[Federal Register Volume 60, Number 5 (Monday, January 9, 1995)]
[Proposed Rules]
[Pages 2472-2476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-296]




[[Page 2471]]

_______________________________________________________________________

Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration
_______________________________________________________________________



48 CFR Ch. 1



Federal Acquisition Regulation; Contract Award Implementation; Proposed 
Rule

  Federal Register / Vol. 60, No. 5 / Monday, January 9, 1995 / 
Proposed Rules   
[[Page 2472]]

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[FAR Case 94-701]

Federal Acquisition Regulation; Contract Award Implementation
AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------
SUMMARY: This proposed rule is issued pursuant to the Federal 
Acquisition Streamlining Act of 1994 to expand the reasons for 
establishing or maintaining alternative sources of supplies or 
services, clarify approval authority for use of other than full and 
open competition, allow acquisition of expert services to support 
litigation by other than full and open competition and provide an 
exception to synopsis requirements, make procedures for award without 
discussion the same for Department of Defense and civilian agencies and 
clarify procedures for use of source selection evaluation factors in 
solicitations, require a determination that an option is likely to be 
exercised before providing for evaluation of options, clarify notice of 
award and debriefing procedures, allow nonprofit agencies for the blind 
or severely disabled to use Government supply sources in performing 
Javits-Wagner-O'Day contracts, clarify procedures for award to a source 
identified in a statute, and identify new Federal Procurement Data 
System reporting requirements.
    This regulatory action was not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993.

DATES: Comments should be submitted on or before March 10, 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 4037, Washington, DC 20405.
    Please cite FAR case 94-701 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Ms. Melissa Rider, Contract Award Team 
Leader, at (703) 614-1634 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 FAR case 94-701.
SUPPLEMENTARY INFORMATION:
A. Background

    The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355, 
provides authorities that streamline the acquisition process and 
minimize burdensome Government-unique requirements. Major changes that 
can be expected in the acquisition process as a result of Federal 
Acquisition Streamlining Act 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.
    This notice announces proposed FAR revisions developed under FAR 
Case 94-701, Contract Award Implementation, which implements the 
following sections of the Act:

--Sections 1002 and 1052 amended 10 U.S.C. 2304(b) and 41 U.S.C. 253(b) 
to--(1) ensure the continuous availability of a reliable source of 
supply; (2) satisfy projected needs based on a history of high demand; 
and (3) satisfy a critical need for medical, safety, or emergency 
supplies, as reasons for establishing or maintaining alternative 
sources. (Implementation at FAR 6.202.)
--Sections 1003 and 1053 amended 10 U.S.C. 2304(f)(1)(B)(i) and 41 
U.S.C. 253(f)(1)(B)(i) to clarify the approval authority for use of 
other than full and open competition. (Implementation at FAR 6.304.)
--Sections 1005 and 1055 amended 10 U.S.C. 2304(c)(3) and 41 U.S.C. 
253(c) to add the acquisition of expert services for use in any 
litigation or dispute involving the Federal Government as an exception 
to use of full and open competition. (Implementation at FAR 6.302-5.) 
Section 1055 also amended 41 U.S.C. 416(c) and 15 U.S.C. 637(c) to 
provide an exception to the publication of notices in the Commerce 
Business Daily for acquisition of expert services. (Implementation at 
FAR 5.202, 5.301, and 6.302-3.)
--Sections 1011 and 1061 amend 10 U.S.C. 2305(a) and 41 253a to (1) 
make procedures for award of contracts without discussion comparable in 
Department of Defense and civilian agencies, (2) require solicitations 
for competitive proposals to include all significant factors and 
subfactors and whether they are more important, of equal importance or 
less important than cost or price and (3) permit agencies to disclose 
numerical weights assigned to evaluation factors at their discretion. 
(Implementation at FAR 15.407, 15.605, 15.610, and 52.215-16.)
--Sections 1012 and 1062 amend 10 U.S.C. 2305(a) and 41 U.S.C. 253(a) 
to require a determination that it is likely that an option will be 
exercised before providing for evaluation of prices of options in 
solicitations for contracts awarded using sealed bid procedures. 
(Implementation at FAR 17.202 and 17.208.)
--Sections 1013 and 1063 amend 10 U.S.C. 2305(b) and 41 U.S.C. 253b to 
require, within three days of contract award, notification to 
unsuccessful offerors that a contract has been awarded and to allow 
electronic transmission of the notice. (Implementation at FAR 14.407-1, 
14.408-1, 15.1001, 15.1002 and 36.304.)
--Sections 1014 and 1064 amend 10 U.S.C. 2305(b) and 41 U.S.C. 253b to 
(1) allow offerors to request a debriefing within three days of receipt 
of notice of award and requires agencies, to the maximum extent 
practicable, to conduct the debriefings within five days, and (2) 
specify minimum requirements for content of the debriefings. 
(Implementation at FAR 15.1003 and 36.607.)
--Section 1555 amends 40 U.S.C. 481 to allow nonprofit agencies for the 
blind or severely disabled providing supplies or services under a 
Javits-Wagner-O'Day Act contract to use Government supply sources in 
performing the contract. (Implementation at FAR 51.101 and 51.102.)
--Section 7203 amends 10 U.S.C. 2304 and 41 U.S.C. 253 to state 
Congressional policy regarding legislative requirements for award of a 
new contract to a specific non-Federal Government entity. 
(Implementation at FAR 6.302-5.)
--Section 1004 requires the Federal Procurement Data System to collect 
from contracts in excess of the simplified acquisition threshold data 
on awards to small and disadvantaged businesses using either set asides 
or full and open competition, awards to businesses owned and controlled 
by women, the number of offers received in response to a solicitation, 
task order contracts and contracts for the acquisition of commercial 
items. (Implementation at FAR 4.601.)

    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 Council is conducting a series of public meetings. However, 
the Council has not scheduled a public [[Page 2473]] meeting on this 
rule (FAR case 94-701) because of the clarity 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) on or before 
February 8, 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 proposed rule is not expected to have 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 
affects internal operating procedures of the Federal Government. An 
Initial Regulatory Flexibility Analysis has, therefore, not been 
performed. Comments from small entities concerning the affected FAR 
subparts will also be considered in accordance with 5 U.S.C. 610 of the 
Act. Such comments must be submitted separately and cite 5 U.S.C. 601, 
et seq. (FAR case 94-701) in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 Chapter 1

    Government procurement.

    Dated: December 29, 1994.
Edward C. Loeb,
Deputy Project Manager for the Implementation of the Federal 
Acquisition Streamlining Act of 1994.

    Therefore, it is proposed that 48 CFR Chapter 1 be amended as set 
forth below:
    1. The authority citation for 48 CFR Chapter 1 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 4--ADMINISTRATIVE MATTERS

    2. Section 4.601 is amended by redesignating existing paragraph (d) 
as (e) and revising it; and adding a new paragraph (d) to read as 
follows:


4.601  Record requirements.

* * * * *-
    (d) In addition to the information described in paragraphs (b) and 
(c) of this section, for procurements exceeding $25,000, the following 
information shall be accessible:
    (1) Awards to small disadvantaged businesses using either set-
asides or full and open competition.
    (2) Awards to business concerns owned and controlled by women.
    (3) The number of offers received in response to a solicitation.-
    (4) Task or delivery order contracts.
    (5) Contracts for the acquisition of commercial items.-
    (e) This information shall be transmitted to the Federal 
Procurement Data System in accordance with agency procedures.

PART 5--PUBLICIZING CONTRACT ACTIONS


5.201   [Amended]-

    3. Section 5.201 is amended in paragraph (a) by removing ``(15 
U.S.C. 637(c))'' and inserting ``(15 U.S.C. 637(e))''.-
    4. Section 5.202 is amended at the end of paragraph (a)(11) by 
removing P``;or''; at the end of paragraph (a)(12) by removing the 
period and inserting ``; or''; and by adding paragraph (a)(13) to read 
as follows:


5.202  Exceptions.

* * * * *-
    (a) * * *-
    (13) The contract action is for the services of an expert to 
support the Federal Government in any current or anticipated litigation 
or dispute.
* * * * *-
    5. Section 5.301 is amended at the end of paragraph (b)(5) by 
removing P``or''; at the end of paragraph (b)(6) by removing the period 
and inserting ``; or''; and by adding paragraph (b)(7) to read as 
follows:


5.301   General.

* * * * *-
    (b) * * *-
    (7) The award is for the services of an expert to support the 
Federal Government in any current or anticipated litigation or dispute.
* * * * *

PART 6--COMPETITION REQUIREMENTS-

    6. Section 6.202 is amended by revising paragraph (a)(1); at the 
end of paragraph (a)(2) by removing ``or''; at the end of paragraph 
(a)(3) by removing the period and inserting a semicolon; adding 
paragraphs (a)(4) through (a)(6); and removing from paragraphs (b)(1) 
and (b)(3) the word ``above'' and inserting ``of this section''. The 
revised text reads as follows:


6.202  Establishing or maintaining alternative sources.-

    (a) * * *-
    (1) Increase or maintain competition and likely result in reduced 
overall costs for the acquisition, or for any anticipated acquisition;
* * * * *-
    (4) Ensure the continuous availability of a reliable source of 
supplies or services;-
    (5) Satisfy projected needs based on a history of high demand; or-
    (6) Satisfy a critical need for medical, safety, or emergency 
supplies.
* * * * *-
    7. Section 6.302-3 is amended by revising the heading and paragraph 
(a)(2); and by adding paragraph (b)(3) to read as follows:


6.302-3   Industrial mobilization; engineering, developmental, or 
research capability; or expert services.-

    (a) * * *-
    (2) Full and open competition need not be provided for when it is 
necessary to award the contract to a particular source or sources in 
order (i) to maintain a facility, producer, manufacturer, or other 
supplier available for furnishing supplies or services in case of a 
national emergency or to achieve industrial mobilization, (ii) to 
establish or maintain an essential engineering, research, or 
development capability to be provided by an educational or other 
nonprofit institution or a federally funded research and development 
center, or (iii) to acquire the services of an expert for any current 
or anticipated litigation or dispute.-
    (b) * * *-
    (3) Use of the authority in paragraph (a)(2)(iii) of this 
subsection may be appropriate when it is necessary to acquire the 
services of--
    (i) An expert to---
    (A) Assist the Government in the analysis, presentation, or defense 
of any claim or request for adjustment to contract terms or conditions, 
whether asserted by a contractor or the Government, which is in 
litigation or dispute, or is anticipated to result in dispute or 
litigation before any court, administrative tribunal, or agency, or -
    (B) Participate in any part of an alternative dispute resolution 
process, including but not limited to evaluators, factfinders, or 
witnesses, regardless of whether the expert is expected to testify; or 
-
    (ii) A neutral person, e.g., mediators or arbitrators, to 
facilitate the resolution [[Page 2474]] of issues in an alternative 
dispute resolution process.
* * * * *
    8. Section 6.302-5 is amended by revising paragraph (c)(1) and 
adding paragraph (c)(3) to read as follows:


6.302-5  Authorized or required by statute.

* * * * *-
    (c) Limitations. (1) This authority shall not be used to support 
new awards to specified non-Federal Government entities unless a 
provision of law specifically refers to 10 U.S.C. 2304(j) for armed 
services acquisitions or section 303(h) of the Federal Property and 
Administrative Services Act of 1949 for civilian agency acquisitions 
and requires an agency to award a new contract to a named non-Federal 
Government entity and specifically states that award to this entity 
shall be made in contravention of the merit-based selection procedures 
in subsection 7203(b) of the Federal Acquisition Streamlining Act of 
1994 (10 U.S.C. 2304(j) and section 303(h) of the Federal Property and 
Administrative Services Act of 1949). However, this limitation does not 
apply--
    (i) When the work provided for in the contract is a continuation of 
the work performed by the specified entity under a preceding contract; 
or-
    (ii) To any contract requiring the National Academy of Sciences to 
investigate, examine, or experiment upon any subject of science or art 
of significance to an executive agency and to report on those matters 
to the Congress or any agency of the Federal Government.
* * * * *-
    (3) The authority in paragraph (a)(2)(ii) of this subsection may be 
used only for purchases of brand-name commercial items for resale 
through commissaries or other similar facilities. Ordinarily, these 
purchases will involve articles desired or preferred by customers of 
the selling activities (but see 6.301(d)).
    9. Section 6.304 is amended by revising paragraph (a)(2) to read as 
follows:


6.304   Approval of the justification.

    (a) * * *-
    (2) For a proposed contract over $100,000 but not exceeding 
$1,000,000, by the competition advocate for the procuring activity 
designated pursuant to 6.501 or an official described in paragraphs 
(a)(3) and (a)(4) of this section. This authority is not delegable.
* * * * *

PART 14--SEALED BIDDING

    10. Section 14.407-1 is amended by revising paragraphs (a)(1) and 
(d)(2) to read as follows:


14.407-1  General.

    (a) * * * (1) by written or electronic notice, * * *
* * * * *
    (d) * * *
    (2) use of the Award portion of SF 33, SF 26, or SF 1447, does not 
preclude the additional use of informal documents, including telegrams 
or electronic transmissions, as notices of awards.
    11. Section 14.408-1 is revised to read as follows:


14.408-1  Award of unclassified contracts.

    (a)(1) The contracting officer shall as a minimum (subject to any 
restrictions in 48 CFR part 9, subpart 9.4)--
    (i) Notify each unsuccessful bidder in writing or electronically 
within three days after contract award, that its bid was not accepted;
    (ii) Extend appreciation for the interest the unsuccessful bidder 
has shown in submitting a bid; and
    (iii) When Award is made to other than a low bidder, state the 
reason for rejection in the notice to each of the unsuccessful low 
bidders.
    (2) For acquisitions subject to the Trade Agreements Act or the 
North American Free Trade Agreement (NAFTA) Implementation Act (see 
25.405(e)), agencies shall include in notices given unsuccessful 
offerors from designated or NAFTA countries--
    (i) The dollar amount of the successful offer; and
    (ii) The name and address of the successful offeror.
    (b) Information included in paragraph (a)(2) of this subsection 
shall be provided to any unsuccessful bidder upon request except when 
multiple awards have been made and furnishing information on the 
successful bids would require so much work as to interfere with normal 
operations of the contracting office. In such circumstances, only 
information concerning location of the abstract of offers need be 
given.
    (c) When a request is received concerning an unclassified 
invitation from an inquirer who is neither a bidder nor a 
representative of a bidder, the contracting officer should make every 
effort to furnish the names of successful bidders and, if requested, 
the prices at which awards were made. However, when such requests 
require so much work as to interfere with the normal operations of the 
contracting office, the inquirer will be advised where a copy of the 
abstract of offers may be seen.
    (d) Requests for records shall be governed by agency regulations 
implementing 48 CFR part 24, subpart 24.2.

PART 15--CONTRACTING BY NEGOTIATION

    12. Section 15.407 is amended by revising paragraph (d)(4) to read 
as follows:


15.407  Solicitation provisions.

* * * * *
    (d) * * *
    (4) Insert in RFP's the provision at 52.215-16, Contract Award.
    (i) If the RFP is for construction, the contracting officer shall 
use the provision with its Alternate I or the provision with its 
Alternate I or the provision with its Alternate I and Alternate II.
    (ii) If the contracting officer intends to evaluate offers and make 
award without discussions, use the basic provision with its Alternate 
II.
* * * * *
    13. Section 15.605 is amended by revising the heading, and 
paragraphs (a), (b), and (e) to read as follows:


15.605  Evaluation factors and subfactors.

    (a) The factors and subfactors that will be considered in 
evaluating proposals shall be tailored to each acquisition and include 
only those factors that will have an impact on the source selection 
decision.
    (b) The evaluation factors and subfactors that apply to an 
acquisition and their relative importance are within the broad 
discretion of agency acquisition officials. However, price or cost to 
the Government shall be included as an evaluation factor in every 
source selection. Quality also shall be addressed in every source 
selection. In evaluation factors, quality may be expressed in terms of 
technical capability, management capability, personnel qualifications, 
prior experience, past performance, and schedule compliance. Any other 
relevant factors and subfactors, such as cost realism, may also be 
included.
* * * * *
    (e) The solicitation shall clearly state the significant evaluation 
factors and significant subfactors, including cost or price, cost or 
price-related factors and subfactors, and non-cost or non-price-related 
factors and subfactors, that will be considered in making the source 
selection and their relative importance (see 15.406-5(c)). The 
solicitation shall state whether all evaluation factors other than cost 
or price, when combined, are (1) significantly more 
[[Page 2475]] important than cost or price; (2) approximately equal to 
cost or price; or (3) significantly less important than cost or price. 
The solicitation may elaborate on the relative weights at the 
discretion of the contracting officer. The solicitation shall inform 
offerors of minimum requirements that apply to evaluation factors and 
significant subfactors. Numerical weights may be used at the discretion 
of the head of the agency. If numerical weights are used in proposal 
evaluation, they may be disclosed in the solicitation on a case-by-case 
basis. The solicitation may state that award will be made to the low 
priced offeror that meets the solicitation's minimum criteria for 
acceptable proposals.
* * * * *
    14. Section 15.610 is amended by revising paragraphs (a) and (b) to 
read as follows:


15.610  Written or oral discussion.

    (a) The requirement in paragraph (b) of this section for written or 
oral discussion need not be applied in acquisitions--
    (1) In which prices are fixed by law or regulation;
    (2) Of the set-aside portion of a partial set-aside; or
    (3) In which the solicitation notified all offerors that the 
Government intends to evaluate proposals and make award without 
discussion unless the contracting officer determines that discussions 
(other than communications conducted for the purpose of minor 
clarification) are considered necessary (see 15.407(d)(4)). Once the 
Government states its intent to award without discussions, the 
rationale for reversal of this decision shall be documented in the 
contract file.
    (b) Except as provided in paragraph (a) of this section, the 
contracting officer shall conduct written or oral discussion with all 
responsible offerors who submit proposals within the competitive range. 
The content and extent of the discussions is a matter of the 
contracting officer's judgment, based on the particular facts of each 
acquisition (but see paragraphs (c) and (d) of this section).
* * * * *


15.1001 through 15.1005  [Redesignated as 15.1002 through 15.1006]

    15. Sections 15.1001 through 15.1005 are redesignated as 15.1002 
through 15.1006, respectively; and a new 15.1001 is added to read as 
follows:


15.1001  General.

    This subpart applies to the use of competitive proposals, as 
described in 6.102(b), and a combination of competitive procedures, as 
described in 6.102(d). To the extent practicable, however, the 
procedures and intent of this subpart, with reasonable modification, 
should be followed for these acquisitions: broad agency announcements, 
small business innovation research contracts and architect-engineer 
contracts.
    16. Newly designated section 15.1002 is amended by revising 
paragraph (a), and the introductory text of paragraphs (b)(2) and 
(c)(1); by removing paragraph (c)(2) and redesignating paragraph (c)(3) 
as (c)(2); and by amending the newly designated paragraph (c)(2) by 
removing ``15.1001(c)(1)(i)'' and inserting ``15.1002(c)(1)(i). The 
revised text reads as follows:


15.1002  Notifications to unsuccessful offerors.

    (a) General. Within three days of contract award, the contracting 
officer shall notify, in writing or electronically, each offeror whose 
proposal is determined to be unacceptable or whose offer is not 
selected for award.
    (b) * * *
    (2) In a small business set-aside (see 48 CFR part 19, subpart 
19.5), upon completion of negotiations and determinations of 
responsibility, but prior to award, the contracting officer shall 
notify each unsuccessful offeror in writing or electronically of the 
name and location of the apparent successful offeror. The notice shall 
also state that * * *-
    (c) Postaward notices. (1) After award of contracts resulting from 
solicitations exceeding the small purchase limitation in part 13, the 
contracting officer shall notify unsuccessful offerors in writing or 
electronically, unless preaward notice was given under paragraph (b) of 
this section. The notice shall include--
* * * * *
    17. Newly designated section 15.1003 is amended by revising the 
first sentence to read as follows:


15.1003  Notification to successful offeror.

    The contracting officer shall award a contract with reasonable 
promptness to the successful offeror (selected in accordance with 
15.611(d)) by transmitting written or electronic notice of the award to 
that offeror (but see 15.608(b)). * * *
    18. Newly designated section 15.1004 is revised to read as follows:


15.1004  Debriefing of offerors.

    (a) When a contract is awarded on the basis of competitive 
proposals, offerors, upon their written request received by the agency 
within three days after the date the unsuccessful offeror receives 
notice of contract award, shall be debriefed and furnished the basis 
for the selection decision and contract award. When practicable, 
debriefing requests received more than three days after the offeror 
receives notice of contract award shall be accommodated. To the maximum 
extent practicable, the debriefing should occur within five days after 
receipt of the written request.
    (b) Debriefings of successful and unsuccessful offerors may be done 
orally, in writing, by electronic means, or any other method mutually 
acceptable to both the offeror and the contracting officer.
    (c) The contracting officer shall chair the debriefing session with 
the support of individuals actually responsible for the evaluations.
    (d) At a minimum, the debriefing information shall include--
    (1) The Government's evaluation of the significant weaknesses or 
deficiencies in the offeror's proposal;
    (2) The overall evaluated cost and technical rating of the 
successful and debriefed offerors;
    (3) The overall ranking of all offerors when any ranking was 
developed by the agency during the source selection;
    (4) A summary of the rationale for award;
    (5) For commercial end items delivered under the contract, the make 
and model of the item being provided by the successful offeror; and
    (6) Reasonable responses to relevant questions about whether source 
selection procedures contained in the solicitation, applicable 
regulations, and other applicable authorities were followed.
    (e) The debriefing shall not include point-by-point comparisons of 
the debriefed offeror's proposal with those of other offerors. 
Moreover, debriefing shall not reveal any information exempt from 
release under the Freedom of Information Act including--
    (1) Trade secrets;
    (2) Privileged or confidential manufacturing processes and 
techniques; and-
    (3) Commercial and financial information that is privileged or 
confidential, including cost breakdowns, profit, indirect cost rates, 
and similar information.
    (f) The contracting officer shall include an official written 
summary of the debriefing in the contract file.
    (g) If, within one year of contract award, a successful protest 
causes the agency to issue either a new solicitation or a new request 
for best and final offers on the protested contract award, the 
[[Page 2476]] agency shall make available to all offerors--
    (1) Information provided in any debriefings conducted on the 
original award about the successful offeror's proposal; and
    (2) Other nonproprietary information that would have been provided 
to the original offerors.

PART 17--SPECIAL CONTRACTING METHODS

    19. Section 17.202 is amended by revising paragraph (a), and at the 
end of paragraph (b)(1)(ii) by removing ``; or'' and inserting a 
period. The revised text reads as follows:


17.202  Use of options.-

    (a) Subject to the limitations of paragraphs (b) and (c) of this 
section, for both sealed bidding and contracting by negotiation the 
contracting officer may include options in contracts when it is in the 
Government's interest. When using sealed bids, the contracting officer 
shall make a written determination that there is a reasonable 
likelihood that the options will be exercised before including the 
clause at 52.217-5, Evaluation of Options, in the solicitation. (See 
17.207(f) with regard to the exercise of options.)
* * * * *
    20. Section 17.208 is amended by revising paragraphs (b) and (c)(4) 
to read as follows:


17.208  Solicitation provisions and contract clauses.

* * * * *
    (b) The contracting officer shall insert a provision substantially 
the same as the provision at 52.217-4, Evaluation of Options Exercised 
at Time of Contract Award, in solicitations when the solicitation 
includes an option clause, the contracting officer has determined that 
there is a reasonable likelihood that the option will be exercised, and 
the option may be exercised at the time of contract award.
    (c) * * *
    (4) The contracting officer has determined that there is a 
reasonable likelihood that the option will be exercised. For sealed 
bids, the determination shall be in writing.
* * * * *

PART 25--FOREIGN ACQUISITION

    21. Section 25.405 is amended by revising paragraph (e) to read as 
follows:


25.405  Procedures.

* * * * *
    (e) Within three days after a contract award for an eligible 
product, agencies shall give unsuccessful offerors from designated or 
NAFTA countries notice in accordance with 14.408-1 and 15.1002.

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    22. Section 36.304 is amended by revising the introductory text to 
read as follows:


36.304  Notice of award.

    When a notice of award is issued, it shall be done in writing or 
electronically, within three days of contract award, shall contain 
information required by 14.407 and shall--
* * * * *
    23. Section 36.607 is amended by designating the existing text as 
paragraph (a) and adding paragraph (b) to read as follows:


36.607  Release of information on firm selection.

* * * * *
    (b) Debriefings of successful and unsuccessful firms will be held 
after final selection has taken place and will be conducted in 
accordance with 15.1003(b) through (g). Note that 15.1003(d)(2) through 
(d)(5) does not apply to architect-engineer contracts.

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS

    24. Section 51.101 is amended at the end of paragraph (a)(1) by 
removing ``or'' and at the end of paragraph (a)(2) by removing the 
period and inserting ``; or'' and by adding paragraph (a)(3) to read as 
follows:


51.101  Policy.-

    (a) * * *
    (3) A contract under the Javits-Wagner-O'Day Act (41 U.S.C. 46 et 
seq.) if (i) the nonprofit agency requesting use of the supplies and 
services is providing a commodity or service to the Federal Government, 
and (ii) the supplies or services received are directly used in making 
or providing a commodity or service approved by the Committee for 
Purchase From People Who Are Blind or Severely Disabled to the Federal 
Government (See 48 CFR part 8, subpart 8.7).
* * * * *
    25. Section 51.102 is amended in paragraph (a) by revising the last 
sentence to read as follows:


51.102  Authorization to use Government supply sources.

    (a) * * * Except for findings under 51.101(a)(3), the determination 
shall be based on, but not limited to, considerations of the following 
factors:
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    26. Section 52.215-16 is amended by revising the date in the clause 
heading and paragraph (c); adding paragraph (h); by removing from 
Alternate I ``15.407(d)(4)(ii)'' and inserting ``15.407(d)(4)(i)''; by 
removing Alternate II; and by redesignating Alternate III as II and 
revising it. The revisions read as follows:


52.215-16  Contract Award.

* * * * *
Contract Award (Date)
* * * * *
    (c) The Government intends to evaluate proposals and award a 
contract after conducting written or oral discussions with all 
responsible offerors whose proposals have been determined to be within 
the competitive range. However, each initial offer should contain the 
offeror's best terms from a cost or price and technical standpoint.
* * * * *
    (h) The Government may disclose the following information in post-
award debriefings to other offerors: (1) The overall evaluated cost and 
technical rating of the successful offeror; (2) The overall ranking of 
all offerors, if one was performed during the source selection; and (3) 
for acquisitions of commercial items, the make and model of the item 
being provided by the successful offeror.
* * * * *
    Alternate II (Date). As prescribed in 15.407(d)(4)(ii), substitute 
the following paragraph (c) for paragraph (c) of the basic provision:
    (c) The Government intends to evaluate proposals and award a 
contract without discussions with offerors (except communications 
conducted for the purpose of minor clarification). Therefore, each 
initial offer should contain the offeror's best terms from a cost or 
price and technical standpoint. However, the Government reserves the 
right to conduct discussions if later determined by the Contracting 
Officer to be necessary.
[FR Doc. 95-296 Filed 1-6-95; 8:45 am]
BILLING CODE 6820-34-P