Proposed Rule2024-12501
Federal Acquisition Regulation: Subcontracting to Puerto Rican and Covered Territory Small Businesses
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
June 7, 2024
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement regulatory changes made by the Small Business Administration to add incentives for certain United States territories under the Small Business Administration mentor- prot[eacute]g[eacute] program.
Full Text
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<title>Federal Register, Volume 89 Issue 111 (Friday, June 7, 2024)</title>
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[Federal Register Volume 89, Number 111 (Friday, June 7, 2024)]
[Proposed Rules]
[Pages 48540-48544]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-12501]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 19, 42, and 52
[FAR Case 2023-001; Docket No. FAR-2023-0001; Sequence No. 1]
RIN 9000-AO50
Federal Acquisition Regulation: Subcontracting to Puerto Rican
and Covered Territory Small Businesses
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to implement regulatory changes made by
the Small Business Administration to add incentives for certain United
States territories under the Small Business Administration mentor-
prot[eacute]g[eacute] program.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
August 6, 2024 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to FAR Case 2023-001 to the
Federal eRulemaking portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> by searching
for ``FAR Case 2023-001''. Select the link ``Comment Now'' that
corresponds with ``FAR Case 2023-001''. Follow the instructions
provided on the ``Comment Now'' screen. Please include your name,
company name (if any), and ``FAR Case 2023-001'' on your attached
document. If your comment cannot be submitted using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, call or email the points of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite ``FAR Case 2023-
001'' in all correspondence related to this case. Comments received
generally will be posted without change to https://
[[Page 48541]]
www.regulations.gov, including any personal and/or business
confidential information provided. Public comments may be submitted as
an individual, as an organization, or anonymously (see frequently asked
questions at <a href="https://www.regulations.gov/faq">https://www.regulations.gov/faq</a>). To confirm receipt of
your comment(s), please check <a href="https://www.regulations.gov">https://www.regulations.gov</a>,
approximately two to three days after submission to verify posting.
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#64070516160d014a090b0b1601240317054a030b12"><span class="__cf_email__" data-cfemail="5f3c3e2d2d363a713230302d3a1f382c3e71383029">[email protected]</span></a>. For information pertaining to status, publication
schedules, or alternate instructions for submitting comments if <a href="https://www.regulations.gov">https://www.regulations.gov</a> cannot be used, contact the Regulatory Secretariat
Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#571004160532300432341730243679303821"><span class="__cf_email__" data-cfemail="2b6c786a794e4c784e486b4c584a054c445d">[email protected]</span></a>. Please cite FAR Case
2023-001.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing to amend the FAR to implement
regulatory changes made by the Small Business Administration (SBA) in
its final rule published on October 16, 2020, at 85 FR 66146, to
implement paragraphs (a) and (d) of section 861 of the John S. McCain
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019
(Pub. L. 115-232). Paragraphs (a) and (d) of section 861 amended 15
U.S.C. 632(ee) and 15 U.S.C. 657r(a) to add Puerto Rico to the list of
territories from which small businesses are eligible for preferential
treatment under the SBA mentor-prot[eacute]g[eacute] program.
In addition, this rule implements SBA's final rule published on
August 19, 2022, at 87 FR 50925, to implement-paragraphs (a) and (c) of
section 866 of the NDAA for FY 2021 (Pub. L. 116-283). Paragraphs (a)
and (c) of section 866 amended 15 U.S.C. 632(ff) and 15 U.S.C. 657r(a)
to add the U.S. Virgin Islands, American Samoa, Guam, and the
Commonwealth of the Northern Mariana Islands (CNMI) to the list of
territories from which small businesses are eligible for preferential
treatment under the SBA mentor-prot[eacute]g[eacute] programs. Section
866 also defines a ``covered territory business'' as a small business
concern that has its principal office located in one of the following:
(1) the U.S. Virgin Islands; (2) American Samoa; (3) Guam; and (4)
CNMI. Sections 861 and 866 created two new incentives for SBA's small
business mentor-prot[eacute]g[eacute] Program for mentor-
prot[eacute]g[eacute] pairs in which the prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico or is a
covered territory business. Specifically, such a mentor that
subcontracts to its prot[eacute]g[eacute] is able to receive positive
consideration for the mentor's past performance evaluation and is able
to apply costs incurred for training provided to its
prot[eacute]g[eacute] to its subcontracting plan goals.
In addition, this rule implements changes SBA made to its
regulations to clarify that subcontracting plans are not required from
firms owned by an Alaska Native Corporation (ANC) because they are
treated as small business concerns according to statute; and to clarify
that prime contractors may rely on a subcontractor's representations of
its size and socioeconomic status unless the prime contractor has
reason to doubt the representations.
II. Discussion and Analysis
The proposed changes to the FAR and the rationale are summarized as
follows:
--Modify FAR 19.702, 42.1501, and FAR clause 52.219-9, Small Business
Subcontracting Plan, to implement SBA's regulations at 13 CFR
125.9(d)(6) to provide two new incentives for SBA's mentor-
prot[eacute]g[eacute] program as follows: A mentor that subcontracts to
its prot[eacute]g[eacute] that has its principal office located in
Puerto Rico or that is a covered territory business may receive
positive consideration for the mentor's past performance evaluation,
and the mentor may apply costs incurred for training provided to its
prot[eacute]g[eacute] toward the mentor's subcontracting plan goals.
This rule also proposes to modify FAR 2.101 to add a definition of
covered territory business to implement SBA's regulations at 13 CFR
125.1.
--Modify FAR 19.702 to implement SBA's regulations at 13 CFR
125.3(b)(2) to clarify that subcontracting plans are not required from
entities that are treated as small business concerns by statute, such
as ANCs.
--Modify FAR 19.703 and FAR clauses 52.219-8, Utilization of Small
Business Concerns, and 52.219-9 to implement SBA's regulations at 13
CFR 121.404(e) to clarify that a contractor may rely upon a
subcontractor's representations of its size and socioeconomic status
unless the contractor has reason to question the representations.
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 clauses at FAR 52.212-5, 52.213-4, 52.219-8,
and 52.219-9. However, this rule does not change the applicability of
these clauses, which continue to apply to contracts valued at or below
the SAT, or on contracts for commercial products, including COTS items,
or commercial services. This rule proposes to apply paragraphs (a) and
(d) of section 861 of the John S. McCain National Defense Authorization
Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-232), and paragraphs
(a) and (c) of section 866 of the NDAA for FY 2021 (Pub. L. 116-283),
to acquisitions at or below the SAT and to acquisitions for commercial
products, including COTS items, and commercial services, as the two new
incentives for SBA's mentor-prot[eacute]g[eacute] program are available
to all contractors in the program, regardless of the dollar value of
the contract awarded or the commercial nature of the products and
services procured.
A. Applicability to Contracts at or Below the Simplified Acquisition
Threshold
41 U.S.C. 1905 governs the applicability of laws to acquisitions at
or below the SAT. Section 1905 generally limits the applicability of
new laws when agencies are making acquisitions at or below the SAT, but
provides that such acquisitions will not be exempt from a provision of
law under certain circumstances, including when the Federal Acquisition
Regulatory Council (FAR Council) makes a written determination and
finding that it would not be in the best interest of the Federal
Government to exempt contracts and subcontracts in amounts not greater
than the SAT from the provision of law. The FAR Council intends to make
a determination to apply this statute to acquisitions at or below the
SAT.
B. Applicability to Contracts for the Acquisition of Commercial
Products and Commercial Services, Including Commercially Available Off-
the-Shelf (COTS) Items
41 U.S.C. 1906 governs the applicability of laws to contracts for
the acquisition of commercial products and commercial services, and is
intended to limit the applicability of laws to contracts for the
acquisition of commercial products and commercial services. Section
1906 provides that if
[[Page 48542]]
the FAR Council makes a written determination that it is not in the
best interest of the Federal Government to exempt commercial contracts,
the provision of law will apply to contracts for the acquisition of
commercial products and commercial services.
41 U.S.C. 1907 states that acquisitions of COTS items will be
exempt from certain provisions of law unless the Administrator for
Federal Procurement Policy makes a written determination and finds that
it would not be in the best interest of the Federal Government to
exempt contracts for the procurement of COTS items.
The FAR Council intends to make a determination to apply this
statute to acquisitions for commercial products and commercial
services. The Administrator for Federal Procurement Policy intends to
make a determination to apply this statute to acquisitions for COTS
items.
IV. Expected Impact of the Rule
This proposed rule is expected to benefit mentors with an SBA-
approved mentor-prot[eacute]g[eacute] agreement that subcontract to
covered territory small businesses and small businesses that have their
principal office located in the Commonwealth of Puerto Rico. These
benefits are expected to extend to covered territory small businesses
and small businesses located in the Commonwealth of Puerto Rico, as
mentors may be incentivized to enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements with such small businesses and issue
subcontracts to them.
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 (as amended by E.O. 14094) and 13563
direct agencies to assess 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.
VI. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this proposed rule to have a
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601-612,
because this rule provides incentives to mentors with SBA-approved
mentor-prot[eacute]g[eacute] agreements that subcontract to its
prot[eacute]g[eacute] that has its primary office located in the
Commonwealth of Puerto Rico or is a covered territory small business;
therefore, the number of small entities that may be impacted is
limited. However, an Initial Regulatory Flexibility Analysis (IRFA) has
been performed and is summarized as follows:
DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to implement regulatory changes made by
the Small Business Administration (SBA) in its final rule published
on October 16, 2020, at 85 FR 66146, to implement paragraphs (a) and
(d) of section 861 of the John S. McCain National Defense
Authorization Act (NDAA) for Fiscal Year (FY) 2019 (Pub. L. 115-
232). Paragraphs (a) and (d) of section 861 amended 15 U.S.C.
632(ee) and 15 U.S.C. 657r(a) to add Puerto Rico to the list of
territories from which small businesses are eligible for
preferential treatment under the SBA mentor-prot[eacute]g[eacute]
program. In addition, this rule implements SBA's final rule
published on August 19, 2022, at 87 FR 50925 to implement paragraphs
(a) and (c) of section 866 of the NDAA for FY 2021 (Pub. L. 116-
283). Paragraphs (a) and (c) of section 866 amended 15 U.S.C.
632(ff) and 15 U.S.C. 657r(a) to add the U.S. Virgin Islands,
American Samoa, Guam, and the Commonwealth of the Northern Mariana
Islands (CNMI) to the list of territories from which small
businesses are eligible for preferential treatment under the SBA
mentor-prot[eacute]g[eacute] programs. Section 866 also defines a
``covered territory business'' as a small business concern that has
its principal office located in one of the following: (1) the U.S.
Virgin Islands; (2) American Samoa; (3) Guam; and (4) CNMI. Sections
861 and 866 created two new incentives for SBA's small business
mentor-prot[eacute]g[eacute] program for mentor-
prot[eacute]g[eacute] pairs in which the prot[eacute]g[eacute] has
its principal office located in the Commonwealth of Puerto Rico or
is a covered territory business. Specifically, such a mentor that
subcontracts to its prot[eacute]g[eacute] is able to receive
positive consideration for the mentor's past performance evaluation
and is able to apply costs incurred for training provided to its
prot[eacute]g[eacute] to its subcontracting plan goals.
The objective of this rule is to implement SBA's final rules
published on October 16, 2020, at 85 FR 66146, and on August 19,
2022, at 87 FR 50925, which created two new incentives for SBA's
small business mentor-prot[eacute]g[eacute] program for mentor-
prot[eacute]g[eacute] pairs in which the prot[eacute]g[eacute] has
its principal office located in the Commonwealth of Puerto Rico or
is a covered territory business. Such a mentor that subcontracts to
its prot[eacute]g[eacute] is able to receive positive consideration
for the mentor's past performance evaluation and is able to apply
the costs incurred for training provided to its
prot[eacute]g[eacute] to its subcontracting plan goals. Promulgation
of the FAR is authorized by 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. The legal basis for this rule is as stated in
the preceding paragraph.
This proposed rule will impact small businesses whose principal
office is located in the Commonwealth of Puerto Rico or that are
covered territory businesses that enter into SBA-approved mentor-
prot[eacute]g[eacute] agreements. In its final rule, SBA identified
219 small businesses across the covered territories that had
contracted with the Federal Government in FY 2021. In addition and
according to the System for Award Management, there are 4,483 small
businesses in the Commonwealth of Puerto Rico that are currently
engaged in business with the Government. Although a total of 4,702
small businesses were identified, the number of small entities that
may be impacted by this proposed rule cannot be estimated more
precisely as the number of entities that may enter into SBA-approved
mentor-prot[eacute]g[eacute] agreements is unknown.
The proposed rule does not impose any new reporting,
recordkeeping, or other compliance requirements for small entities.
The proposed rule does not duplicate, overlap, or conflict with
any other Federal rules.
There are no known significant alternative approaches to the
proposed rule.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. DoD, GSA, and NASA invite comments from small
business concerns and other interested parties on the expected impact
of this proposed rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAR Case 2023-001),
in correspondence.
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).
[[Page 48543]]
List of Subjects in 48 CFR Parts 2, 19, 42, 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 propose amending 48 CFR parts 2, 19,
42, and 52 as set forth below:
0
1. The authority citation for 48 CFR parts 2, 19, 42, 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
0
2. Amend section 2.101 by adding in alphabetic order the definition
``Covered territory business'' to read as follows:
2.101 Definitions.
* * * * *
Covered territory business, as defined at 15 U.S.C. 632(ff) and 13
CFR 125.1, means a small business concern that has its principal office
located in the United States Virgin Islands, American Samoa, Guam, or
the Commonwealth of the Northern Mariana Islands.
* * * * *
PART 19--SMALL BUSINESS PROGRAMS
0
3. Amend section 19.702 by revising paragraph (b)(1) and adding
paragraph (e) to read as follows:
19.702 Statutory requirements.
* * * * *
(b) * * *
(1) From small business concerns, including entities that are
treated as small business concerns by statute for certain purposes
(e.g., ANCs, see 43 U.S.C. 1626(e) and 13 CFR 125.3(b)(2));
* * * * *
(e) In accordance with 15 U.S.C. 657r(a), a mentor with an SBA-
approved mentor-prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that
provides a subcontract to its prot[eacute]g[eacute] may apply the costs
incurred for training it provides to its prot[eacute]g[eacute] toward
its subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico.
0
4. Amend section 19.703 by revising paragraphs (a)(2)(i) and (a)(2)(ii)
introductory text to read as follows:
19.703 Eligibility requirements for participating in the program.
(a) * * *
(2)(i) Unless the prime contractor has reason to question the
representation, it may accept a subcontractor's written representations
of its size and socioeconomic status as a small business, small
disadvantaged business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, or a women-owned
small business, if the subcontractor represents that the size and
socioeconomic status representation with its offer are current,
accurate, and complete as of the date of the offer for the
subcontracts; or
(ii) Unless the prime contractor has reason to question the
representation, it may accept a subcontractor's representation of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, HUBZone small business, or a women-owned small business
in the System for Award Management (SAM) if--
* * * * *
PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
5. Amend section 42.1501 by revising paragraph (a)(5) to read as
follows:
42.1501 General.
(a) * * *
(5) Complying with the requirements of the small business
subcontracting plan (see 19.705-7(b)), including favorable
consideration of a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that subcontracts to
its prot[eacute]g[eacute], and that prot[eacute]g[eacute] is a covered
territory business or that prot[eacute]g[eacute]'s principal office is
located in the Commonwealth of Puerto Rico (see 15 U.S.C. 657r(a));
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
6. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(20) ``(FEB 2024)'' and adding ``(DATE)''
in its place;
0
c. Removing from paragraphs (b)(21)(i) and (v) ``(SEP 2023)'' and
adding ``(DATE)'' in their places, respectively;
0
d. In Alternate II:
0
i. Revising the date of the Alternate; and
0
ii. Removing from paragraph (e)(1)(ii)(H) ``(FEB 2024)'' and adding
``(DATE)'' 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 (DATE)
* * * * *
Alternate II (DATE). * * *
* * * * *
0
7. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(2)(vii) ``(FEB 2024)'' and adding
``(DATE)'' 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) (DATE)
* * * * *
0
8. Amend section 52.219-8 by revising the date of the clause and
paragraphs (e)(1) and (2) introductory text to read as follows:
52.219-8 Utilization of Small Business Concerns.
* * * * *
Utilization of Small Business Concerns (DATE)
* * * * *
(e)(1) Unless the Contractor has reason to question the
representation, it may accept a subcontractor's written representations
of its size and socioeconomic status as a small business, small
disadvantaged business, veteran-owned small business, service-disabled
veteran-owned small business, or a women-owned small business if the
subcontractor represents that the size and socioeconomic status
representations with its offer are current, accurate, and complete as
of the date of the offer for the subcontract.
(2) Unless the Contractor has reason to question the
representation, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small
[[Page 48544]]
business in the System for Award Management (SAM) if--
* * * * *
0
9. Amend section 52.219-9 by--
0
a. Revising the date of the clause;
0
b. Revising paragraphs (c)(2)(i), (c)(2)(ii) introductory text, and
(d)(1) introductory text;
0
c. In Alternate IV:
0
i. Revising the date of the Alternate; and
0
ii. Revising paragraphs (c)(2)(i), (c)(2)(ii) introductory text, (d)(1)
introductory text, and (d)(15).
The revisions read as follows:
52.219-9 Small Business Subcontracting Plan.
* * * * *
Small Business Subcontracting Plan (DATE)
* * * * *
(c) * * *
(2)(i) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's written
representations of its size and socioeconomic status as a small
business, small disadvantaged business, veteran-owned small business,
service-disabled veteran-owned small business, or a women-owned small
business if the subcontractor represents that the size and
socioeconomic status representations with its offer are current,
accurate, and complete as of the date of the offer for the subcontract.
(ii) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small business in the System for Award
Management (SAM) if--
* * * * *
(d) * * *
(1) Separate goals, expressed in terms of total dollars
subcontracted, and as a percentage of total planned subcontracting
dollars, for the use of small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns
as subcontractors. For individual subcontracting plans, and if required
by the Contracting Officer, goals shall also be expressed in terms of
percentage of total contract dollars, in addition to the goals
expressed as a percentage of total subcontract dollars. The Offeror
shall include all subcontracts that contribute to contract performance,
and may include a proportionate share of products and services that are
normally allocated as indirect costs. In accordance with 15 U.S.C.
657r(a), an Offeror that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a
subcontract to its prot[eacute]g[eacute] may apply the costs incurred
for training it provides to its prot[eacute]g[eacute] toward its
subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico. In
accordance with 43 U.S.C. 1626--
* * * * *
(15) Assurances that the Contractor will pay its small business
subcontractors on time and in accordance with the terms and conditions
of the underlying subcontract, and notify the contracting officer when
the prime contractor makes either a reduced or an untimely payment to a
small business subcontractor (see 52.242-5).
* * * * *
Alternate IV (DATE). * * *
(c) * * *
(2)(i) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's written
representations of its size and socioeconomic status as a small
business, small disadvantaged business, veteran-owned small business,
service-disabled veteran-owned small business, or a women-owned small
business if the subcontractor represents that the size and
socioeconomic status representations with its offer are current,
accurate, and complete as of the date of the offer for the subcontract.
(ii) Unless the Contractor has reason to question the
representations, it may accept a subcontractor's representations of its
size and socioeconomic status as a small business, small disadvantaged
business, veteran-owned small business, service-disabled veteran-owned
small business, or a women-owned small business in the System for Award
Management (SAM) if--
* * * * *
(d) * * *
(1) Separate goals, expressed in terms of total dollars
subcontracted and as a percentage of total planned subcontracting
dollars, for the use of small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns
as subcontractors. For individual subcontracting plans, and if required
by the Contracting Officer, goals shall also be expressed in terms of
percentage of total contract dollars, in addition to the goals
expressed as a percentage of total subcontract dollars. The Contractor
shall include all subcontracts that contribute to contract performance,
and may include a proportionate share of products and services that are
normally allocated as indirect costs. In accordance with 15 U.S.C.
657r(a), a Contractor that is a mentor with an SBA-approved mentor-
prot[eacute]g[eacute] agreement (see 13 CFR 125.9) that provides a
subcontract to its prot[eacute]g[eacute] may apply the costs incurred
for training it provides to its prot[eacute]g[eacute] toward its
subcontracting plan goals, provided that prot[eacute]g[eacute] is a
covered territory business or that prot[eacute]g[eacute] has its
principal office located in the Commonwealth of Puerto Rico. In
accordance with 43 U.S.C. 1626--
* * * * *
0
10. Amend section 52.244-6 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (c)(1)(x) ``(FEB 2024)'' and adding
``(DATE)'' 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 (DATE)
* * * * *
[FR Doc. 2024-12501 Filed 6-6-24; 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 June 7, 2024.
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.