Proposed Rule to Update FAR HUBZone Provisions

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council have issued a proposed rule amending the Federal Acquisition Regulation to implement revisions made by a Small Business Administration final rule (70,425.183 ) and interim rule (70,425.228), which incorporated changes to SBA's regulations at 13 CFR 126 as required by the Small Business Reauthorization Act of 2000. This proposed rule makes conforming changes to the FAR to comply with the SBA regulations as they pertain to acquisition. The rule would require a HUBZone small business concern to be eligible for the HUBZone Program both at the time of its initial offer and at the time of contract award. In addition, the rule would require a HUBZone concern to provide a copy of the notice required by SBA 126.501 to the contracting officer if material changes occur before award that could affect its HUBZone eligibility. Also, this proposed rule would amend the FAR to state that, except for construction or service contracts, when the total value of the contract exceeds $25,000, a HUBZone small business concern nonmanufacturer must agree to furnish only end items manufactured or produced by HUBZone small business manufacturer concerns. The rule would revise or amend the following regulations: FAR 2.101, FAR 19.000, FAR 19.101, FAR 19.102, FAR 19.306, FAR 19.703, FAR 19.800, FAR 19.803, FAR 19.804-3, FAR 19.805-1, FAR 19.1301, FAR 19.1303, FAR 19.1305 - FAR 19.1308, FAR 33.102, FAR 52.212-3, FAR 52.212-5, FAR 52.213-4, FAR 52.219-1, FAR 52.219-3, FAR 52.219-4, FAR 52.219-8, and FAR 52.244-6 . The rule would also add a new provision in FAR Subpart 19.13, entitled "Performance of work requirements (limitations on subcontracting)."Comments on the proposed rule, identified by FAR Case 2006-005, are due by June 12, 2009. For the text of the rule, see 70,006.226.

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