[Federal Register Volume 59, Number 201 (Wednesday, October 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25811]


[[Page Unknown]]

[Federal Register: October 19, 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: Request for comments.

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SUMMARY: On May 24, 1994, the Board of Directors for the FAR Rewrite 
Project published a set of core guiding principles in the Federal 
Register. Comments from that notice have been reviewed and changes made 
to the principles. In the course of making these changes the Board 
added another principle to make it clear that if a policy or procedure 
is not addressed in the FAR, members of the Government acquisition team 
should not assume it is prohibited. Although the entire statement is 
being republished for comment, the Board is particularly interested in 
comments from the public on the new principle.

DATES: Written comments must be received in the Office of Federal 
Procurement Policy within 30 days after publication of this notice.

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, at 202-295-6803.

SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President 
released the report of the National Performance Review which, among 
other things, required the Administration to simplify the procurement 
process by rewriting the FAR, shifting from rigid rules to guiding 
principles. As a first step, the Board drafted a set of core guiding 
principles intended to define and guide the Government's general vision 
for the Federal acquisition process.
    The Board requested comments on the set of core guiding principles 
and the accompanying discussion through a notice issued in the Federal 
Register published on May 24, 1994. As a result of that notice the 
Board received approximately 50 comments from 19 different commentors. 
The comments ranged from general structural to specific substantive 
changes. Some editing was done and the Board added a new principle to 
the statement.
    Some of the more significant changes included: the document was 
retitled as ``Statement of Guiding Principles For The Federal 
Acquisition System''; the success paragraph was eliminated; the lead-in 
to the goals paragraph was changed; the term ``customer'' was 
clarified; the phrase ``each level of the process'' was changed to 
``throughout the process''; the phrase ``using commercial products and 
services in preference to unique specification'' was replaced with 
``maximizing the use of commercial products and services to meet 
Government requirements''; and the term ``vendor'' was replaced with 
``contractor.''
    In addition to these changes the Board is considering another 
concept under the role of the acquisition team. The intent of the Board 
is to make it clear that if a policy is not specifically addressed in 
the FAR, members of the Government acquisition team should not assume 
that it is prohibited. This concept was added to encourage members of 
the team to innovate in the course of their procurements.

Statement of Guiding Principles for the Federal Acquisition System

    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 and fulfilling public policy objectives. 
Participants in the acquisition process should work together as a team 
and should be empowered to make decisions within their area of 
responsibility.
    The Federal Acquisition System will:
    *Satisfy the customer in terms of cost, quality, and timeliness of 
the delivered product or service, by, for example,
    **Maximizing the use of commercial products and services,
    **Using contractors with a track record of successful past 
performance or who demonstrate a current superior ability to perform, 
and
    **Promoting competition;
    *Minimize administrative operating costs;
    *Conduct business with integrity, fairness, and openness; and
    *Fulfill public policy objectives.
    The acquisition team consists of all participants in Government 
acquisition including not only representatives of the technical, supply 
and procurement communities but also the customers they serve, and the 
contractors who provide the products and services.
    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. In exercising 
initiative, members of the Government acquisition team may assume that 
if a specific policy or procedure is not prohibited by the FAR, law 
(statute or case law), Executive Order or other regulation, that the 
policy or procedure is a permissible exercise of authority.

Discussion on the Statement of Guiding Principles for the Federal 
Acquisition System

Introduction

    The Statement of Acquisition Guiding Principles for the Federal 
Acquisition System (System) represents a concise statement designed to 
be user-friendly for all participants in Government acquisition. The 
following discussion of the principles is provided in order to 
illuminate the meaning of the terms and phrases used. The framework for 
the System includes the Guiding Principles for the System and the 
supporting policies and procedures provided in the Federal Acquisition 
Regulation (FAR).

Discussion

Vision

    All participants in the System are responsible for making 
acquisition decisions that deliver the best value product or service to 
the customer. Best value must be viewed from a broad perspective and is 
achieved by balancing the many competing interests in the System. The 
result is a system which works better and costs less.

Performance Standards for the Federal Acquisition System

 Satisfy the Customer in Terms of Cost, Quality, and Timeliness 
of the Delivered Product or Service
    The principal customers for the product or service provided by the 
System are the users and line managers, acting on behalf of the 
American taxpayer.
    The System must be responsive and adaptive to customer needs, 
concerns, and feedback. Implementation of acquisition policies and 
procedures, as well as consideration of timeliness, quality, and cost 
throughout the process, must take into account the perspective of the 
user of the product or service.
    When selecting contractors to provide products or perform services, 
the government will use contractors who have a track record of 
successful past performance or who demonstrate a current superior 
ability to perform.
    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. The government will maximize its use of commercial 
products and services in meeting Government requirements.
    It is the policy of the System to promote competition in the 
acquisition process.
    The System must perform in a timely, high quality, and cost-
effective manner.
    All members of the Team are required to employ planning as an 
integral part of the overall process of acquiring products or services. 
Although advance planning is required, each member of the Team must be 
flexible in order to accommodate changing or unforeseen mission needs. 
Planning is a tool for the accomplishment of tasks, and application of 
its discipline should be commensurate with the size and nature of a 
given task.
 Minimize 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 
administrative processes, including reviews, and to rules and 
procedures applied to the contractor community.
    The 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.
 Conduct Business With Integrity, Fairness, and Openness
    An essential consideration in every aspect of the System is 
maintaining the public's trust. Not only must the System have 
integrity, but the actions of each member of the Team must reflect that 
integrity. The foundation of integrity within the System is a 
competent, experienced, and well-trained, professional workforce. 
Accordingly, each member of the Team is responsible and accountable for 
the wise use of public resources as well as acting in a manner which 
maintains the public's trust. Fairness and openness require open 
communication among team members, internal and external customers, and 
the public.
    To achieve efficient operations, the 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.
 Fulfill Public Policy Objectives
    The 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.

Acquisition Team

    The purpose of defining the Federal Acquisition Team (Team) in the 
Acquisition Guiding Principles is to ensure that participants in the 
System are identified--beginning with the customer and ending with the 
contractor of the product or service. By identifying the team members 
in this manner, teamwork, unity of purpose and open communication among 
the members of the Team in sharing the vision and achieving the goal of 
the System are encouraged. Individual team members will participate in 
the acquisition process at the appropriate time.

Role of the Acquisition Team

    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 application of rules, 
regulations, and policies, to a specific contract.
    The authority to make decisions and the accountability for the 
decisions made will be delegated to the lowest level within the System, 
consistent with law.
    The Team must be 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 for all Government 
participants on the Team, both with regard to their particular area of 
responsibility within the System, and their respective role as a team 
member. The contractor community is encouraged to do likewise.
    The System will foster cooperative relationships between the 
government and its contractors consistent with its overriding 
responsibility to the taxpayers.
    The FAR outlines procurement policies and procedures that are used 
by members of the acquisition team. If a policy or procedure is not 
specifically addressed in the FAR, Government members of the Team 
should not assume it is prohibited. Rather, absence of direction should 
be interpreted as permitting the Team to innovate and use sound 
business judgment that is otherwise consistent with law and within the 
limits of their authority.
Steven Kelman,
Administrator.
[FR Doc. 94-25811 Filed 10-18-94; 8:45 am]
BILLING CODE 3110-01-M