[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