[Federal Register Volume 61, Number 1 (Tuesday, January 2, 1996)]
[Rules and Regulations]
[Pages 9-17]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31544]



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GENERAL SERVICES ADMINISTRATION

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

[FIRMR Amendment 7]
RIN 3090-AF31


Amendment of FIRMR Provisions To Ensure Currency and Relevancy

AGENCY: Information Technology Service, GSA.

ACTION: Final rule.

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SUMMARY: This document amends 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 makes 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definitions and acronyms including redefining ``outdated equipment'' to 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 Federal information processing 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 the Rehabilitation Act Amendment of 1992 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 need 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; specify ratification procedures 
when a delegation of procurement authority (DPA) is required from GSA 
but has not been obtained; 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.

EFFECTIVE DATE: This rule is effective February 1, 1996.

FOR FURTHER INFORMATION CONTACT: Judy Steele, GSA, Center for 
Information Technology Policy and Regulations Management (KAR), 18th & 
F Streets, NW., Room 3224, Washington, DC 20405, telephone FTS/
Commercial (202) 501-3194 (v) or (202) 501-0657 (tdd).

SUPPLEMENTARY INFORMATION: (1) This amendment incorporates provisions 
of two notices of proposed rulemaking (NPR's) published in the Federal 
Register (FR) on December 6, 1994 and January 10, 1995. The December 6, 
1994, FR notice proposed various changes to several sections of the 
FIRMR. The January 10, 1995, FR notice, erroneously published as an 
amendment to Part 39 of the Federal Acquisition Regulation, provided 
clarification regarding ratification procedures for contracts that 
required a delegation of procurement authority (DPA) from GSA when the 
DPA had not been obtained initially. The following summarizes the 
changes being made as a result of these notices:
    (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 to 
discontinue the opportunity for agencies to establish supplements to 
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 the provisions are 
therefore unnecessary.
    (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 discusses 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 
``temporary 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)(i) 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 sections 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 

[[Page 11]]
product cycle may be even less since typically they are upgraded by 
replacing internal components. The ``chip'' life cycle for these 
components is generally 18 to 24 months. Additionally, after five years 
most computer equipment has little or no market value. In recognition 
of these facts, 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 as subcategories (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, MOL, 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 the quality of decision making, reducing fraud 
and waste, and reducing the information collection burden on the 
public. 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 Public Law 102-569 
(dated October 29, 1992), which amended the Rehabilitation Act of 1973 
by 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 
``electronic 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 paragraph 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 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 paragraph 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' internal procurement procedures 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 of the FIP 
resources are less than $500,000. Agencies may establish internal 
documentation procedures when the acquisitions involve FIP resources 
valued at less than $500,000. However, agencies are encouraged to keep 
such documentation requirements to a minimum.
    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 201-20.2 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 paragraph 201-20.203-1(a)(1), GSA's intention was that 
agencies only include in the analysis of alternatives those 
alternatives that are 

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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, section 
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 most 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. 
Accordingly, agencies must perform an analysis including use of the 
present value of money if the estimated amount of their proposed 
acquisition is more than $1,000,000 or an analysis that demonstrates 
that the benefits of the acquisition will outweigh the costs if the 
acquisition is less than $1,000,000. 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 section 201-
4.003.
    (u) Section 201-20.303 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 granting of an exception to a 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 now be required to select the most economical 
technique available that will meet their minimum needs. Additionally, 
paragraph 201-20.304(b)(2) is revised to delete the adjective 
``actual'' in front of the word ``requirements''. The word ``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. An 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 is being amended to recognize the fact that 
GSA will, at the request of an agency, grant authority to the agency to 
ratify a contract awarded without the necessary specific acquisition 
DPA. The amendment also clarifies that procurement actions taken prior 
to contract award do not necessarily have to be repeated. It should be 
noted that the agency designated officials already have the authority 
to permit ratification of contracts valued at less than the agencies' 
regulatory or specific agency delegation thresholds.
    (x) Section 201-20.305-3 is revised to emphasize the agency 
requirement for the submission of post delegation information to GSA 
for specific delegations. With the increased emphasis on results 
oriented performance, GSA will seek information demonstrating that 
agencies are obtaining the benefits cited in their agency procurement 
requests. Also, this section's reference to a specific acquisition DPA 
under the Trail Boss program is being deleted. Although the Trail Boss 
approach is being retained and its use encouraged, special DPAs will no 
longer be required.
    (y) Section 201-21.201 paragraph (b) is revised to reflect the 
current name and symbol of a GSA organization.
    (z) Section 201-21.301 paragraphs (a) and (d) are revised to delete 
references to OMB Circular A-130, Appendix III.
    (aa) 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 section 201-4.003.
    (bb) Section 201-21.403 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.
    (cc) Section 201-21.601(c)(3) is amended to change the reference 
from 5 CFR 735.205 to 5 CFR 2635.704, to reflect a change in the 
regulations covering the use of telephone calls placed over Government 
provided telephone systems.
    (dd) Section 201-21.603 is amended to delete the agency reporting 
requirement. 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.
    (ee) 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 is 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.
    (ff) 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. 

[[Page 13]]

    (gg) 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''.
    (hh) 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 determining 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 
determining 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. For the same reason, the ``per item'' 
thresholds are increased from $25,000 to $100,000.
    (ii) 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 section 201-39.5202-6 are removed so that 
the corresponding FAR provision will apply.
    (2) This rule was submitted to, and reviewed by, the Office of 
Management and Budget in accordance with Executive Order 12866, 
Regulatory Planning and Review. This rule will not have a significant 
economic impact upon a substantial number of small entities under the 
Regulatory Flexibility Act of 1980 (5 U.S.C. 601, et seq.). 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, 201-17, 201-18, 201-20, 201-21, 201-22, 201-24, and 201-39

    Archives and records, Computer technology, Telecommunications, 
Government procurement, Property management, Records management, and 
Federal information processing resources activities.

    Accordingly 41 CFR parts 201-1, 201-2, 201-3, 201-4, 201-6, 201-7, 
201-17, 201-18, 201-20, 201-21, 201-22, 201-24, and 201-39 are 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'' in 
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.

    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.


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. Part 201-3 is amended by revising the heading to read as set 
forth above.
    8. The authority citation for part 201-3 continues to read as 
follows:

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

    9. 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 
Regulation.
    10. 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 final rules.
    (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]

    11. Section 201-3.101, is amended by removing the word ``system''.
    12. 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.
    13. Section 201-3.203 is amended by revising paragraph (c) to read 
as follows:


Sec. 201-3.203  Maintenance.

* * * * * 

[[Page 14]]

    (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.


Sec. 201-3.204  [Amended]

    14. Section 201-3.204 is amended by removing the phone number 
``275-2091'' in paragraph (a) and adding in its place ``512-0132''.

Subpart 201-3.3--[Removed and Reserved]

    15. Subpart 201-3.3 is removed and reserved.

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

    16. The heading for part 201-4 is revised as set forth above.
    17. The authority citation for Part 201-4 continues to read as 
follows:

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

    18. 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]

    19. Section 201-4.001 is amended in the definition Information 
resources management by adding ``(IRM)'' preceding the word ``means''.
    20. Section 201-4.001 is amended by removing the word ``eight'' in 
the definition Outdated FIP equipment and adding in its place ``six''.
    21. Section 201-4.001 is amended by adding a new definition in 
alphabetical order 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)).
* * * * *
    22. Section 201-4.001 is amended by removing the undesignated 
center heading ``Software'', adding a definition for Software in its 
place, designating entries Application software and Common-use software 
as paragraphs (a) and (b) under the definition for Software, to read as 
follows:
* * * * *
    Software includes--
    (a) Application software * * *
    (b) Common-use software * * *
* * * * *
    23. Section 201-4.002 is amended by adding in alphabetical order 
new acronyms and by placing the acronyms ``GSA'' and ``GPO'' in 
alphabetical order 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.
* * * * *
    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.
* * * * *
    24. Section 201-4.003 is added to read as follows:


Sec. 201-4.003  Applicable OMB Circulars.

    The following applicable OMB Circulars may be obtained from the OMB 
Publications office by calling (202) 395-7332:

A-11  Preparation and submission of budget estimates.
A-94  Benefit-cost analysis of Federal programs; guidelines and 
discounts.
A-109  Major system acquisition.
A-127  Financial management systems.
A-130  Management of Federal information resources.

PART 201-6--PREDOMINANT CONSIDERATIONS

    25. The authority citation for part 201-6 continues to read as 
follows:

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

    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 reduces the information 
collection burden on the public; 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.

* * * * *
    (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 the first sentence of 
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, 101 Stat. 1724 (40 U.S.C. 759 note)) require agencies to 
conduct various information resources management (IRM) planning 
activities. * * *
* * * * * 

[[Page 15]]

    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 201-17--PREDOMINANT CONSIDERATIONS

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

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

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


Sec. 201-17.001  Predominant considerations.

* * * * *
    (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 produced and accessed by other 
individuals;
* * * * *

PART 201-18--PLANNING AND BUDGETING

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

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

    34. 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, 29 U.S.C. 794d) 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.
* * * * *
    35. 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

    36. 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]

    37. Section 201-20.001 is amended by removing paragraph (d).
    38. 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 when the total dollar value of the FIP resources, 
including all optional quantities and periods over the life of the 
contract, does not exceed $500,000. A requirements analysis shall not 
be performed when the value of the FIP resources does not exceed the 
$500,000 threshold. An agency may follow its own internal procedure for 
documenting requirements valued at less than $500,000. 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.
    39. Section 201-20.103 is revised to read as follows:


Sec. 201-20.103  Procedures.

    Agencies shall consider the factors in Secs. 201-20.103-1 through 
201-20.103-11 in establishing requirements, as applicable.
    40. 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.
* * * * *
    41. 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 where the total dollar value of the FIP resources, 
including all optional quantities and periods over the life of the 
contract, does not exceed $500,000. Agencies shall instead follow their 
own internal procedures to identify the most advantageous alternative.
    42. 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 of the 
most feasible alternatives 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 analysis may be limited to 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.
    43. Section 201-20.303 is amended by revising paragraph (d)(2) to 
read as follows:


Sec. 201-20.303  Standards.

* * * * *
(d) * * *
    (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 FIRMR is not required. However, GSA must be 
notified at least 30 days prior to issuing a solicitation for which an 
exception has been granted. Notification shall be sent to: General 
Services Administration, Office of Technology Policy and Leadership 
(KAR), 18th & F Streets, NW., Washington, DC 20405.
    44. Section 201-20.304 is amended by removing paragraph (b)(1), 
redesignating paragraph (b)(2) as paragraph (b)(1), revising paragraph 
(a) and adding new paragraph (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 

[[Page 16]]
economical technique available to provide reasonable assurance that 
capability and performance requirements are met.
    (b) * * *
    (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.
    45. Section 201-20.305 is amended by adding paragraph (b)(5) to 
read as follows:


Sec. 201-20.305  Delegation of GSA's exclusive procurement authority.

* * * * *
    (b) * * *
    (5) If an agency awards a contract that requires a DPA from GSA but 
a DPA has not been obtained from GSA, the agency may request authority 
from GSA's Office of Technology Policy and Leadership (KAA) to ratify 
the contract in accordance with FAR 1.602-3 (48 CFR 1.602-3). 
Procurement actions taken by the agency prior to receiving the 
authority do not need to be repeated.
    46. 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) 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

    47. 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]

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


Sec. 201-21.301  [Amended]

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


Sec. 201-21.303  [Amended]

    50. Section 201-21.303 is amended by removing the words ``Appendix 
III'' in paragraph (d).
    51. 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]

    52. 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. 201-21.601  [Amended]

    53. Section 201-21.601 is amended by removing the CFR cite ``5 CFR 
735.205'' in paragraph (c)(3) introductory text and adding in its place 
``5 CFR 2635.704''.
    54. Section 201-21.603 is amended by revising paragraphs (d)(1) and 
(d)(2), removing paragraph (d)(3), redesignating paragraphs (d)(4) and 
(d)(5) as paragraphs (d)(3) and (d)(4), respectively, and removing 
paragraph (d)(6), to read as follows:


Sec. 201-21.603  Listening-in to or recording telephone conversations.

* * * * *
    (d) Procedures. (1) Agencies that plan to listen-in to or record 
telephone conversations under paragraph (c)(2), (3), or (4) of this 
section shall prepare a determination of need. A determination as used 
in this section means a written justification signed by the agency head 
or the agency 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.
* * * * *


Sec. 201-21.604  [Removed]

    55. Section 201-21.604 is removed.

PART 201-22--REVIEW AND EVALUATION

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

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

    57. 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. The heading of subpart 201-39.1 is amended by removing the word 
``System''.
    62. 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) prepares standard 
solicitations and other guidance. Federal agencies can obtain copies of 
the standard solicitations by contacting: U.S. Government Printing 
Office, Attn: Electronic Products, P.O. Box 37082, Washington, DC 
20013-7082, Telephone number: (202) 512-1530, Facsimile number: (202) 
512-1262. For information on obtaining acquisition guides contact the 
Federal IT Reference Center at (202) 501-4860. 

[[Page 17]]



Sec. 201-39.201  [Amended]

    63. 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]

    64. 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]

    65. Section 201-39.1402-2 is amended by removing the number 
``$25,000'' in paragraph (b) and adding in its place ``$100,000'', and 
also by removing the number ``$300,000'' in paragraph (c) and adding in 
its place ``$1,000,000''.


Sec. 201-39.1501-2  [Amended]

    66. Section 201-39.1501-2 is amended by removing the number 
``$25,000'' in paragraph (b) and adding in its place ``$100,000'', and 
also by removing the number ``$300,000'' in paragraph (c) and adding in 
its place ``$1,000,000''.

Subpart 201-39.46--[Removed and Reserved]

    67. Subpart 201-39.46 is removed and reserved.


Sec. 201-39.5202-6  [Removed and Reserved]

    68. Section 201-39.5202-6 is removed and reserved.

    Dated: October 27, 1995.
Roger W. Johnson,
Administrator of General Services.
[FR Doc. 95-31544 Filed 12-29-95; 8:45 am]
BILLING CODE 6820-25-P