[Federal Register Volume 59, Number 66 (Wednesday, April 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8144]
[[Page Unknown]]
[Federal Register: April 6, 1994]
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48 CFR Parts 25 and 52
[FAR Case 92-48]
Federal Acquisition Regulation; Fluctuating Exchange Rates
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 to amend the Federal
Acquisition Regulation (FAR) to provide guidance on the use of foreign
currency. A corresponding provision is proposed regarding evaluation of
foreign currency offers. This regulatory action was not subject to
Office of Management and Budget review pursuant to Executive Order
12866, dated September 30, 1993.
DATES: Comments should be submitted on or before June 6, 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 92-48 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT:
Mr. Peter O'Such at (202) 501-1759 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 92-
48.
SUPPLEMENTARY INFORMATION:
A. Background
This case was opened based on Department of Defense Inspector
General Report Number 92-090, May 14, 1992, Impact of Fluctuating
Foreign Exchange Rates on Contract Prices, which found that regulatory
guidance does not adequately address consideration of foreign currency
exchange rate fluctuation.
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 this
rule pertains to contracts entered into and performed overseas, and
with rare exceptions, will affect only foreign concerns. An Initial
Regulatory Flexibility Analysis has, therefore, not been performed.
Comments from small entities concerning the affected FAR subpart will
be considered in accordance with 5 U.S.C. 601. Such comments must be
submitted separately and cite 5 U.S.C. 601, et seq.
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 25 and 52
Government procurement.
Dated: March 28, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Therefore, it is proposed that 48 CFR parts 25 and 52 be amended as
set forth below:
1. The authority citation for 48 CFR parts 25 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 25--FOREIGN ACQUISITION
2. In part 25, subpart 25.5, the heading is revised to read as
follows:
Subpart 25.5--Use of Foreign Currency
3. Section 25.501 is revised to read as follows:
25.501 Policy.
(a) Unless a specific currency is required by international
agreement or by the Trade Agreements Act (see 25.405(d)), contracting
officers shall determine whether solicitations for contracts to be
entered into and performed outside the United States will require
submission of offers either in U.S. currency or in a specified foreign
currency. In unusual circumstances, the contracting officer may permit
submission of offers in other than a specified currency.
(b) To ensure a fair evaluation of offers, solicitations should
generally require all offers to be priced in the same currency.
However, if submission of offers in other than a specified currency is
permitted, the contracting officer shall convert the offered prices to
U.S. currency for evaluation purposes. The contracting officer shall
use the current market exchange rate from a commonly used commercially
available source in effect on date of bid opening or due date for
receipt of final offers.
(c) If contracts are priced in foreign currency, agencies must
ensure that adequate funds are available to cover currency fluctuations
in order to avoid a violation of the Anti-Deficiency Act.
4. Section 25.502 is added to read as follows:
25.502 Solicitation provision.
The contracting officer shall insert the provision at 52.225-OO,
Evaluation of Foreign Currency Offers, in solicitations if the use of
other than a specified currency is permitted. The contracting officer
shall insert the source of the rate to be used in the evaluation of
offers.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 52.225-OO is added to read as follows:
52.225-OO Evaluation of Foreign Currency Offers.
As prescribed in 25.502, insert the following provision:
Evaluation of Foreign Currency Offers (Date)
If offers are received in more than one currency, offers shall
be evaluated by converting the foreign currency to United States
currency using (Insert source of rate) in effect on the date of bid
opening or due date for receipt of final offers.
(End of Provision)
[FR Doc. 94-8144 Filed 4-5-94; 8:45 am]
BILLING CODE 6820-34-M