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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: January 25, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans

SOURCE: Federal Register, January 25, 2000, Vol. 65, No. 16, page 3942

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: DOD is amending its Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans to implement Section 817 of the National Defense Authorization Act for Fiscal Year 2000 (Public Law 106-65), which extended the program for five years, from September 30, 2000 to September 30, 2005.

EDITOR'S NOTE: Defense Federal Acquisition Regulation Supplement (DFARS) 219.702, Statutory Requirements, which addresses the test program, has already been amended to reflect this change. The DFARS amendment was published in the Federal Register on November 18, 1999.

EFFECTIVE DATE: January 24, 2000.

FOR FURTHER INFORMATION CONTACT: Mr. Ivory Fisher, Office of Small and Disadvantaged Business Utilization, OUSD (A&T) SADBU, 1777 North Kent Street, Suite 9100, Arlington, VA 22209; 703-588-8616; fax: 703-588-7561.

SUPPLEMENTAL INFORMATION: Paragraph (a) of Defense FAR Supplement (DFARS) 219.702, Statutory Requirements, states, "Section 834 of Public Law 101-189, as amended, requires the DOD to establish a test program to determine whether comprehensive subcontracting plans on a corporate, division, or plant-wide basis will reduce administrative burdens while enhancing subcontracting opportunities for small and small disadvantaged business concerns. The test program will be conducted from October 1, 1990, through September 30, 2000, in accordance with the DOD test plan, 'Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans'..."

On October 5, 1999, President Clinton signed into law the National Defense Authorization Act for Fiscal Year 2000. Section 817 of the law extended the expiration date for the test program from September 30, 2000, to September 30, 2005. To implement this change, DOD has revised paragraph A. of Part III of the Test Program, Program Requirements, to state, "The Program shall be conducted from October 1, 1990, through September 30, 2005."

EDITOR'S NOTE: On August 17, 1999, DOD amended the Test Program to add Historically Underutilized Business Zone (HUBZone) small businesses to the categories of small business concerns that must be addressed by comprehensive small business subcontracting plans.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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