[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Rules and Regulations]
[Pages 34831-34832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9506]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

[DFARS Case 2004-D031]

48 CFR Part 219


Defense Federal Acquisition Regulation Supplement; Sole Source 
8(a) Awards to Small Business Concerns Owned by Native Hawaiian 
Organizations

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD has adopted as final, with changes, 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 contracts 
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: June 16, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Deborah Tronic, Defense 
Acquisition Regulations System, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0289; 
facsimile (703) 602-0350. Please cite DFARS Case 2004-D031.

SUPPLEMENTARY INFORMATION: 

A. Background

    DoD published an interim rule at 70 FR 43072 on July 26, 2005, to 
implement 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). In addition to providing 
funding for the DoD Indian Incentive Program, these statutes required 
that small business concerns owned by Native Hawaiian Organizations be 
provided the same status as Indian tribes and Alaska Native 
Corporations with regard to sole source contract awards under the Small 
Business Administration's 8(a) Program. The interim rule amended DFARS 
219.805-1 to reflect this requirement.
    Three sources submitted comments on the interim rule. All three 
supported the rule and recommended that the rule be made permanent. DoD 
has adopted the interim rule as a final rule, with additional changes 
to reflect the provisions of Section 8020 of the DoD Appropriations Act 
for Fiscal Year 2006 (Pub. L. 109-148). Section 8020 established a 
permanent requirement for provision of Native Hawaiian Organizations 
with the same status as Indian tribes and Alaska Native Corporations 
under the 8(a) Program.
    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 a final regulatory flexibility analysis consistent 
with 5 U.S.C. 604. A copy of the analysis may be obtained from the 
point of contact specified herein. The analysis is summarized as 
follows:
    This 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 contracts 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 exempt from the competition requirements that otherwise 
would apply to award of manufacturing contracts exceeding $5,000,000 
and non-manufacturing contracts exceeding $3,000,000 under the Program. 
The rule will benefit small business concerns owned by Native Hawaiian 
Organizations, by permitting sole source contract awards to these 
concerns.

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.

[[Page 34832]]

List of Subjects in 48 CFR Part 219

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.


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Accordingly, the interim rule amending 48 CFR Part 219, which was 
published at 70 FR 43072 on July 26, 2005, is adopted as a final rule 
with the following change:

PART 219--SMALL BUSINESS PROGRAMS

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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.


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2. Section 219.805-1 is amended by revising paragraph (b)(2)(A) to read 
as follows:


219.805-1  General.

    (b)(2)(A) For acquisitions that exceed the competitive threshold, 
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 8020 of Pub. L. 109-148).
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 [FR Doc. E6-9506 Filed 6-15-06; 8:45 am]
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