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Federal Register / Vol. 86, No. 211 / Thursday, November 4, 2021 / Rules and Regulations I. Background DoD, GSA, and NASA are amending the FAR to implement section 864 of the National Defense Authorization Act NDAA for Fiscal Year FY 2021 Pub.
L. 116283, January 1, 2021. Section 864 amends the Small Business Act to modify the maximum award price for manufacturing contracts to $7 million for the 8a, Women-Owned Small Business WOSB, Historically Underutilized Business Zone HUBZone, and Service-Disabled Veteran-Owned Small Business SDVOSB programs.
The maximum award price for manufacturing contracts at FAR 19.804
6c2, 19.8051a2, 19.1306a2i, 19.1406a2i, and 19.1506c1i is subject to the inflationary adjustment required by 41 U.S.C. 1908. Section 1908 requires an adjustment every five years on October 1 of each year evenly divisible by five of statutory acquisition-related thresholds for inflation, using the Consumer Price Index for all urban consumers, except for the Construction Wage Rate Requirements statute Davis-Bacon Act, Service Contract Labor Standards statute Service Contract Act, and trade agreements thresholds see FAR 1.109.
FAR case 2019013 85 FR 62485, effective on October 1, 2020, made inflationary adjustments to, amongst others, the following: Increased the $7
million threshold at FAR 19.8046c2, 19.8051a2, and 19.1306a2i to $7.5 million; increased the $6.5 million threshold at FAR 19.1406a2i to $7
million; and increased the $6.5 million threshold at FAR 19.1506c1i to $7
million.
This final rule will harmonize the maximum award price threshold for manufacturing contracts amongst the socioeconomic programs by changing the current FAR maximum award price threshold for the 8a sole source, 8a competitive, and HUBZone sole source programs from $7.5 million to the statutory amount of $7 million. The maximum award price threshold for the WOSB and SDVOSB programs remains unchanged at the current threshold of $7 million, which is consistent with section 864 of the NDAA for FY 2021.

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II. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the FAR is 41 U.S.C.
1707. Subsection a1 of 41 U.S.C.
1707 requires that a procurement policy, regulation, procedure, or form including an amendment or modification thereof must be published
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for public comment if it relates to the expenditure of appropriated funds and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment because the rule will not have a significant cost or administrative impact on contractors or offerors. A
search of the Federal Procurement Data System revealed that there were no contracts awarded for 8a sole source, 8a competitive, or HUBZone sole source manufacturing contracts in the range of $7 million to $7.5 million between the date of the increase in the threshold to $7.5 million October 1, 2020 and April 2021.
III. Applicability to Contracts at or Below the Simplified Acquisition Threshold SAT and for Commercial Items, Including Commercially Available Off-the-Shelf COTS Items This rule does not create new solicitation provisions or contract clauses or impact any existing provisions or clauses. This rule merely modifies a threshold in accordance with statute. This rule does not impose any new requirements on contracts at or below the SAT or for commercial items, including COTS items, except for the changes in the thresholds themselves.
IV. 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. This is not a significant regulatory action and, therefore, was not subject to review under section 6b of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993.
V. 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 send the rule and the Submission of Federal Rules Under the Congressional Review Act form 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
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Federal Register. The Office of Information and Regulatory Affairs OIRA in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804.
VI. Regulatory Flexibility Act Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 41 U.S.C.
1707a1 see section II. of this preamble, the analytical requirements of the Regulatory Flexibility Act 5
U.S.C. 601612 are not applicable.
Accordingly, no regulatory flexibility analysis is required, and none has been prepared.
VII. Paperwork Reduction Act This rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act 44 U.S.C.
35013521.
List of Subjects in 48 CFR Part 19
Government procurement.
William F. Clark, Director, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy.

Therefore, DoD, GSA, and NASA
amend 48 CFR part 19 as set forth below:
PART 19SMALL BUSINESS
PROGRAMS
1. The authority citation for 48 CFR
part 19 continues to read as follows:

Authority: 40 U.S.C. 121c; 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
19.8046

Amended
2. Amend section 19.8046 by removing from paragraph c2 the phrase $7.5 million and adding $7
million in its place.

19.8051

Amended
3. Amend section 19.8051 by removing from paragraph a2 the phrase $7.5 million and adding $7
million in its place.

19.1306

Amended
4. Amend section 19.1306 by removing from paragraph a2i the phrase $7.5 million and adding $7
million in its place.

FR Doc. 202122146 Filed 11321; 8:45 am BILLING CODE 6820EPP

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