III.  Regulatory Flexibility Act

DoD expects that this proposed rule may have an economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. Therefore, an Initial Regulatory Flexibility Analysis has been prepared and is summarized as follows:

This rule would affect offerors that are owned by another business entity. As such, this DFARS rule would require an offeror to represent that, if it is owned or controlled by another business entity, it has entered the CAGE code and the name of that entity. DoD made 308,286 new contract awards to contractors with approximately 55,000 unique Data Universal Numbering System (DUNS) numbers in Fiscal Year 2011. Approximately 41,000 of these awards were to small-business unique DUNS. It is estimated that approximately 5% of these small business unique DUNS are corporations under another business entity. Therefore, DoD estimates that this rule will apply to approximately 2,050 small-business unique DUNS contractors.

The rule does not duplicate, overlap, or conflict with any other Federal rules. There are no significant alternatives to accomplish the stated objectives of this rule. DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities.

DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (DFARS Case 2011-D044) in the correspondence.