[Federal Register Volume 59, Number 120 (Thursday, June 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-15224]
[[Page Unknown]]
[Federal Register: June 23, 1994]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 516 and 552
[APD 2800.12A CHGE 54]
RIN 3090--AE99
General Services Administration Acquisition Regulation:
Discontinuing Paper Orders
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Final rule.
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SUMMARY: The General Services Administration Acquisition Regulation
(GSAR) is amended to revise the clause at 552.216-73, Placement of
Orders, to provide for the placement of orders through computer-to-
computer Electronic Data Interchange (EDI) or by an alternative method
employing facsimile transmission if computer-to-computer EDI is not
possible and to prescribe a new clause describing ordering information
a contractor should provide to the contracting officer.
EFFECTIVE DATE: June 30, 1994.
FOR FURTHER INFORMATION CONTACT: Paul Linfield, Office of GSA
Acquisition Policy (202) 501-1224.
SUPPLEMENTARY INFORMATION:
A. Public Comments
A notice of proposed rulemaking was published in the Federal
Register on February 7, 1994 (59 FR 5561). One public comment received
from another Government agency and comments received from GSA
activities were considered in formulating this final rule. In response
to the comments received, the basic clause at 552.216-73 was revised in
paragraph (c) to clarify that FSS will only use either computer-to-
computer EDI or an alternative EDI method. Also the prescription in
516.505(b) for the clause at 552.216-74, Ordering Information, was
rewritten to parallel 516.505(a). This change resulted in a
restructuring of 552.216-74.
A comment was made that the rule was unclear as to the extent of
GSA's involvement in the establishing of Trading Partner Agreements
(TPAs) between a contractor and other agencies. The General Services
Administration does not plan to review or coordinate TPA arrangements
between its contractor and another Government agency. However, the
clause at 552.216-73 was revised to indicate where a Government agency
could obtain a sample TPA to customize to fit its needs.
A comment was received concerning GSA's estimate under the
Paperwork Reduction Act. This required no change in the rule. GSA
cannot estimate the number of TPAs that other agencies will establish.
The rule advances the policy of the Federal Government to
accommodate and encourage technological advancements in the field of
electronic information, such as electronic data interchange. See
President Clinton's October 26, 1993, Memorandum to Federal Agencies:
``Streamlining Procurement through Electronic Commerce'' (58 FR 58095),
in which the President directs the implementation of EDI in
procurement. Also see OMB Circular A-130, 58 FR 36068 (July 2, 1993).
B. Executive Order 12866
This rule was reviewed by the Office of Management and Budget (OMB)
in accordance with Executive Order 12866, Regulatory Planning and
Review.
C. Regulatory Flexibility Act
The rule is not expected to have an economic impact on a
substantial number of small entities as defined under the Regulatory
Flexibility Act.
An initial regulatory flexibility analysis was prepared and
submitted to the Acting Chief Counsel for Advocacy of the Small
Business Administration. Copies of the initial regulatory flexibility
analysis were available for public comment. No comments were received
on the impact of the rule on small business. The final regulatory
flexibility analysis reflects the policy of the Federal Government to
accommodate and encourage technological advancements in the field of
electronic information, such as electronic data interchange. See
President Clinton's October 26, 1993, Memorandum to Federal Agencies:
``Streamlining Procurement through Electronic commerce'' (58 FR 58095),
in which the President directs the implementation of EDI in
procurement. Also see OMB Circular A-130, 58 FR 36068 (July 2, 1993).
The final regulatory flexibility analysis indicates that the rule will
affect contractors, including small businesses under FSS solicitations
issued under its Stock, Special Order, and Multiple Award Schedule
Programs. In FY 1993 more than 850 solicitations were issued and
approximately 35,000 offers were received. Approximately 75 percent
were received from small business concerns.
D. Paperwork Reduction Act
The information collection requirements contained in this proposed
rule have been approved by OMB under section 3504(h) of the Paperwork
Reduction Act and assigned OMB Control Number 3090-0248. The title of
one of the information collections is ``GSAR 552.216-73, Placement of
Orders,'' used in GSA's Federal Supply Services's (FSS's) Stock,
Special Order, and Schedule Programs. FSS intends to maximize the use
of computer-to-computer electronic data interchange (EDI) to place
delivery orders. To accomplish computer-to-computer EDI, a company will
'have to enter into a Trading Partner Agreement (TPA) with FSS (as an
alternative, a contractor can receive delivery orders through facsimile
transmission). This extended use of EDI furthers congressional and
executive branch policies that Federal agencies provide leadership in
advancing environmental objectives through technology and the expanded
use of electronic commerce.
FSS anticipates entering into 400 TPA's with contractors using the
same protocols that apply to a contractor's commercial activity.
Consequently, if it currently uses electronic commerce for its
commercial activity, the total burden is the time it takes to sign and
submit its current protocols. Otherwise, it is estimated that it would
take approximately one hour for a contractor to develop the necessary
protocols. Based upon one hour per respondent, the additional burden to
the public is 400 hours.
The title of the second information collection is ``552.216-74,
Ordering Information.'' This information collection requires offerors
to identify their representative who is familiar with establishing EDI
interfaces; telephone numbers of facsimile equipment, if computer-to-
computer EDI is not practicable; and postal mailing addresses, of
delivery orders are mailed. It is estimated that it will taken an
average of one-half hour to develop this information. Based upon one-
half hour per respondent and approximately 35,000 respondents, the
additional burden is 17,500 hours.
Any comments concerning the accuracy of the burdens may be directed
to the Director, Office of GSA Acquisition Policy (VP), 18th & F
Streets, NW., Room 4006, Washington, DC 20405 and to the Office of
Information and Regulatory Affairs of OMB, Attention Desk Officer for
GSA, Washington, DC 20503.
List of Subjects in 48 CFR Parts 516 and 552
Government procurement.
Accordingly, 48 CFR Parts 516 and 552 are amended to read as
follows:
1. The authority citation for 48 CFR Parts 516 and 552 continues to
read as follows:
Authority: 40 U.S.C. 486(c).
PART 516--TYPES OF CONTRACTS
2. Section 516.505 is revised to read as follows:
516.505 Contract clauses.
(a) The contracting officer shall insert the clause at 552.216-73,
Placement of Order, in solicitations and contracts for stock or special
order program items when the contract authorizes FSS and other agencies
to issue delivery orders. If only FSS will issue delivery orders under
any of its supply programs, use Alternate I. If a Federal Supply
Schedule contract (single or multiple award) permits other agencies to
issue delivery orders, use Alternate II.
(b) The contracting officer shall insert the provision at 552.216-
74, Ordering Information, in solicitations for stock items and in other
Federal Supply Service solicitations when the clause at 552.216-73 is
prescribed. Insert 552.216-74 Alternate I when 552.216-73 Alternate I
is prescribed. Insert 552.216-74 Alternate II when 552.216.73 Alternate
II is prescribed.
3. Section 552.216-73 is revised to read as follows:
552.216-73 Placement of orders.
As prescribed in 516.505(a), insert the following clause:
Placement of Orders (June 1994)
(a) Delivery orders (orders) will be placed by: [Contracting
Officer insert names of Federal agencies].
(b) Orders may be placed through Electronic Data Interchange
(EDI) or mailed in paper form. EDI orders shall be placed using the
American National Standards Institute (ANSI) X12 Standard for
Electronic Data Interchange (EDI) format.
(c) If the contractor agrees, GSA's Federal Supply Service (FSS)
will place all orders by EDI using computer-to-computer EDI. If
computer-to-computer EDI is not possible, FSS will use an
alternative EDI method allowing the Contractor to receive orders by
facsimile transmission. Subject to the Contractor's agreement, other
agencies may place orders by EDI.
(d) When computer-to-computer EDI procedures will be used to
place orders, the Contractor shall enter into one or more Trading
Partner Agreements (TPA) with each Federal agency placing orders
electronically in order to ensure mutual understanding by the
parties of certain electronic transaction conventions and to
recognize the rights and responsibilities of the parties as they
apply to this method of placing orders. The TPA must identify, among
other things, the third party provider(s) through which electronic
orders are placed, the transaction sets used, security procedures,
and guidelines for implementation. Federal agencies may obtain a
sample format to customize as needed from the office specified in
(g) below.
(e) The Contractor shall be responsible for providing its own
hardware and software necessary to transmit and receive data
electronically. Additionally, each party to the TPA shall be
responsible for the costs associated with its use of third party
provider services.
(f) Nothing in the TPA will invalidate any part of this contract
between the Contractor and the General Services Administration. All
items and conditions of this contract that otherwise would be
applicable to a mailed order shall apply to the electronic order.
(g) The basic content and format of the TPA will be provided by:
General Services Administration, Systems Inventory and Operations
Management Center (FCS), Washington, DC 20406, Telephone:
[Contracting Officer insert appropriate telephone numbers] FAX:
Alternate I (June 1994). As prescribed in 516.505(a), substitute
the following paragraphs (a), (b), (c), and (d) for paragraphs (a),
(b), (c), and (d) of the basic clause:
(a) All delivery orders (orders) under this contract will be
placed by the General Services Administration's Federal Supply
Service (FSS). The Contractor is not authorized to accept orders
from any other agency. Violation of this restriction may result in
termination of the contract pursuant to the default clause of this
contract.
(b) All orders shall be placed by Electronic Data Interchange
(EDI) using the American National Standards Institute (ANSI) X12
Standard for Electronic Data Interchange (EDI) format.
(c) If the Contractor agrees, transmission will be computer-to-
computer EDI. If computer-to-computer EDI is not possible, FSS will
use an alternative method allowing the Contractor to receive orders
by facsimile transmission.
(d) When computer-to-computer EDI procedures will be used to
place orders, the Contractor shall enter into a Trading Partner
Agreement (TPA) with FSS in order to ensure mutual understanding by
the parties of certain electronic transaction conventions and to
recognize the rights and responsibilities of the parties as they
apply to this method of placing orders. The TPA must identify, among
other things, the third party provider(s) through which electronic
orders and placed, the transaction sets used, security procedures,
and guidelines for implementation.
Alternate II (June 1994). As prescribed in 516.505(a),
substitute the following paragraph (a) for paragraph (a) of the
basic clause:
(a) Delivery orders under this contract may be placed by either
the using Federal agencies or the General Services Administration's
Federal Supply Service (FSS).
4. Section 552.216-74 is added to read as follows:
552.216-74 Ordering information.
As prescribed in 516.505(b), insert the following provision:
Ordering Information (June 1994)
(a) In accordance with the Placement of Orders clause of this
solicitation, the offeror elects to receive orders placed by GSA's
Federal Supply Service (FSS) by either ( ) facsimile transmission
or ( ) computer-to-computer Electronic Data Interchange (EDI).
(b) An offeror electing to receive computer-to-computer EDI is
requested to indicate below the name, address, and telephone number
of the representative to be contacted regarding establishment of an
EDI interface.
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(c) An offeror electing to receive orders by facsimile
transmission is requested to indicate below the telephone number(s)
for facsimile transmission equipment where orders should be
forwarded.
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(d) For mailed orders, the offeror is requested to include the
postal mailing address(es) where paper form orders should be mailed.
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(End of Provision)
Alternate I (June 1994). As prescribed in 516.505(b), delete
paragraph (d) of the basic provision:
Alternate II (June 1994). As prescribed in 516.505(b), add the
following paragraph (e) to the basic provision:
(e) Offerors marketing through dealers are requested to indicate
below whether those dealers will be participating in the proposed
contract.
YES ( ) NO ( )
If ``yes'' is checked, ordering information to be inserted above
shall reflect that in addition to offeror's name, address, and
facsimile transmission telephone number, orders can be addressed to
the offeror's name, c/o nearest local dealer. In this event, two
copies of a list of participating dealers shall accompany this
offer, and shall also be included in Contractor's Federal Supply
Schedule pricelist.
Dated: June 1, 1994.
Arthur E. Ronkovich,
Acting Associate Administrator for Acquisition Policy.
[FR Doc. 94-15224 Filed 6-22-94; 8:45 am]
BILLING CODE 6820-61-M