[Federal Register Volume 59, Number 240 (Thursday, December 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30605]
[[Page Unknown]]
[Federal Register: December 15, 1994]
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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1, 3, 4, 13 and 25
[FAC 90-24, FAR Case 94-771, Item II]
RIN 9000-AG26
Federal Acquisition Regulation; Micro-Purchase Procedures
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comment.
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SUMMARY: The Department of Defense, General Services Administration,
and the National Aeronautics and Space Administration have agreed to an
interim rule to implement the new micro-purchase requirements of the
Federal Acquisition Streamlining Act of 1994 (the Act). This regulatory
action was not subject to Office of Management and Budget review under
Executive Order 12866, dated September 30, 1993.
DATES: Effective Date: December 15, 1994.
Comment Date: Comments should be submitted to the FAR Secretariat
at the address shown below on or before February 13, 1995 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets, NW, Room 4035, Attn: Ms. Beverly Fayson, Washington, DC 20405.
Please cite FAC 90-24, FAR case 94-771 in all correspondence related to
this case.
FOR FURTHER INFORMATION CONTACT: Ms. Diana Maykowskyj, the team leader
of the Simplified Acquisition Procedures/FACNET Team, at (703) 274-6307
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 90-24, FAR case 94-771.
SUPPLEMENTARY INFORMATION:
A. Background
The Act, Pub. L. 103-355, provides the authority to streamline the
acquisition process and minimize burdensome requirements unique to the
Federal Government. Major changes that can be expected in the
acquisition process as a result of the Act's implementation include
changes in the areas of Commercial Item Acquisition, Simplified
Acquisition Procedures, the Truth in Negotiations Act, and introduction
of the Federal Acquisition Computer Network (FACNET).
This notice announces FAR revisions developed under FAR case 94-
771. This interim rule implements the micro-purchase requirements of
Pub. L. 103-355. The term ``micro-purchase'' is coined and defined by
Pub. L. 103-355. Pub. L. 103-355 establishes the micro-purchase
threshold at $2,500 and exempts purchases not exceeding the micro-
purchase threshold from the Buy American Act and certain small business
requirements. It is noted that construction requirements are limited to
$2,000 under the FAR 13.101 definition for micro-purchase to
accommodate the Davis-Bacon Act requirements under Subpart 22.4. FAR
13.105(a) has been amended to exempt micro-purchases from the
requirement for small business set-asides. A more extensive revision to
13.105 will be included in implementation of the full requirements of
Pub. L. 103-355 pertaining to acquisitions not exceeding the simplified
acquisition threshold. For micro-purchases, Pub. L. 103-355 requires
competition only if prices are not considered reasonable. This rule
provides for expanded use of the governmentwide commercial purchase
card to take maximum advantage of the micro-purchase authority provided
in Pub. L. 103-355 by delegating the authority, to the maximum extent
practicable, to individuals in the offices that will be using the
supplies or services to be purchased. Your attention is directed to the
provisions at FAR 13.601(d) which indicates that such individuals are
considered ``contracting officers'' within the meaning of FAR 2.101.
The individuals, generally non-acquisition personnel, may be appointed
under delegations of procurement authority in accordance with agency
procedures.
The FAR Council is interested in an exchange of ideas and opinions
with respect to the regulatory implementation of the Act. For that
reason, the FAR Council is conducting a series of public meetings.
However, the FAR Council has not scheduled a public meeting on this
rule (FAR case 94-771) because of the clarifying and non-controversial
nature of the rule. If the public believes such a meeting is needed
with respect to this rule, a letter requesting a public meeting and
outlining the nature of the requested meeting shall be submitted to and
received by the FAR Secretariat (see ADDRESSES caption, above) on or
before January 17, 1995. The FAR Council will consider such requests in
determining whether a public meeting on this rule should be scheduled.
B. Regulatory Flexibility Act
The changes may have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., because it implements the
portion of the Act which eliminates the small business setaside for
purchases not exceeding the micro-purchase threshold. However, full
implementation of the Federal Acquisition Streamlining Act of 1994 will
require that all actions exceeding the micro-purchase threshold but not
exceeding the simplified acquisition threshold, $100,000, be set aside
for small businesses. This will be an increase from the current
requirement that all acquisitions less than $25,000 be set aside for
small businesses. An Initial Regulatory Flexibility Analysis (IRFA) has
been prepared and will be provided to the Chief Counsel for Advocacy
for the Small Business Administration. A copy of the IRFA may be
obtained from the FAR Secretariat. Comments are invited. Comments from
small entities concerning the affected FAR 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. (FAR Case 94-771), 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 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.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DOD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. This action is necessary
because the Federal Acquisition Streamlining Act of 1994 requires
implementation of the micro- purchase portion of the Act within 60 days
of enactment. However, pursuant to Public Law 98-577 and FAR 1.501,
public comments received in response to this interim rule will be
considered in the formation of the final rule.
List of Subjects in 48 CFR Parts 1, 3, 4, 13 and 25
Government procurement.
Dated: December 8, 1994.
Edward Loeb,
Deputy Project Manager for the Implementation of the Federal
Acquisition Streamlining Act of 1994.
Therefore, 48 CFR Parts 1, 3, 4, 13 and 25 are amended as set forth
below:
1. The authority citation for 48 CFR Parts 1, 3, 4, 13 and 25
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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
2. Section 1.603-3 is revised to read as follows:
1.603-3 Appointment.
Contracting officers whose authority will be limited to micro-
purchases (see subpart 13.6) shall be appointed in writing in
accordance with agency procedures. Other contracting officers shall be
appointed in writing on a ``Certificate of Appointment'', SF 1402,
which shall state any limitation on the scope of authority to be
exercised, other than limitations contained in applicable law or
regulation. Appointing officials shall maintain files containing copies
of all Certificates of Appointment that have not been terminated.
PART 3--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF
INTEREST
3. Section 3.104-4 is amended by adding paragraph (h)(5) to read as
follows:
3.104-4 Definitions.
* * * * *
(h) * * *
(5) For purposes of 3.104-4(h) the term procurement official does
not include contracting officers if their contracting authority is
limited to the micro-purchase threshold (see 13.101) and the head of
the contracting activity determines that it is unlikely that the
individual will conduct acquisitions in a total amount greater than
$20,000 in any 12-month period.
* * * * *
PART 4--ADMINISTRATIVE MATTERS
4.800 [Amended]
4. Section 4.800 is amended by revising the reference ``13.106(c)''
to ``13.106(b)''.
PART 13--SMALL PURCHASE AND OTHER SIMPLIFIED PURCHASE PROCEDURES
5. Section 13.101 is amended by adding the following definitions in
alphabetical order to read as follows:
13.101 Definitions.
* * * * *
Governmentwide commercial purchase card means a purchase card,
similar in nature to a commercial credit card, issued to authorized
agency officials for their use in acquiring supplies and services.
Micro-purchase means an acquisition of supplies or services (except
construction), the aggregate amount of which does not exceed $2,500.
Micro-purchases for construction are limited to $2,000.
Micro-purchase threshold means $2,500.
* * * * *
6. Section 13.105 is amended by revising paragraph (a); in (d)(3)
by removing ``(see 13.106(c))'' and inserting ``(see 13.106(b))'' in
its place, and in (d)(4) by removing ``(see 13.106(b)(4))'' and
inserting ``(see 13.106(a)(4))''. The revised text reads as follows:
13.105 Small business--small purchase set-asides.
(a) Except as provided in paragraphs (b), (c), and (d) of this
section, each acquisition of supplies or services that has an
anticipated dollar value exceeding $2,500, but not exceeding $25,000,
and is subject to small purchase procedures, shall be reserved
exclusively for small business concerns. This shall be accomplished by
using the category of set-asides established by Pub. L. 95-507,
specifically for small purchases, identified as small business--small
purchase set-asides established by Section 15(j) of the Small Business
Act (15 U.S.C. 644(j)) (see Pub. L. 95-507).
* * * * *
13.106 [Amended]
6. Section 13.106 is amended by removing paragraph (a) and
redesignating paragraphs (b) and (c) as (a) and (b), respectively.
13.502 [Amended]
7. Section 13.502(c) is amended in the last sentence by removing
``(see 13.106(c))'' and inserting ``(see 13.106(b))'' in its place.
8. Part 13 is amended by adding Subpart 13.6 to read as follows:
Subpart 13.6--Micro-Purchase
Sec.
13.601 General.
13.602 Policy.
13.603 Soliciting competition, evaluation of quotes, and award.
Subpart 13.6--Micro-Purchase
13.601 General.
(a) This subpart applies to purchases of supplies or services
(except for construction) at or below the micro-purchase threshold.
Micro-purchases for construction are limited to $2,000.
(b) Micro-purchases may be awarded using any of the purchasing
methods covered by part 13.
(c) Agencies are encouraged to use the governmentwide commercial
purchase card and electronic purchasing techniques, to the maximum
extent practicable. The governmentwide commercial purchase card may be
used to purchase and pay for micro-purchases in accordance with agency
procedures. This is not intended to limit use of the purchase card to
micro-purchases, if otherwise authorized under agency procedures.
(d) Agency heads are encouraged to delegate micro-purchase
authority to individuals who will be using the supplies or services
being purchased (see 1.603-3). Individuals delegated this authority are
contracting officers within the meaning of 2.101. See 3.104-4(h)(5) for
procurement integrity requirements.
13.602 Policy.
(a) Contracting officers shall comply with the requirements of part
8, Required Sources of Supplies and Services.
(b) Micro-purchases shall be distributed equitably among qualified
suppliers.
(c) Requirements aggregating more than the micro-purchase threshold
shall not be broken down into several purchases that are less than the
threshold merely to permit purchase under this subpart.
13.603 Soliciting competition, evaluation of quotes, and award.
(a) Micro-purchases may be awarded without soliciting competitive
quotations if the contracting officer determines that the price is
reasonable.
(b) The administrative cost of verifying the reasonableness of the
price for purchases at or below the micro-purchase threshold may more
than offset potential savings from detecting instances of overpricing.
Therefore, action to verify price reasonableness need only be taken
if--
(1) The contracting officer suspects or has information to indicate
that the price may not be reasonable (e.g., comparison to the previous
price paid or personal knowledge of the supply or service); or
(2) Purchasing a supply or service for which no comparable pricing
information is readily available (e.g., a supply or service that is not
the same as, or is not similar to, other supplies or services that have
recently been purchased on a competitive basis).
(c) Prompt payment discounts should be solicited.
PART 25--FOREIGN ACQUISITION
9. Section 25.100 is revised to read as follows:
25.100 Scope of subpart.
This subpart implements the Buy American Act (41 U.S.C. 10) and
Executive Order 10582, December 17, 1954 (as amended). It applies to
(a) supply contracts exceeding the micro-purchase threshold; and (b)
contracts for services that involve the furnishing of supplies when the
supply portion of the contract exceeds the micro-purchase threshold.
[FR Doc. 94-30605 Filed 12-13-94; 10:45 am]
BILLING CODE 6820-34-P