Federal Register - August 11, 2021
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Fuente: Federal Register
Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Rules and Regulations Case 2016011, click Open Docket, and view Supporting Documents.
V. Executive Orders 12866 and 13563
Executive Orders E.O.s 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distributive impacts, and equity. E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Information and Regulatory Affairs in the Office of Management and Budget has determined that this is a significant regulatory action and, therefore, was subject to review under Section 6b of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993.
VI. Congressional Review Act As required by the Congressional Review Act 5 U.S.C. 801808 before an interim or final rule takes effect, DoD, GSA and NASA will submit for an interim or final rule a report to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804.
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VII. Regulatory Flexibility Act DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis FRFA consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. The FRFA is summarized as follows:
DoD, GSA, and NASA are amending the Federal Acquisition Regulation FAR to implement changes made by the Small Business Administration SBA in its final rule published in the Federal Register at 81
FR 34243 on May 31, 2016. SBAs final rule implements the statutory requirements of section 1651 of the National Defense Authorization Act NDAA for Fiscal Year FY 2013, which revised and standardized the limitations on subcontracting, including the nonmanufacturer rule, that apply to small business concerns under FAR part 19
procurements.
The objectives of this rule are to apply the limitations on subcontracting consistently to the small business concerns identified in FAR 19.000a3 and to change the method of calculation to the percentage of the award amount to be spent on subcontractors.
There were no significant issues raised by the public in response to the Initial Regulatory Flexibility Analysis.
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This rule may have a positive economic impact on small businesses, because it will make application of the limitations on subcontracting and the nonmanufacturer rule uniform across all small business programs and make it easier to calculate compliance with the limitations on subcontracting.
Through the ability to meet the limitations by means of subcontracts with similarly situated entities, this rule will make it possible for small businesses to compete for larger contracts than they could in the past. The rule will encourage small business prime contractors to award subcontracts to other, similarly situated, small businesses.
According to the System for Award Management SAM, there are 315,655 active registrants that are considered small for at least one North American Industry Classification System code. Firms looking to be prime contractors for Government contracts are required to register in SAM.
However, firms do not need to register in SAM to participate in subcontracting. Thus, the number of small business firms impacted by this rule may be greater than the number of firms registered in SAM.
This rule does not include any new reporting or recordkeeping requirements for small entities. This rule does not include any new compliance requirements. The FAR
already required compliance with the limitations on subcontracting and the nonmanufacturer rule for small business prime contractors receiving awards pursuant to part 19. This rule simply revises the limitations on subcontracting and the nonmanufacturer rule to match that required by section 1651 of the NDAA for FY 2013.
According to the Federal Procurement Data System, there were approximately 70,992
contracts per year in fiscal years 20162018
under all the small business programs to which the limitations on subcontracting or the nonmanufacturer rule would apply.
This rule is not expected to have a negative impact on the majority of small entities.
Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of SBA.
VIII. Paperwork Reduction Act The Paperwork Reduction Act 44
U.S.C. chapter 35 does apply; however, these changes to the FAR do not impose additional information collection requirements to the paperwork burden previously approved under OMB
Control Number 32450374, titled:
Certification for the Women-Owned Small Business Federal Contract Program.
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List of Subjects in 48 CFR Parts 19 and 52
Government procurement.
William F. Clark, Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA are amending 48 CFR parts 19 and 52 as set forth below:
1. The authority citation for 48 CFR
parts 19 and 52 continues to read as follows:
Authority: 40 U.S.C. 121c; 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
PART 19SMALL BUSINESS
PROGRAMS
2. Amend section 19.001 by removing the definition of Nonmanufacturer and adding, in alphabetical order, the definition of Similarly situated entity to read as follows:
19.001
Definitions.
Similarly situated entity means a firsttier subcontractor, including an independent contractor, that 1 Has the same small business program status as that which qualified the prime contractor for the award e.g., for a small business set-aside contract, any small business concern, without regard to socioeconomic status; and 2
Is considered small for the size standard under the NAICS code the prime contractor assigned to the subcontract.
3. Revise section 19.505 to read as follows:
19.505 Limitations on subcontracting and nonmanufacturer rule.
a Applicability. 1 This section applies to small business set-asides above the simplified acquisition threshold and orders issued directly to a small business in accordance with 19.504c1ii above the simplified acquisition threshold.
2 This section applies, regardless of dollar value, to the following awards under subparts 19.8, 19.13, 19.14, and 19.15:
i Contracts that are set aside.
ii Contracts that are awarded on a sole-source basis.
iii Orders that are set-aside as described in 8.4055 and 16.505b2iF.
iv Orders that are issued directly in accordance with 19.504c1ii.
v Contracts that use the HUBZone price evaluation preference to award to a HUBZone small business concern unless the concern waived the evaluation preference.
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