[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29081]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 201-1, 201-2, 201-3, 201-4, 201-6, 201-7, 201-9, 201-
17, 201-18, 201-20, 201-21, 201-22, 201-24, and 201-39

RIN: 3090-AF31

 

Amendment of FIRMR Provisions to Ensure Currency and Relevancy

AGENCY: Information Resources Management Service, GSA.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This notice proposes to amend selected Federal Information 
Resources Management Regulation (FIRMR) provisions to ensure the 
currency and relevancy of the FIRMR. It is issued in accordance with 
Executive Order 12866 of September 30, 1993, which requires agencies to 
periodically review their significant regulations to determine whether 
they should be modified or eliminated.
    This rule will make a number of changes to the FIRMR. Among the 
more significant changes, are the following: add, change, or remove 
FIRMR definitions and acronyms including redefining ``outdated 
equipment'' to mean FIP equipment over six years old that is no longer 
in current production; revise provisions pertaining to accessibility by 
individuals with disabilities to implement the new focus in Pub. L. 
102-569 on information rather than equipment; permit agency heads to 
grant exceptions to the mandatory use of a Federal Standard (FED-STD) 
after notification to GSA; clarify the intent of the FIRMR requirement 
for agencies to conduct requirements analyses ``commensurate with the 
size and complexity of the need''; allow agencies to substitute similar 
documentation prepared in response to programmatic needs for 
requirements analyses; establish a threshold below which agencies do 
not have to prepare a requirements analysis or analysis of 
alternatives; clarify that agencies should only perform an analysis of 
alternatives for those alternatives most feasible to implement; raise 
the threshold from $50,000 to $1,000,000 for doing an analysis of 
alternatives limited to demonstrating that the benefits of the 
acquisition will outweigh the costs; require agencies that conduct 
telephone monitoring to use some form of oral notice or a beep tone at 
the beginning of a call; remove the reporting requirements to GSA for 
listening-in to or recording telephone conversations and toll-free 
telephone service; clarify procedures for economical capability and 
performance validation; revise the scope of obsolescence reviews to 
include equipment that may be obsolescing; expand the exception from 
$300,000 to $1,000,000 for award based on lowest offered purchase 
price; clarify that agencies must submit post delegation information to 
GSA for specific acquisition delegations; clarify procedures for 
evaluating outdated and obsolete information technology; and remove an 
antiquated clause concerning warranty exclusion and limitation of 
damages.

DATES: Comments are due: February 6, 1995.

ADDRESSES: Comments may be mailed to GSA/KMR, 18th & F Streets, NW., 
Room 3224, Washington, DC 20405, Attn: Margaret Truntich, or delivered 
to that address between 8 a.m. and 4:30 p.m.

FOR FURTHER INFORMATION CONTACT: Margaret Truntich, GSA, Office of 
Information Resources Management Policy, Regulations Analysis Division 
(KMR), 18th & F Streets, NW., Room 3224, Washington, DC 20405, 
telephone FTS/Commercial (202) 501-0837 (v) or (202) 501-0657 (tdd).

SUPPLEMENTARY INFORMATION: (1) Explanation of changes being made by 
this issuance are shown below:
    (a) Sections 201-1.003(a), 201-3.000, 201-3,001(a), 201-3.101, 201-
3.201(d), 201-3.3 and the title to part 201-3 are amended by deleting 
references to the FIRMR system. The FIRMR system was established to 
permit agencies to issue regulations that implement or supplement the 
FIRMR as part of the CODE of Federal Regulations (CFR). GSA has 
determined that agencies have not issued such regulations in the CFR 
since the establishment of the FIRMR, and that a FIRMR system is 
therefore, unnecessary. Removal of this provision does not mean that 
agencies may not issue internal agency directives or orders to 
implement or supplement FIRMR provisions.
    (b) Section 201-1.003 paragraph (d) is amended by deleting 
responsibilities of the Archivist of the United States. It is the 
intent of the FIRMR to only implement GSA's authorities and 
responsibilities. Including the Archivist's responsibilities in the 
FIRMR is, therefore, unnecessary.
    (c) Section 201-2.001 paragraphs (a) (1) through (6) are removed. 
The original text was taken from the Paperwork Reduction Act. However, 
not all provisions were excerpted. This resulted in some confusion. 
Accordingly, the text is being removed so that agencies will refer to 
the Paperwork Reduction Act to learn the specific responsibilities of 
the designated senior official.
    (d) Section 201-2.001 paragraph (b) is amended by removing the last 
sentence which pertained to agencies not subject to the Paperwork 
Reduction Act. This information is adequately covered in Sec. 201-
2.002.
    (e) Section 201-2.002 is amended by changing the sequence of 
paragraphs (a) through (c). The revised sequence more accurately aligns 
the responsibilities of the agency designated senior official (DSO).
    (f) Section 201-3 discuss the organization of the FIRMR, how it is 
supplemented with other guidance issuances, and its relationship to the 
Federal Acquisition Regulation (FAR). Section 201-3.001 is amended to 
remove unnecessary details which pertain to circumstances giving rise 
to interim rules. This information is more appropriately discussed in 
Sec. 201-3.203. Section 201-3.203 paragraph (c) replaces the term 
``termporary change'' with the words ``interim rule'' to standardize 
terminology pertaining to revising the FIRMR. Also removed for brevity 
is a redundant sentence that lists the various types of guidance 
material already described. For consistency, the enumeration of the 
types of guidance issuances contained in the FIRMR (Sec. 201-3.001(b) 
(1) through (3)) is changed to small roman numerals.
    (g) Section 201-3.001 paragraph (b)(1) is amended to reflect the 
current availability of the FIRMR on CD-ROM.
    (h) Section 201-3.204 paragraph (a) is amended to update the phone 
number for the Government Printing Office (GPO) Bookstore.
    (i) In Secs. 201-4.001 and 201-39.201, the definition for outdated 
FIP equipment is revised to shorten the period for determining when FIP 
equipment is outdated. The FIRMR defines outdated FIP equipment as any 
FIP equipment over eight years old, based on the initial commercial 
installation date of that model of equipment, and that is no longer in 
current production. This definition has been in existence since 1986 
when the product cycle of computer equipment was four years. Since that 
time, the product life cycle has decreased to about three years, and 
industry spokesmen state that this figure is decreasing even more. When 
microcomputers are upgraded, the product cycle may be even less since 
typically they are upgraded by replacing internal computer equipment 
has little or no market value. In recognition of these faces, the 
definition for outdated equipment is being revised to shorten the time 
interval from eight to six years after the first commercial 
installation at which point equipment no longer produced is considered 
to be outdated.
    (j) Section 201-4.001 is amended by adding a new definition for 
``Records management. The FIRMR discusses records management in subpart 
201-9.1, but has never included a definition. The definition added is 
the same as contained in OMB Circular A-130. Also, the existing 
definitions of ``application software'' and ``common-use software'' are 
designated (a) and (b) respectively of the larger term, ``Software'' 
for consistency of format.
    (k) Section 201-4.002 is revised to include the following new 
acronyms: CBD, FED-STD, FSTS, GAO, GSBCA, IRPMR, MIL, OAC, and POTS. 
These acronyms were used in the FIRMR index, but previously were not 
defined.
    (l) Section 201-4.003, Applicable OMB Circulars, is being added. In 
order to avoid future changes to FIRMR text caused by revisions of OMB 
Circular titles, this new section is added to include the current 
titles of all OMB Circulars referenced in the FIRMR.
    (m) Section 201-6.001 is revised to add a new item (a)(5) to more 
closely reflect the provisions of the Paperwork Reduction Act, as well 
as address matters raised in OMB Circular A-130. These include 
improving service delivery, dissemination of information, increasing 
productivity, improving quality of decision making, reducing fraud and 
waste, and reducing the information processing burden. Section 201-
6.001 is also revised to redesignate the previous item (5) as new item 
(6).
    (n) A series of revisions are being made due to Pub. L. 102-569 
October 29, 1992), which amended the Rehabilitation Act of 1973 
broadening the scope of accessibility for individuals with 
disabilities. These revisions capture more thoroughly the intent of 
Pub. L. 102-569. The previous version of the Rehabilitation Act only 
required that GSA ensure those with disabilities can access ``electric 
office equipment.'' The revised statute recognizes that while equipment 
accessibility is important, that alone is not sufficient because an 
agency's applications software and user interfaces can impede the 
functional use of a computer if they do not have features permitting 
use by individuals with disabilities. The revised statutory provision 
emphasizes that all individuals must be able to use technology to 
accomplish the same end objectives.
    A new Sec. 201-6.002(g) is added to include as a predominant 
consideration in the management and use of information and records, the 
importance of ensuring that individuals with disabilities can produce 
information and data, and have access to information and data, 
comparable to the information and data, and access, respectively, of 
others. Section 201-6.002 is also revised to redesignate the previous 
item (g) as new item (h).
    In addition to the insertion of Sec. 201-6.002(g), discussed above, 
other provisions of the FIRMR pertaining to accessibility by 
individuals with disabilities are being revised to incorporate the 
statutory intent of Pub. L. 102-569. These other FIRMR provisions are:
--201-17.001(j)--Predominant Considerations in the Management and Use 
of Federal Information Processing (FIP) Resources;
--201-18.001(e), which generally describes the Federal Government's 
statutory responsibility to foster accessibility for individuals with 
disabilities;
--201-18.002(c), which pertains to adoption of accessibility guidelines 
in agency IRM plans; and
--201-20.103-7(a), which requires agencies to incorporate accessibility 
requirements in their acquisitions of FIP resources.

    (o) Section 201-7.001 paragraph (b) is revised to delete a 
reference to canceled OMB Circular A-3.
    (p) Section 201-7.002 paragraph (c) is revised to clarify when 
information needs are determined. The existing text suggested that 
information needs were to be determined before conducting a 
requirements analysis. The revised text reflects that determining 
information needs and analyzing requirements are frequently concurrent 
activities.
    (q) Section 201-9.202-1 paragraph (b)(9) is revised to update the 
current mailing address for the Supply Management Division.
    (r) The existing text in Sec. 201-20.001(d) referenced the specific 
subjects of requirements analysis and analysis of alternatives in the 
GSA Acquisition Guide series. The reference to the guide series is 
unnecessary and is being deleted.
    (s) Subpart 201-20.1 is revised to clarify GSA's intent regarding 
the preparation of requirements analyses. Currently, the FIRMR requires 
agencies to document their requirements for FIP resources ``by 
conducting a requirements analysis commensurate with the size and 
complexity of the need.'' Some agencies have questioned the necessity 
of conducting a requirements analysis and preparing the required 
documentation when a similar document has already been prepared in 
conformance with agency programmatic needs. The FIRMR is being revised 
to allow agencies to use such similar documents if they address the 
basic information required in a requirements analysis. Other agencies 
have misinterpreted the intent of the phrase ``commensurate with the 
size and complexity of the need,'' and, in some cases, are over 
documenting requirements for small dollar acquisitions. These small 
dollar acquisitions are usually for commercial items readily available 
in the competitive marketplace. FAR planning provisions and agencies' 
local procurement practices provide sufficient information for 
requirements to justify small dollar value acquisitions.
    To ensure more expeditious and efficient acquisitions, this rule 
establishes a threshold for when agencies must conduct requirements 
analyses and analyses of alternatives. Sections 201-20.102 and 201-
20.202 are revised to eliminate the requirement to perform requirements 
analyses and analyses of alternatives for acquisitions of FIP resources 
when the total estimated system life costs are less than $100,000. 
Additionally, Sec. 201-20.103 is revised to require that agencies only 
consider the factors in this section if it is appropriate to do so. 
This allows agencies to exercise discretion regarding whether or not to 
include the factors in their requirements analyses.
    (t) Subpart 201-20.1 requires agencies to perform an analysis of 
alternatives based on the requirements analysis to determine the most 
advantageous alternative that will meet their needs. Like the 
requirements analysis, the analysis of alternatives must be 
``commensurate with the size and complexity of the agency's need''. As 
indicated in Sec. 201-20.203-1(a)(1), GSA's intention was that agencies 
only include in the analysis of alternatives those alternatives that 
are truly feasible to implement. It has come to our attention, however, 
that some agencies are analyzing all alternatives, whether or not they 
are feasible in the specific circumstance. This unnecessarily 
complicates and lengthens the acquisition process. Accordingly, 
Sec. 201-20.202, which states the FIRMR policy on performing analyses 
of alternatives, is being revised to emphasize that agencies should 
limit the number of alternatives analyzed to those that are feasible to 
implement. Other changes are also being made to this subpart. Section 
201-20.203-2 is being revised to increase from $50,000 to $1,000,000 
the threshold for performing a more detailed analysis of alternatives. 
Agencies will be given the option of performing either an analysis 
using the present value of money if the estimated amount of their 
proposed acquisition is less than $1,000,000 or an analysis that 
demonstrates that the benefits of the acquisition will outweigh the 
costs. This change will help to streamline the acquisition process by 
reducing documentation requirements for a greater number of smaller 
acquisitions. Additionally, paragraph 201-20.203-2(c) is being revised 
to delete the title of OMB Circular A-94 and to move it to the new 
Sec. 201-4.003.
    (u) Section 201-20.203 paragraph (d)(2) is revised to permit agency 
heads to grant exceptions to FED-STDS provided GSA is notified at least 
30 days prior to any use of the excepted FED-STD, e.g., in a 
solicitation. This change empowers agencies to accomplish their 
missions more effectively.
    (v) Section 201-20.304 paragraphs (a) and b(1) deal with capability 
and performance validation. They are revised to require use of 
validation techniques that are more economical to Government and 
industry than use of a benchmark or an operational capability 
demonstration (OCD). In the early years of computing, comprehensive 
benchmarks, stress tests, and OCDS were useful for validating 
reliability, performance and other requirements. In today's mature 
industry, the reliability and stability of the marketplace offerings 
are much higher. Also, there is substantial empirical data available 
from independent sources to assist agencies in assessing how a proposed 
system will perform in their environment and with their workloads. As a 
result, the use of benchmarks or OCDs may not be the most advantageous 
approach in many acquisitions. This is more likely to be the case for 
those acquisitions that do not require customized hardware and/or 
software. Agencies will not be required to select the most economical 
technique available that will meet their minimum needs. Additionally, 
Sec. 201-20.304(b)(2) is revised to delete the adjective ``actual'' in 
front of the word ``requirements''. The world ``actual'' caused some 
confusion about the meaning of ``When a benchmark is used as part of 
performance validation, agencies shall ensure, that the FIP software 
selected for benchmarks is representative of actual requirements * * 
*'' In fact, agencies acquire systems to accommodate a workload over a 
life cycle of some years. Any agency's definition of its requirements 
at the time of acquisition is its best estimate of workload that will 
ultimately occur over the ensuing years.
    (w) Section 201-20.305-3 is revised to emphasize the agency 
requirement for the submission of post delegation information to GAS 
for specific delegations. With the increased emphasis on results 
oriented performance, GAS will seek information demonstrating that 
agencies are obtaining the benefits cited in their agency procurement 
requests.
    (x) Section 201-21.201 paragraph (b) is revised to reflect the 
current name and symbol of a GSA organization.
    (y) Section 201-21.301 paragraphs (a) and (d) are revised to delete 
references to OMB Circular A-130, Appendix III.
    (z) Section 201-21.401 paragraph (c) is revised to remove 
references to OMB Circular A-130, Appendix II, which is proposed for 
revision; and to remove the title of the Circular since it appears in 
the new Sec. 201-4.003.
    (aa) Section 201-21.43 is amended to change the annual report date 
from November 30 to October 20 for reporting the dollar amount charged 
to users for the sharing of excess FIP resources. This earlier due date 
allows for more timely submission of GSA's consolidated Governmentwide 
report to Congress.
    (bb) Section 201-21.603 is amended to delete the agency reporting 
requirement and to add a requirement that agencies that do public 
service monitoring provide an oral notice or beep tone at the beginning 
of a call. This section currently prohibits agencies listening-in to or 
recording telephone conversations, on a GSA-provided telephone system, 
any telephone system acquired under a delegation of GSA procurement 
authority, or any telecommunications system approved in accordance with 
the Federal Property and Administrative Services Act of 1949, as 
amended, except under certain circumstances. Agencies that listen-in or 
record conversations for public safety, public service monitoring or to 
assist individuals with disabilities must notify GSA in writing at 
least 30 days before the operational date. This notification provision 
is being removed because it places an unnecessary burden on agencies. 
GSA does not have any affirmative enforcement or other function with 
regard to listening-in that would make this reporting requirement 
necessary. Such responsibilities rest solely with the reporting agency. 
Accordingly, in line with placing authority and responsibility at the 
appropriate level, this reporting requirement will be removed as will 
the provision that GSA will periodically review agency listening-in 
activities.
    Section 201-603 paragraph (d)(4)(ii) requires that agencies that 
perform public service monitoring provide for continuous positive 
action to inform the public of that monitoring. Some agencies have 
interpreted this to mean that including a statement in agency 
publications that calls to the agency may be monitored meets this 
requirements. After careful review, GSA has determined that since all 
callers may not see such publications, additional notification is 
required. Accordingly, we propose adding a provision that requires 
agencies to provide an upfront announcement or beep tone at the 
beginning of a call to advise callers of potential monitoring. Since 
such an announcement may increase communications costs, we request that 
agencies provide us detailed information about any negative impact 
implementation of this provision may have on them. We will carefully 
review this information before reaching a decision on whether to 
include this provision in the final rule.
    (cc) Section 201-21.604, requires agencies to forward to GSA copies 
of each order for toll free telephone service. Documentation submitted 
is to include estimates of monthly costs and usage, and cite the 
relevant statute, Executive Order, or other regulation directing the 
toll free service. This provision is being removed because the use of 
toll-free telephone services are sufficiently routine that close 
supervision by GSA is no longer needed. Removal of this provision 
reduces costly and burdensome over-regulation and places authority and 
responsibility with the agency.
    (dd) Section 201-22.303 is revised to expand the scope of the 
subpart. Currently, this provision requires agencies to review the use 
of equipment that is already outdated and to determine if continued use 
is economical. This provision is revised also to expand the scope of 
the review to include equipment that may be obsolescent. This change is 
made to encourage agencies to ensure that their FIP equipment always 
remains economical and efficient. Guidelines are provided to assist 
agencies in identifying obsolescent equipment. Agencies are encouraged 
to replace their obsolescent equipment if the cost of continued use 
exceeds the cost of acquiring and operating newer technology.
    (ee) Section 201-39.1001-1 is amended by removing the words ``OMB 
Bulletin 88-16'' in paragraph (i) and adding in their place ``OMB 
Bulletin 90-08''.
    (ff) Sections 201-39.1402-2 paragraph (c) and 201-39.1501-2 
paragraph (c) are revised to increase the thresholds below which 
certain factors need not be considered in determing the lowest bid or 
total proposed cost, respectively. In determining the lowest bid in a 
sealed bidding acquisition, Sec. 201-39.1402-1 requires agencies to 
factor in costs pertaining to life cycle support and conversion. In 
determing the total cost of a proposal in a negotiated acquisition, 
Sec. 201-39.1501-1 requires agencies to factor in costs pertaining to 
life cycle support and conversion. These thresholds are increased from 
$300,000 to $1,000,000 in order to give agencies greater discretion in 
managing their acquisitions.
    (gg) Subpart 201-39.46 is amended to delete provisions that are 
more adequately addressed in FAR Subpart 46. This subpart addresses 
quality assurance and provides guidance limiting contractor liability 
in contracts for FIP resources. Unless circumstances warrant otherwise, 
contracting officers are instructed to insert a limitation of liability 
clause found at Sec. 201-39.5206. FAR Subpart 46 also provides guidance 
on limitation of contractor liability. The FAR's guidance is more 
comprehensive and flexible than is the FIRMR's. The FAR provides 
multiple contractual clauses from which a contracting officer must 
choose. One clause applies to contracts for the delivery of non-high 
value end items, a second to the delivery of high-value end items, and 
a third to the provision of services. Contracting officers are 
instructed to combine relevant parts of each clause for contracts 
involving more than one of these categories. Accordingly, the FIRMR 
provision and clause found at Sec. 201-39.5202-6 are removed so that 
the corresponding FAR provision will apply.
    (2) GSA has determined that this rule is not a significant rule for 
the purposes of Executive Order 12866 of October 4, 1993, because it is 
not likely to result in any of the impacts noted in Executive Order 
12866, affect the rights of specified individuals, or raise issues 
arising from the policies of the Administration. GSA has based all 
administrative decisions underlying this rule on adequate information 
concerning the need for and consequences of this rule; has determined 
that the potential benefits to society from this rule outweigh the 
potential costs; has maximized the net benefits; and has chosen the 
alternative approach involving the least net cost to society.

List of Subjects in 41 CFR Parts 201-1, 201-2, 201-3, 201-4, 201-6, 
201-7, 201-9, 201-11, 201-17, 201-18, 201-20, 201-21, 201-22, 201-23, 
201-24, and 201-39

    Archives and records, Computer technology, Government procurement, 
Property management, Records management, Telecommunications.

    Accordingly 41 CFR parts 201-1, 201-2, 201-3, 201-4, 201-6, 201-7, 
201-9, 201-11, 201-17, 201-18, 201-20, 201-21, 201-22, 201-23, 201-24, 
and 201-39 are proposed to be amended as follows:

PART 201-1--APPLICABILITY AND AUTHORITY

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

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


Sec. 201-1.003  [Amended]

    2. Section 201-1.003 is amended by removing the word ``system'' 
from paragraph (a) and removing paragraph (d).

PART 201-2--DESIGNATED SENIOR OFFICIALS

    3. The authority citation for part 201-2 continues to read as 
follows:

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

    4. Section 201-2.001 is revised to read as follows:


Sec. 201-2.001  General.

    (a) The PRA requires that the head of each executive agency 
designate a senior official who shall report directly to the agency 
head. The designated official is responsible for carrying out the IRM 
function assigned to the agency by the PRA.
    (b) The PRA also assigns to the designated official the 
responsibility for the conduct of and accountability for acquisitions 
of FIP resources made under a DPA from GSA. Therefore, when GSA 
delegates its procurements authority to executive agencies, it grants 
those delegations to the designated officials when GSA determines that 
such officials are sufficiently independent of program responsibility 
and have sufficient experience, resources, and ability to fairly and 
effectively carry out procurements under GSA's authority as provided by 
40 U.S.C. 759(b)(3).


Sec. 201-2.002   [Amended]

    5. Section 201-2.002 is amended by redesignating paragraphs (a), 
(b), and (c) as paragraphs (c), (a), and (b) respectively.


Sec. 201-2.003   [Amended]

    6. Section 201-2.003 is amended by removing the words ``18th and F 
Streets, NW.,'' in paragraph (a).

PART 201-3--THE FIRMR

    7. The authority citation for part 201-3 continues to read as 
follows:

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

    8. The heading of Part 201-3 is revised to read as set forth above.
    9.-10. Section 201-3.000 is revised to read as follows:


Sec. 201-3.000  Scope of part.

    This part describes the Federal Information Resources Management 
Regulations.
    11. Section 201-3.001 is revised to read as follows:


Sec. 201-3.001  General.

    (a) The Federal information Resources Management Regulation (FIRMR) 
is codified in the Code of Federal Regulations (CFR) and includes 
interim rules which have the same effect as codified material.
    (b) From time to time, the General Services Administration (GSA) 
will issue nonregulatory publications to provide guidance and 
information:
    (1) FIRMR bulletins contain guidance and information on various 
information resources management areas. FIRMR bulletins do not 
constitute binding authority, but should be used as an aid in 
understanding GSA programs and the FIRMR. FIRMR bulletins are published 
in Appendix B of the looseleaf edition of the FIRMR and are available 
along with the FIRMR from GPO by subscription or on GSA's CD-ROM.
    (2) Handbooks and reports address specific program or technical 
areas where the audience generally will be defined by the subject 
matter.
    (3) Appendix C of the looseleaf edition of the FIRMR contains a 
listing of current bulletins, handbooks, and reports and information on 
how to obtain them.


Sec. 201-3.101  [Amended]

    12. In Sec. 201-3.101, remove the word ``system''.
    13. Section 201-3.201 is amended by revising paragraph (d) to read 
as follows:


Sec. 201-3.201  Issuance.

* * * * *
    (d) The FIRMR is issued as chapter 201 of title 41, CFR.
    14. Section 201-3.203 is amended by revising paragraph (c) to read 
as follows:


Sec. 201-3.203  Maintenance.

* * * * *
    (c) The Administrator of General Services may issue an interim rule 
to the FIRMR when solicitation of comments is impractical due to urgent 
and compelling circumstances (e.g., when a new statute must be 
implemented in a relatively short period of time). However, the interim 
rule will make provision for a public comment period of at least 30 
days for consideration in the formulation of the final change to the 
FIRMR.
    15. Section 201-3.204 is amended by removing the phone number 
``275-2091'' in paragraph (a) and add in its place ``512-0132''.


Secs. 201-3.300--201-3.302  (Subpart 201-3.3)--[Reserved]

    16. Subpart 201-3.3 consisting of Secs. 201-3.300 through 201-3.302 
is removed and reserved.

PART 201-4--DEFINITIONS, ACRONYMS AND OMB CIRCULARS

    17. The authority citation for part 201-4 continues to read as 
follows:

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

    18.-19. Section 201-4.000 is revised to read as follows:


Sec. 201-4.000  Scope of part.

    This part defines words, terms, acronyms, and OMB Circulars used in 
the FIRMR.


Sec. 201-4.001  [Amended]

    20. Section 201-4.001 is amended by removing the words 
``Information resources management'' and add in their place 
``Information resources management (IRM)''.


Sec. 201-4.001  [Amended]

    21. Section 201-4.001 is amended by removing the word ``eight'' in 
the definition Outdated FIP equipment and add in its place ``six''.
    22. Section 201-4.001 is amended by adding a new definition to read 
as follows:


Sec. 201-4.001  Definitions.

* * * * *
    Records management means the planning, controlling, directing, 
organizing, training, promoting, and other managerial activities 
involved with records creation, records maintenance and use, and 
records disposition in order to achieve adequate and proper 
documentation of the policies and transactions of the Federal 
Government and effective and economical management of agency operations 
(44 U.S.C. 2901(2)).
* * * * *


Sec. 201-4.001  [Amended]

    23. Section 201-4.001 is amended by removing the word ``Software'' 
and in its place adding ``Software includes--'' and adding paragraph 
designations to the undesignated paragraphs to read as follows:
    Software includes--
    (a) Application software * * *
    (b) Common-use software * * *
* * * * *
    24. Section 201-4.002 is amended by removing the acronym ``MAS'', 
alphabetizing the acronyms ``GPO'' and ``GSA'', and adding new acronyms 
to read as follows:


Sec. 201-4.002  Acronyms.

* * * * *
    CBD means Commerce Business Daily.
* * * * *
    FED-STD means Federal Telecommunications Standards.
* * * * *
    FSTS means Federal Secure Telephone Service.
* * * * *
    GAO means General Accounting Office.
    GPO means Government Printing Office.
    GSA means General Services Administration.
    GSBCA means General Services Board of Contract Appeals.
* * * * *
    IRPMR means Information Resources Procurement and Management 
Review.
* * * * *
    MOL means Maximum Ordering Limitation.
* * * * *
    OAC means Original Acquisition Cost.
* * * * *
    POTS means Purchase of Telephones and Services.
* * * * *
    25. Section 201-4.003 is added to read as follows:


Sec. 201-4.003  Applicable OMB Circulars.

A-11  Preparation and submission of budget estimates.
A-94  Benefit-cost analysis of Federal programs; guidelines and 
discounts.
A-127  Financial management systems.
A-130  Management of Federal information resources.

PART 201-6--PREDOMINANT CONSIDERATIONS

    26. Section 201-6.001 is amended by revising paragraphs (a)(3) and 
(a)(5) and adding paragraph (a)(6) to read as follows:


Sec. 201-6.001  General.

    (a) * * *
    (3) Maximize the usefulness of information collected, maintained, 
and disseminated by the Federal Government;
* * * * *
    (5) Ensure that FIP resources are acquired and used by the Federal 
Government in a manner which improves service delivery and program 
management, increases productivity, improves the quality of 
decisionmaking, reduces waste and fraud, and wherever practicable and 
appropriate, reduces the information processing burden for the Federal 
Government and for persons who provide information to and for the 
Federal Government; and
    (6) Ensure that the collection, maintenance, use, and dissemination 
of information by the Federal Government is consistent with applicable 
laws, regulations, and executive orders.
* * * * *
    27. Section 201-6.002 is amended by redesignating paragraphs (g) 
through (m) as paragraphs (h) through (n) respectively and adding a new 
paragraph (g) to read as follows:


Sec. 201-6.002  Predominant considerations.

* * * * *
    (a) * * *
    (g) Ensure that individuals with disabilities can produce 
information and data, and have access to information and data, 
comparable to the information and data, and access, respectively, of 
other individuals.
* * * * *

PART 201-7--PLANNING

    28. The authority citation for part 201-7 continues to read as 
follows:

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

    29. Section 201-7.001 is amended by revising paragraph (b) to read 
as follows:


Sec. 201-7.001  General.

* * * * *
    (b) The Paperwork Reduction Act (44 U.S.C. Chapter 35) OMB Circular 
No. A-11, and No. A-130, and the Computer Security Act of 1987 (Public 
Law 100-235) require agencies to conduct various information resources 
management (IRM) planning activities. OMB Circular No. A-130 (appendix 
IV) states that executive agencies must plan for how they will process 
and transmit information, how they will use it, what provisions they 
will make for access to it, whether and how they will disseminate it, 
how they will store it, and finally, how they will dispose of the 
information.
* * * * *
    30. Section 201-7.002 is amended by revising paragraph (c) to read 
as follows:


Sec. 201-7.002  Policies.

* * * * *
    (c) Ensure that the agency's information needs are documented on a 
timely basis, for example when conducting a requirements analysis for 
FIP resources.

PART 201-9--CREATION, MAINTENANCE, AND USE OF RECORDS

    31. The authority citation for part 201-9 continues to read as 
follows:

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


Sec. 201-9.202-1  [Amended]

    32. Section 201-9.202-1 is amended by removing the words 
``Inventory and Requisition Management Division (FCNI)'' in paragraph 
(b)(9) and add in their place ``Supply Management Division (3FNI-CO)''.

PART 201-17--PREDOMINANT CONSIDERATIONS

    33. The authority citation for part 201-17 continues to read as 
follows:

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

    34. Section 201-17.001 is amended by revising paragraph (j) to read 
as follows:


Sec. 201-17.001  Predominant consideration.

* * * * *
    (j) Provide individuals with disabilities (employees and others who 
create and/or use the agency's information and data) the ability to 
produce information and data, and have access to information and data, 
comparable to the information and data, and access, respectively, of 
other individuals.
* * * * *

PART 201-18--PLANNING AND BUDGETING

    35. The authority citation for part 201-18 continues to read as 
follows:

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

    36. Section 201-18.001 is amended by revising paragraph (e) to read 
as follows:


Sec. 201-18.001  General.

* * * * *
    (e) Section 508 of the Rehabilitation Act Amendment of 1992 (Pub L. 
102-569) requires the Federal Government to adopt guidelines for 
information and data accessibility designed to ensure that individuals 
with disabilities can produce information and data, and have access to 
information and data, comparable to information and data, and access, 
respectively, of other individuals. This Act requires that agencies 
comply with such guidelines. FIRMR Bulletin C-8, provides guidance on 
planning for FIP resources to accommodate the needs of individuals with 
disabilities.
* * * * *
    37. Section 201-18.002 is amended by revising paragraph (c) to read 
as follows:


Sec. 201-18.002  Policies.

* * * * *
    (c) Agencies shall adopt information and data accessibility 
guidelines similar to those described in FIRMR Bulletin C-8 in their 
planning process.

PART 201-20--ACQUISITION

    38. The authority citation for part 201-20 continues to read as 
follows:

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


Sec. 201-20.001  [Amended]

    39. Section 201-20.001 is amended by removing paragraph (d).
    40. Section 201-20.102 is revised to read as follows:


Sec. 201-20.102  Policy.

    Agencies shall establish and document requirements for FIP 
resources by conducting a requirements analysis, or similar study, 
commensurate with the size and complexity of the need except for those 
acquisitions whose total dollar value, including all optional 
quantities and periods over the life of the contract does not exceed 
$100,000. Requirements analyses shall not be performed when the value 
of acquisitions are less than the $100,000 threshold. Agencies shall 
follow local practice for documenting such small dollar acquisitions. 
Agencies shall justify all requirements for other than full and open 
competition in accordance with FAR Part 6 whether or not a requirements 
analysis is performed.
    41. Section 201-20.103 is revised to read as follows:


Sec. 201-20.103  Procedures.

    Agencies shall consider the following factors in establishing 
requirements, as applicable:
    42. Section 201-20.103-7 is amended by revising paragraph (a) to 
read as follows:


Sec. 201-20.103-7  Accessibility requirements for individuals with 
disabilities.

    (a) Agencies shall acquire FIP resources that allow individuals 
with disabilities to produce information and data, and have access to 
information and data, comparable to the information and data, and 
access, respectively, of other individuals. Agency plans shall address 
both present and future needs.
* * * * *
    43. Section 201-20.202 is revised to read as follows:


Sec. 201-20-202  Policy.

    Using the results of the requirements analysis as the basis, 
agencies shall conduct an analysis of alternatives commensurate with 
the size and complexity of the requirement to identify the most 
advantageous alternative to the Government. The number of alternatives 
analyzed should be limited to those considered the most feasible to be 
implemented. Agencies shall not conduct analyses of alternatives for 
those acquisitions whose total dollar value, including all optional 
quantities and periods over the life of the contract, does not exceed 
$100,000. Agencies shall instead follow local practice to identify the 
most advantageous alternative.
    44. Section 201-20.203-2 is revised to read as follows:


Sec. 201-20.203-2  Cost for each alternative.

    (a) In the analysis of alternatives, agencies shall calculate the 
total estimated cost, using the present value of money, for each 
feasible alternative unless the anticipated cost of the acquisition is 
$1,000,000 or less. The total estimated cost for each alternative shall 
include system life cost for that alternative and any other costs that 
can be identified with the alternative incurred either before or after 
the system life period.
    (b) When the anticipated cost of the acquisition is $1,000,000 or 
less, the total estimated cost may be limited to an analysis 
demonstrating that the benefits of the acquisition will outweigh the 
costs.
    (c) Agencies shall follow guidance in OMB Circular No. A-94, when 
calculating the cost of each alternative.
    45. Section 201-20.303 is amended by revising paragraph (d)(2) to 
read as follows:


Sec. 201-20.303  Standards.

* * * * *
    (d) * * *
    (1) * * *
    (2) Exceptions. An agency head may grant an exception to the 
mandatory use of a FED-STD upon receipt of adequate documentation. If 
an agency head grants an exception to the use of an individual FED-STD, 
a deviation from the FIMR is not required. However, GSA must be 
notified at least 30 days prior to any use of the excepted FED-STD at 
the following address: General Services Administration, Regulation 
Analysis Division (KMR), 18th & F Streets, NW., Washington, DC 20405.
    46. Section 201-20.34 is amended by removing paragraph (b)(1), 
redesignating paragraph (b)(2) as paragraph (b)(1) and revising 
paragraphs (a) and (b)(2) to read as follows:


Sec. 201-20.304  Capability and performance validation.

    (a) Policy. When acquiring FIP resources, an agency shall use the 
most economical technique available to provide reasonable assurance 
that capability and performance requirements are met.
    (b) Procedures. (1) * * *
    (2) When a benchmark is used as part of performance validation, 
agencies shall ensure that the FIP software selected for the benchmark 
is representative of the requirements and requires the minimum amount 
of reprogramming or conversion.
    47. Section 201-20.305-3 is revised to read as follows:


Sec. 201-20.305-3  Specific acquisition delegations.

    (a) Agencies shall submit an agency procurement request (APR) to 
GSA and receive a specific acquisition DPA if the acquisition is not 
covered by a regulatory or specific agency DPA. Procedures for 
requesting a DPA for a specific acquisition are provided in FIRMR 
Bulletin C-5.
    (b) A description of the Trail Boss program and procedures for 
requesting a specific acquisition DPA under the Trail Boss Program are 
provided in FIRMR Bulletin C-7. Participation in the Trail Boss Program 
is optional. However, a Trail Boss request shall be submitted in 
accordance with FIRMR Bulletin C-7.
    (c) GSA may require agencies to submit post delegation information 
such as contract award, milestone schedules, contract costs, program 
performance measures, and technology costs.

PART 201-21--OPERATIONS

    48. The authority citation for part 201-21 continues to read as 
follows:

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


Sec. 201-21.201  [Amended]

    49. Section 201-21.201 is amended by removing the words ``Federal 
Equipment Data Center (WKHE)'' in paragraph (b) and add in their place 
``Federal Data Systems Division (WKH)''.


Sec. 201-21.301  [Amended]

    50. Section 201-21.301 is amended by removing the words ``Appendix 
III to'' in paragraph (a).


Sec. 201-21.303  [Amended]

    51. Section 201-21.303 is amended by removing the words ``Appendix 
III'' in paragraph (d).
    52. Section 201-21.401 is amended by revising paragraph (c) to read 
as follows:


Sec. 201-21.401  General.

* * * * *
    (c) OMB Circular No. A-130, establishes Governmentwide procedures 
for cost accounting and recovery for shared resources.


Sec. 201-21.403  [Amended]

    53. Section 201-21.403 is amended by removing the date ``November 
30'' in paragraph (a)(2)(ii) and adding in its place ``October 20''.


Sec. 201-21.603  [Amended]

    54. Section 201-21.603 is amended by revising paragraphs (d)(1) and 
(d)(2), removing paragraphs (d)(3) and (d)(6), redesignating paragraphs 
(d)(4) and (d)(5) as paragraphs (d)(3) and (d)(4), and revising the new 
paragraph (d)(3)(ii) to read as follows:
    (a) * * *
    (d) Procedures. (1) Agencies that plan to listen-in to or record 
telephone conversations under Sec. 201-21.603(c) (2), (3), or (4) shall 
prepare a determination of need. A determination as used in this 
section means a written justification signed by the agency head or the 
head's designee, that specifies the operational need for listening-in 
to or recording telephone conversations; indicates the specific system 
and location where monitoring is to be performed; lists the number of 
telephones or recorders involved; and establishes operating times and 
an expiration date for the monitoring.
    (2) Agencies shall review, at least every 2 years, the need for 
each determination authorizing listening-in or recording. Agency 
documentation to continue or terminate the program shall be maintained 
in agency files.
* * * * *
    (3) * * *
    (ii) An announcement or beep tone at the beginning of a call to 
inform the public of monitoring;
* * * * *


Sec. 201-21.604  [Removed]

    55. Section 201-21.604 is removed.

PART 201-22--FEDERAL INFORMATION RESOURCES MANAGEMENT (IRM) REVIEW 
PROGRAM

    56. The authority citation for part 201-22 continues to read as 
follows:

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

    57. The heading of Part 201-22 is revised as set forth above and 
Section 201-22.303 is revised to read as follows:


Sec. 201-22.303  Procedures.

    (a) Agencies shall evaluate their existing outdated and/or 
obsolescent FIP resources to determine whether the cost of operating 
them is greater than the cost of acquiring and operating 
technologically newer resources. FIRMR Bulletin C-27 provides guidance 
that can be used for identifying obsolescent equipment.
    (b) When the cost of operating existing outdated and/or obsolescent 
FIP resources is greater than the cost of acquiring and operating 
technologically newer resources, agencies shall replace the existing 
less cost effective resources.

PART 201-24--GSA SERVICES AND ASSISTANCE

    58. The authority citation for part 201-24 continues to read as 
follows:

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


Sec. 201-24.001  [Amended]

    59. Section 201-24.001 is amended by removing paragraph (g).

PART 201-39--ACQUISITION OF FEDERAL INFORMATION PROCESSING (FIP) 
RESOURCES BY CONTRACTING

    60. The authority citation for part 201-39 continues to read as 
follows:

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

    61. Section 201-39.001 is revised to read as follows:


Sec. 201-39.001  General.

    (a) In addition to this part 201-39, contracting officers should 
review and be familiar with the policies and procedures contained in 
the complete FIRMR, for example, parts 201-20 and 201-24 of this 
chapter.
    (b) To assist Federal agencies in preparing solicitations for FIP 
resources, the General Services Administration (GSA) makes available 
standard solicitations and other guidance. Federal agencies can obtain 
copies of the standard solicitations by contacting: General Services 
Administration, Regulations Analysis Division (KMR), 18th & F Streets, 
NW., Washington, DC 20405. Acquisition guides may be obtained by 
contacting: General Services Administration, Agency Liaison Division 
(KML), 18th and F Streets, NW., Washington, DC 20405.


Sec. 201-39.201  [Amended]

    62. Section 201-39.201 is amended by removing the word ``eight'' in 
the definition Outdated FIP equipment, and adding in its place the word 
``six''.


Sec. 201-39.1001-1  [Amended]

    63. Section 201-39.1001-1 is amended by removing the numbers ``88-
16'' in paragraph (i), and adding in their place ``90-08''.


Sec. 201-39.1402-2  [Amended]

    64. Section 201-39.1402-2 is amended by removing the number 
``$300,000'' in paragraph (c) and adding in its place ``$1,000,000.''


Sec. 201-39.1501-2  [Amended]

    65. Section 201-39.1501-2 is amended by removing the number 
``$300,000'' in paragraph (c) and adding in its place ``$1,000,000.''


Secs. 201-39.4600 and 201-39.4601  (Subpart 201-39.46)--[Reserved]

    66. Subpart 201-39.46 consisting of Secs. 201-39.4600 and 201-
39.4601 is removed and reserved.


Sec. 201-39-5202-6  [Reserved]

    67. Section 201-39.5202-6 is removed and reserved.
    Dated: September 9, 1994.
Francis A. McDonough,
Assistant Commissioner for Federal Information Resources Management.
[FR Doc. 94-29081 Filed 12-5-94; 8:45 am]
BILLING CODE 6820-25-M