[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