[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12592]


[[Page Unknown]]

[Federal Register: May 24, 1994]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

48 CFR Chapter 99

 

Federal Acquisition Regulation (FAR) Rewrite

AGENCY: Office of Federal Procurement Policy, Office of Management and 
Budget.

ACTION: Request for comments.

-----------------------------------------------------------------------

SUMMARY: In response to the report of the National Performance Review 
(NPR), the Administrator for Federal Procurement Policy has established 
a Board of Directors comprised of senior level individuals from the 
Executive Branch to implement the recommendation pertaining to the 
Federal Acquisition Regulation (FAR). The underlying objective of the 
recommendation is to convert the FAR from rigid rules to guiding 
principles.

DATES: Written comments must be received in the Office of Federal 
Procurement Policy on or before June 23, 1994.

ADDRESSES: Susan E. Alesi, Office of Federal Procurement Policy, 725 
17th Street, NW., Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT:
Susan E. Alesi, Office of Federal Procurement Policy, 202-395-6803.

SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President 
released the report of the NPR which, among other things, required the 
Administration to simplify the procurement process by rewriting the 
FAR, shifting from rigid rules to guiding principles. According to the 
report, the FAR, the government's principal set of procurement 
regulations, is too process oriented, changes too often, minimizes 
discretion of procurement professionals, and stifles innovation. The 
report tasks the Administration to develop a plan which includes goals, 
resources and milestones to rewrite the FAR to move from a system of 
rigid rules to guiding principles, promote decision making at the 
lowest level, eliminate unnecessary regulatory requirements, and 
facilitate innovative contracting.
    As a first step, the Board has drafted a set of core guiding 
principles intended to define and guide the Government's general vision 
and goals for the Federal acquisition process. It is anticipated that, 
when approved by the Board, this set of principles will be issued as a 
policy statement by the Office of Federal Procurement Policy. These 
principles and the accompanying discussion will be used by the rewrite 
teams as parts of the FAR are rewritten. As a parallel action, drafting 
principles are being formulated which will provide the rewrite team 
with the methodology by which each part will be restructured to 
accommodate the NPR recommendation. These drafting principles will be 
published for comment in a separate Federal Register notice.
    The Board requests comments on the following set of core guiding 
principles and the accompanying discussion. The Board also requests 
comment on whether the statement of the principles should be included 
in a preface to the FAR, one part to the FAR or merely referenced in 
the FAR.

Acquisition Guiding Principles

    The Acquisition Team includes the customer and the technical, 
supply, procurement, and vendor communities.
    The Vision for the Federal Acquisition System is to deliver, on a 
timely basis, the best value product or service to the customer, while 
maintaining the public's trust.
    The Goals of the Acquisition System are to meet the VISION by 
balancing the interests below:
     Satisfying the customer in terms of cost, quality, and 
timeliness of the delivered product or service;
     Minimizing administrative operating costs;
     Conducting business with integrity, fairness, and 
openness;
     Using commercial products and services in preference to 
government-unique specifications;
     Using vendors that have demonstrated by past performance 
or who demonstrate a current superior ability to perform; and
     Fulfilling public policy.
    The Role of each member of the Acquisition Team is to exercise 
personal initiative and sound business judgment in providing the best 
value product or service to meet the customer's needs. The system will 
empower the Team to fulfill its role.
    The Success of the Acquisition System will be measured by:
     The level of customer satisfaction;
     Reduced costs of and time consumed by the acquisition 
process; and
     The degree to which public policy is achieved.

Discussion on Acquisition Guiding Principles

    The Acquisition Guiding Principles represent a concise statement 
designed to be user-friendly for the entire acquisition community. In 
order to illuminate the meaning of the terms and phrases used, the 
following discussion of the Acquisition Team, Vision, and Goals is 
provided. The framework for the acquisition system includes the 
Acquisition Guiding Principles and the supporting policies and 
procedures provided in the Federal Acquisition Regulation (FAR).

Acquisition Team

    The purpose of defining the Acquisition Team in the Acquisition 
Guiding Principles is to ensure that participants in the Acquisition 
System are identified--beginning with the customer and ending with the 
vendor of the supply or service. By identifying the team members in 
this manner, teamwork, unity of purpose and open communications between 
the members of the Team in sharing the vision and achieving the goals 
of the Acquisition System is encouraged. Individual team members will 
participate in the acquisition process at the appropriate time.

Vision

    Best value must be defined from a broad perspective and is achieved 
through the balanced application of the acquisition goals. All 
participants in the System are responsible for making acquisition 
decisions that appropriately balance the goals, resulting in a system 
which works better and costs less.

Goals

    Satisfying the customer in terms of cost, quality, and timeliness 
of the delivered product or service.
    While there is a wide variety of customers of the Acquisition 
System, the principal customers of the System include the users and 
line managers of the products or services provided by the System, as 
well as the American taxpayer.
    The Federal Acquisition System must be responsive and adaptive to 
customer needs, concerns, and feedback. Implementation of Acquisition 
System policies and procedures, as well as considerations of 
timeliness, quality and cost at each level in the process must take 
into account the perspective of the user of the product or service.
    The Acquisition System must perform in a timely, high quality and 
cost effective manner.
    All members of the Acquisition Team are encouraged to employ 
planning as an integral part of the overall process of acquiring 
products or services. Although advance planning is desirable, each 
member of the Team must be flexible in order to accommodate changing or 
unforeseen mission needs. Planning is a tool for accomplishment of 
tasks, and application of its disciplines should be commensurate with 
the size and nature of a given task.

Minimizing Administrative Operating Costs

    In order to ensure that maximum efficiency is obtained, rules, 
regulations and policies should be promulgated only when their benefits 
clearly exceed the costs of their development, implementation, 
administration, and enforcement. This applies to internal and 
administrative processes, including reviews, and to rules and 
procedures applied to the vendor community.
    The Acquisition System must provide uniformity where it contributes 
to efficiency or where fairness or predictability is essential. The 
System should also, however, encourage innovation, and local adaptation 
where uniformity is not essential.

Conducting Business With Integrity, Fairness, Openness

    An essential consideration in every aspect of the Acquisition 
System is maintaining the public's trust. Not only must the Acquisition 
System have integrity, but the actions of each member of the 
Acquisition Team must reflect that integrity. Accordingly, each member 
of the Acquisition Team is responsible and accountable for the wise use 
of public resources as well as for acting in a manner which maintains 
the public's trust. The foundation of integrity within the Acquisition 
System is a competent, experienced and well-trained, professional 
workforce.
    To achieve efficient operations the Acquisition System must shift 
its focus from ``risk avoidance'' to one of ``risk management.'' The 
cost to the taxpayer of attempting to eliminate all risk is 
prohibitive. The Executive Branch will accept and manage the risk 
associated with empowering local procurement officials to take 
independent action based on their professional judgment.

Using Commercial Products and Services in Preference to Unique 
Specifications

    The government must not hesitate to communicate with the commercial 
sector, as early as possible in the acquisition cycle to help the 
government determine the capabilities available in the commercial 
marketplace. In satisfying its needs the government will rely on 
commercial products and services utilizing commercial standards and 
practices in preference to unique government specifications.

Using Vendors That Have Demonstrated by Past Performance or Who 
Demonstrate a Current Superior Ability to Perform

    When selecting vendors to provide products or perform services the 
government will use vendors that demonstrate a superior ability to 
perform.

Fulfilling Public Policy

    The Acquisition System must support the attainment of public policy 
goals adopted by the Congress and the President. In attaining these 
goals, and in its overall operations, the process shall ensure the 
efficient use of public resources.

Role of the Acquisition Team

    The authority to make decisions and the accountability for the 
decisions made will be delegated to the lowest level within the 
Acquisition System, consistent with law.
    Members of the government Acquisition Team must be empowered to 
make acquisition decisions within their areas of responsibility 
including selection, negotiation and administration of contracts 
consistent with the Guiding Principles. In particular, the Contracting 
Officer must have the authority, to the maximum extent practicable and 
consistent with law, to determine the appropriate application of rules, 
regulations and policies, other than statutes, to a specific contract.
    To ensure that each member of the Acquisition Team is prepared to 
perform the functions and duties assigned, the government is committed 
to provide training, professional development and other resources 
necessary for maintaining and improving the knowledge, skills and 
abilities of all government participants on the Team, both with regard 
to their particular area of responsibility within the System and their 
role as a Team member.
    The Acquisition System will foster cooperative relationships 
between the government and its vendors consistent with its overriding 
responsibility to the taxpayers.

    Dated: May 18, 1994.
Steven Kelman,
Administrator.
[FR Doc. 94-12592 Filed 5-23-94; 8:45 am]
BILLING CODE 3110-01-M