[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6890]


[Federal Register: March 28, 1994]


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Part II

Department of Defense

General Services Administration

National Aeronautics and Space Administration
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48 CFR Parts 8, 51, and 52; et al.



Federal Acquisition Regulation; Javits-Wagner-O'Day Program (JWOD), et 
al.; Proposed Rules
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 51, and 52

[FAR Case 91-108]


Federal Acquisition Regulation; Javits-Wagner-O'Day Program 
(JWOD)

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing amendments to the Federal 
Acquisition Regulation to clarify that the Government's obligation to 
purchase from statutorily mandated sources of supply also applies when 
contractors purchase the supply items for Government use. This 
regulatory action was not subject to Office of Management and Budget 
review pursuant to Executive Order No. 12866 dated September 30, 1993.

DATES: Comments should be submitted on or before May 27, 1994, to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW., room 4037, Washington, DC 20405. Please cite FAR case 91-
108 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: Ms. Shirley Scott at (202) 501-0168 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAR case 91-108.

SUPPLEMENTARY INFORMATION: 

A. Background

    The proposed amendments to FAR Parts 8, 51, and 62 provide 
clarification that the statutory obligation for Government agencies to 
satisfy their requirements for certain supplies from procurement lists 
of supplies available from the Committee for Purchase from People Who 
Are Blind or Severely Disabled (Committee) also applies when 
contractors purchase the supply items for Government use. The proposed 
revisions respond to concerns raised by the Committee that such a 
clarification is necessary for situations when Government agencies 
contract with commercial sources to perform an agency's supply 
function. The revisions are consistent with changes in the Committee's 
regulations which were published in the Federal Register at 56 FR 
48974, September 26, 1991.

B. Regulatory Flexibility Act

    The proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
will require contractors to purchase certain supply items from the same 
statutorily mandated sources that Government agencies are required to 
use when the contractor is performing an agency's supply function. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments are invited from small businesses and other 
interested parties. Comments from small entities concerning the 
affected FAR subpart will be considered in accordance with 5 U.S.C. 
610. Such comments must be submitted separately and should cite 5 
U.S.C. 601 et seq. (FAR case 91-108), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 8, 51, and 52

    Government procurement.

    Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR parts 8, 51, and 52 be 
amended as set forth below:
    1. The authority citation for 48 CFR parts 8, 51, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Section 8.001 is amended by revising paragraphs (a)(2) (ii) and 
(iii); and adding paragraph (c) to read as follows:


8.001   Priorities for use of Government supply sources.

    (a) * * *
    (2) * * *
    (ii) Mandatory Federal Supply Schedules (see subpart 8.4);
    (iii) Optional use Federal Supply Schedules (see subpart 8.4); and
* * * * *
    (c) The statutory obligation for Government agencies to satisfy 
their requirements for supplies available from the Committee for 
Purchase from People Who Are Blind or Severely Disabled also applies 
when contractors purchase the supply items for Government use.
    3. Section 8.003 is added to read as follows:


8.003   Contract clause.

    The contracting officer shall insert the clause at 52.208-00, 
Contractor Use of Mandatory Sources of Supply, in solicitations and 
contracts which require a contractor to purchase supply items for 
Government use that are available from the Committee for Purchase from 
People Who Are Blind or Severely Disabled. The contracting officer 
shall identify in the contract schedule the items which must be 
purchased from a mandatory source and the specific source.

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS

    4. Section 51.101 is amended by adding paragraph (c) to read as 
follows:


51.101   Policy.

* * * * *
    (c) Contracting officers shall authorize contractors purchasing 
supply items for Government use that are available from nonprofit 
agencies employing persons who are blind or have other severe 
disabilities (see subpart 8.7) to purchase the items directly from the 
agencies or from the General Services Administration, Defense Logistics 
Agency and Department of Veterans Affairs if products from the agencies 
are available through their distribution facilities.
    5. Section 51.102 is amended by revising paragraphs (a) 
introductory text and (c)(3) to read as follows:


51.102   Authorization to use Government supply sources.

    (a) Before issuing an authorization to a contractor to use 
Government supply sources in accordance with 51.101 (a) or (b), the 
contracting officer shall place in the contract file a written finding 
supporting issuance of the authorization. A written finding is not 
required when authorizing use of the Government supply sources in 
accordance with 51.101(c). The determination shall be based on, but not 
limited to, considerations of the following factors:
* * * * *
    (c) * * *
    (3) Approval for the contractor to use Department of Veterans 
Affairs (VA) supply sources from the Deputy Assistant Secretary for 
Acquisition and Materiel Management (Code 90), Office of Acquisition 
and Materiel Management, Department of Veterans Affairs, 810 Vermont 
Avenue, NW., Washington, DC 20420;
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    6. Section 52.208-00 is added to read as follows:


52.208-00   Contractor use of mandatory sources of supply.

    As prescribed in 8.003, insert the following clause:

Contractor Use of Mandatory Sources of Supply (Date)

    (a) Certain supplies to be provided under this contract for use 
by the Government are required by law to be obtained from nonprofit 
agencies employing persons who are blind or have other severe 
disabilities (Javits-Wagner-O'Day Act (JWOD) (41 U.S.C. 48)). 
Additionally, certain of these supplies must be purchased through 
the General Services Administration (GSA), Defense Logistics Agency 
(DLA) or the Department of Veterans Affairs (VA). The Contractor 
shall obtain supplies to be provided for use by the Government under 
this contract from the sources indicated in the contract schedule.
    (b) The Contractor shall immediately notify the Contracting 
Officer if a mandatory source is unable to provide the supplies by 
the time required, or if the quality of supplies provided by the 
mandatory source is unsatisfactory. The Contractor shall not 
purchase the supplies from other sources until the Contracting 
Officer has notified the Contractor that the mandatory source has 
authorized purchase from other sources.
    (c) Price and delivery information for the mandatory source 
supplies is available from the Contracting Officer for the supplies 
obtained through the GSA/DLA/VA distribution facilities. Information 
is available from JWOD nonprofit agencies for the supplies they 
provide directly to the Contractor. Payments shall be made directly 
to the source making delivery. Points of contact for JWOD nonprofit 
agencies are:
    (1) National Industries for the Blind (NIB), 19101 North 
Beauregard Street, Suite 200, Alexandria, VA 22311-1727, (703) 998-
0770
    (2) NISH, 2235 Cedar Lane, Vienna, VA 22182-5200, (703) 560-6800

(End of Clause)

[FR Doc. 94-6890 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M