[Federal Register Volume 59, Number 128 (Wednesday, July 6, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16252]


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[Federal Register: July 6, 1994]


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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

Federal Acquisition Regulation (FAR) Rewrite

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

ACTION: Notice of public meeting and request for public comments.

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SUMMARY: In response to the report of the National Performance Review 
(NPR) recommendation to convert the FAR from rigid rules to guiding 
principles, the Administrator for Federal Procurement Policy has 
established a Board of Directors (hereinafter the Board), comprised of 
senior level individuals from the Executive Branch, to develop a plan 
for the FAR rewrite. This notice solicits public comment on two 
approaches for the rewrite, including drafting principles, the Board is 
considering.
    Both approaches delineate mandatory and nonmandatory provisions. 
The first approach would provide for (1) a FAR that is limited to 
mandatory governmentwide regulations, and (2) an acquisition manual 
that would reprint the FAR and also include nonmandatory governmentwide 
policies, procedures, etc. In addition, agency supplements, including 
both mandatory and nonmandatory provisions, would be authorized to 
implement agency-unique statutes, policies, etc.
    The second approach would consist of (1) the FAR which would 
include all mandatory Governmentwide provisions, and (2) separate 
acquisition manuals developed by an agency or a group of agencies. The 
manuals would include mandatory provisions necessary to implement 
statutes unique to the agency or group of agencies, a minimal number of 
mandatory policies and procedures not required by statute, and 
nonmandatory guidance.
    Both approaches would result in a FAR containing only mandatory 
provisions. However, the first approach would promulgate governmentwide 
nonregulation guidance, while the second approach would permit an 
agency to promulgate in agency manuals whatever nonregulation guidance 
the agency deems appropriate. Additionally, the first approach would 
retain agency FAR supplements, while the second approach would replace 
agency supplements with agency acquisition manuals.
    The Board has prepared a model rewrite of FAR Part 9 to illustrate 
the first approach. It is drafted as a governmentwide manual containing 
both the new FAR (which will also be codified in the Code of Federal 
Regulations); and policies, procedures, provisions, forms, and clauses 
that do not constitute regulations. An actual FAR rewrite would likely 
include a wider variety of options and illustrations than appear in the 
nonregulation component of the model. This notice solicits comments 
only on the proposed approach for the FAR rewrite, and not on the 
content of the model rewrite of Part 9.
    The Board intends to provide for a mutual exchange of ideas and 
information with affected parties both in the government and the 
private sector by publishing this notice, soliciting public comments, 
and holding a public meeting.

DATES: Written comments must be received in the Office of Federal 
Procurement Policy on or before August 5, 1994.
    A public meeting will be held at 9:30 on August 17, 1994. Persons 
or organizations wishing to present ideas or suggestions will be 
allowed five minutes each to present their views, provided they notify 
Ms. Rebecca Hardy at 202-395-3501 by August 10, 1994. Persons or 
organizations with similar positions are encouraged to select a common 
spokesperson for presentation of their views.

ADDRESSES: Written comments and statements for presentation should be 
submitted to Susan E. Alesi, Special Assistant for Regulations, Office 
of Federal Procurement Policy, 725 17th Street, NW, Washington, DC 
20503.
    A public meeting will be held in Room 2010, New Executive Office 
building (NEOB), 725 17th Street, NW, Washington, DC. Individuals 
wishing to attend the meeting, including individuals wishing to make 
presentations should contact Ms. Rebecca Hardy at 202-395-3501 prior to 
3:30 p.m. on August 16, 1994, for clearance to the NEOB.

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

SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President 
released the report of the NPR which required simplification of the 
procurement process by rewriting the FAR, shifting from rigid rules to 
guiding principles. According to the report, the FAR, which is the 
government's principal set of procurement regulations, is too process 
oriented, changes too often, minimizes discretion of procurement 
officials, and stifles innovation. The Board intends to develop a plan 
to rewrite the FAR to move from a system of rigid rules to guiding 
principles, promote decision making at the lowest possible level, 
eliminate unnecessary regulatory requirements, facilitate innovative 
contracting and develop a more effective process to listen to its 
customers.
    This project will be accomplished under the direction of the 
Administrator for Federal Procurement Policy with the assistance of a 
Board of Directors comprised of senior-level officials from the 
Executive Branch.
    The Board has begun planning the FAR rewrite project by defining 
two approaches and by drafting a model FAR Part 9 that adheres, for the 
most part, to the drafting principles outlined in this announcement as 
the first approach. However, if the FAR is actually rewritten along the 
lines of the model, we expect that there would be additional material 
and more than one optional approach or illustration to be included in 
many parts of the nonregulation part of the model. The Board intends to 
recommend adoption of the NPR philosophy of giving greater flexibility 
in the formulation and administration of contracts.

Questions for Commentors

    To assist the Board in its deliberations, it is requested that all 
interested parties review the proposed approaches, drafting principles, 
and illustration of the model rewrite of FAR Part 9. This notice 
solicits comments on the proposed approaches for the FAR rewrite and 
not on the content of the model rewrite of FAR Part 9. In preparing 
comments the Board requests that commentors consider the following 
questions with regard to each approach:
    1. Does the proposed approach represent an improvement to the 
existing FAR system? If not, please suggest an alternative approach.
    2. Does the proposed approach remove from the regulations system 
unnecessary, burdensome direction while still providing the procurement 
community with sufficient common policy and principles? If not, please 
suggest an alternative approach.
    3. Does the proposed approach increase discretion and encourage 
innovation while still fostering good contracting practices? If not, 
please suggest an alternative approach.
    4. Does the proposed approach simplify the procurement process? If 
not, please suggest an alternative approach.
    5. Does the approach of publishing nonregulation information in an 
acquisition manual provide useful guidance for contracting officers in 
decision making, formulating process or practical solutions, 
identifying alternatives? If not, please suggest an alternative 
approach.
    6. Does the proposed approach for the Code of Federal Regulations 
to contain only the regulation component of the model raise any 
concerns for you? If so, please suggest an alternative approach.
    7. The nonregulation component of the model would normally not be 
published for public comment in the Federal Register. Does this 
approach create a problem? What problem? If so, please suggest an 
alternative approach.
    8. Which types or categories of provisions and clauses would you 
recommend to be included in the regulation component of the model? In 
the nonregulation manual component of the model?
    9. Does the proposed approach to include only guidance needed by 
procurement personnel improve the contracting process? If not, please 
suggest an alternative approach.
    10. Is there a better approach for rewriting the FAR? What is it?
    11. How do we carry forward to lower levels the concept of moving 
away from a centralized direction?
    12. Please provide any other comments you consider appropriate.

First Proposed Approach

Discussion

    The basic thrust of this approach under consideration by the Board 
is to divide the FAR into regulation and nonregulation (a 
Governmentwide manual) components. The new FAR will essentially retain 
its current 53 Part structure and will contain policies, provisions and 
clauses necessary to implement statutory requirements, primary 
regulation requirements, basic policies/guiding principles and 
essential governmentwide procedures. Much of the material, provisions 
and clauses that will be removed from the FAR will be made available in 
nonregulation remarks in a Federal acquisition manual. In addition, 
agencies will continue to issue supplements to the FAR, including 
minimal mandatory as well as nonmandatory provisions. The FAR will be 
mandatory for use by the agencies, and will be codified in the Code of 
Federal Regulations.
    The Government acquisition manual will include the FAR text, and in 
addition, will provide nonmandatory guidance, alternative approaches, 
forms, clauses, and other examples that may be used, at their 
discretion, by contracting officers in structuring a procurement. The 
nonregulation material in the manual will be published for public 
comment only when required by Section 22 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 418b), which does not require 
publication of the type of information normally provided nonregulation 
component of the acquisition manual.
    The FAR system will promote decision making at the lowest 
practicable level by permitting contracting officers to use, modify, 
tailor to best suit individual situations or disregard nonregulation 
policies, procedures, provisions, forms and clauses. For example, in 
the illustration of a new FAR Part 9, the clauses covering First 
Article Approval, Contractor Testing, (FAR 52.209-3) would be 
eliminated from the regulation component but would be included in the 
nonregulation component.

Proposed Drafting Principles--Structure

    1. Include in the FAR statements of general policy, standards, 
forms, provisions, and clauses that--
    a. Are required by, or reasonably necessary to implement Statutes, 
Executive Orders, OMB Circulars, OFPP Policy Letters, and, as 
appropriate, case law.
    b. The FAR Council or joint FAR signatories decide must have 
governmentwide application because consistency is essential to maintain 
an effective and efficient acquisition system.
    2. Do not include in the FAR:
    a. Procedures, policies, provisions or clauses which are not 
essential.
    b. Guidance that is not needed by procurement personnel.
    3. Include in the acquisition manual--
    a. Examples of various optional methods for compliance with FAR 
policies, provisions, and clauses.
    b. Procedures, practices, forms provisions, and clauses that may be 
used, modified, or not used, at the discretion of the Contracting 
Officer.

Proposed Drafting Principles--General

    1. Clearly identify the statutory requirements, basic policies, and 
principles.
    2. Avoid proscription and rigid rules in favor of setting forth 
guiding principles.
    3. Use goals and expected outcomes in place of processes or 
procedures.
    4. Assume the reader is a procurement professional with appropriate 
knowledge, skills and abilities to do the job.
    5. Assume contractors and contracting officials are going to do the 
``right thing.''
    6. Assign responsibility for decisions to the lowest practicable 
level, giving contracting officers authority, responsibility, and 
maximum flexibility to find the most efficient, cost-effective way to 
meet customer mission needs and time frames.
    7. Minimize administrative and paperwork burdens on contracting 
officials and contractors.
    8. Include in the FAR references to procurement related statutes 
and regulations, such as labor laws, and small business size standards. 
Provide, as appropriate, in the acquisition manual, necessary 
additional information to assist the contracting officers in complying 
with those requirements.
    9. Provide guidance that encourages sound business practices, 
streamline the contracting process, contributes to increased 
productivity, and cost effectiveness.
    10. Provide guidance that implements policies based on statute 
without just restating the law.
    11. Avoid guidance and other controls that impose unnecessary 
dollar thresholds, approval levels, contractor certifications, 
coordination and documentation requirements, determinations.
    12. Provide guidance that offers maximum opportunity for innovative 
contracting approaches.
    13. Avoid the creation of regulations to address every contracting 
contingency.
    14. Provide guidance to contracting officers that encourages risk 
management rather than risk avoidance.
    15. Avoid regulations that impose government-unique, unnecessary 
requirements on federal contractors. Promote the acquisition of 
commercial products and reliance on the commercial marketplace.
    16. Apply a consistent set of drafting conventions so that the FAR 
will be succinct and understandable to the general reader.

Second Proposed Approach

    The second approach is essentially the same as the first approach 
with respect to which material would be regulations and which material 
would be provided in a nonregulation acquisition manual. However, the 
nonregulation material would not be published as a governmentwide 
manual. Rather, each agency, or group of agencies would be authorized 
to publish its own manual containing its own guidance. These manuals 
would contain a minimal amount of mandatory material applicable to the 
internal operations of the agency or necessary to implement the 
statutes that apply to that agency or group of agencies. The remainder 
of the material in the manual would be that as noted in the first 
approach as nonregulation in nature and not mandatory. Thus the FAR 
system would be comprised of the FAR (regulations) and agency 
acquisition manuals (nonmandatory guidance and minimal mandatory 
requirements) that would take the place of current agency supplements.

Illustration of the First Proposed Approach

    Model of revised Part 9. The model FAR Part 9 is provided in the 
appendix to illustrate the first approach being considered by the 
Board. Comment only on the approach illustrated by this model rewrite, 
and not on the content of the model rewrite on Part 9. FAR Part 9 will 
be submitted to a committee for revisions in accordance with these 
Drafting Principles once the Drafting Principles have been approved. 
The following model rewrite of FAR Part 9 shows the governmentwide 
acquisition manual as it would appear under proposed number one.
    Proposed approach number two would follow the same criteria as is 
followed under proposed approach one to determine which material is to 
be codified in the CFR and which material is to appear in nonregulation 
guidance. However, under proposed approach number two, the 
nonregulation guidance would be published by individual agencies in 
manuals that apply to contracts issued by that agency.

    Dated: June 30, 1994.
Steven Kelman,
Administrator.

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[FR Doc. 94-16326 Filed 7-5-94; 8:45 am]
BILLING CODE 3110-01-C
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RESOLUTION TRUST CORPORATION

 
Coastal Barrier Improvement Act; Property Availability; Pecos, 
San Miguel County, NM

AGENCY: Resolution Trust Corporation.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the property known as Pecos, 
located in San Miguel County, New Mexico, is affected by Section 10 of 
the Coastal Barrier Improvement Act of 1990 as specified below.

DATES: Written notices of serious interest to purchase or effect other 
transfer of all or any portion of this property may be mailed or faxed 
to the RTC until October 4, 1994.

ADDRESSES: Copies of detailed descriptions of this property, including 
maps, can be obtained from or are available for inspection by 
contacting the following person:

Mr. Stefan J. Vranka, Resolution Trust Corporation, c/o Nevander Asset 
Management, Inc., 4665 MacArthur Court, Suite 200, Newport Beach, CA 
92660, (714) 851-2530; Fax (714) 752-7057

SUPPLEMENTARY INFORMATION: The Pecos property consists of two (2) non-
continguous 80-acre tracts of undeveloped land located east and 
southeast of Pecos, New Mexico. One 80-acre tract is located 2.25 miles 
south of Lower Colonias and the other tract is one mile north of Upper 
Colonias. The sites contain habitat for the Federally-listed endangered 
peregrine falcon and a rare plant that is proposed for Federal-listing 
as endangered. Both tracts are bordered by portions of the Santa Fe 
National Forest and small corners of each tract fall within a 100-year 
floodplain. This property is covered property within the meaning of 
Section 10 of the Coastal Barrier Improvement Act of 1990, P.L. 101-591 
(12 U.S.C. 1441a-3).

    Written notice of serious interest in the purchase or other 
transfer of all or any portion of this property must be received on or 
before October 4, 1994 by the Resolution Trust Corporation at the 
appropriate address stated above.
    Those entities eligible to submit written notices of serious 
interest are:
    1. Agencies or entities of the Federal government;
    2. Agencies or entities of State or local government; and
    3. ``Qualified organizations'' pursuant to section 170(h)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 170(h)(3)).
    Written notices of serious interest must be submitted in the 
following form: Notice of Serious Interest RE: [insert name of 
property] Federal Register Publication Date: ________ [insert Federal 
Register publication date].
    1. Entity name.
    2. Declaration of eligibility to submit Notice under criteria set 
forth in the Coastal Barrier Improvement Act of 1990, P.L. 101-591, 
section 10(b)(2), (12 U.S.C. 1441a-3(b)(2)), including, for qualified 
organizations, a determination letter from the United States Internal 
Revenue Service regarding the organization's status under section 
501(c)(3) of the U.S. Internal Revenue Code (26 U.S.C. 170(h)(3)).
    3. Brief description of proposed terms of purchase or other offer 
for all or any portion of the property (e.g., price, method of 
financing, expected closing date, etc.).
    4. Declaration of entity that it intends to use the property for 
wildlife refuge, sanctuary, open space, recreational, historical, 
cultural, or natural resource conservation purposes (12 U.S.C. 1441a-
3(b)(4)), as provided in a clear written description of the purpose(s) 
to which the property will be put and the location and acreage of the 
area covered by each purpose(s) including a declaration of entity that 
it will accept the placement, by the RTC, of an easement or deed 
restriction on the property consistent with its intended conservation 
use(s) as stated in its notice of serious interest.
    5. Authorized Representative (Name/Address/Telephone/Fax).

List of Subjects

    Environmental protection.

    Dated: June 29, 1994.

Resolution Trust Corporation.
William J. Tricarico,
Assistant Secretary.
[FR Doc. 94-16252 Filed 7-5-94; 8:45 am]
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