Federal Register: March 31, 1999 (Volume 64, Number 61)Rules and RegulationsPage 15306-15307From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr31mr99-14GENERAL SERVICES ADMINISTRATION48 CFR Part 552
APD 2800.12A, CHGE 82RIN 3090-AG96General Services Administration Acquisition Regulation; Small Business Subcontracting Program
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Final rule.
SUMMARY: The General Services Administration Acquisition Regulation (GSAR) is amended to make the GSAR clauses consistent with FAC 97-10 of the Federal Acquisition Regulation (FAR).
DATES: Effective March 31, 1999.
FOR FURTHER INFORMATION CONTACT: Rhonda Cundiff, GSA Acquisition Policy Division, (202) 501-0044.
SUPPLEMENTARY INFORMATION:A. Background
This change updates GSAR clauses to include HUBZone small business concerns in subcontracting plan requirements.
B. Executive Order 12886
This regulatory action was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993, and is not a major rule under
5 U.S.C. 804. The impact on small businesses derives from the changes made to the FAR rule, and the impacts were discussed in that rule's Final Regulatory Flexibility Analysis.
C. Regulatory Flexibility Act
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.
D. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to the GSAR do not impose recordkeeping or information collection requirements, or otherwise collect information from offerors, contractors, or members of the public that require approval of the Office of Management and Budget under
44 U.S.C. 3501 et seq.
List of Subjects in 48 CFR Part 552
Government procurement.
Accordingly,
48 CFR 552 is amended as follows:
1. The authority citation for 48 CFR Part 552 continues to read as follows:
Authority:
40 U.S.C. 486(c).
PART 552 SOLICITATION PROVISIONS AND CONTRACT CLAUSES2. Section 552.219-72 is revised to read as follows:
552.219-72 Notice to offerers of subcontracting plan requirements.
As prescribed in 519.708(a), insert the following provision:
Notice to Offerers of Subcontracting Plan Requirements (Mar 1999)
The General Services Administration (GSA) is committed to assuring that maximum practicable opportunity is provided to small, HUBZone small, small disadvantaged, and women-owned small business concerns to participate in the performance of this contract consistent with its efficient performance. GSA expects any subcontracting plan submitted pursuant to FAR 52.219-9, Small Business Subcontracting Plan, to reflect this commitment. Consequently, an offeror, other than a small business concern, before being awarded a contract exceeding $500,000 ($1,000,000 for construction), must demonstrate that its subcontracting plan represents a creative and innovative program for involving small, HUBZone small, small disadvantaged, and women-owned small business concerns as subcontractors in the performance of this contract.
(End of Provision)
3. Section 552.219-73 is revised to read as follows:
552.219-73 Preparation, submission, and negotiation of subcontracting plans.
As prescribed in 519.708(b), insert the following provision:
Preparation, Submission, and Negotiation of Subcontracting Plans (Mar 1999)
(a) An offeror, other than a small business concern, submitting an offer that exceeds $500,000 ($1,000,000 for construction) shall submit a subcontracting plan with its initial offer. The subcontracting plan will be negotiated concurrently with price and any required technical and management proposals, unless the offeror submits a
[Page 15307]previously-approved commercial products plan.
(b) Maximum practicable utilization of small, HUBZone small, small disadvantaged, and women-owned small business concerns as subcontractors is a matter of national interest with both social and economic benefits. The General Services Administration (GSA) expects that an offeror's subcontracting plan will reflect a commitment to assuring that small, HUBZone small, small disadvantaged, and women- owned small business concerns are provided the maximum practicable opportunity, consistent with efficient contract performance, to participate as subcontractors in the performance of the resulting contract. An offeror submitting a commercial products plan can reflect this commitment through subcontracting opportunities it provides that relate to the offeror's production generally; i.e., for both its commercial and Government business.
(c) GSA believes that this potential contract provides significant opportunities for the use of small, HUBZone small, small disadvantaged, and women-owned small business concerns as subcontractors. Consequently, in addressing the eleven elements described at FAR 52.219-9(d) of the clause in this contract entitled Small Business Subcontracting Plan, the offeror shall:
(1) Demonstrate that its subcontracting plan represents a creative and innovative program for involving small, HUBZone small, small disadvantaged, and women-owned small business concerns in performing the contract.
(2) Include a description of the offeror's subcontracting strategies used in any previous contracts, significant achievements, and how this plan will build upon those earlier achievements.
(3) Demonstrate through its plan that it understands the small business subcontracting program's objectives and GSA's expectations, and it is committed to taking those actions necessary to meet these goals or objectives.
(d) In determining the acceptability of any subcontracting plan, the Contracting Officer will take each of the following actions:
(1) Review the plan to verify that the offeror demonstrates an understanding of the small business subcontracting program's objectives and GSA's expectations with respect to the program and has included all the information, goals, and assurances required by FAR 52.219-9.
(2) Consider previous goals and achievements of contractors in the same industry.
(3) Consider information and potential sources obtained from agencies administering national and local preference programs and other advocacy groups in evaluating whether the goals stated in the plan adequately reflect the anticipated potential for subcontracting to small, HUBZone small, small disadvantaged, and women-owned small business concerns.
(4) Review the offeror's description of its strategies, historical performance and significant achievements in placing subcontracts for the same or similar products or services with small, HUBZone small, small disadvantaged, and women-owned small business concerns. The offeror's description can apply to commercial as well as previous Government contracts.
(e) Failure to submit an acceptable subcontracting plan and/or correct deficiencies in a plan within the time specified by the Contracting Officer shall make the offeror ineligible for award.
(End of Provision)
4. Section 552.219-74 is revised to read as follows:
552.219-74 Goals for subcontracting plan.
As prescribed in 519.708(c), insert the following provision:
Goals for Subcontracting Plan (Mar 1999)
(a) Maximum practicable utilization of small, HUBZone small, small disadvantaged, and women-owned small business concerns as subcontractors is a matter of national interest with both social and economic benefits.
(1) The General Services Administration's (GSA's) commitment to ensuring that maximum practicable opportunity is provided to small, HUBZone small, small disadvantaged, and women-owned small business concerns to participate as subcontractors in the performance of this contract, consistent with its efficient performance, must be reflected in the offeror's subcontracting plan submitted pursuant to the clause of this contract at FAR 52.219-9, Small Business Subcontracting Plan.
(2) In addressing the eleven elements described at FAR 52.219- 9(d), the offeror shall demonstrate that its subcontracting plan represents a creative and innovative program for involving small, HUBZone small, small disadvantaged, and women-owned small business concerns in performing this contract. An offeror submitting a commercial products plan can demonstrate its commitment in providing maximum practicable opportunities through subcontracting opportunities it provides to small, HUBZone small, small disadvantaged, and women-owned small business concerns that relate to the offeror's production generally; i.e., for both its commercial and Government business.
(3) The subcontracting plan shall include a description of the offeror's subcontracting strategies used in previous contracts and significant achievements, with an explanation of how this plan will build upon those earlier achievements. Additionally, the offeror shall demonstrate through its plan that it understands the small business subcontracting program's objectives, GSA's expectations, and is committed to taking those actions necessary to meet these goals or objectives.
(b) GSA believes that this contract provides significant opportunities for the use of small HUBZone small, small disadvantaged, and women-owned small business concerns and subcontractors. Accordingly, it is anticipated that an acceptable subcontracting plan will contain at least the following goals:
Small Business: ______percent HUBZone Small Business: ______ percent Small Disadvantaged Business: ______ percent Women-Owned Small Business: ______ percent
Note: Target goals are expressed as a percentage of planned subcontracting dollars.
(c) In determining the acceptability of any subcontracting plan, the Contracting Officer will--
(1) Review the plan to verify that the offeror has demonstrated an understanding of the small business subcontracting program's objectives and GSA's expectations with respect to the programs and has included all the information, goals, and assurances required by FAR 52.219-9;
(2) Consider previous goals and achievements of contractors in the same industry;
(3) Consider information and potential sources obtained from agencies administering national and local preference programs and other advocacy groups in evaluating whether the goals stated in the plan adequately reflect the anticipated potential for subcontracting to small, HUBZone small, small disadvantaged, and women-owned small business concerns; and
(4) Review the offeror's description of its strategies, historical performance and significant achievements in placing subcontracts for the same or similar products or services with small, HUBZone small, small disadvantaged, and women-owned small business concerns. The offeror's description can apply to commercial as well as previous Government contracts.
(d) Failure to submit an acceptable subcontracting plan and/or correct deficiencies in a plan within the time specified by the Contracting Officer shall make the offeror ineligible for award.
(End of Provision)
Alternate I (DEC 1995)
As prescribed in 519.708(c), delete paragraph (b) of the basic provision and redesignate paragraphs (c) and (d) as paragraphs (b) and (c).
Dated: March 25, 1999. Les Davison, Acting Deputy Associate Administrator for Acquisition Policy.
FR Doc. 99-7828Filed3-30-99; 8:45 amBILLING CODE 6820-61-M
