Rule2023-16659
Federal Acquisition Regulation: Small Disadvantaged Business Threshold
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
August 8, 2023
Effective
September 7, 2023
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 regulatory changes made by the Small Business Administration to adjust the net worth threshold for owners of small disadvantaged business concerns.
Full Text
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<title>Federal Register, Volume 88 Issue 151 (Tuesday, August 8, 2023)</title>
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[Federal Register Volume 88, Number 151 (Tuesday, August 8, 2023)]
[Rules and Regulations]
[Pages 53751-53753]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16659]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 19, and 52
[FAC 2023-05, FAR Case 2023-004, Item II; Docket No. 2023-0004;
Sequence No. 1]
RIN 9000-AO52
Federal Acquisition Regulation: Small Disadvantaged Business
Threshold
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to implement regulatory changes
made by the Small Business Administration to adjust the net worth
threshold for owners of small disadvantaged business concerns.
DATES: Effective September 7, 2023.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Carrie Moore, Procurement Analyst, at 571-300-5917, or by email at
<a href="/cdn-cgi/l/email-protection#04676576766d612a696b6b7661446377652a636b72"><span class="__cf_email__" data-cfemail="395a584b4b505c175456564b5c795e4a58175e564f">[email protected]</span></a>. 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#93d4c0d2c1f6f4c0f6f0d3f4e0f2bdf4fce5"><span class="__cf_email__" data-cfemail="93d4c0d2c1f6f4c0f6f0d3f4e0f2bdf4fce5">[email protected]</span></a>. Please cite FAC 2023-05, FAR Case
2023-004.
SUPPLEMENTARY INFORMATION:
[[Page 53752]]
I. Background
DoD, GSA, and NASA are amending the FAR to implement regulatory
changes made by the Small Business Administration (SBA) in its interim
rule published on November 17, 2022, at 87 FR 69118, which adjusted for
inflation the net worth threshold for an individual to be eligible as
an owner of a small disadvantaged business concern from $750,000 to
$850,000. To do so, this rule updates this threshold to reflect a
reference to SBA's regulations at 13 CFR 124.104(c)(2), which is used
in the definition of ``small disadvantaged business concern,'' in the
FAR. This rule also updates FAR citations to former SBA regulations 13
CFR 124.1002 through 124.1016, as SBA removed these sections from their
regulations in a rule published May 8, 2020 (85 FR 27290).
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 it does not change existing acquisition procedures for agencies
or contractors; instead, this final rule simply revises the FAR to
align with SBA's regulation by reflecting the increased threshold
established by SBA in its regulations, and updates obsolete FAR
citations to certain SBA regulations that no longer exist.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items), or for Commercial Services
This rule amends the solicitation provisions at FAR 52.212-3 and
52.219-1, and contract clauses at FAR 52.212-5, 52.213-4, 52.219-8,
52.219-9, 52.219-28, and 52.244-6. However, this rule does not impose
any new requirements on contracts valued at or below the SAT, or on
contracts for commercial products, including COTS items, or commercial
services. The clauses continue to apply to acquisitions at or below the
SAT and to acquisitions for commercial products, including COTS items,
and commercial services.
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. 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 Parts 2, 19, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 19, and 52 as
set forth below:
0
1. The authority citation for 48 CFR parts 2, 19, and 52 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C.
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C.
20113.
PART 2--DEFINITIONS OF WORDS AND TERMS
2.101 [Amended]
0
2. Amend section 2.101, in paragraph (b)(2), in the definition of
``Small disadvantaged business concern'' by--
0
a. Removing from the introductory text ``13 CFR 124.1002'' and adding
``13 CFR 124.1001'' in its place; and
0
b. Removing from paragraph (1)(ii) ``$750,000'' and adding ``the
threshold at 13 CFR 124.104(c)(2)'' in its place.
PART 19--SMALL BUSINESS PROGRAMS
19.301-1 [Amended]
0
3. Amend section 19.301-1 by removing from the third sentence of
paragraph (h) the phrase ``13 CFR 124.1004 for small disadvantaged
business, 13 CFR 125.29'' and adding ``13 CFR 128.600'' in its place.
19.304 [Amended]
0
4. Amend section 19.304 by removing from paragraph (c) ``13 CFR
124.1001(b)'' and adding ``13 CFR 124.1001'' in its place.
0
5. Amend section 19.305 by revising the section heading, introductory
text, and paragraph (c) to read as follows:
19.305 Reviews of SDB status.
This section applies to reviews of a small business concern's SDB
status as a prime contractor or subcontractor.
* * * * *
(c) An SBA review of a subcontractor's SDB status differs from a
formal protest. Protests of a concern's size as a prime contractor are
processed under 19.302. Protests of a concern's size as a subcontractor
are processed under 19.703(b).
19.703 [Amended]
0
6. Amend section 19.703 by:
[[Page 53753]]
0
a. Removing from paragraph (a)(2)(iv) ``13 CFR 121.411, 124.1015,
125.29, 126.900, and 127.700'' and adding ``13 CFR 121.411, 126.900,
127.700, and 128.600'' in its place; and
0
b. Removing paragraph (e).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Amend section 52.212-3 by--
0
a. Revising the date of the provision; and
0
b. In paragraph (a), in the definition of ``Small disadvantaged
business concern'' by--
0
i. Removing from the introductory text ``13 CFR 124.1002'' and adding
``13 CFR 124.1001'' in its place; and
0
ii. Removing from paragraph (1)(ii) ``$750,000'' and adding ``the
threshold at 13 CFR 124.104(c)(2)'' in its place.
The revision reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial
Products and Commercial Services.
* * * * *
Offeror Representations and Certifications--Commercial Products and
Commercial Services (Sep 2023)
* * * * *
0
8. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraphs (b)(17) ``(OCT 2022)'' and adding ``(Sep
2023)'' in its place;
0
c. Removing from paragraph (b)(18)(i) ``(OCT 2022)'' and adding ``(Sep
2023)'' in its place;
0
d. Removing from paragraph (b)(18)(v) ``(SEP 2021)'' and adding ``(Sep
2023)'' in its place;
0
e. Removing from paragraph (b)(23)(i) ``(MAR 2023)'' and adding ``(Sep
2023)'' in its place;
0
f. Removing from paragraph (e)(1)(vi) ``(OCT 2022)'' and adding ``(Sep
2023)'' in its place; and
0
g. In Alternate II by--
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (e)(1)(ii)(F) ``(OCT 2022)'' and adding
``(Sep 2023)'' in its place.
The revisions read as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Products and Commercial Services (Sep
2023)
* * * * *
Alternate II (Sep 2023) * * *
* * * * *
0
9. Amend section 52.213-4 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(2)(vii) ``(JUN 2023)'' and adding ``(Sep
2023)'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Products and Commercial Services).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Products and Commercial Services) (Sep 2023)
* * * * *
0
10. Amend section 52.219-1 by--
0
a. Revising the date of the provision;
0
b. In paragraph (a), in the definition of ``Small disadvantaged
business concern'' by--
0
i. Removing from the introductory text ``13 CFR 124.1002'' and adding
``13 CFR 124.1001'' in its place; and
0
ii. Removing from paragraph (1)(ii) ``$750,000'' and adding ``the
threshold at 13 CFR 124.104(c)(2)'' in its place; and
0
c. Removing from paragraph (c)(2) ``13 CFR 124.1002'' and adding ``13
CFR 124.1001'' in its place.
The revision reads as follows:
52.219-1 Small Business Program Representations.
* * * * *
Small Business Program Representations (Sep 2023)
* * * * *
0
11. Amend section 52.219-8 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Small disadvantaged
business concern'' by--
0
i. Removing from the introductory text ``13 CFR 124.1002'' and adding
``13 CFR 124.1001'' in its place; and
0
ii. Removing from paragraph (1)(ii) ``$750,000'' and adding ``the
threshold at 13 CFR 124.104(c)(2)'' in its place; and
0
c. Removing from paragraph (e)(4) ``13 CFR 121.411, 124.1015, 125.29,
126.900, and 127.700'' and adding ``13 CFR 121.411, 126.900, 127.700,
and 128.600'' in its place.
The revision reads as follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (Sep 2023)
* * * * *
0
12. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (c)(2)(iv) ``13 CFR 121.411, 124.1015,
125.29, 126.900, and 127.700'' and adding ``13 CFR 121.411, 126.900,
127.700, and 128.600'' in its place; and
0
c. In Alternate IV by--
0
i. Revising the date of the alternate; and
0
ii. Removing from paragraph (c)(2)(iv) ``13 CFR 121.411, 124.1015,
125.29, 126.900, and 127.700'' and adding ``13 CFR 121.411, 126.900,
127.700, and 128.600'' in its place.
The revision reads as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (Sep 2023)
* * * * *
Alternate IV (Sep 2023) * * *
* * * * *
0
13. Amend section 52.219-28 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (h)(2) ``13 CFR 124.1002'' and adding ``13
CFR 124.1001'' in its place.
The revision reads as follows:
52.219-28 Post-Award Small Business Program Rerepresentation.
* * * * *
Post-Award Small Business Program Rerepresentation (Sep 2023)
* * * * *
0
14. Amend section 52.244-6 by:
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(viii) ``(OCT 2022)'' and adding
``(Sep 2023)'' in its place.
The revision reads as follows:
52.244-6 Subcontracts for Commercial Products and Commercial Services.
* * * * *
Subcontracts for Commercial Products and Commercial Services (Sep 2023)
* * * * *
[FR Doc. 2023-16659 Filed 8-7-23; 8:45 am]
BILLING CODE 6820-EP-P
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