DATE: September 2, 2004

SUBJECT: Federal Acquisition Regulation (FAR); Application of Small Disadvantaged Business and HUBZone Price Evaluation Factors

SOURCE: Federal Register, September 2, 2004, Vol. 69, No. 170, page 53779

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR Part 19, Small Business Programs, be amended to remove some of the exceptions to the applicability of the Small Disadvantaged Business (SDB) and Historically Underutilized Business Zone (HUBZone) price evaluation factors.

DATES: Comments should be submitted on or before November 1, 2004.

ADDRESSES: Submit comments, identified by "FAR Case 2003-015," to: (1) http://www.regulations.gov; (2) http://www.acqnet.gov/far/ProposedRules/proposed.htm; (3) e-mail: farcase.2003-015@gsa.gov; (4) fax: 202-501-4067; or (5) mail: General Services Administration, Regulatory Secretariat (MVA), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Cecelia Davis, 202-219-0202.

SUPPLEMENTAL INFORMATION: Paragraph (a) of FAR 19.1103, Procedures, and paragraph (b) of FAR 19.1307, Price Evaluation Preference for HUBZone Small Business Concerns, direct the contracting officer not to apply the respective SDB and HUBZone price evaluation adjustments to offers of eligible products in acquisitions subject to the Trade Agreements Act (see FAR Subpart 25.4, Trade Agreements), or where application of the factor would be inconsistent with a Memorandum of Understanding (MOU) or other international agreement.

This proposed rule would remove these exceptions (FAR 19.1103(a)(2), (a)(3), and (a)(5); and FAR 19.1307(b)(3) and (b)(4)) because they give more favorable treatment to offers of eligible products or qualifying country products than to offers from U.S. large businesses or, in the case of the SDB preference, even offers from U.S. small businesses. The basic goal of the trade agreements and other international agreements is to provide nondiscriminatory treatment for certain foreign products, not preferential treatment.

In addition, conforming amendments would be made to the associated clauses at FAR 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns, and FAR 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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