[Federal Register Volume 59, Number 205 (Tuesday, October 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26439]
[[Page Unknown]]
[Federal Register: October 25, 1994]
_______________________________________________________________________
Part III
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 6, 8, 13, and 38
Federal Acquisition Regulation; Multiple Award Schedule Ordering
Procedures; Final Rule
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 6, 8, 13, and 38
[FAC 90-21; FAR Case 93-613]
Federal Acquisition Regulation; Multiple Award Schedule Ordering
Procedures
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR) concerning Federal Supply
Schedules and Federal Supply Schedule contracting. These changes are a
result of GSA's efforts to streamline and revise the Multiple Award
Schedule Program's ordering procedures to be guiding principles. This
regulatory action was not subject to Office of Management and Budget
review under Executive Order 12866, dated September 30, 1993.
EFFECTIVE DATE: October 25, 1994.
FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For
general information, contact the FAR Secretariat, Room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-21,
FAR case 93-613.
SUPPLEMENTARY INFORMATION:
A. Background
The efforts to streamline and revise Multiple Award Schedule
ordering procedures in order to make them more susceptible to guiding
principles will save the Government time, money, and improve the
accessibility of commercial items to customers. With these changes, GSA
will be able to foster a Government that works better and costs less.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. Therefore, the Regulatory
Flexibility Act does not apply. However, comments from small entities
concerning the affected subpart will be considered in accordance with 5
U.S.C. 610. Such comments must be submitted separately and cite 5
U.S.C. 601, et seq. (FAC 90-21, FAR case 93-613), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 6, 8, 13, and 38
Government procurement.
Dated: October 20, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Federal Acquisition Circular
Unless otherwise specified, all Federal Acquisition Regulation
(FAR) and other directive material contained in FAC 90-21 are effective
October 25, 1994.
Dated: October 19, 1994.
Eleanor R. Spector,
Director, Defense Procurement, DOD.
Ida M. Ustad,
Associate Administrator, Office of Acquisition Policy, GSA.
Dated: October 12, 1994.
Thomas S. Luedtke,
Deputy Associate Administrator for Procurement, National Aeronautics
and Space Administration.
Therefore, 48 CFR Parts 6, 8, 13, and 38 are amended as set forth
below:
1. The authority citation for 48 CFR Parts 6, 8, 13, and 38
continues to read as follows:
Authority: 40 U.S.C. 486(c): 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 6--COMPETITION REQUIREMENTS
2. Section 6.102 is amended by revising paragraph (d)(3) to read as
follows:
6.102 Use of competitive procedures.
* * * * *
(d) * * *
(3) Use of multiple award schedules issued under the procedures
established by the Administrator of General Services consistent with
the requirement of 41 U.S.C. 259(b)(3)(A) for the multiple award
schedule program of the General Services Administration is a
competitive procedure.
PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
3. Section 8.001 is amended by revising the introductory text of
paragraph (a); by revising paragraphs (a)(1)(iv); and (a)(2)(i) to read
as follows:
8.001 Priorities for use of Government supply sources.
(a) Except as required by 8.002, or as otherwise provided by law,
agencies shall satisfy requirements for supplies and services from or
through the sources and publications listed below in descending order
of priority--
(1) * * *
(iv) Procurement lists of supplies available from the Committee for
Purchase From People Who Are Blind or Severely Disabled (see subpart
8.7);
* * * * *
(2) Services. (i) Procurement lists of services available from the
Committee for Purchase From People Who Are Blind or Severely Disabled
(see subpart 8.7);
* * * * *
Subpart 8.4--Federal Supply Schedules
4. In Subpart 8.4, the heading is revised as set forth above.
5. Section 8.401 is amended by removing the last two sentences in
paragraph (a); and by revising the last sentence in paragraph (b) to
read as follows:
8.401 General.
* * * * *
(b) * * * The ``Federal Supply Schedule Program Guide,'' includes a
listing of Federal Supply Schedules and information on the use of
schedules.
8.402 [Amended]
6. Section 8.402 is amended by removing paragraph (a) and the
designation of paragraph (b).
8.403 through 8.403-4 [Removed and reserved]
7. Sections 8.403 through 8.403-4 are removed and 8.403 is
reserved.
8. Section 8.404 is revised to read as follows:
8.404 Using schedules.
(a) General. When agency requirements are to be satisfied through
the use of Federal Supply Schedules as set forth in this subpart 8.4,
the policies and procedures of FAR part 13 do not apply. When placing
orders under a Federal Supply Schedule, ordering activities need not
seek further competition, synopsize the requirement, or make a separate
determination of fair and reasonable pricing.
(b) Optional use. (1) Ordering activities can place orders of
$2,500 or less with any Federal Supply Schedule contractor. GSA has
already determined the prices of items under these contracts to be fair
and reasonable.
(2) To reasonably ensure that a selection represents the best value
and meets the agency's needs at the lowest overall cost, before placing
an order of more than $2,500, an ordering activity should--
(i) Consider reasonably available information about products
offered under Multiple Award Schedule contracts; this standard is met
if the ordering activity does the following:
(A) Considers products and prices contained in any GSA MAS
automated information system; or
(B) If automated information is not available, reviews at least
three (3) price lists.
(ii) In selecting the best value item at the lowest overall cost
(the price of the item plus administrative costs), the ordering
activity may consider such factors as--
(A) Special features of one item not provided by comparable items
which are required in effective program performance;
(B) Trade-in considerations;
(C) Probable life of the item selected as compared with that of a
comparable item;
(D) Warranty conditions; and
(E) Maintenance availability.
(iii) Give preference to the items of small business concerns when
two or more items at the same delivered price will meet an ordering
activity's needs.
(3) MAS contractors will not be required to pass on to all schedule
users a price reduction extended only to an individual agency for a
specific order. There may be circumstances where an ordering activity
finds it advantageous to request a price reduction, such as where the
ordering activity finds that a schedule product is available elsewhere
at a lower price, or where the quantity of an individual order clearly
indicates the potential for obtaining a reduced price.
(4) Ordering activities should document orders of $2,500 or less by
identifying the contractor the item was purchased from, the item
purchased, and the amount paid. For orders over $2,500, MAS ordering
files should be documented in accordance with internal agency
practices. Agencies are encouraged to keep documentation to a minimum.
(c) Mandatory use. (1) This paragraph (c) applies only to orders
against schedule contracts with mandatory users.
(2) In the case of mandatory schedules, ordering offices shall not:
(i) Solicit bids, proposals, quotations, or otherwise test the
market solely for the purpose of seeking alternative sources to Federal
Supply Schedules; or
(ii) Request formal or informal quotations from Federal Supply
Schedule contractors for the purpose of price comparisons.
(3) Schedules identify executive agencies required to use them as
mandatory sources of supply. The single-award schedule shall be used as
a primary source and the multiple-award schedule as a secondary source.
Mandatory use of schedules is not a requirement if--
(i) The schedule contractor is unable to satisfy the ordering
office's urgent delivery requirement;
(ii) The order is below the minimum order thresholds;
(iii) The order is above the maximum order limitation;
(iv) The consignee is located outside the area of geographic
coverage stated in the schedule; or
(v) A lower price for an identical item (i.e., same make and model)
is available from another source.
(4) Absence of follow-on award. Ordering offices, after any
consultation required by the schedule, are not required to forego or
postpone their legitimate needs pending the award or renewal of any
schedule contract.
8.404-1 and 8.404-2 [Removed and reserved]
9. Sections 8.404-1 and 8.404-2 are removed and reserved.
8.405 Ordering office responsibilities.
10. The text of section 8.405 is removed, leaving a heading only.
8.405-1 [Reserved]
11. Section 8.405-1 is removed and reserved.
8.405-4 [Amended]
12. Section 8.405-4 is amended in the beginning of the introductory
paragraph by removing ``When'' and inserting ``If''.
13. Section 8.405-5 is amended by revising the second sentence in
paragraph (a)(3) to read as follows:
8.405-5 Termination for default.
(a) * * *
(3) * * * Copies of all repurchase orders, except the copy
furnished to the contractor or any other commercial concern, shall
include the notation ``Repurchase against the account of ____________
[insert contractor's name] under Delivery Order ____________ [insert
number] under Contract ____________ [insert number]''.
* * * * *
8.406 through 8.408 [Removed]
14. Sections 8.406 through 8.408 are removed.
PART 13--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES
13.105 [Amended]
15. Section 13.105 is amended in paragraph (c) by removing the
words ``mandatory multiple-award''.
13.203-1 [Amended]
16. Section 13.203-1 is amended in paragraph (f) by removing the
parenthetical ``(see subpart 8.4)''.
PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING
17. Section 38.000 is revised to read as follows:
38.000 Scope of part.
This part prescribes policies and procedures for contracting for
supplies and services under the Federal Supply Schedule program, which
is directed and managed by the General Services Administration (see
subpart 8.4, Federal Supply Schedules, for additional information). See
part 39 for automatic data processing and telecommunications equipment
and services coverage. The Department of Defense uses a similar system
of schedule contracting for military items that are also not a part of
the Federal Supply Schedule program.
18. Section 38.101 is amended by revising the second sentence of
paragraph (a); removing the last two sentences in paragraph (b);
removing paragraph (d) and redesignating paragraph (e) as (d). The
revised text reads as follows:
38.101 General.
(a) * * * Indefinite delivery contracts (including requirements
contracts) are awarded, using competitive procedures, to commercial
firms to provide supplies and services at stated prices for given
periods of time, for delivery within the 48 continguous states,
Washington, DC, and possible Alaska, Hawaii, and overseas deliveries. *
* *
* * * * *
38.102 through 38.102-4 [Removed]
19. Sections 38.102 through 38.102-4 are removed.
20. Section 38.201 is amended by revising paragraph (a)
introductory text and paragraph (b) to read as follows:
38.201 Coordination requirements.
(a) Subject to interagency agreements, contracting officers having
responsibility for awarding Federal Supply Schedule contracts shall
coordinate and obtain approval of the General Services Administration's
Federal Supply Service (FSS) before--
* * * * *
(b) Requests should be forwarded to the General Services
Administration, Federal Supply Service, Office of Commodity Management
(FC), Washington, DC 20406.
38.202 through 38.205 [Removed]
21. Sections 38.202 through 38.205 are removed.
[FR Doc. 94-26439 Filed 10-24-94; 8:45 am]
BILLING CODE 6820-34-M