[Federal Register Volume 60, Number 38 (Monday, February 27, 1995)]
[Rules and Regulations]
[Pages 10508-10510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4270]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 201-39
[FIRMR Amendment 4]
RIN 3090-AF17
Amendment of FIRMR To Remove Provisions for Using GSA
Nonmandatory Schedule Contracts for FIP Resources
agency: Information Technology Service, GSA.
action: Final rule.
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summary: This rule revises Federal Information Resources Management
Regulation (FIRMR) provisions regarding Federal Information Processing
(FIP) multiple award schedule (MAS) contract orders. Specifically, the
rule removes the requirement to synopsize orders in excess of $50,000
placed against MAS contracts and incorporates the new guiding
principles for FIP MAS orders, including a $2,500 ``micro-purchase''
threshold. The micro-purchase procedures will speed up the acquisition
process for low dollar, low risk FIP acquisitions. These changes are
examples of GSA's ongoing efforts to improve the MAS program and
streamline the procurement process. GSA strongly encourages agencies to
use the schedules program as a proven method to purchase commercial
goods in a manner that is both time and cost effective.
[[Page 10509]] dates: This rule is effective March 29, 1995.
for further information contact: Judy Steele, FTS/Commercial (202) 501-
3194 (v) or (202) 501-0657 (tdd).
supplementary information: (1) A notice of proposed rulemaking was
published in the Federal Register on February 23, 1994. This notice
removed all provisions for using GSA nonmandatory schedule contracts
for FIP resources from the FIRMR. Thirty-four (34) comments were
received on the proposed rule. All comments were considered, and, where
possible, incorporated into the final rule. For example, several
respondents requested that the FIP MAS procedures remain in the FIRMR
to ensure that all ordering activities and schedule vendors would know
where to find them. Respondents also suggested incorporation of the MAS
``guiding principles'' into the FIRMR procedures. This rule has been
revised to reflect their concerns.
(2) To address recurring issues of concern to GSA customer
agencies, the General Accounting Office (GAO), and MAS contractors, GSA
initiated a MAS Improvement Project in October 1990. GSA prepared a
uniform set of ``guiding principles'' to simplify and expedite the
ordering process for all types of MAS buys. According to a recent GAO
report, agencies state that a reason for failing to comply with the MAS
ordering procedures is that it is too time-consuming and difficult. One
major objective of the MAS Improvement Project consistent with those
concerns was to streamline and unify the procedures for ordering
products and services provided under the MAS program. In line with this
objective, this rule removes the FIRMR requirement that agencies
synopsize orders valued at $50,000 or higher that are placed against
FIP MAS contracts. Since the FIP MAS contracts are now indefinite
delivery/indefinite quantity contracts, there is no longer a legal
requirement to synopsize these orders.
GAO has also previously suggested that the ordering procedures for
low dollar value items be less stringent than the procedures which
apply to high dollar value orders. A micropurchase threshold of $2,500
is incorporated in the guiding principles which will alleviate that
situation. Below the $2,500 threshold, agencies are allowed to place an
order to any FIP schedule contractor without seeking competition. Above
$2,500, agencies must consider reasonably available information about
products offered under MAS contracts to ensure that the selection meets
the agency's needs at the lowest overall cost. The guiding principles
also reflect that MAS contractors no longer are required to pass on a
price reduction extended to only one agency for a specific order to all
MAS users. This rule incorporates GSA's guiding principles for MAS
acquisitions.
(3) Explanation of the specific changes being made by this issuance
are shown below:
(a) Subpart 201-39.5 is removed to delete the synopsizing
requirements related to the FIP MAS contracts.
(b) Section 201-39.601-2 is removed since synopsizing is no longer
required.
(c) Section 201-39.803-3 is revised to add the MAS ``guiding
principles'' which streamline and simplify the procedures for using the
FIP MAS contracts.
(d) The FIRMR Index reference is revised to change the phrase ``GSA
nonmandatory schedule contract'' to ``GSA nonmandatory FIP schedule
contract'' to differentiate the FIP MAS contracts from the newly
nonmandatory FSS MAS contract programs.
(4) This rule was submitted to, and approved by, the Office of
Management and Budget in accordance with Executive Order 12866,
Regulatory Planning and Review. The rule will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (U.S.C. 601 et seq.).
(5) The Paperwork Reduction Act does not apply because the FIRMR
changes do not impose recordkeeping information collection requirements
or collection of information from offerors, contractors, or members of
the public which require the approval of OMB under 44 U.S.C. 3501 et
seq.
List of Subjects in 41 CFR Part 201-39
Archives and records, Computer technology, Federal information
processing resources activities, Government procurement, Property
management, Records management, and Telecommunications.
For the reasons set forth in the preamble, GSA is amending 41 CFR
Part 201 as follows:
PART 201-39--ACQUISITION OF FEDERAL INFORMATION PROCESSING (FIP)
RESOURCES BY CONTRACTING
1. The authority citation for part 201-39 continues to read as
follows:
Authority: 40 U.S.C. 486(c) and 751(f).
Subpart 201-39.5--[Reserved]
2. Subpart 201-39.5 is removed and reserved.
Sec. 201-39.601-2 [Removed and reserved]
3. Section 201-39.601-2 is removed and reserved.
4. Section 201-39.803-3 is revised to read as follows:
Sec. 201-39.803-3 Procedures.
(a) Prior to selecting a GSA nonmandatory FIP schedule contract and
placing an order, the agency shall justify any restrictive requirement
(e.g., an ``all or none'' requirement or a requirement for ``only new''
equipment).
(b) Ordering activities can place orders of $2,500 or less with any
GSA nonmandatory FIP schedule contractor. GSA has already determined
the prices of items under these contracts to be fair and reasonable.
(c) To reasonably ensure that a selection represents the best value
and meets the agency's needs at the lowest overall cost alternative,
before placing a MAS order of more than $2,500, an ordering activity
should--
(1) Consider reasonably available information about products
offered under Multiple Award Schedule contracts; this standard is met
if the ordering activity does the following:
(i) Considers products and prices contained in any GSA MAS
automated information system (e.g., Information Resources Management--
On-line Schedules System); or
(ii) If automated information is not available, reviews at least
three (3) price lists.
(2) In selecting the best value item at the lowest overall cost
(the price of the item plus administrative costs), the ordering
activity may consider such factors as--
(i) Special features of one item not provided by comparable items
which are required in effective program performance;
(ii) Trade-in considerations;
(iii) Probable life of the item selected as compared with that of a
comparable item;
(iv) Warranty conditions; and
(v) Maintenance availability.
(3) Give preference to the items of small business concerns when
two or more items at the same delivered price will meet an ordering
activity's needs.
(d) MAS contractors will not be required to pass on to all schedule
users a price reduction extended only to an individual agency for a
specific order. There may be circumstances where an ordering activity
finds it advantageous to request a price reduction, such as where the
ordering activity finds that a schedule product is available elsewhere
at a lower price, or where the quantity of an individual order clearly
indicates the potential for obtaining a reduced price. [[Page 10510]]
(e) Ordering activities should document orders of $2,500 or less by
identifying the contractor the item was purchased from, the item
purchased, and the amount paid. For orders over $2,500, MAS ordering
files should be documented in accordance with internal agency
practices. Agencies are encouraged to keep documentation to a minimum.
(f) Requirements or orders shall not be fragmented in order to
circumvent the applicable MOL.
5. The reference to ``GSA nonmandatory schedule contract'' in the
FIRMR Index is revised to ``GSA nonmandatory FIP schedule contract.''
Dated: January 19, 1995.
Julia M. Stasch,
Acting Administrator of General Services.
[FR Doc. 95-4270 Filed 2-24-95; 8:45 am]
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