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FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions


OCTOBER 2001
Vol. II, No. 10

CONTENTS

Deluge of DFARS Changes: Foreign Acquisitions, Small Business, Profit
SBA Makes Microloan Program Permanent
FAIR Act Inventories Available to Public
Reminder: Reservist Loans Available from SBA



Deluge of DFARS Changes Made and Proposed,
Involve Foreign Acquisitions, Small Business, Profit

The Department of Defense (DOD) has not amended the Defense Federal Acquisition Regulation (DFARS) since President Bush took office. DOD finally broke the ice during September with three final rules and three interim rules. Also, DOD published six proposed DFARS changes and extended for one year a Federal Acquisition Regulation (FAR) deviation on maximum per diem rates.


FINAL RULES


INTERIM RULES


PROPOSED RULES


FAR DEVIATION



SBA Makes Microloan Program Permanent

To comply with the provisions of the Small Business Reauthorization Act of 1997 (Public Law 105-135), which terminated the designation of the Microloan Program as a "demonstration" (that is, made the program permanent) and made other changes to the program, the Small Business Administration (SBA) has issued a final rule revising its microloan program regulations in Title 13 of the Code of Federal Regulations (CFR), Part 120, Business Loans, Subpart G, Microloan Program, as follows:

In addition, the Consolidated Appropriations Act of 2001 (Public Law 106-554), directed the increase of several dollar amounts used to define aspects of the program. The most significant changes are:



FAIR Act Inventories Available to Public

On September 26, the Office of Management and Budget (OMB) published a notice in the Federal Register that the first release of the 2001 "Agency Inventories of Activities that are not Inherently Governmental" required by Section 2 of Public Law 105-270, the Federal Activities Inventory Reform Act of 1998 ("FAIR Act"), is available to the public from the Departments of Energy, State, and Veterans Affairs; National Aeronautics and Space Administration (NASA); Office of Management and Budget; SBA; several small agencies and activities; and eight offices of inspector general. These inventories consist of "activities performed by federal government sources for the executive agency that, in the judgment of the head of the executive agency, are not inherently governmental functions." Interested parties have 30 days from the publication of the Federal Register notice (that is, until October 26, 2001) to challenge the omission or inclusion of an activity on and inventory.

Approximately 300,000 jobs are included in this release, and about 75% of those jobs are categorized as eligible to be performed by the private sector.

In addition, the Office of Federal Procurement Policy (OFPP) has prepared a summary "FAIR Act User's Guide" and has made it available at http://www.whitehouse.gov/OMB/procurement/index.html. This User's Guide will help interested parties review 2001 FAIR Act inventories, and include the website addresses for individual agency inventories.

On March 9, 2001, OMB Deputy Director Sean O'Keefe directed agencies to either outsource or put up for public/private competition at least 5% of the positions on their FY 2000 inventories -- approximately 42,000 positions (see the April 2001 Federal Contracts Perspective article "OMB Memo Establishes 20% Performance-Based Contracting Goal, A-76 Use on FAIR Act Inventories"). In guidance for the preparation of the FY 2003 budget, OMB has directed agencies to outsource or compete an additional 10% of the positions, for a total of 15%.



Reminder: Reservist Loans Available from SBA

In response to the tragic events of September 11, President Bush has called up several thousand reservists for duty. This sheds a new light on the recently implemented Military Reservist Economic Injury Disaster Loans program. The loans are available to small businesses employing military reservists who are called up to active duty and are essential employees critical to their businesses. The loans have interest rates of 4%, have a term up to 30 years, and are limited to $1,500,000.

For more information on this program, see the August 2001 Federal Contracts Perspective article "SBA to Provide Loans When Reservists Are Called Up," and the September 2001 article "SBA Taking Applications for Reservist Loans."


Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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