[Federal Register Volume 66, Number 165 (Friday, August 24, 2001)]
[Notices]
[Pages 44605-44606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-21465]


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DEPARTMENT OF DEFENSE


Reinstatement of Small Business Set-Asides and Unrestricted 
Competition for Certain Acquisitions Under the Small Business 
Competitiveness Demonstration Program

AGENCY: Department of Defense (DoD).

ACTION: Notice of reinstatement of small business set-asides and 
unrestricted competition under the Small Business Competitiveness 
Demonstration Program.

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SUMMARY: The Director of Defense Procurement has reinstated the use of

[[Page 44606]]

small business set-aside procedures for certain non-nuclear ship repair 
acquisitions conducted by the Department of the Navy. Included in the 
reinstatement are solicitations issued under North American Industry 
Classification System (NAICS) Code 336611, Federal Service Code (FSC) 
J999 for the West Coast only. The Director of Defense Procurement has 
also reinstated the use of unrestricted competition for construction 
acquisitions in solicitations issued under NAICS Subsector 234 by the 
Departments of the Army and Navy and NAICS Code 23591 for the 
Department of the Navy.

EFFECTIVE DATE: August 13, 2001.

FOR FURTHER INFORMATION CONTACT: Mr. Tim J. Foreman, OUSD(AT&L), Deputy 
Director, Office of Small & Disadvantaged Business Utilization, 1777 
North Kent Street, Rosslyn Plaza North, Suite 9100, Arlington, VA 
22209; telephone (703) 588-8611.

SUPPLEMENTARY INFORMATION: The Office of Federal Procurement Policy and 
the Small Business Administration issued a final policy directive and 
implementation plan on June 2, 1999, for the Small Business 
Competitiveness Demonstration Program. The Program is further 
implemented in Subpart 19.10 of the Federal Acquisition Regulation 
(FAR) and Subpart 219.10 of the Defense FAR Supplement (DFARS).
    Under the Program, small business set-asides were initially 
suspended for certain designated industry groups (DIGs) for certain 
participating agencies. The final policy directive and implementation 
plan, paragraph III.D.2.a. and IV.A.3., requires participating agencies 
to reinstate the use of small business set-asides whenever the small 
business awards under any DIG (to include Major Groups or Subsectors 
within Construction and East and West Coast Non-Nuclear Ship Repair) 
fall below 40 percent, or whenever small business awards under certain 
individual codes within the Construction and Architectural & 
Engineering Services DIGs fall below 35 percent. Reinstatement is to be 
limited to the organizational element that failed to meet the small 
business participation goals.
    Participating agencies are required by paragraph III.D.2.b. and 
IV.A.3. of the final policy directive and implementation plan to 
reinstate the use of unrestricted competition upon determining, after 
an annual review, that their contract awards to small business concerns 
again meet the required goals. Accordingly, this notice is issued to 
reflect the results of small business participation in the DoD 
procurement data during Fiscal Year 2000 and supercedes the directives 
in the Director of Defense Procurement memorandum dated December 11, 
1998 (63 FR 71272, December 24, 1998).
    For the 12 months ending September 2000, DoD fell below the 40 
percent goal in acquisitions under Standard Industrial Classification 
(SIC) Code 3731, FSC J999, for non-nuclear ship repairs on the West 
Coast. Effective October 1, 2000, the North American Industry 
Classification System (NAICS) Subsectors and Codes were substituted for 
SIC Major Groups and SIC Codes. Accordingly, pursuant to DFARS 
219.1007(b)(1), the Director of Defense Procurement has directed the 
reinstatement of small business set-aside procedures in accordance with 
FAR Subpart 19.5 for all solicitations issued on or after August 13, 
2001, or as soon thereafter as practicable, for:

Non-Nuclear Ship Repair, NAICS Code 336611, FSC J999--All Navy 
Activities

    The Department-wide reinstatement of small business set-aside 
procedures for the Architectural & Engineering Services DIG remains in 
effect. Also, the emerging small business reserve amount of $50,000 for 
Architectural & Engineering Services remains in effect.
    For the 12 months ending September 2000, DoD accomplished the 40 
percent goal for participation of small businesses in construction 
acquisitions awarded under SIC Major Groups 16 and 17 (SIC Major Groups 
16 and 17 are now referred to as NAICS Subsectors 234 and 235, 
respectively). DoD also exceeded the required 35 percent goal in all 
subcategories of SIC Major Group 17 (NAICS Subsector 235), including 
SIC Code 1791 (NAICS Code 23591). Accordingly, the Director of Defense 
Procurement has directed the reinstatement of unrestricted competition 
for all solicitations issued on or after August 13, 2001, or as soon 
thereafter as practicable, for:

Construction, NAICS Subsector 234--All Army and Navy Activities
Construction, NAICS Code 23591--All Navy Activities

    To summarize, this results in unrestricted competition in 
Department-wide procurements for Construction NAICS Subsector 233 (SIC 
Major Group 15), NAICS Subsector 234 (SIC Major Group 16), NAICS 
Subsector 235 (SIC Major Group 17), Refuse Systems and Related 
Services, and for East Coast FSC J998 in the Non-Nuclear Ship Repair, 
NAICS 336611 (SIC 3731). Unrestricted competition is also in effect for 
the Army and Air Force for West Coast FSC J999 in the Non-Nuclear Ship 
Repair, NAICS 336611 (SIC 3731).
    Consistent with the revised final policy directive and 
implementation plan, this reinstatement of set-asides and unrestricted 
competition will be reviewed annually for continuation.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 01-21465 Filed 8-23-01; 8:45 am]
BILLING CODE 5000-04-M