[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3706]


[[Page Unknown]]

[Federal Register: February 23, 1994]


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GENERAL SERVICES ADMINISTRATION
48 CFR Chapter 5

 

Reinventing Multiple Award Schedule Ordering Procedures

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Request for comments.

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SUMMARY: The General Services Administration (GSA) plans to deregulate, 
streamline and unify its multiple award schedule (MAS) ordering 
procedures. GSA establishes MAS contracts to provide Federal agencies a 
cost-effective mechanism for ordering common use commercial items. Two 
GSA organizations award and manage MAS contracts, the Federal Supply 
Service (FSS) and the Information Resources Management Service (IRMS). 
Three different regulations contain MAS ordering procedures; i.e., the 
Federal Property Management Regulation (FPMR), the Federal Information 
Resources Management Regulation (FIRMR), and the Federal Acquisition 
Regulation (FAR).
    This document invites public comment on proposals to eliminate MAS 
ordering instructions to customer agencies from the FPMR and FIRMR. 
Applicable regulations, however, will retain pertinent solicitation 
provisions, contract clauses, and those policies and procedures that 
govern the Government-contractor relationship. GSA has initiated a case 
to make similar changes to the Federal Acquisition Regulation. In lieu 
of the current regulatory scheme, GSA proposes to adopt a uniform set 
of non-regulatory principles for MAS ordering. FSS and IRMS will issue 
and maintain the principles in the FSS Program Guide and FIRMR Bulletin 
series, respectively.
    This document also invites public comment on a proposal to revise 
the Price Reduction Clause currently used in MAS contracts and include 
it in the General Services Administration Acquisition Regulation 
(GSAR). Additionally, GSA announces its decision to eliminate 
regulatorily prescribed mandatory use provisions from the MAS Program.
    When combined, the proposed changes described in this document will 
result in a uniform set of principles that empower ordering activities 
to make ``best value'' buying decisions in a de-monopolized 
environment. The proposed changes are consistent with the Report on the 
National Performance Review (NPR) and are one part of GSA's larger plan 
to help create a Government that works better and costs less.

DATES: Comments are due in writing on or before April 25, 1994.

ADDRESSES: Comments should be addressed to Carolyn Harris, Office of 
Multiple Award Schedule Program Management, 18th and F Streets, NW., 
room 4040, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:
Carolyn Harris, Office of Multiple Award Schedule Program Management, 
(202-501-1043).

SUPPLEMENTARY INFORMATION: GSA, the General Accounting Office (GAO) and 
the NPR have all recently examined MAS ordering procedures and 
recommended improvements. Among other things, GAO found that Federal 
agencies do not consistently comply with existing regulations and 
recommended that GSA clarify its requirements. The NPR generally 
recommended that GSA simplify its regulations and eliminate complex 
administrative requirements. After reviewing the various 
recommendations, GSA decided to eliminate regulatorily prescribed 
mandatory use provisions imposed on other agencies. Solicitations that 
have a closing date after January 13, 1994, will reflect GSA's new 
position on non-mandatory use. Existing contractual obligations will 
not be affected by the change. GSA also proposes to ``deregulate'' MAS 
ordering procedures and provide agencies with non-regulatory guidance 
that is simpler, more customer-oriented, and less paperbound than 
current requirements. These principles will enable ordering officials 
to take advantage of competition within the scope of the MAS 
contracting system.

Description of Changes

    GSA proposes the following changes:
    1. Most of the existing regulatory instructions regarding the use 
of MAS and single award Federal Supply Schedules will be deleted from 
the FPMR and FIRMR.
    2. GSA regulations will not require agencies to place orders 
against future MAS contracts.
    3. The current requirement that an ordering activity publicize in 
the Commerce Business Daily its intent to place an order against an MAS 
contract for federal information processing (FIP) resources valued in 
excess of $50,000 will be eliminated. This requirement is the product 
of regulation, (i.e., order synopsis not required by statute) for MAS 
contracting, and is inconsistent with GSA's efforts to empower its 
customers, and streamline and maximize the efficiency of the program.
    4. GSA will not dictate an across-the-board Maximum Order 
Limitation (MOL) for MAS schedules. Instead, contracting officers will 
establish MOL's on a schedule-by-schedule basis. Contracting officers 
will set MOL's at levels appropriate for negotiation of volume 
purchasing prices.
    5. GSA will generally award MAS contracts as indefinite-delivery, 
indefinite-quantity type contracts. Indefinite-delivery, indefinite-
quantity type MAS contracts will normally obligate the Government to 
purchase a minimum amount during the contract term. Contractors must 
deliver up to the MOL for each delivery order they receive.
    6. The clause entitled ``Price Reductions'' will be modified to 
delete paragraph (c), ``Price Reductions to Federal Agencies''. The 
modified clause will be incorporated into the GSAR. Other MAS 
provisions and clauses will be amended as necessary to reflect revised 
ordering procedures.
    7. GSA will streamline existing ordering procedures and state them 
in the form of guiding principles. The resulting non-regulatory 
guidance will read as follows:
    a. GSA awards Multiple Award Schedule (MAS) contracts for a variety 
of commercial products and services at prices determined to be fair and 
reasonable. The administrative cost of placing a MAS order can be 
significantly lower than purchasing by other means. Accordingly, for 
orders of minimal dollar value (e.g., $10,000 or below) ordering 
activities are given wide latitude to order items at those prices that 
represent the best value for the money.
    b. To reasonably ensure that a selection meets the agency's needs 
at the lowest overall cost before placing an MAS order of significant 
dollar value (e.g., greater than $10,000) an ordering activity should:
    (1) Consider reasonably available information about products 
offered under MAS contracts; this standard is met if the ordering 
activity does the following:
     Consider products and prices contained in any GSA MAS 
automated information system; (e.g., Information Resources Management--
On-line Schedule System, Federal Supply Service--Automated Product 
Listing Service); or
     If automated information is not available, review at least 
3 price lists.
    (2) Make reasonable efforts to compare differing functions, 
performance characteristics and prices of MAS items. The nature and 
degree of such comparisons should be commensurate with the value of the 
order. The agency's administrative costs should be considered in making 
a best value determination.
    (3) Give preference to the items of small business and/or labor 
surplus area concerns by following the order of priority in FAR 14.407-
6 when two or more items at the same delivered price will meet an 
ordering activity's needs.
    c. MAS contractors will not be required to pass on to all schedule 
users a price reduction extended only to an individual agency for a 
specific order. There may be circumstances where an ordering activity 
finds it advantageous to request a price reduction, such as where the 
ordering activity finds that a schedule product is available elsewhere 
at a lower price, or where the quantity of an individual order clearly 
indicates the potential for obtaining a reduced price.
    d. Ordering activities should document MAS ordering files in 
accordance with internal agency practices. Agencies should keep 
documentation to a minimum.

    Dated: December 28, 1993.
Richard H. Hopf, III,
Associate Administrator for Acquisition Policy.
[FR Doc. 94-3706 Filed 2-22-94; 8:45 am]
BILLING CODE 6820-61-M