[Federal Register Volume 61, Number 11 (Wednesday, January 17, 1996)]
[Rules and Regulations]
[Pages 1150-1152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-265]



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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 505, 519, 520, 532, 533, and 552

[APD 2800.12A, CHGE 69]
RIN 3090-AF87


General Services Administration Acquisition Regulation; 
Implementation of FASA Small Business; Protest, Disputes and Appeals; 
Subcontractor Payments Rules, and Service Contract Funding

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to implement several sections of the Federal 
Acquisition Streamlining Act of 1994 (Pub. L. 103-355) which related to 
protests, disputes and appeals; subcontractor payments, service 
contract funding and small business programs. This change revises the 
GSAR to accommodate those changes and to reflect current organizational 
changes within GSA. In addition, GSA Form 2677, Minority Contract Fact 
Sheet, is removed and GSA Form 2689, Procurement Not Set Aside, is 
revised to illustrate the new edition of the form.

EFFECTIVE DATE: December 29, 1995.

FOR FURTHER INFORMATION CONTACT: Victoria Moss, Office of GSA 
Acquisition Policy, (202) 501-4764.

SUPPLEMENTARY INFORMATION:

A. Public Comments

    This rule was not published in the Federal Register for public 
comment because it merely revises the GSAR to conform to the Federal 
Acquisition Regulation (FAR) and makes organizational changes within 
GSA.

B. Executive Order 12866

    This rule was not submitted to the Office of Management and Budget 
for review because it is not a significant rule as defined in Executive 
Order 12866, Regulatory Planning and Review.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply because this rule is 
not a significant revision as defined in FAR 1.501-1.

D. Paperwork Reduction Act

    This rule does not impose any information collection or 
recordkeeping requirements that require the approval of OMB under 44 
U.S.C. 3501 et seq. Therefore, the requirements of the Paperwork 
Reduction Act do not apply.

List of Subjects in 48 CFR Parts 505, 519, 520, 532, 533, and 552

    Government procurement.

    Accordingly, 48 CFR Parts 505, 519, 520, 532, 533 and 552 are 
amended as follows:
    1. The authority citation for 48 CFR Parts 505, 519, 520, 532, 533, 
and 552 continues to read as follows:

    Authority: 40 U.S.C. 486(c).

PART 505--PUBLICIZING CONTRACT ACTIONS

    2. Section 505.303-70 is amended by revising paragraphs (a)(1), 
(b)(1), (b)(2), and (b)(3)(ii) to read as follows:


505.303-70  Notification of proposed substantial awards and awards 
involving Congressional interest.

    (a) * * *
    (1) A contract with the Small Business Administration (the 8(a) 
program) exceeding or estimated to exceed $100,000.
* * * * *
    (b) * * *
    (1) The Office of Congressional and Intergovernmental Affairs (S) 
will notify the heads of contracting activities in writing with the 
names of Members of Congress who wish to be notified of any or all 
contract awards in excess of $100,000 to contractors located within 
their district or State, as applicable. Upon such notification, the 
contracting activities will provide, via electronic mail, facsimile or 
hand delivery applicable notices of award to S. A copy of the submittal 
should be provided to the regional congressional liaison office.
    (2) Except for submittals hand delivered to S, the submittal must 
be made by electronic mail or facsimile transmission. Except for 
contracts awarded under urgent and compelling circumstances, 
notification to S of an award must made on the same day that the award 
is made and 24 hours before telephonic notice (if applicable) is 
provided to the contractor. If the timeframe for notification to S 
cannot be met, the Contracting Director must notify S by telephone.
    (3) * * *
    (ii) Identify the type of contract and contractor using the 
following codes:
    (A) DO for definite quantity contract.
    (B) SC for schedule contract.
    (C) TC for indefinite delivery contract other than schedule.
    (D) S for small business concern.
    (E) SD for small disadvantaged business concern.
    (F) WO for women-owned small business concern.
    (G) O for other than a small business concern.
* * * * *
    3. Part 519 is amended by revising the heading to read as follows:

PART 519--SMALL BUSINESS PROGRAMS

    4. Section 519.001 is revised to read as follows:


519.001  Definitions.

    Agency small business technical advisors (SBTAs) as used in this 
part, means the individuals designated in writing by the Office of 
Enterprise Development (E). In addition to the duties outlined at FAR 
19.201(c), the agency small business technical advisors perform the 
functions of the small business specialist described in FAR 19.506 (a) 
and (b) and 19.705-4(d)(5).

    5. Section 519.201 is revised to read as follows:


519.201  General policy.

    The Associate Administrator for Enterprise Development (E) may make 
recommendations to the contracting officer as to whether a particular 
acquisition should be awarded under 

[[Page 1151]]
FAR 19.5 as a set-aside or under FAR 19.8 as a section 8(a) award 
directly or through the SBTA.
    6. Section 519.202-2 is revised to read as follows:


519.202-2  Locating small business sources.

    Contracting officers should request assistance from SBTAs in 
locating small business sources.


519.202-5  [Removed]

    7. Section 519.202-5 is removed.
    8. Section 519.502-70 is amended by revising paragraphs (a) and (d) 
to read as follows:


519.502-70  Review of non-set-aside determinations.

    (a) If the contracting officer decides that a procurement that is 
expected to exceed $100,000 cannot be set aside for small business, the 
reasons for the decision must be recorded on the GSA Form 2689, 
Procurement Not Set Aside. The GSA Form 2689 must be submitted to the 
SBTA for review and coordination with the SBA.
* * * * *
    (d) Before the GSA or SBA reviewing officials provide additional 
small business sources to the contracting officer when requesting 
reconsideration of the non-set-aside determination, the reviewing 
officials shall contact the sources to ensure the sources are 
interested in submitting offers and to obtain information regarding the 
capability of the sources to fulfill the Government's requirements. The 
information obtained should be provided to the contracting officer for 
consideration.
* * * * *


519.503  [Amended]

    9. Section 519.503 is amended in the last sentence of paragraph (b) 
format: ``Small Business Class Set-Aside Determination,'' by removing 
the words ``for which small purchase procedures are to be used'' and 
inserting in their place ``of $100,000 or less.''


519.602-3  [Amended]

    10. Section 519.602-3 is amended by removing the office symbol 
``AU'' once in paragraph (a) and where it appears three times in 
paragraph (b) and inserting office symbol ``E'' in its place.
    11. Subpart 519.7 is amended by revising the heading to read as 
follows.

Subpart 519.7  Subcontracting With Small Business, Small 
Disadvantaged Business and Women-Owned Small Business Concerns

    12. Section 519.708 is revised to read as follows:


519.708  Solicitation provisions and contract clauses.

    (a) The contracting officer shall insert the provision at 552.219-
72, Notice to Offerors of Subcontracting Plan Requirements, on the 
cover page of the solicitation if the solicitation includes the clause 
at FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small 
Business Subcontracting Plan.
    (b) The contracting officer shall insert the provision at 552.219-
73, Preparation, Submission, and Negotiation of Subcontracting Plans, 
in negotiated solicitations if the solicitation includes the clause at 
FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan, and the contract will be awarded on the basis of 
an evaluation of technical and/or management proposals and cost or 
price proposals using source selection procedures. The provision does 
not apply to (1) solicitations for commercial products, or (2) 
solicitations where, in the judgment of the contracting officer, 
subcontracting opportunities are minimal.
    (c) The contracting officer shall insert the provision at 552.219-
74, Goals for Subcontracting Plan, in sealed bid solicitations if the 
solicitation includes the clause at FAR 52.219-9, Small, Small 
Disadvantaged and Women-Owned Small Business Subcontracting Plan. The 
basic provision should be used when the contracting officer is able to 
realistically establish target goals. Alternate 1 should be used in 
sealed bid solicitations when the contracting officer cannot establish 
realistic target goals and in negotiated solicitations that include the 
clause at FAR 52.219-9 but do not include the provision at 552.219-73.

    13. Section 519.803-70 is revised to read as follows:


519.803-70  Contracting officer evaluation of recommendations for 8(a) 
set-aside(s).

    If the Associate Administrator for Enterprise Development (E) or 
the SBTA recommends that a procurement be set aside for award under the 
8(a) program and the contracting officer disagrees, the contracting 
officer shall discuss the matter with the official that made the 
recommendation before making a decision. If the contracting officer 
decides not to award the contract under the 8(a) program as 
recommended, the reasons for the decision must be documented for the 
record as required by FAR 19.202 and a copy of the documentation must 
be forwarded to E within 10 working days of the contracting officer's 
decision.

PART 520--[RESERVED]

    14. Part 520 is removed and reserved.

PART 532--CONTRACTING FINANCING

    15. Sections 532.112 and 532.112-1 are added to read as follows:


532.112  Payment of subcontractors under contracts for non-commercial 
items.


532.112-1  Subcontractor assertions of nonpayment.

    Contracting officers who determine that a certification of payment 
of a subcontractor or supplier under FAR 32.112-1 is inaccurate in any 
material respect shall report the matter to the Office of Inspector 
General. If appropriate, the Office of Inspector General will forward a 
report and recommendation to the Department of Justice.

    16. Section 532.705-1 is revised to read as follows:


532.705-1  Clauses for contracting in advance of funds.

    The contracting officer shall insert the clause at 552.232-77, 
Availability of Funds, in solicitations and contracts for services 
which are ``severable'' when the contact, or a portion of the contract, 
will be chargeable to funds of the new fiscal year and the 
circumstances described in the prescriptions for the FAR clauses at 
52.232-18 or 52.232-19 do not apply.

PART 533--PROTESTS, DISPUTES, AND APPEALS

    17. In Section 533.104 paragraph (a) the heading is revised to 
read: ``General procedures,'' the FAR cite in paragraph (a)(1) is 
revised to read ``FAR 33.104(a)(3);'' remove ``25 workdays'' in 
paragraph (a)(3)(v) and insert ``35 days,''; revise the FAR cite in 
paragraph (b)(5) introductory text to read ``FAR 33.104(a)(2), remove 
the words ``within 7 calendar days of receiving this notice'' in the 
last paragraph of (a)(5), remove the word ``calendar'' in the first 
sentence of paragraph (b), and revise paragraphs (c) and (d) to read as 
follows:


533.104  Protests to GAO.

* * * * *
    (c) Protests after award. If the protest is received from GAO (not 
from protester or any other party) within the time periods specified in 
FAR 33.104(c) contract performance must be suspended unless the HCA 
determines in writing that contract performance is in the best 
interests of the United States 

[[Page 1152]]
or that urgent and compelling circumstances that significantly affect 
the interests of the United States do not permit waiting for the GAO's 
decision. The written determination and findings (D&F), in the format 
shown at 501.704-70(e)(2), should be prepared by the contracting 
officer for signature of the HCA. The D&F must be concurred in by the 
Regional Counsel (on regional procurements), and the appropriate AGC. 
After the D&F is approved, it must be returned to the AGC who notifies 
GAO of the agency's findings and intended action before contract 
performance is authorized.
    (d) Notice to GAO. The HCA responsible for the solicitation, 
proposed award, or award of the contract must report to the Comptroller 
General through the OGC within 65 days of receipt of the GAO's 
recommendation if the agency has decided not to comply with the 
recommendation. The report must explain the reasons why the GAO's 
recommendation will not be followed.


533.105  [Amended]

    18. In section 533.105 paragraph (a)(1) introductory text, remove 
the words ``Resources Management'' after the word ``Information'' and 
insert in their place ``Technology.''

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.219-9  [Removed]

    19. Section 552.219-9 and its Alternate I are removed.


552.219-16  [Removed]

    20. Section 552.219-16 is removed.
    21. Section 552.219-72 is revised to read as follows:


552.219-72  Notice to Offerors of Subcontracting Plan Requirements.

    As prescribed in 519.708(a), insert the following provision:

NOTICE OF OFFERORS OF SUBCONTRACTING PLAN REQUIREMENTS (DEC 1995)

    The General Services Administration (GSA) is committed to 
assuring that maximum practicable opportunity is provided to small, 
small disadvantaged, and women-owned small business concerns to 
participate in the performance of this contract consistent with its 
efficient performance. GSA expects any subcontracting plan submitted 
pursuant to FAR 52.219-9, Small, Small Disadvantaged and Women Owned 
Small Business Subcontracting Plan, to reflect this commitment. 
Consequently, an offeror, other than a small business concern, 
before being awarded a contract exceeding $500,000 ($1,000,000 for 
construction) will be required to demonstrate that its 
subcontracting plan represents a creative and innovative program for 
involving small, small disadvantaged, and women-owned small business 
concerns as subcontractors in the performance of this contract.

(End of Provision)


552.219-73  [Amended]

    22. In section 552.219-73 introductory text revise the GSAR cite to 
read ``519.708(b),'' and revise the date of the clause to read ``DEC 
1995''; in paragraph (b) of the clause remove the GSAR cite ``552.219-
9(d)'' and insert in its place ``FAR 52.219-9(d).'' Also in paragraph 
(b) second sentence, revise the phrase ``Small Business'' to read 
``Small, Small Disadvantaged and Women-Owned Small Business''; in 
paragraph (c)(1) remove ``552.219-9'' and insert in its place ``FAR 
52.219-9.''


552.219-74  [Amended]

    23. In section 552.219-74 introductory text, revise the GSAR cite 
to read ``519.708(c),'' revise the clause date to read ``(DEC 1995),'' 
in paragraph (a)(1) of the clause remove all the text after the word 
``at'' at the end of paragraph (a)(1) and insert in its place ``FAR 
52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
Subcontracting Plan;'' in paragraph (a)(2) remove ``552.219-9(d)'' and 
insert in its place ``FAR 52.219-9(d); in paragraph (c)(1) remove 
``552.219-9'' and insert in its place ``FAR 52.219-9.''

    Dated: December 14, 1995.
Ida M. Ustad,
Associate Administrator for Acquisition Policy.
[FR Doc. 96-265 Filed 1-16-96; 8:45 am]
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