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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: December 13, 2000

FROM: Barry McVay, CPCM

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); North American Industry Classification System

SOURCE: Federal Register, December 13, 2000, Vol. 65, No. 240, page 77831

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is finalizing, without change, the interim rule that converted programs based on the Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS), in accordance with the final rule issued by the Small Business Administration (SBA) that went into effect October 1, 2000.

EDITOR'S NOTE: For more on the interim rule, see the August 17, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); North American Industry Classification System."

For more on the Small Business Administration's (SBA) conversion of its small business size standards from SIC-based to NAICS-based, see the May 15, 2000, FEDERAL CONTRACTS DISPATCH "Small Business Administration; North American Industry Classification System (NAICS) Small Business Size Standards."

For more on Federal Acquisition Circular (FAC) 97-19, which amended the Federal Acquisition Regulation (FAR) to conform to the SBA's revised small business size standards regulations, see the July 26, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-19, Miscellaneous Amendments."

EFFECTIVE DATE: December 13, 2000.

FOR FURTHER INFORMATION CONTACT: Ms. Susan Schneider, Defense Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-03216; fax: 703-602-0350. Cite DFARS Case 2000-D015 when referring to this rule.

SUPPLEMENTAL INFORMATION: On May 15, 2000, the SBA converted its small business size standards from SIC-based to NAICS-based, and it required federal agencies to use the new NAICS-based size standards beginning October 1, 2000. An interim rule revising the FAR to conform to the NAICS-based size standards was published July 26, 2000, in FAC 97-19, and it went into effect October 1, 2000.

To comply with the SBA and FAR rules, DOD published an interim rule on August 17, 2000, which made corresponding changes to the DFARS, particularly to DFARS Part 219, Small Business Programs (such as changing "SIC" to "NAICS"). The most significant change was in paragraph (b) of DFARS 219.1005, Applicability, which contains the NAICS codes for the DOD's targeted industry groups under the Small Business Competitiveness Demonstration Program.

One source submitted comments on the interim DFARS rule, but DOD has decided to finalize the interim rule without changes.

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

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