[Federal Register Volume 59, Number 25 (Monday, February 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2678]


[[Page Unknown]]

[Federal Register: February 7, 1994]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 516 and 552

[GSA Notice 5-381]

 

General Services Administration Acquisition Regulation: 
Discontinuing Paper Orders

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Proposed rule.

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SUMMARY: This notice invites written comments on a proposed change to 
the General Services Administration Acquisition Regulation (GSAR), that 
would revise the clause at 552.216-73, Placement of Orders, to provide 
for the placement of orders through computer-to-computer Electronic 
Data Interchange (EDI) or by an alternative method employing facsimile 
transmission if computer-to-computer EDI is not possible and to 
prescribe a new clause describing ordering information a contractor 
should provide to the contracting officer.

DATES: Comments are due in writing on or before March 9, 1994.

ADDRESSES: Comments should be addressed to the GSA Desk Officer, Room 
3235, NEOB, Washington, DC 20503 and to Ms. Marjorie Ashby, General 
Services Administration, Office of GSA Acquisition Policy, 18th and F 
Streets NW., Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:
Paul Linfield, Office of GSA Acquisition Policy (202) 501-1224.

SUPPLEMENTARY INFORMATION:

A. Background

    On January 22, 1993, the Federal Supply Service (FSS) published 
notice in the Federal Register (58 FR 5731) of its intent after October 
1, 1993, to discontinue issuing paper deliver orders in favor of 
electronic distribution of delivery orders under stock, special order 
program, and schedule contracts. This change to the GSAR revises the 
clause at 552.216-73, Placement of Orders, to provide for placement of 
orders through computer-to-computer Electronic Data Interchange (EDI) 
or by an alternative method employing facsimile transmission if 
computer-to-computer EDI is not possible. Other agencies, if authorized 
to directly place delivery orders under a GSA contract, may continue to 
mail paper orders. The change also prescribes a new clause describing 
ordering information a contractor should provide to the contracting 
officer.

B. Executive Order 12866-

    This rule was submitted to and approved by the Office of Management 
and Budget (OMB) in accordance with Executive Order 12866, Regulatory 
Planning and Review.

C. Regulatory Flexibility Act

    An initial regulatory flexibility analysis has been prepared and 
submitted to the Acting Chief Counsel for Advocacy of the Small 
Business Administration. Copies of the initial regulatory flexibility 
analysis are available from the office identified above. The initial 
regulatory flexibility analysis indicates that the proposed rule will 
affect contractors, including small businesses under FSS solicitations 
issued under its Stock, Special Order, and Multiple Award Schedule 
Programs. In FY 1993 more than 850 solicitations were issued and 
approximately 35,000 offers were received. Approximately 75 percent 
were received from small business concerns. On January 22, 1993, FSS 
published a notice of intent to discontinue placing paper delivery 
orders (58 FR 5731) and invited public comment. Of the 70 comments 
received there were five received from small businesses that expressed 
concern about the effect of the policy on small business. One stated it 
personally would not be affected and a second indicated the policy 
would impose some inconvenience as it currently had no computer or FAX 
capability. Three expressed concern over their ability to continue to 
be Government suppliers as they currently had neither a EDI compatible 
computer or facsimile machine.

D. Paperwork Reduction Act

    The information collection requirements contained in this proposed 
rule have been submitted to the Office of Management and Budget for 
approval. Comments on the information collection requirements may be 
directed to the Office of Information and Regulatory Affairs of OMB, 
Attention: Desk Officer for GSA, Washington, DC 20503. The title of one 
of the information collections is ``GSAR 552.216-73, Placement of 
Orders,'' used in GSA's Federal Supply Services' (FSS's) Stock, Special 
Order, and Schedule Programs. FSS intends to maximize the use of 
computer-to-computer electronic data interchange (EDI) to place 
delivery orders. To accomplish computer-to-computer EDI, a company will 
have to enter into a Trading Partner Agreement (TPA) with FSS (as an 
alternative, a contractor can receive delivery orders through facsimile 
transmission). This extended use of EDI furthers congressional and 
executive branch policies that Federal agencies provide leadership in 
advancing environmental objectives through technology and the expanded 
use of electronic commerce.
    FSS anticipates entering into 400 TPA's with contractors, an 
expansion of the information collection currently approved under OMB 
Control No. 3090-0248. The same protocols apply to a contractor's 
commercial activity. Consequently, if it currently uses electronic 
commerce for its commercial activity, the total burden is the time it 
takes to sign and submit its current protocols. Otherwise, it is 
estimated that it would take approximately one hour for a contractor to 
develop the necessary protocols. Based upon one hour per respondent, 
the additional burden to the public will be 400 hours. The title of the 
second information collection is 552.216-74, Ordering Information. This 
information collection requires offerors to identify their 
representative who is familiar with establishing EDI interfaces; 
telephone numbers of facsimile equipment, if computer-to-computer EDI 
is not practicable; and postal mailing addresses, if delivery orders 
are mailed. It is estimated that it will take an average of one-half 
hour to develop this information.
    Based upon one-half hour per respondent and approximately 35,000 
respondents, the additional burden will be 17,500 hours.

List of Subjects in 48 CFR Parts 516 and 552

    Government procurement.

    Accordingly, it is proposed to amend 48 CFR parts 516 and 552 as 
follows:
    1. The authority citation for 48 CFR parts 516 and 552 continues to 
read as follows:


    Authority: 40 U.S.C. 486(c).

PART 516--TYPES OF CONTRACTS

    2. Section 516.505 is revised to read as follows:


516.505  Contract clauses.

    (a) The contracting officer shall insert the clause at 552.216-73, 
Placement of Orders, in solicitations and contracts for stock or 
special order program items when the contract authorizes agencies other 
than FSS to issue delivery orders. If only FSS will issue delivery 
orders under any of its supply programs, use Alternate I. If a Federal 
Supply Schedule contract (single or multiple award) permits other 
agencies to issue delivery orders, use Alternate II.
    (b) The contracting officer shall insert the provision at 552.216-
74, Ordering Information, in solicitations for stock items and in other 
Federal Supply Service solicitations when FSS alone will issue delivery 
orders. If the contract will authorize paper delivery orders, use 
Alternate I. If a Federal Supply Multiple Award Schedule contract 
permitting other agencies to issue delivery orders is contemplated, use 
Alternate II.
    3. Section 552.216-73 is revised to read as follows:


552.216-73  Placement of orders.

    As prescribed in 516.505(a), insert the following clause:

Placement of Orders (XXX 1993)

    (a) Delivery orders (orders) will be placed by:

[Contracting Officer insert names of Federal agencies]

    (b) Orders may be placed through Electronic Data Interchange 
(EDI) or mailed in paper form. EDI orders shall be placed using the 
American National Standards Institute (ANSI) X12 Standard for 
Electronic Data Interchange (EDI) format.
    (c) GSA's Federal Supply Service (FSS), if specified in 
paragraph (a) above, will place all orders by EDI using computer-to-
computer EDI, whenever possible. If computer-to-computer EDI is not 
possible, an alternative method allowing the Contractor to receive 
orders by facsimile transmission will be used. Subject to the 
Contractor's agreement, other agencies may place orders by EDI.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into one or more Trading 
Partner Agreements (TPA) with each Federal agency placing orders 
electronically in order to ensure mutual understanding by the 
parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation.
    (e) The Contractor shall be responsible for providing its own 
hardware and software necessary to transmit and receive data 
electronically. Additionally, each party to the TPA shall be 
responsible for the costs associated with its use of third party 
provider services.
    (f) Nothing in the TPA will invalidate any part of this contract 
between the Contractor and the General Services Administration. All 
terms and conditions of this contract that otherwise would be 
applicable to a mailed order shall apply to the electronic order.
    (g) The basic content and format of the TPA will be provided by: 
General Services Administration, Systems Inventory and Operations 
Management Center (FCS), Washington, DC 20406, Telephone: 
[Contracting Officer insert, FAX: appropriate telephone numbers]
    Alternate I (XXX 1993). As prescribed in 516.505(a), substitute 
the following paragraphs (a), (b), (c), and (d) for paragraphs, (a), 
(b), (c), and (d), of the basic clause:
    (a) All delivery orders (orders) under this contract will be 
placed by the General Services Administration's Federal Supply 
Service (FSS). The Contractor is not authorized to accept orders 
from any other agency. Violation of this restriction may result in 
termination of the contract pursuant to the default clause of this 
contract.
    (b) All orders shall be placed by Electronic Data Interchange 
(EDI) using the American National Standards Institute (ANSI) X12 
Standard for Electronic Data Interchange (EDI) format.
    (c) Transmission will be computer-to-computer EDI, whenever 
possible. If computer-to-computer EDI is not possible, an 
alternative method allowing the Contractor to receive orders by 
facsimile transmission will be used.
    (d) When computer-to-computer EDI procedures will be used to 
place orders, the Contractor shall enter into a Trading Partner 
Agreement (TPA) with FSS in order to ensure mutual understanding by 
the parties of certain electronic transaction conventions and to 
recognize the rights and responsibilities of the parties as they 
apply to this method of placing orders. The TPA must identify, among 
other things, the third party provider(s) through which electronic 
orders are placed, the transaction sets used, security procedures, 
and guidelines for implementation.
    Alternate II (XXX 1993). As prescribed in 516.505(a), substitute 
the following paragraph (a) for paragraph (a) of the basic clause:
    (a) Delivery orders under this contract may be placed by either 
the using Federal agencies or the General Services Administration's 
Federal Supply Service (FSS).


    4. Section 552.216-74 is added to read as follows:


552.216-74  Ordering Information.

    As prescribed in 516.505(b), insert the following provision:

Ordering Information (XXX 1993)

    (a) In accordance with the Placement of Orders clause of this 
solicitation, the offeror elects to receive orders placed by GSA's 
Federal Supply Service (FSS) by either () facsimile transmission or 
() computer-to-computer Electronic Data Interchange (EDI).
    (b) An offeror electing to receive computer-to-computer EDI is 
requested to indicate below the name, address, and telephone number 
of the representative to be contacted regarding establishment of an 
EDI interface.

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    (c) An offeror electing to receive orders by facsimile 
transmission is requested to indicate below the telephone number(s) 
for facsimile transmission equipment where orders should be 
forwarded.

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(End of Provision)

    Alternate I (XXX 1993). As prescribed in 516.505(b), add the 
following paragraph (d) to the basic provision:
    (d) If the Placement of Orders clause provides for the mailing 
of orders, the offeror is requested to include the postal mailing 
address.

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    Alternate II (XXX 1993). As prescribed in 516.505(b), add the 
following paragraphs (d) and (e) to the basic provision:
    (d) For mailed orders, the offeror is requested to include the 
postal mailing address(es) where paper form orders should be mailed.

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    (e) Offerors marketing through dealers are requested to indicate 
below whether those dealers will be participating in the proposed 
contract.

Yes (  )        No (  )

    If ``yes'' is checked, ordering information to be inserted above 
shall reflect that in addition to offeror's name, address, and 
facsimile transmission telephone number, orders can be addressed to 
the offeror's name, c/o nearest local dealer. In this event, two 
copies of a list of participating dealers shall accompany this 
offer, and shall also be included in Contractor's Federal Supply 
Schedule pricelist.

    Dated: November 29, 1993.
Richard H. Hopf, III,
Associate Administrator for Acquisition Policy.
[FR Doc. 94-2678 Filed 2-4-94; 8:45 am]
BILLING CODE 6820-61-M