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DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 821 of the National Defense Authorization Act (NDAA) for fiscal year (FY) 2015, section 872 of the NDAA for FY 2016, and section 826 of the NDAA for FY 2017. Implementation of these sections in the DFARS is necessary to:

• Require contractors with comprehensive subcontracting plans to report additional information on a semiannual basis in order to evaluate the effectiveness of the program;
• Reinstate liquidated damages under comprehensive subcontracting plans
• Require consideration, as part of the past performance evaluation of an offeror, of any failure to make a good faith effort to comply with its comprehensive subcontracting plan
• Increase the threshold for participation in the Test Program from $5 million to $100 million;
  Prohibit negotiation of comprehensive subcontracting plans with contractors who failed to meet the subcontracting goals of their comprehensive subcontracting plan for the prior fiscal year;
• Remove the prohibition on negotiation of comprehensive subcontracting plans with contractors who failed to meet the subcontracting goals of their comprehensive subcontracting plan for the prior fiscal year; and
• Extend the Test Program through December 31, 2027.

This rule will streamline regulatory requirements, reduce costs for the nine large businesses participating in the Test Program, and encourage Test Program participants to make a good faith effort to comply with their comprehensive small business subcontracting plans.