Rule2021-22146
Federal Acquisition Regulation: Maximum Award Price for Certain Sole Source Manufacturing Contracts
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 4, 2021
Effective
December 6, 2021
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement a section of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 that modified the Small Business Act maximum award price for manufacturing contracts to $7 million.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 211 (Thursday, November 4, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 211 (Thursday, November 4, 2021)]
[Rules and Regulations]
[Pages 61040-61041]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-22146]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 19
[FAC 2022-01; FAR Case 2021-007; Item III; Docket No. FAR-2021-0007,
Sequence No. 1]
RIN 9000--AO25
Federal Acquisition Regulation: Maximum Award Price for Certain
Sole Source Manufacturing Contracts
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement a section of the
William M. (Mac) Thornberry National Defense Authorization Act for
Fiscal Year 2021 that modified the Small Business Act maximum award
price for manufacturing contracts to $7 million.
DATES: Effective December 6, 2021.
FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement
Analyst, at 202-208-4949 or by email at <a href="/cdn-cgi/l/email-protection#b8d5d1dbd0d9ddd4d796d2d9dbd3cbd7d6f8dfcbd996dfd7ce"><span class="__cf_email__" data-cfemail="9ef3f7fdf6fffbf2f1b0f4fffdf5edf1f0def9edffb0f9f1e8">[email protected]</span></a>, for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or <a href="/cdn-cgi/l/email-protection#82c5d1c3d0e7e5d1e7e1c2e5f1e3ace5edf4"><span class="__cf_email__" data-cfemail="9ed9cddfccfbf9cdfbfddef9edffb0f9f1e8">[email protected]</span></a>. Please cite FAC 2022-01, FAR Case
2021-007.
SUPPLEMENTARY INFORMATION:
[[Page 61041]]
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. 116-283, January 1, 2021). Section 864 amends the Small
Business Act to modify the maximum award price for manufacturing
contracts to $7 million for the 8(a), 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-
6(c)(2), 19.805-1(a)(2), 19.1306(a)(2)(i), 19.1406(a)(2)(i), and
19.1506(c)(1)(i) 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 2019-013 (85 FR 62485), effective on October 1, 2020, made
inflationary adjustments to, amongst others, the following: Increased
the $7 million threshold at FAR 19.804-6(c)(2), 19.805-1(a)(2), and
19.1306(a)(2)(i) to $7.5 million; increased the $6.5 million threshold
at FAR 19.1406(a)(2)(i) to $7 million; and increased the $6.5 million
threshold at FAR 19.1506(c)(1)(i) 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 8(a)
sole source, 8(a) 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.
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 (a)(1) of 41 U.S.C. 1707 requires that a procurement
policy, regulation, procedure, or form (including an amendment or
modification thereof) must be published 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 8(a) sole
source, 8(a) 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 6(b) 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. 801-808)
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 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. 1707(a)(1) (see section II. of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612) 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. 3501-3521).
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 19--SMALL BUSINESS PROGRAMS
0
1. The authority citation for 48 CFR part 19 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
19.804-6 [Amended]
0
2. Amend section 19.804-6 by removing from paragraph (c)(2) the phrase
``$7.5 million'' and adding ``$7 million'' in its place.
19.805-1 [Amended]
0
3. Amend section 19.805-1 by removing from paragraph (a)(2) the phrase
``$7.5 million'' and adding ``$7 million'' in its place.
19.1306 [Amended]
0
4. Amend section 19.1306 by removing from paragraph (a)(2)(i) the
phrase ``$7.5 million'' and adding ``$7 million'' in its place.
[FR Doc. 2021-22146 Filed 11-3-21; 8:45 am]
BILLING CODE 6820-EP-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on November 4, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.