32.608—Interest. 

32.609—Delays in receipt of notices 

or demands. 


pwalker on PROD1PC71 with RULES3