# Procedure.
**AGENCY:**
Department of Defense (DoD).
**ACTION:**
Proposed rule with request for comments.
**SUMMARY:**
DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify policy pertaining to preferences for local businesses in acquisitions that support a base closure or realignment. The rule clarifies 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.
**DATES:**
Comments on the proposed rule should be submitted in writing to the address shown below on or before November 13, 2001, to be considered in the formation of the final rule.
**ADDRESSES:**
Respondents may submit comments directly on the World Wide Web at *http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm* . As an alternative, respondents may e-mail comments to: *[email protected]* . Please cite DFARS Case 2001-D007 in the subject line of e-mailed comments.
Respondents that cannot submit comments using either of the above methods may submit comments to: Defense Acquisition Regulations Council, Attn: Ms. Angelena Moy, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; facsimile (703) 602-0350. Please cite DFARS Case 2001-D007.
At the end of the comment period, interested parties may view public comments on the World Wide Web at *http://emissary.acq.osd.mil/dar/dfars.nsf* .
**FOR FURTHER INFORMATION CONTACT:**
Ms. Angelena Moy, (703) 602-1302.
**SUPPLEMENTARY INFORMATION:**
**A. Background**
This proposed rule amends DFARS 226.7103 to clarify policy pertaining to preferences for local businesses in acquisitions that support a base closure or realignment. The present policy permits award under the Section 8(a) Program if “the 8(a) contractor” is located in the vicinity of the base to be closed or realigned. This proposed rule amends the text to permit use of 8(a) procedures if “at least one eligible 8(a) contractor” is located in the vicinity. This change clarifies the intent of the policy, which is to permit both competitive and noncompetitive 8(a) acquisiitons in support of a base closure or realignment. A similar clarifying amendment is made to the text pertaining to set-asides for small business concerns.
This rule was not subject to Office of Management and Budget review under Executive Order 12866, dated September 30, 1993.
**B. Regulatory Flexibility Act**
The proposed rule is not expected to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule merely clarifies existing policy pertaining to acquisitions made in support of a base closure or realignment. Therefore, DoD has not performed an initial regulatory flexibility analysis. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subpart in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2001-D007.
**C. Paperwork Reduction Act**
The Paperwork Reduction Act does not apply because the rule does not impose any information collection requirements that require the approval of the Office of Management and Budget under 44 U.S.C. 3501, *et seq* .
**List of Subjects in 48 CFR Part 226**
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, DoD proposes to amend 48 CFR part 226 as follows:
1. The authority citation for 48 CFR part 226 continues to read as follows:
**Authority:**
41 U.S.C. 421 and 48 CFR Chapter 1.
**PART 226—OTHER SOCIOECONOMIC PROGRAMS**
2. Section 226.7103 is amended by revising paragraph (c) to read as follows:
226.7103
(c) If offers can be expected from business concerns in the vicinity—
(1) Consider section 8(a) only if at least one eligible 8(a) contractor is located in the vicinity.
(2) Set aside the acquisition for small business only if at least one of the expected offers is from a small business located in the vicinity.