[Federal Register Volume 67, Number 50 (Thursday, March 14, 2002)]
[Rules and Regulations]
[Page 11438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5951]


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DEPARTMENT OF DEFENSE

48 CFR Part 226

[DFARS Case 2001-D007]


Defense Federal Acquisition Regulation Supplement; Preference for 
Local 8(a) Contractors--Base Closure or Realignment

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to clarify policy pertaining 
to preferences for local businesses in acquisitions that support a base 
closure or realignment. The rule clarifies that both competitive and 
noncompetitive acquisitions under the Section 8(a) Program are 
permitted if an eligible 8(a) contractor is located in the vicinity of 
the base to be closed or realigned.

EFFECTIVE DATE: March 14, 2002.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy, Defense Acquisition 
Regulations Council, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-1302; 
facsimile (703) 602-0350. Please cite DFARS Case 2001-D007.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends DFARS 226.7103 to clarify policy pertaining 
to preferences for local businesses in acquisitions that support a base 
closure or realignment. The present policy permits award under the 
Section 8(a) Program if ``the 8(a) contractor'' is located in the 
vicinity of the base to be closed or realigned. This rule amends the 
text to permit use of 8(a) procedures if ``at least one eligible 8(a) 
contractor'' is located in the vicinity. This change clarifies the 
intent of the policy, which is to permit both competitive and 
noncompetitive 8(a) acquisitions in support of a base closure or 
realignment. A similar clarifying amendment is made to the text 
pertaining to set-asides for small business concerns.
    DoD published a proposed rule at 66 FR 47158 on September 11, 2001. 
DoD received no comments on the proposed rule. Therefore, DoD is 
adopting the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not 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, et seq., 
because the rule merely clarifies existing policy pertaining to 
acquisitions made in support of a base closure or realignment.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

List of Subjects in 48 CFR Part 226

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, 48 CFR Part 226 is amended as follows:

    1. The authority citation for 48 CFR Part 226 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 226--OTHER SOCIOECONOMIC PROGRAMS

    2. Section 226.7103 is amended by revising paragraph (c) to read as 
follows:


226.7103  Procedure.

* * * * *
    (c) If offers can be expected from business concerns in the 
vicinity--
    (1) Consider section 8(a) only if at least one eligible 8(a) 
contractor is located in the vicinity.
    (2) Set aside the acquisition for small business only if at 
least one of the expected offers is from a small business located in 
the vicinity.

[FR Doc. 02-5951 Filed 3-13-02; 8:45 am]
BILLING CODE 5001-08-P