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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: March 14, 2002

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

SOURCE: Federal Register, March 14, 2002, Vol. 67, No. 50, page 11438

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adopting as final, without changes, the September 11, 2001, proposed rule to amend DFARS 226.7103, Procedure, to clarify that both competitive and noncompetitive acquisitions under the Section 8(a) program are permitted if an 8(a) contractor is located in the vicinity of the base to be closed or realigned.

EDITOR'S NOTE: For more on the proposed rule, see the September 11, 2001, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Preference for Local 8(a) Contractors -- Base Closure or Realignment."

EFFECTIVE DATE: March 14, 2002.

FOR FURTHER INFORMATION CONTACT: Angelena Moy, Defense Acquisition Regulations Council, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-1302; fax: 703-602-0350. Cite DFARS Case 2001-D007 when referring to this final rule.

SUPPLEMENTAL INFORMATION: DFARS Subpart 226.71, Preference for Local and Small Businesses, implements Congressional policy that "businesses located in the vicinity of a military installation that is being closed or realigned under a base closure law...and small and small disadvantaged businesses shall be provided maximum practicable opportunity to participate in acquisitions that support the closure or realignment..." DFARS 226.7103(c) permitted award under the Section 8(a) program only if "the 8(a) contractor" was located in the vicinity of the base to be closed or realigned.

On September 11, 2001, DOD published a proposed rule to clarify its policy, which is to permit both competitive and noncompetitive 8(a) acquisitions in support of a base closure or realignment. The rule proposed to amend DFARS 226.7103(c) to permit award under the Section 8(a) program if "at least one eligible 8(a) contractor is located in the vicinity." Also, the rule proposed to further amend paragraph (c) to make a similar change pertaining to set-asides for small business concerns -- "if one of the expected offers is from a small business" would be changed to "if at least one of the expected offers is from a small business located in the vicinity."

DOD received no comments on the proposed rule, so it is finalizing the proposed rule without change.

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

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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