[Federal Register Volume 70, Number 142 (Tuesday, July 26, 2005)]
[Rules and Regulations]
[Pages 43072-43073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-14624]
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DEPARTMENT OF DEFENSE
48 CFR Part 219
[DFARS Case 2004-D031]
Defense Federal Acquisition Regulation Supplement; Sole Source
8(a) Awards to Small Business Concerns Owned by Native Hawaiian
Organizations
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comments.
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SUMMARY: DoD has issued an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement DoD
appropriations act provisions permitting the award of sole source
contracts to small business concerns owned by Native Hawaiian
Organizations. The rule applies to manufacturing contacts exceeding
$5,000,000 and non-manufacturing contracts exceeding $3,000,000 that
are awarded under the Small Business Administration's 8(a) Program.
DATES: Effective Date: July 26, 2005.
Comment date: Comments on the interim rule should be submitted to
the address shown below on or before September 26, 2005 to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2004-D031,
using any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Defense Acquisition Regulations Web Site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for
submitting comments.
E-mail: [email protected]. Include DFARS Case 2004-D031 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Deborah Tronic, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Deborah Tronic, (703) 602-0289.
SUPPLEMENTARY INFORMATION:
A. Background
Section 8021 of the DoD Appropriations Act for Fiscal Year 2004
(Pub. L. 108-87) and Section 8021 of the DoD Appropriations Act for
Fiscal Year 2005 (Pub. L. 108-287) provide funding for the DoD Indian
Incentive Program, which is implemented in DFARS Subpart 226.1. The
appropriations act provisions also require that small business concerns
owned by Native Hawaiian Organizations be provided the same status as
Indian tribes and Alaska Native Corporations with regard to contract
awards under the Small Business Administration's (SBA) 8(a) Program.
Under the 8(a) Program, as implemented in FAR Subpart 19.8, competition
is required for manufacturing contracts exceeding $5,000,000 and non-
manufacturing contracts exceeding $3,000,000, unless (1) there is not a
reasonable expectation that at least two eligible and responsible 8(a)
firms will submit offers at a fair market price, or (2) SBA accepts the
requirement on behalf of a concern owned by an Indian tribe or an
Alaska Native Corporation. This interim rule expands the competition
exceptions to include requirements accepted on behalf of a small
business concern owned by a Native Hawaiian Organization.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared an initial regulatory flexibility analysis
consistent with 5 U.S.C. 603. The analysis is summarized as follows:
This interim rule amends the DFARS to implement DoD appropriations
act provisions permitting the award of sole source contracts to small
business concerns owned by Native Hawaiian Organizations. The rule
applies to manufacturing contacts exceeding $5,000,000 and non-
manufacturing contracts exceeding $3,000,000 that are awarded under the
Small Business Administration's 8(a) Program. The objective of the rule
is to provide small business concerns owned by Native Hawaiian
Organizations the same status that is provided to Indian tribes and
Alaska Native Corporations under the 8(a) Program. Awards to these
entities are exempted from the competition requirements that would
otherwise apply to award of manufacturing contacts exceeding $5,000,000
and non-manufacturing contracts exceeding $3,000,000 under the Program.
The legal basis for the rule is Section 8021 of the DoD Appropriations
Act for Fiscal Year 2004 (Pub. L. 108-87) and Section 8021 of the DoD
Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287). The rule
will benefit small business concerns that are owned by Native Hawaiian
Organizations by permitting sole source contract awards to these
concerns.
A copy of the analysis may be obtained from the point of contact
specified herein. DoD invites comments from small businesses and other
interested parties. DoD also will consider comments from small entities
concerning the affected DFARS subpart in accordance with 5 U.S.C. 610.
Such comments should be submitted separately and should cite DFARS Case
2004-D031.
[[Page 43073]]
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply, because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish an
interim rule prior to affording the public an opportunity to comment.
This interim rule implements Section 8021 of the DoD Appropriations Act
for Fiscal Year 2004 (Pub. L. 108-87) and Section 8021 of the DoD
Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287). These
statutes require that small business concerns owned by Native Hawaiian
Organizations be provided the same status as Indian tribes and Alaska
Native Corporations with regard to contract awards under the Small
Business Administration's 8(a) Program. Application of this status will
permit small business concerns owned by Native Hawaiian Organizations
to receive sole source contract awards under the 8(a) Program, in
amounts exceeding the thresholds at which competition would otherwise
be required. Comments received in response to this interim rule will be
considered in the formation of the final rule.
List of Subjects in 48 CFR Part 219
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR part 219 is amended as follows:
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1. The authority citation for 48 CFR part 219 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 219--SMALL BUSINESS PROGRAMS
0
2. Section 219.805-1 is added to read as follows:
219.805-1 General.
(b)(2)(A) For acquisitions that exceed the competitive threshold
and use fiscal year 2004 or 2005 appropriated funds, the SBA also may
accept the requirement for a sole source 8(a) award on behalf of a
small business concern owned by a Native Hawaiian Organization (Section
8021 of Pub. L. 108-87 and Section 8021 of Pub. L. 108-287).
(B) Native Hawaiian Organization, as used in this subsection and as
defined by 15 U.S.C. 637(a)(15) and 13 CFR 124.3, means any community
service organization serving Native Hawaiians in the State of Hawaii--
(1) That is a not-for-profit organization chartered by the State of
Hawaii;
(2) That is controlled by Native Hawaiians; and
(3) Whose business activities will principally benefit such Native
Hawaiians.
[FR Doc. 05-14624 Filed 7-25-05; 8:45 am]
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