[Code of Federal Regulations]

[Title 48, Volume 5]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR726.7007]



[Page 35]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

             CHAPTER 7--AGENCY FOR INTERNATIONAL DEVELOPMENT

 

PART 726_OTHER SOCIOECONOMIC PROGRAMS--Table of Contents

 

            Subpart 726.70_Disadvantaged Enterprises Program

 

Sec. 726.7007  Requirement for subcontracting with disadvantaged enterprises.



    (a) In addition to the requirements in FAR subpart 19.7, any new 

contract or modification which constitutes new procurement (except for a 

contract or modification with a disadvantaged enterprise as defined in 

726.7002) with respect to which more than $500,000 is to be funded with 

amounts made available for development assistance or from the 

appropriations cited in section 706.302-71(a)(1) shall contain a 

provision requiring that not less than ten percent of the dollar value 

of the contract must be subcontracted to disadvantaged enterprises, 

including disadvantaged enterprises which are not small.

    (b) This requirement does not apply when the contracting officer, 

with the concurrence of the Director of OSDBU, certifies there is no 

realistic expectation of U.S. subcontracting opportunities and so 

documents the file. If the contracting officer and the Director of OSDBU 

do not agree, the determination will be made by the head of the 

contracting activity. See 726.7005 for guidance on other potential 

exceptions.

    (c) The contracting officer shall insert the clause in 752.226-2 in 

any solicitation or contract as provided in paragraph (a) of this 

section, unless exempted in accordance with the provisions of paragraph 

(b) of this section.



[55 FR 8470, Mar. 8, 1990, as amended at 56 FR 27209, June 13, 1991; 56 

FR 52213, Oct. 18, 1991; 58 FR 42255, Aug. 9, 1993. Redesignated at 61 

FR 39093, July 26, 1996, as amended at 62 FR 40468, July 29, 1997; 62 FR 

47532, Sept. 9, 1997]