[Federal Register Volume 59, Number 204 (Monday, October 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26121]


[[Page Unknown]]

[Federal Register: October 24, 1994]


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GENERAL SERVICES ADMINISTRATION
41 CFR Part 201-20
[FIRMR Interim Rule 2]
RIN 3090--AE71
 

Amendment of FIRMR Provisions To Modify Requirements for 
Obtaining Delegations of Procurement Authority
AGENCY: Information Resources Management Service, GSA.

ACTION: Interim rule with request for comments.

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SUMMARY: This amendment to the Federal Information Resources Management 
Regulation (FIRMR) revises policies regarding delegations of 
procurement authority from GSA for the acquisition of Federal 
information processing (FIP) resources. Currently, GSA authorizes 
agencies to make individual purchases of up to $2.5 million in 
information technology equipment and services. This rule raises the 
authorization levels to $20 million, $10 million and $5 million based 
on the size of an agency's information technology budget and its 
management record. In return for the higher thresholds, agencies will 
be required to identify and justify their information technology 
acquisition requirements in terms of functional and measurable 
outcomes. These outcomes will be related to business objectives. 
Examples of outcomes may include faster delivery of service to the 
client, reduction of billing time, or reduction of agency expenditures. 
GSA will continually review acquisitions performed under its 
authorities to assist agencies to meet the needs of the end user, 
achieve acquisition requirements, and obtain favorable prices compared 
to market trends. Programs not proceeding as planned are subject to 
withdrawal of delegated authorities.
    In addition to increasing the dollar amounts of regulatory 
delegations thresholds, this interim rule changes the basis upon which 
specific acquisition delegations are required from the dollar value of 
each type of resource to the combined dollar value of FIP resources; 
clarifies that delegations are not required when using GSA 
Governmentwide programs; and strongly encourages agency Designated 
Senior Officials to redelegate 50 percent of GSA's exclusive 
procurement authority for FIP resources to qualified officials at other 
levels.

DATES: This amendment is effective immediately upon publication. 
Comments will be considered in the final rule, but must be received on 
or before November 23, 1994.

ADDRESSES: Comments may be mailed to GSA, Regulations Analysis Division 
(KMR), 18th and F Streets, NW., Room 3224, Washington, DC 20405, Attn: 
Anne Horth, or delivered to that address between 8:00 a.m. and 4:30 
p.m.

FOR FURTHER INFORMATION CONTACT:
Anne Horth, FTS/Commercial (202) 501-0960 (v) or FTS/Commercial (202) 
501-0657 (tdd).

SUPPLEMENTARY INFORMATION: (1) This interim rule will enable GSA to 
focus on high dollar, high risk, more complex systems. It will also 
provide more authority to agencies, while, at the same time, increased 
measures of accountability and outcomes. The increased authority allows 
agencies to streamline their internal acquisition management and review 
functions. It also provides an opportunity for more expeditious and 
efficient acquisitions, especially with regard to the lower dollar, 
less complex requirements.
    (2) This amendment clarifies that a delegation is not required for 
multiagency contracts awarded by GSA that are approved for 
Governmentwide use. This includes FTS2000, local telecommunications 
services contracts, the Financial Management Systems Software schedule, 
or other services provided, or contracts established, by GSA.
    (3) An explanation of the changes being made follows:
    (a) Subsection 201-20.305(a) is amended to encourage Designated 
Senior Officials (DSOs) to redelegate 50 percent of the monetary value 
of GSA's delegated procurement authority to other qualified agency 
officials at lower organizational levels where sufficient expertise 
exists. Such redelegations will expedite FIP acquisitions and provide 
for a more efficient process. DSOs who elect not to redelegate at the 
50 percent level, or who withdraw earlier delegations, must advise GSA 
in writing of the circumstances that will not allow redelegation and 
the management action being taken to allow such redelegation in the 
future.
    Subsection 201-20.305-1 is amended to grant delegations on the 
basis of the total estimated costs of all FIP requirements (equipment, 
software, services, support services, and FIP-related supplies when the 
resources are procured as an integral part of an acquisition), 
including all option items and option periods, over the life of the 
contract. The current regulatory delegation thresholds apply to each 
type of resource (i.e., equipment, software, or services), but include 
all optional items and option periods. To simplify determining when a 
delegation is needed, the application of delegations thresholds is 
being changed from individual resources to the combined requirements 
for all resources over the life of the contract. Subsection 201-20.305-
1 is also amended to change the manner in which regulatory delegations 
are established. Instead of the same delegation threshold applying to 
all agencies, regulatory thresholds will be based on the size of an 
agency's information technology (IT) budget. Agencies are placed in one 
of three groups depending on the size of their IT budget. The 
categories and amounts being established by this amendment are:

--$20,000,000 ($2,000,000 for a specific make and model specification 
or for a requirement available from only one responsible source). This 
threshold applies to the group of agencies having the largest IT 
budgets.
--$10,000,000 ($1,000,000 for a specific make and model specification 
or for a requirement available from only one responsible source). This 
threshold applies to a group of agencies having the next largest IT 
budgets.
--$5,000,000 ($500,000 for a specific make and model specification or 
for a requirement available from only one responsible source). This 
threshold applies to all other agencies.

    Agencies will be required to submit performance measurement data in 
accordance with procedures in FIRMR Bulletin C-5, ``Delegation of 
procurement authority for a specific acquisition''.
    GSA has the authority to increase or decrease regulatory delegation 
thresholds through the use of specific agency thresholds. The latter 
are based on how effectively and efficiently an agency acquires FIP 
resources and manages its IRM program. Performance measurement data 
that agencies submit will be a significant factor in determining agency 
delegations thresholds.
    (c) Subsection 201-20.305-1 is amended to list the GSA programs 
that do not require a delegation of procurement authority prior to use 
by agencies.
    (3) This rule was submitted to, and approved by, the Office of 
Management and Budget in accordance with Executive Order 12866, 
Regulatory Planning and Review.
    (4) The recordkeeping provisions of the Paperwork Reduction Act do 
not apply because the FIRMR changes do not impose information 
collection requirements or collection of information from offerors, 
contractors, or members of the public which require the approval of OMB 
under 44 U.S.C. 3501 et seq.

List of Subjects in 41 CFR Part 201-20

    Archives and records, Computer technology, Federal information 
processing resources activities, Government procurement, Property 
management, Records management, and Telecommunications.

    For the reasons set forth in the preamble, GSA is amending 41 CFR 
Part 201-20 as follows:

PART 201-20--ACQUISITION

    1. The authority citation for Part 201-20 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c) and 751(f).

    2. Section 201-20.305 is amended by revising paragraph (a)(3) and 
adding new paragraphs (a) (5) and (6) as follows:


Sec. 201-20.305  Delegation of GSA's exclusive procurement authority.

    (a) * * *
    (3) The agency's DSO should redelegate, at a maximum, 50 percent of 
the monetary value of GSA's delegated exclusive authorities for FIP 
resources to qualified officials possessing the expertise to conduct 
and manage FIP acquisitions.
* * * * *
    (5) DSO's who elect not to redelegate 50 percent of the monetary 
value of the delegated authority, or who withdraw a delegation, shall 
advise GSA/KMA, 18th and F Streets, NW, Washington, DC 20405, in 
writing, of the circumstances involving such redelegations and their 
new plan regarding redelegations within the agency.
    (6) Under this section:
    (i) Agencies will justify their information technology acquisition 
requirements in terms of functional and measurable outcomes for the 
client and the taxpayer.
    (ii) GSA will continually review acquisitions performed under its 
authorities with the goal of assisting agencies to meet acquisition 
requirements and achieving favorable prices compared to market trends. 
Programs not proceeding as planned are subject to withdrawal of 
delegated authorities.
* * * * *
    3. Section 201-20.305-1 is amended by removing the introductory 
text to the section; revising paragraphs (a)(1) introductory text, 
(a)(3) and (b); and removing paragraph (c) as follows:


Sec. 201-20.305-1  Regulatory delegations.

    (a) * * *
    (1) FIP equipment, software, services, support services, and 
related supplies (if the acquisition is not solely for related 
supplies) when the total estimated dollar value of all of the FIP 
resources to be acquired under the contract, including all optional 
items and all option periods, does not exceed $20,000,000 ($2,000,000 
for a specific make and model or a requirement available from only one 
responsible source) for Department of the Air Force, Department of the 
Army, Department of Defense/Office of the Secretary of Defense, 
Department of Energy, Department of Health and Human Services, 
Department of the Navy, Department of Transportation, Department of the 
Treasury, and National Aeronautics and Space Administration; 
$10,000,000 ($1,000,000 for a specific make and model or a requirement 
available from only one responsible source) for Department of 
Agriculture, Department of Commerce, Environmental Protection Agency, 
General Services Administration, Department of the Interior, Department 
of Justice, Department of State, and Department of Veterans Affairs; 
$5,000,000 ($500,000 for a specific make or model or a requirement 
available from only one responsible source) for all other agencies; and 
if either paragraph (a)(1) (i), (ii), or (iii) of this section applies:
* * * * *
    (3) FIP resources from the following GSA contracting programs do 
not require delegations of procurement authority:
    (i) FTS2000 Program.
    (ii) Consolidated Local Telecommunications Services Program.
    (iii) Financial Management Systems Software Multiple Award Schedule 
Contracts Program.
    (iv) Purchase of Telephones and Services Program.
    (v) Other multiagency services and contracts provided by GSA's 
Information Resources Management Service (IRMS) unless the service 
results in a contract which will be turned over to the agency after 
award. (A delegation is required for agency acquisitions conducted by 
IRMS when the contract will be turned over to the agency after award. 
This includes agency acquisitions conducted by the Federal Computer 
Acquisition Center (FEDCAC)).
    (b) When FIP equipment, software, services, and support services 
(or any combination thereof) are combined and acquired under a single 
contract action, a specific acquisition delegation shall be required 
when the dollar value of all combined resources exceeds the regulatory 
dollar thresholds in paragraph (a)(1) of this section, or any specific 
agency delegation threshold.

    Dated: October 11, 1994.
Roger W. Johnson,
Administrator of General Services.
[FR Doc. 94-26121 Filed 10-21-94; 8:45 am]
BILLING CODE 6820-25-M