The Defense Department has issued an interim rule sharply limiting the use of cascading, or tiered, procurements.

The rule, effective Sept. 8, implements Section 816 of the 2006 Defense Authorization Act.

DOD says a tiered procurement may not be used unless the contracting officer files a written finding that he could not determine through market research whether qualified small businesses were available to fulfill a contract or order.

Industry groups had complained that tiered procurements caused companies to spend money developing proposals that might never be considered. “It is a poor proxy for the required market research,” Stan Soloway, president of the Professional Services Council, said last year.

The interim rule is DFARS Case 2006-D009. Comments are due by Nov. 7.

The Senate has approved the long-delayed GSA reorganization bill, moving the agency’s overhaul one step closer to completion.

The legislation will allow GSA to combine its two revolving funds, the General Supply Fund and the Technology Fund, into a single entity.

The House passed the reorganization last year, but it was held up in the Senate because of an unrelated dispute. The bill now goes to a conference committee.

GSA has already combined its two big procurement arms, the Federal Supply Service and the Federal Technology Service, into the new Federal Acquisition Service.

The Court of Federal Claims has ordered the General Services Administration to vacate its $17.4 million award to Symplicity to develop and run the Federal Business Opportunities Web site, according to a statement released by Development InfoStructure (Devis), an IT company that protested the award.

The decision remains under seal until the parties to the action can review the ruling and remove any confidential material, Federal Computer Week reported.

Information Sciences Corp. and Devis, two losing bidders, sued after GSA awarded the contract to Symplicity last year.

Jose A. Diaz, president of DEI Service Corp. of Winter Park, FL, was named SBA’s Minority Small Business Person of the Year. The award was presented during Minority Enterprise Development Week in Washington.

DEI is an 8(a) firm that provides simulation and training devices to the military.

William L. Byles Sr., president of Byles Janitorial of Nashville, was named 8(a) Graduate of the Year. Byles, a veteran of the first Gulf War, started his business while working full-time as a truck driver.

SBA Administrator Steven Preston presented the Administrator’s Leadership Award to Frank Ramos, director of the Defense Department’s Office of Small Business Programs. He was recognized “for his tireless efforts and unwavering commitment on behalf of the nation’s minority small business community,” SBA said.

President Bush announced that he intends to nominate Jovita Carranza to be deputy administrator of SBA.

Carranza, a 30-year veteran of UPS, was most recently vice president of air operations at the package shipping company. In 2004 Hispanic Business magazine named her Hispanic Woman of the Year.

SBA is granting a waiver of the nonmanufacturer rule for Plastics Pallets (Twin Sheet Thermoformed), NAICS code 326199 and product number 4141. The agency said no small business manufacturers are supplying the products to the government.

The waiver is effective September 27.