[Federal Register Volume 61, Number 33 (Friday, February 16, 1996)]
[Rules and Regulations]
[Pages 6164-6173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3593]



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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515, 538, 539, 543, 
546, 552 and 570

[APD 2800.12A, CHGE 70]
RIN 3090-AF86


General Services Administration Acquisition Regulation; 
Acquisition of Commercial Items

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule with request for comments.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to implement Items I and III of Federal Acquisition 
Circular 90-32 which amended the Federal Acquisition Regulation (FAR) 
to implement the portions of the Federal Acquisition Streamlining Act 
of 1994 (Pub. L. 103-355) dealing with the Truth in Negotiations Act 
and with the acquisition of commercial items. The GSAR is revised to 
conform to the FAR as revised by FAC 90-32 and to implement portions of 
the FAR where necessary to provide agency procedures. The Multiple 
Award Schedule (MAS) Policy Statement of October 1, 1982 (47 FR 50242, 
November 5, 1982) is canceled.

DATES: Effective Date: March 4, 1996. (See Supplementary Information 
for further guidance.)
    Comment Date: Comments should be submitted in writing to the 
address shown below on or before April 16, 1996 to be considered in 
formulating the final rule.

ADDRESSES: Interested parties should submit written comments to the 
Office of Acquisition Policy (MV), General Services Administration, 
Room 4010, 18th & F Streets, NW, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:
Les Davison, Office of GSA Acquisition Policy, (202) 501-1224.

SUPPLEMENTARY INFORMATION: All new solicitations for commercial items 
and open season solicitations issued under the multiple award schedule 
program issued after March 4, 1996 shall conform to this interim rule. 
To the maximum extent practical, solicitations for commercial items and 
open season solicitations, that have been issued but where no contract 
has been awarded shall be amended to conform to this interim rule. 
However, offerors shall not be required to resubmit information on 
commercial sales practices and any requests for additional information 
shall be limited to the minimum needed. Existing MAS contracts may be 
modified, at the discretion of contracting officers, to conform to all 
or part of this interim rule.

A. Determination To Issue an Interim Rule

    A determination has been made under the authority of the 
Administrator of General Services that urgent and compelling reasons 
exist to publish an interim rule prior to affording the public an 
opportunity to comment. Federal Acquisition Circular 90-32 (60 FR 
48206, September 18, 1995) revised the Federal Acquisition Regulation 
(FAR) to implement Title VIII of Public Law 103-355. Title VIII of 
Public Law 103-355 contained requirements for the acquisition of 
commercial items and required publication of implementing FAR revisions 
by October 1, 1995. The FAR rule became available for use on October 1, 
1995, and is mandatory for use by all Federal agencies in commercial 
items solicitations issued after December 1, 1995. This GSAR rule 
implements GSA unique requirements and revises the GSAR to bring it 
into conformance with the FAR. Immediate GSAR coverage is needed to 
permit GSA contracting activities to comply with Pub. L. 103-355 and 
the implementing FAR requirements pertaining to the acquisition of 
commercial items and Truth in Negotiations Act.

B. Executive Order 12866

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

C. Regulatory Flexibility Act

    This interim rule is expected to have a positive 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 the rule 
simplifies procedures for GSA acquisition of commercial items. An 
Initial Regulatory Flexibility Analysis (IRFA) has been prepared and 
may be obtained from the address stated above. A copy of the IRFA has 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration. Comments from small entities will be considered in 
accordance with Section 610 of the Act.

D. Paperwork Reduction Act

    The Paperwork Reduction Act applies to this interim rule. The 
information collection requirements in 515.804-8 and related provisions 
and clauses have been approved by the Office of Management and Budget 
(OMB) under OMB Control Number 9000-0013. The information collection 
requirements in 552.212-70, Preparation of Offer (Multiple Award 
Schedule), represent customary commercial practice and are approved 
under OMB Control Number 3090-0250.

List of Subjects in 48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 
515, 538, 539, 543, 546, 552, and 570

    Government procurement.

    Accordingly, 48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515, 
538, 539, 543, 546, and 552 and 570 are amended as follows:

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM

    1. The authority citation for 48 CFR Parts 501, 504, 507, 510, 511, 
512, 514, 515, 538, 539, 543, 546, 552 and 570 continues to read as 
follows:

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


501.105  [Amended]

    2. Section 501.105 is amended by removing the following GSAR 
references and corresponding OMB control numbers: 510.004-70-3090-0203, 
510.011(i)-3090-0246, 

[[Page 6165]]
512.104(a)(2) and 512.104(a)(4)-3090-0204.

PART 504--ADMINISTRATIVE MATTERS

    3. Section 504.803 is amended by revising paragraphs (a)(12) and 
(a)(25) to read as follows:


504.803  Contents of contract files.

    (a) * * *
    (12) Cost or pricing data and information other than cost or 
pricing data. Where the requirement for submission of cost or pricing 
data is waived, as provided in FAR 15.804-1(b)(5), the waiver and 
documentation supporting the waiver should be filed under this tab.
* * * * *
    (25) Any required approvals--GSA 1535, Recommendation for Award, or 
documentation of approval of Subcontracting Plan (as applicable). The 
contracting officer's and any other departing procurement official's 
certificate of procurement integrity, required by FAR 3.104-7(a) and 48 
CFR 503.104-7 and the record of individuals authorized access to 
proprietary or source selection information, required by FAR 3.104-
5(d)(2) and 3.104-9(e)(iii) should be filed under this tab.
* * * * *

PART 507--ACQUISITION PLANNING


507.103  [Amended]

    4. Section 507.103 is amended by removing ``510.002'' and inserting 
``48 CFR 511.002''.
    5. Part 510 heading is revised to read as follows:

PART 10--MARKET RESEARCH


510.001  [Redesignated as 511.001]

    6. Section 510.001 is redesignated as 511.001.


510.002  [Redesignated as 511.002 and amended]

    7. Section 510.002 is redesignated as 511.002 and the first 
sentence is amended by removing ``FAR 10.002(c)'' and inserting ``FAR 
11.002(b).''


510.004  [Removed]


510.004-70  [Removed]


510.004-71  [Removed]


510.007  [Removed]


510.007-70  [Removed]

    8. Sections 510.004, 510.004-70, 510.004-71, 510.007 and 510.007-70 
are removed.


510.011  [Redesignated as 511.204 and amended]

    9. Section 510.011 is redesignated as 511.204 and paragraph (a) is 
amended by removing ``552.210-70'' and inserting ``48 CFR 552.211-
711''; by removing ``552.210-71'' and inserting ``48 CFR 552.211-72'' 
in paragraph (b); by removing paragraphs (c) and (d); by redesignating 
paragraph (e) as (c) and in newly designated paragraph (c) removing 
``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating 
paragraph (f) as (d), and in newly designated paragraph (d) removing 
``552.210-76'' and inserting ``48 CFR 552.211-74'', and by removing 
``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating 
paragraph (g) as (e) and in newly designated paragraph (e), by removing 
``552.210-77'' and inserting ``48 CFR 552.211-75''; by redesignating 
paragraph (h) as (f) and in newly designated paragraph (f) removing 
``552.210-78'' and inserting ``48 CFR 552.211-76''; by redesignating 
paragraph (i) as (g), and in newly designated paragraph (g) removing 
``552.210-79'' and inserting ``48 CFR 552.211-77.''


510.070  [Removed]


510.070-1  [Removed]


510.070-2  [Removed]


510.070-3  [Removed]


510.070-4  [Removed]


510.071  [Removed]

PART 510--[RESERVED]

    10. Sections 510.070, 510.070-1, 510.070-2, 510.070-3, 510.070-4 
and 510.071 are removed and Part 510 is reserved.
    11. Part 511 heading is revised to read as follows:

PART 511--DESCRIBING AGENCY NEEDS


511.003  [Removed]


511.070  [Removed]

    12. Sections 511.003 and 511.070 are removed.
    13. Subpart 511.1 consisting of sections 511.103 and 511.170 are 
added to read as follows:

Subpart 511.1--Selecting and Developing Requirements Documents

Sec.
511.103  Market acceptance.
511.170  Use of brand name or equal product descriptions.

Subpart 511.1--Selecting and Developing Requirements Documents


511.103  Market acceptance.

    The contracting officer may require offerors to meet market 
acceptance criteria in accordance with FAR 11.103 when such criteria 
determined necessary to satisfy the agency's needs.


511.170  Use of brand name or equal product descriptions.

    (a) Policy. When a ``brand name or equal'' purchase description is 
used the purchase description should--
    (1) Cite all brand name products known to be acceptable and of 
current manufacture;
    (2) Specify each physical or functional characteristic essential to 
the intended use of the product including permissible tolerances;
    (3) Avoid specifying characteristics that cannot be shown to 
materially affect the intended end use and which unnecessarily restrict 
competition; and
    (4) Give prospective offerors the opportunity to offer products 
other than those specifically referenced by brand name, as long as they 
meet the needs of the Government in essentially the same manner as the 
brand name product.
    (b) Solicitation provisions. The solicitation--
    (1) May require bid samples for ``or equal'' offers, but not for 
``brand name'' offers.
    (2) Must provide for full consideration and evaluation of ``or 
equal'' offers against the salient characteristics specified in the 
purchase description. Do not reject offers for minor differences in 
design, construction, or features which do not affect the suitability 
of the product for its intended use.
    (3) Must include the following immediately after the item 
description--

Offering on:

Manufacturer's Name----------------------------------------------------
Brand------------------------------------------------------------------
Model or Part No.------------------------------------------------------

    (4) Should include the following notice, unless bid samples are 
required for ``or equal'' offers, in the item listing after each brand 
name or equal item (or component part) or at the bottom of each page 
listing several items:

    OFFERORS OFFERING OTHER THAN BRAND NAME ITEMS IDENTIFIED HEREIN 
MUST PROVIDE ADEQUATE INFORMATION TO ENSURE THAT A DETERMINATION CAN 
BE MADE AS TO EQUALITY OF THE PRODUCT(S) OFFERED.

    (c) Contract clause. The contracting officer shall include a clause 
substantially the same as the clause at 48 CFR 552.211-70, Brand Name 
or Equal, when a brand name or equal 

[[Page 6166]]
purchase description is used. When component parts or an end item are 
described by brand name or equal descriptions and application of the 
clause to some or all of the components is impracticable, either do not 
use the clause or limit its application to specified components.
    14. Subpart 511.2 is added to read as follows:

Subpart 511.2--Using and Maintaining Requirements Documents

PART 512--ACQUISITION OF COMMERCIAL ITEMS

    15. Part 512 heading is revised as set forth above.


Subpart 512.1  [Redesignated as Subpart 511.4]


512.101  [Redesignated as 511.401]


512.104  [Redesignated as 511.404 and amended]

    15a. Subpart 512.1 is redesignated as subpart 511.4, section 
512.101 is redesignated as 511.401, and section 512.104 is redesignated 
as 511.404.
    16. Newly designated section 511.404 is amended by redesignating 
paragraph (a)(5) as paragraph (a)(6) and amending paragraph (a)(6) by 
removing ``552.212-72'' and inserting ``48 CFR 552.211-83''; by 
redesignating paragraph (a)(4) as paragraph (a)(5), and amending 
paragraph (a)(5) by removing ``552.212-71'' and inserting ``48 CFR 
552.211-82''; by redesignating paragraph (a)(3) as paragraph (a)(4) and 
amending paragraph (a)(4) by removing ``552.212-70'' and inserting ``48 
CFR 552.211-81'' and by removing ``552.212-72'' and inserting ``48 CFR 
552.211-83''; by removing ``552.212-1(a)'' in paragraph (a)(1) and 
inserting ``48 CFR 552.211-1''; amending paragraph (b) by removing 
``552.212-74'' and inserting ``48 CFR 552.211-84''; and by revising 
paragraph (a)(2) and adding a new paragraph (a)(3) to read as follows:


511.404  Contract clauses.

    (a) * * *
    (2) 48 CFR 552.211-78, Commercial Delivery Schedule (Multiple Award 
Schedule), in solicitations issued and contracts awarded under the 
multiple award schedule program.
    (3) 48 CFR 552.211-79, Acceptable Age of Supplies, or 48 CFR 
552.211-80, Age on Delivery, in solicitations and contracts if the 
contractor will be required to furnish shelf-life items within a 
specified number of months from the date of manufacture or production 
of the supplies. (See 101-27.206-2 of the Federal Property Management 
Regulation.) The Acceptable Age of Supplies clause at 48 CFR 552.211-79 
should be used when the required shelf-life period is 12 months or 
less, and lengthy acceptance testing may be involved. For items having 
a limited shelf-life, Alternate I to 48 CFR 552.211-79 must be 
substituted for the basic clause when required by the director of the 
48 CFR 552.211-80 should be used when the required shelf-life period is 
more than 12 months, or when source inspection can be performed within 
a short time period.
* * * * *
    17. Subpart 512.2 consisting of sections 512.203 and 512.209 is 
added to read as follows:

Subpart 512.2--Special Requirements for the Acquisition of Commercial 
Items

Sec.
512.203  Procedures for solicitation, evaluation, and award.
512.209  Pricing of commercial items when contracting by 
negotiation.

Subpart 512.2--Special Requirements for the Acquisition of 
Commercial Items


512.203  Procedures for solicitation, evaluation, and award.

    Contracting officers shall use the policies in FAR Part 12 and 48 
CFR Part 512 in conjunction with the policies and procedures for 
Federal Supply Schedules in FAR Part 38 and 48 CFR Part 538.


512.209  Pricing of commercial items when contracting by negotiation.

    When awarding multiple award schedule contracts for commercial 
items, the policies and procedures in FAR Part 15 and 48 CFR Part 515 
shall be used to establish the reasonableness of prices.
    18. Subpart 512.3 consisting of sections 512.301 and 512.302 is 
added to read as follows:

Subpart 512.3--Solicitation Provisions and Contract Clauses for the 
Acquisition of Commercial Items

Sec.
512.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.
512.302  Tailoring of provisions and clauses for the acquisition of 
commercial items.


512.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (a) Solicitation provisions/clauses. The contracting officer shall 
insert the following provisions or clauses in solicitations for the 
acquisition of commercial items in accordance with the prescriptions 
provided:
    (1) The provision at 48 CFR 552.212-70, Preparation of Offer 
(Multiple Award Schedule), in solicitations issued under the multiple 
award schedule program.
    (2) The clause at 48 CFR 552.212-71, Contract Terms and Conditions 
Applicable to GSA Acquisition of Commercial Items when listed clauses 
apply and are incorporated by reference. The clause provides for the 
incorporation by reference of terms and conditions which are, to the 
maximum extent practicable, consistent with customary commercial 
practice. The contracting officer may tailor this clause.
    (3) The clause at 48 CFR 552.212-72, Contract Terms and Conditions 
Required to Implement Statutes or Executive Orders Applicable to GSA 
Acquisitions of Commercial Items when listed clauses apply and are 
incorporated by reference. The clause provides for the incorporation by 
reference of terms and conditions which are required to implement 
provisions of law or executive orders applicable to acquisitions of 
commercial items.
    (4) The provision at 48 CFR 552.212-73, Evaluation--Commercial 
Items (Multiple Award Schedule), shall be used instead of FAR 52.212-2 
in solicitations issued under the multiple award schedule program.
    (b) Use of required GSAR provisions and clauses. Notwithstanding 
prescriptions contained elsewhere in the GSAR (48 CFR Chapter 5), when 
acquiring commercial items, contracting officers shall be required to 
use only those provisions and clauses prescribed in this part. The 
provisions and clauses prescribed in this part shall be revised, as 
necessary, to reflect the applicability of statutes and executive 
orders to the acquisition of commercial items.
    (c) Discretionary use of GSAR provisions and clauses. The 
contracting officer may include in solicitations and contracts by 
addendum other GSAR provisions and clauses when their use is consistent 
with the limitations contained in FAR 12.302(c).
    (d) Use of additional provisions and clauses. Provisions or clauses 
that are not prescribed in the FAR or GSAR for use in contracts for 
commercial items may not be used unless approved by the Senior 
Procurement Executive (see 48 CFR 502.101) or determined to be 
consistent with customary commercial practice through market research.


512.302  Tailoring of provisions and clauses for the acquisition of 
commercial items.

    Requests for waivers shall be prepared in accordance with FAR 
12.302(c) and submitted for approval by the chief of the contracting 
office (see 48 CFR 

[[Page 6167]]
502.101) if an individual contract is involved or by the contracting 
director (see 48 CFR 502.101) if a class of contracts is involved.

PART 514--SEALED BIDDING

    19. Section 514.201-70 is revised to read as follows:


514.201-70  GSA Forms.

    The GSA Form 1602, Notice Concerning Solicitation, may be used to:
    (a) Describe the type of contract, the duration of the contract, 
and the type of supplies or services being procured;
    (b) Direct the attention of prospective offerors to special 
requirements which if overlooked, may result in rejection of the offer;
    (c) Highlight significant changes from previous solicitations 
covering the same supplies and services; and
    (d) Include other special notices as appropriate.

PART 515--CONTRACTING BY NEGOTIATION

    20. Section 515.106-70 is revised to read as follows:


515.106-70  Examination of records by GSA clause.

    The contracting officer shall insert the clause at 48 CFR 552.215-
70, Examination of Records by GSA or at 48 CFR 552.215-71 Examination 
of Records by GSA (Multiple Award Schedule), in solicitations and 
contracts that
    (a) Involve the use or disposition of Government-furnished 
property,
    (b) Provide for advance payments, progress payments based on cost, 
or guaranteed loan,
    (c) Contain a price warranty or price reduction clause,
    (d) Involve income to the Government where income is based on 
operations that are under the control of the contractor,
    (e) Include an economic price adjustment clause,
    (f) Are requirements, indefinite-quantity or letter type contracts 
as defined in FAR Part 16,
    (g) Are subject to adjustment based on a negotiated cost escalation 
base or
    (h) Contain the provision at FAR 52.223-4, Recovered Material 
Certification. The clause at 48 CFR 552.215-71 shall be used for 
solicitations issued and contracts awarded under the multiple award 
schedule program. The contracting officer may modify the clause to 
define the specific area of audit (e.g., the use or disposition of 
Government-furnished property, compliance with the price reduction 
clause). Counsel and the Assistant Inspector General-Auditing or 
Regional Inspector General-Auditing, as appropriate, must concur in any 
modifications to the clause.


515.412  [Removed]

    21. Section 515.412 is removed.
    22. Section 515.414-70 is revised to read as follows:


515.414-70  GSA Forms.

    The GSA Form 1602, Notice Concerning Solicitation, may be used as 
prescribed in 48 CFR 514.201-70.
    23. The section heading for 515.804 is revised to read as follows:


515.804  Cost or pricing data and information other than cost or 
pricing data.


515.804-3  [Reserved]

    24. Section 515.804-3 is removed and reserved.
    25. Section 515.804-6 is revised to read as follows:


515.804-6  Instructions for submission of cost or pricing data or 
information other than cost or pricing data.

    (a) Contracting officers should use Alternate IV of the FAR 
provision at 52.215-41, Requirements for Cost or Pricing Data or 
Information Other Than Cost or Pricing Data, to provide the format for 
submission of information other than cost or pricing data for multiple 
award schedule (MAS) contracts. To provide for uniformity in request 
under the MAS program, contracting officers should insert the following 
in paragraph (b) of the provisions:

    (1) An offer prepared and submitted in accordance with the 
provision at 552.212-70, Preparation of Offer (Multiple Award 
Schedule);
    (2) Commercial sales practices submitted in the format provided 
in this solicitation in accordance with the instructions at Table 
515-1 of the GSA Acquisition Regulation (48 CFR 515-1); and
    (3) Any additional supporting information requested by the 
Contracting Officer to determine whether the price(s) offered is 
fair and reasonable.
    (4) By submission of an offer in response to this solicitation 
or a request for modification, the Offeror grants the Contracting 
officer or an authorized representative the right to examine, at any 
time before award, books, records, documents, papers, and other 
directly pertinent records to verify any request for and exception 
to the requirement for cost or pricing data, and the reasonableness 
of prices(s) and for two years after award or modification of this 
contract to verify that the information submitted was complete, 
current and accurate. Access does not extend to cost or profit 
information or other data relevant solely to the Offeror's 
determination of the prices to be offered in the catalog or 
marketplace.

    (b) Contracting officers shall insert the following format for 
commercial sales practices in the exhibits or attachments section of 
the solicitation (see FAR 12.303). Paragraph (5) may be included when 
the contracting officer, based on market research, anticipates receipt 
of offers from dealers without significant commercial sales.

Commercial Sales Practices

Name of Offeror--------------------------------------------------------
SIN--------------------------------------------------------------------

    Note: Please refer to provision 552.212-70, PREPARATION OF OFFER 
(MULTIPLE AWARD SCHEDULE), for additional information concerning 
your offer.

    (1) Request for exception to the requirement for cost and 
pricing data.
    (a) Do you request an exception to the requirement for 
submission of cost or pricing data [Check applicable item]
    (i) ______ based on the fact that you have sold substantial 
quantities of the commercial items offered to the general public at 
or based on an established catalog or market price (see FAR 15.804-
1(b)(2)(iv)); or
    (ii) ______ under the authority of FAR 15.804-1(a)(2) for 
commercial items.
    (b) Provide the dollar value of sales to the general public at 
or based on an established catalog or market price during the 
previous 12 month period or the offerors last fiscal year. 
$________. in the event that a dollar value is not an appropriate 
measure of the sales, provide and describe your own measure of the 
sales of the item (FAR 15.804-1(b)(2)(iv). You may qualify for an 
exception under the authority of FAR 15.804-1(a)(2), even though 
substantial sales have not been made, although that exception 
requires that special post award access to records be included in 
the contract (see 52.215-43, Audit-Commercial Items).
    (2) Show total estimated sales to the Government for the 
contract term, excluding options, for the SIN offered. $________
    (3) Are the discounts which you offer the Government equal to or 
better than your best discount to any customer acquiring the same 
items offered for this SIN regardless of quantity or terms and 
conditions? YES ______ NO ______ See definition of ``discount'' in 
552.212-70.
    (4)(a) Provide information as requested for each SIN (or group 
of SINs for which the information is the same) in accordance with 
the instructions at 48 CFR Table 515-1 which is provided in this 
solicitation for your convenience. The information should be 
provided in the chart below. Rows should be added to accommodate as 
many customers as required.

[[Page 6168]]


------------------------------------------------------------------------
                                                            Column 5--  
  Column 1--     Column 2--     Column 3--    Column 4--    additional  
   customer       discount       quantity/     FOB term    discounts or 
                                  volume                    concessions 
------------------------------------------------------------------------
                                                                        
                                                                        
                                                                        
                                                                        
                                                                        
------------------------------------------------------------------------

    (b) Do any deviations from the discounting practices disclosed 
ever result in better discounts (lower prices) than indicated? YES 
______ NO ______. If YES, explain deviations in accordance with the 
instructions at 48 CFR Table 515-1 which is provided in this 
solicitation for your convenience.
    (5) If the Offeror is a dealer/reseller, the sales information 
relative to the manufacturer's pricing to the dealer required by 
paragraph (b)(1) through (4) above together with written access to 
the manufacturer's records in accordance with 52.215-41 (Alt IV), 
should be provided separately by the offeror for each item/SIN from 
a single manufacturer whose total sales under any resulting contract 
are expected to exceed $500,000. The information is required in 
order to enable the Government to make a determination that the 
offered price is fair and reasonable. To expedite the review and 
processing of offers the dealer/reseller submitting the offer should 
advise the manufacturer(s) of this requirement. The contracting 
officer may require the information be submitted on electronic media 
with commercially available spreadsheet(s). The information may be 
provided by the manufacturer directly to the Government. If the 
manufacturer's items(s) is being offered by multiple dealers/
resellers, only one copy of the requested information should be 
submitted to the Government. In addition, the dealer/reseller 
submitting the offer shall submit the following information along 
with a listing of contact information regarding each of the 
manufacturers whose products and/or services are included in the 
offer (include the manufacturer's name, address, the manufacturer's 
contact point, telephone number, and FAX number) for each model 
offered by SIN:

(a) Manufacturer's Name
(b) Manufacturer's Part Number
(c) Dealer's/Reseller's Part Number
(d) Product Description
(e) Manufacturer's List Price
(f) Dealer's/Reseller's percentage discount from List Price or net 
prices

(End of Format)

    (c) The contracting officer should include the instructions for 
completing the commercial sales practices format in Table 551-1 in 
solicitations issued under the multiple award schedule program.

    Table 515-1.--Instructions for Commercial Sales Practices Format    
------------------------------------------------------------------------
                                                                        
-------------------------------------------------------------------------
  If you responded ``YES'' to question (3), on the COMMERCIAL SALES     
 PRACTICES FORMAT, complete the chart for the customer(s) who receive   
 your best discount. If you responded ``NO'' to question (3), complete  
 the chart for all customers or customer categories to whom you sell at 
 a discount which equals or exceeds the discount(s) offered to the      
 Government under this solicitation or with which the Offeror has a     
 current agreement to sell at a discount which equals or exceeds the    
 discount(s) offered under this solicitation. Such agreement shall be in
 effect on the date the offer is submitted or contain an effective date 
 during the proposed multiple award schedule contract period. The       
 Offeror shall also disclose any changes to discount(s) and discount    
 policies which occur after the offer is submitted, but before the close
 of negotiations. If the Offeror's discount practices vary by model or  
 product line, the discount information should be by model or product   
 line as appropriate. The offeror may limit the number of models or     
 product lines reported to those which in total anticipated sales exceed
 75% of the estimated value of the special item number (SIN).           
   Column 1--Identify the applicable customer or category or customer. A
 ``customer is any entity, except the Federal Government, which acquires
 supplies or services from the Offeror. The term customer includes, but 
     is not limited to original equipment manufacturers, value added    
    resellers, state and local governments, distributors, educational   
   institutions (an elementary, junior high, or degree granting school  
    which maintains regular faculty and established curriculum and an   
 organized body of students), dealers, national accounts, and end users.
In any instance where the Offeror is asked to disclose information for a
 customer, the Offeror may disclose information by category or customer 
if the offeror's discount policies are the same for all customers in the
     category. (Use a separate line for each customer or category of    
                               customer.)                               
   Column 2--Identify the discount. The term ``discount'' is as defined 
   in solicitation provision 552.212-70 Preparation of Offer (Multiple  
    Award Schedule). Indicate the best discount at which the Offeror    
    customarily or repetitively sells to the customer or category of    
 customer identified in column 1, without regard to quantity; terms and 
  conditions of the agreements under which the discounts are given, and 
 whether they are written or oral. Net prices or discounts off of other 
 price lists should be expressed as percentage discounts from the price 
list which is the basis for your offer. If the price lists which are the
  basis of the discounts given to the customers identified in the chart 
  are different than the price list submitted upon which your offer is  
   based, identify the type of title and date of each price list. The   
   contracting officer may require submission of these price lists. To  
 expedite evaluation, offerors may provide these price lists at the time
                             of submission.                             
   Pricing information need be provided only on customary or repetitive 
    sales. Information need not include erratic, ad hoc discounting;    
   however, the existence of such discounting shall be disclosed. This  
 disclosure should include a discussion of ad hoc discounting practices,
including the types of circumstances when ad hoc discounts are given and
the frequency of occurrence: i.e., a statement ``the ad hoc sales do not
exceed $______ per year'' or ``the ad hoc sales do not exceed ______% of
   total sales.'' To be considered ``ad hoc discounting'' the practice  
    shall not: (a) represent a significant pricing practice: that is,   
   accounting for more than a marginal portion of the total commercial  
 sales; (b) establish a preferred customer: e.g., discounts to state and
     local governments, or repetitive discounts received by a single    
     customer; (c) include other than low value, extraordinary price    
                  reductions due to unique situations.                  
  Column 3--Identify the quantity or volume of sales. Insert the minimum
  quantity or sales volume which the identified customer or category of 
  customer must either purchase/order, per order or within a specified  
   period, to earn the discount. Specify the period of relevant sales   
                              accumulation.                             
  Column 4--Indicate the FOB delivery term for each identified customer.
 (See FAR 47.3 for an explanation of FOB delivery terms.)               
   Column 5--Indicate additional discounts or concessions regardless of 
quantity granted to the identified customer or category of customer. The
 additional discounts may include per order quantity discount; aggregate
      discount, prompt payment discount. Concessions are defined in     
 solicitation provision 552.212-70 Preparation of Offers (Multiple Award
Schedule). If the space provided is inadequate, the disclosure should be
                 made on a separate sheet by reference.                 
------------------------------------------------------------------------

    (d) The contracting officer shall insert the clause at 48 CFR 
552.215-72, Price Adjustment for Incomplete, Not Current or Inaccurate 
Information Other Than Cost or Pricing Data, in solicitations and 
contracts to be awarded under the multiple award schedule program.

PART 538--FSS SCHEDULE CONTRACTING

    26. Part 538 heading is revised as set forth above.
    
[[Page 6169]]



538.000   [Removed]

    27. Section 538.000 is removed.
    28. Section 538.270 is added to read as follows:


538.270   Evaluation of multiple award schedule offers.

    (a) The Government will seek to obtain the offeror's best discount 
(most favored customer). However, the Government recognizes that the 
terms and conditions of commercial sales vary and that there may be 
legitimate reasons why the best discount is not achieved.
    (b) The contracting officer will establish negotiation objectives 
and determine price reasonableness subject to the requirements of 
paragraphs (c) through (e) of this section.
    (c) The contracting officer will establish negotiation objectives 
based on a review of relevant data. If an exception may apply pursuant 
to FAR 15.804-1(a)(2), then information to be acquired pursuant to FAR 
15.804-5(b) (1) and (2) shall be limited to that which is reasonably 
available and quantifiable.
    (d) When establishing negotiation objectives and determining price 
reasonableness, contracting officers will compare the terms and 
conditions of agreements with customers. The contracting officer will 
consider the following factors to determine the Government's price 
negotiation objectives:
    (1) Aggregate volume of anticipated purchases;
    (2) The purchase of a minimum quantity or a pattern of historic 
purchases;
    (3) Discounts/prices offered;
    (4) Length of the contract period;
    (5) Warranties, training, maintenance included in the purchase 
price or provided at additional cost to the product prices;
    (6) Ordering and delivery practices; and
    (7) Any other relevant information including differences between 
the MAS solicitation and commercial terms and conditions that may 
warrant differentials between the offer and the discounts offered to 
the best customers. In cases where the best discount is not offered to 
the Government, the offeror is responsible for identifying, 
substantiating and valuating any asserted differences.
    (e) The contracting officer may not award a contract containing 
pricing which is less favorable than the best discount the offeror 
extends to any commercial customer purchasing under circumstances 
comparable to the Government, unless the contracting officer makes a 
written determination that
    (1) The prices offered to the Government are fair and reasonable, 
even though comparable discounts were not negotiated, and
    (2) Award of a contract is otherwise in the best interest of the 
Government.
    29. Section 538.271 is added to read as follows:


538.271   MAS contract awards.

    (a) MAS awards will, to the maximum extent practicable, be 
commercial items negotiated as a discount from established catalog 
prices for items sold in substantial quantities to the general public.
    (b) Before awarding any MAS contract, the contracting officer will 
determine whether offered prices are fair and reasonable in accordance 
with FAR subparts 15.8 and 15.9 and 48 CFR 538.270.

PART 539--MANAGEMENT, ACQUISITION, AND USE OF INFORMATION 
RESOURCES--RESERVED

    30. Part 539 is reserved.


539.000   [Removed]

    31. Section 539.000 is removed

PART 543--CONTRACT MODIFICATIONS

    32. Section 543.205 is amended by adding paragraph (c) to read as 
follows:


543.205   Contract clauses.

* * * * *
    (c) The contracting officer shall insert the clause at 48 CFR 
552.243-72, Modifications (Multiple Award Schedule), in solicitations 
and multiple award schedule contracts. Alternate I should be used when 
stable technology is involved and few changes are expected.

PART 546--QUALITY ASSURANCE

    33. Section 546.710 is amended by revising paragraph (a)(2) to read 
as follows:


546.710   Contract Clauses.

    (a) * * *
    (2) If commercial products or items are being acquired under a 
program other than Multiple Award Schedules, the contracting officer 
shall use the clause at 48 CFR 552.247.17 with its Alternate I.
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


552.209-73   [Amended]

    34. The clause at section 552.209-73 is amended by revising the 
date of the clause to read ``(FEB 1996)'' and by inserting a period 
after the word ``default'' and removing all remaining text beginning 
with the word ``under.''


552.210-70  [Redesignated as 552.211-71 and amended]

    35. Section 552.210-70 is redesignated as 552.211-71, the 
introductory paragraph is amended by removing ``510.011(a)'' and 
inserting ``48 CFR 511.204(a)'', and the date of the clause is revised 
to read ``(FEB 1996)''.


552.210-71  [Redesignated as 552.211-72 and amended]

    36. Section 552.210-71 is redesignated as 552.211-72, the 
introductory paragraph is amended by removing ``510.011(b)'' and 
inserting ``48 CFR 511.204(b)'', and the date of the clause is revised 
to read ``(FEB 1996)''.


552.210-72  [Redesignated as 552.211-79]

    37. Section 552.210-72 is redesignated as 552.211-79, the 
introductory paragraph is amended by removing ``510.011(c)'' and 
inserting ``48 CFR 511.404(a)'', by revising the date of the basic 
clause and the Alternate I to read ``(FEB 1996)'' and by removing all 
the text in the last sentence in the basic clause after the phrase 
``reject the supplies'' and inserting a period after ``supplies''.


552.210-73  [Redesignated as 552.211-80 and amended]

    38. Section 552.210-73 is redesignated as 552.211.80, the 
introductory paragraph is amended by removing ``510.011(c)'' and 
inserting ``48 CFR 511.404(a)'', by revising the date of the clause to 
read ``(FEB 1996)'' and by removing all the text in the last sentence 
after the phrase ``reject the supplies'' and inserting a period after 
the word ``supplies''.


552.210-74  [Redesignated as 552.211-70]

    39. Section 552.211-70 is removed, section 552.210-74 is 
redesignated as 552.211-70, the introductory paragraph is amended by 
removing ``510.011(d)'' and inserting ``48 CFR 511.170(c)'' and by 
revising the date of the clause to read ``(FEB 1996)''.


552.210-75  [Redesignated as 552.211-73]

    40. Section 552.210-75 is redesignated as 552.211-73, the 
introductory paragraph is amended by removing ``510.011(e)'' and 
inserting 

[[Page 6170]]
``48 CFR 511.204(c)'' and by revising the date of the clause to read 
``(FEB 1996)''.


552.210-76  [Redesignated as 552.211-74 and amended]

    41. Section 552.210-76 is redesignated as 552.211-74, the 
introductory paragraph is amended by removing ``510.011(f)'' and 
inserting ``48 CFR 511.204(d)'', by revising the date of the clause to 
read ``(FEB 1996)'', and by removing ``552.210-75'' from the text of 
the clause and inserting ``48 CFR 552.211-73''.


552.210-77  [Redesignated as 552.211-75 and amended]

    42. Section 552.211-77 is redesignated as 552.211-75, the 
introductory paragraph is amended by removing ``510.011(g)'' and 
inserting ``48 CFR 511.204(e)'' and by revising the date of the clause 
to read ``(FEB 1996)''.


552.210-78  [Redesignated as 552.211-76 and amended]

    43. Section 552.210-78 is redesignated as 552.211-76, the 
introductory paragraph is amended by removing ``510.011(h)'' and 
inserting ``48 CFR 511.204(f)'' and by revising the date of the clause 
to read ``(FEB 1996)''.


552.210-79  [Redesignated as 552.211-77 and amended]

    44. Section 552.210-79 is redesignated as 552.211-77, the 
introductory paragraph is amended by removing ``510.011(i)'' and 
inserting ``48 CFR 511.204(g)'' and by revising the date of the clause 
to read ``(FEB 1996)''.
    45. Section 552.211-78 is added to read as follows:


552.211-78  Commercial Delivery Schedule (Multiple Award Schedule).

    As prescribed in 48 CFR 511.404(a)(2), insert the following clause:

Commercial Delivery Schedule (Multiple Award Schedule) (Feb 1996)

    (a) Time of Delivery. The Contractor shall deliver to 
destination within the number of calendar days after receipt of 
order (ARO) in the case of F.O.B. Destination prices; or to place of 
shipment in transit in the case of F.O.B. Origin prices, as set 
forth below. Offerors shall insert in the ``Time of Delivery (days 
ARO)'' column in the schedule of Items a definite number of calendar 
days within which delivery will be made. In no case shall the 
offered delivery time exceed the Contractor's normal commercial 
practice. The Government requires the Contractor's normal commercial 
delivery time, as long as it is less than the ``stated'' delivery 
time(s) shown below. If the Offeror does not insert a delivery time 
in the schedule of items, the Offeror will be deemed to offer 
delivery in accordance with the Government's stated delivery time, 
as stated below:

----------------------------------------------------------------------------------------------------------------
  Items or group of items (special      Government's stated delivery time      Contractor's normal commercial   
      item No. or nomenclature)                    (days ARO)                           delivery time           
----------------------------------------------------------------------------------------------------------------
                                                                                                                
                                                                                                                
                                                                                                                
----------------------------------------------------------------------------------------------------------------

    (b) Expedited Delivery Times. For those items that can be 
delivered quicker than the delivery times in paragraph (a), above, 
the Offeror is requested to insert below, a time (hours/days ARO) 
that delivery can be made when expedited delivery is requested.

------------------------------------------------------------------------
  Item or group of items (special    Expedited delivery time (hours/days
     item No. of nomenclature)                       ARO)               
------------------------------------------------------------------------
                                                                        
                                                                        
                                                                        
------------------------------------------------------------------------

    (c) Overnight and 2-Day Delivery Times. Ordering activities may 
require overnight or 2-day delivery. The Offeror is requested to 
annotate its price list or by separate attachment identify the items 
that can be delivered overnight or within 2 days. Contractors 
offering such delivery services will be required to state in the 
cover sheet to its FSS price list details concerning this service.
(End of Clause)


Sec. 552.212-1  [Redesignated as 552.211-1 and amended]

    46. Section 552.212-1 is redesignated as 552.211-1, paragraph (a) 
is amended by removing the paragraph designation ``(a)'' and by 
removing ``512.104(a)(1)'' and inserting ``48 CFR 511.404(a)(1)'', by 
revising the date of the clause and the Alternate I to read ``(FEB 
1996)'' and by removing paragraph (b).


Sec. 552.212-70  [Redesignated as 552.211-81 and amended]

    47. Section 552.212-70 is redesignated as 552.211-81, the 
introductory paragraph is amended by removing ``512.104(a)(3)'' and 
inserting ``48 CFR 511.404(a)(4)'' and by revising the date of the 
basic clause and the Alternate I clause to read ``(FEB 1996)''.


Sec. 552.212-71  [Redesignated as 552.211-82 and amended]

    48. Section 552.212-71 is redesignated as 52.211-82, the 
introductory paragraph is amended by removing ``512.104(a)(4)'' and 
inserting ``48 CFR 511.404(a)(5)'' and by revising the date of the 
clause to read ``(FEB 1996)''.


Sec. 552.212-72  [Redesignated as 552.211-83 and amended]

    50. Section 552.212-72 is redesignated as 552.211-83, the 
introductory paragraph is amended by removing ``512.104(a)(5)'' and 
inserting ``48 CFR 511.404(a)(6)'' and by revising the date of the 
basic and alternate clause to read ``(FEB 1996)''.


Sec. 552.212-74  [Redesignated as 552.211-84 and amended]

    51. Section 552.212-74 is redesignated as 552.211-84, the 
introductory paragraph is amended by removing ``512.104(b)'' and 
inserting 48 CFR 511.404(b)'' and by revising the date of the clause to 
read ``(FEB 1996)''.
    52. Section 552.212-70 is added to read as follows:


552.212-70  Preparation of Offer (Multiple Award Schedule)

    As prescribed in 48 CFR 512.301(a)(1), insert the following clause:

552.212-70  Preparation of Offer (Multiple Award Schedule) (Feb 1996)

    (a) Definitions. Concession, as used in this solicitation, means 
a benefit, enhancement or privilege (other than a discount), which 
either reduces the overall costs of a customer's acquisition or 
encourages a customer to consummate a purchase. Concessions include, 
but are not limited to freight allowance, extended warranty, 
extended price guarantees, free installation and bonus goods.
    Discount, as used in this solicitation, means a reduction to 
catalog prices (published or unpublished). Discounts include, but 
are not limited to, rebates, quantity discounts, purchase option 
credits, and any other terms or conditions which reduce the amount 
of money a customer ultimately pays for goods or services ordered or 
received. Any net price lower than the list price is considered a 
``discount'' by the percentage difference from the list price to the 
net price.
    (b) For each Special Item Number (SIN) included in an offer, the 
Offeror shall provide the information outlined in paragraph (c). 
Offerors may provide a single response 

[[Page 6171]]
covering more than one SIN, if the information disclosed is the same 
for all products under each SIN. If discounts and concessions vary 
by model or product line, offerors shall ensure that information is 
clearly annotated as to item or items referenced.
    (c) Provide information described below for each SIN:
    (1) Two copies of the offeror's current published (dated or 
otherwise identified) commercial descriptive catalogs and/or price 
list(s) from which discounts are offered. Special catalogs or price 
lists printed for the purpose of this offer, showing only net prices 
to the Government or references to previous submissions, are not 
acceptable.
    (2) Next to each offered item in the commercial catalog and/or 
price list, the Offeror shall write the special item number under 
which the item is being offered. All other items shall be marked 
``excluded,'' lined out, and initialed by the offeror.
    (3) The discount(s) offered under this solicitation.
    (4) A description of any additional discounts offered, such as 
prompt payment discounts, quantity/dollar volume discounts (indicate 
whether models/products can be combined within the SIN or whether 
SINs can be combined to earn discounts, blanket purchase agreement 
discounts, or purchase option credits. If the terms of sale 
appearing in the commercial catalogs or price list on which an offer 
is based are in conflict with the terms of this solicitation the 
latter shall govern.
    (5) A description of concessions offered under this solicitation 
which are not granted to other customers. Such concessions may 
include, but are not limited to, an extended warranty, a return/
exchange goods policy, or enhanced or additional services.
    (6) If the Offeror is a dealer/reseller or the Offeror will use 
dealers to perform any aspect of contract awarded under this 
solicitation, describe the functions, if any, that the dealer/
reseller will perform.

(End of Provision)

    53. Section 552.212-71 is added to read as follows:


Sec. 552.212-71  Contract terms and conditions applicable to GSA 
acquisition of commercial items.

    As prescribed in 48 CFR 512.301(a)(2), insert the following 
provision:

Contract Terms and Conditions Applicable to GSA Acquisition of 
Commercial Items (Feb 1996)

    The Contractor agrees to comply with any provision or clause 
that is incorporated herein by reference to implement agency policy 
applicable to acquisition of commercial times or components. The 
provision or clause in effect based on the applicable regulation 
cited on the date the solicitation is issued applies unless 
otherwise stated herein. The following provisions and clauses are 
incorporated by reference:

[The contracting officer should either check the clauses that apply 
or delete the clauses that do not apply from the list. The 
contracting officer may add the date of the clause if desired for 
clarity.]

--552.203-70  Restriction on Advertising
--552.211-73  Marking
--552.215-70  Examination of Records by GSA
--552.212-71  Examination of Records by GSA (Multiple Award 
Schedule)
--552.25-72  Price Adjustment for Incomplete, Not Current or 
Inaccurate Information Other Than Cost or Pricing Data
--552.219-71  Allocation of Orders--Partially Set-Aside Items
--552.228-75  Workmen's Compensation
--552.229-70  Federal, State, and Local Taxes
--552.232-8  Discounts for Prompt Payment
--552.232-23  Assignment of Claims
--552.232-70  Payments by Electronic Funds Transfer
--552.232-77  Availability of Funds
--552.232-78  Adjusting Payments
--552.232-79  Final Payment
--552.237-70  Qualifications of Offerors
--552.237-71  Qualifications of Employees
--552.238-72  Contractor's Report of Sales
--552.238-74  Submission and Distribution of Authorized FSS Schedule 
Price List
--552.238-76  Price Reductions
--552.242-70  Status Report of Orders and Shipments
--552.243-72  Modifications (Multiple Award Schedule)
--552.246-73  Warranty--Multiple Award Schedule
--552.246-76  Warranty of Pesticides

(End of Provision)

    54. Section 552.212-72 is added to read as follows:


552.212-73  Contract terms and conditions required to implement 
statutes or Executive Orders applicable to GSA acquisition of 
commercial items.

    As prescribed in 48 CFR 512.301(a)(3), insert the following 
provision:

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders Applicable to GSA Acquisition of Commercial Items (Feb 
1996)

    The Contractor agrees to comply with any provision or clause 
that is incorporated herein by reference to implement provisions of 
law or Executive Orders applicable to acquisition of commercial 
items or components. The provision or clause in effect based on the 
applicable regulation cited on the date the solicitation is issued 
applies unless otherwise stated herein. The following provisions and 
clauses are incorporated by reference:

[The contracting officer should either check the clauses that apply 
or delete the clauses that do not apply from the list. The 
contracting officer may add the date of the clause if desired for 
clarity.]

--552.223-70  Hazardous Substances
--552.223-71  Hazardous Material Information
--552.223-72  Nonconforming Hazardous Material
--552.225-70  Buy American Act--Hand or Measuring Tools or Stainless 
Steel Flatware
--552.225-71  Notice of Procurement Restriction--Hand or Measuring 
Tools or Stainless Steel Flatware
--552.238-70  Identification of Electronic Office Equipment 
Providing Accessibility for the Handicapped
--552.238-75  Identification of Energy-Efficient Office Equipment 
and Supplies Containing Recovered Materials or Other Environmental 
Attributes
--552.238-77  Industrial Funding Fee

(End of Clause)

    55. Section 552.212-73 is added to read as follows:


552.212-73  Evaluation--Commercial Items (Multiple Award Schedule).

    As prescribed in 48 CFR 512.301(a)(4), insert the following 
provision:

552.212-73  Evaluation--Commercial Items (Multiple Award Schedule) (Feb 
1996)

    (a) The Government may make multiple awards for the supplies or 
services offered in response to this solicitation that meet the 
definition of a ``commercial item'' in FAR 52.202-1. Award is to be 
based upon a catalog or market price exception (FAR 15.804-1(a) (i) 
and (ii)) to the requirement for cost or pricing data or if other 
exceptions are not available, an exception for commercial items (FAR 
15.804-1(a)(2)), without submission of cost or pricing data. Awards 
may be made to those responsible offerors that offer reasonable 
pricing, conforming to the solicitation, and will be most 
advantageous to the Government, taking into consideration the 
multiplicity and complexity of items of various manufacturers and 
the differences in performance required to accomplish or produce 
required end results, production and distribution facilities, price, 
compliance with delivery requirements, and other pertinent factors. 
By providing a selection of comparable supplies or services, 
ordering activities are afforded the opportunity to fulfill their 
requirements with the item(s) that constitute the best value and 
that meet their needs at the lowest overall cost. In exceptional 
circumstances, if an item does not qualify for an exception from 
cost or pricing data requirements, the contracting officer may 
consider cost or pricing data if pricing cannot be reasonably 
evaluated without it, and procurement of the item is the best 
interest of the Government.
    (b) A written notice of award or acceptance of an offer, mailed 
or otherwise furnished to the offeror within the time for acceptance 
specified in the offer, shall result in a binding contract without 
further action by either party. Before the offer's specified 
expiration time, the Government may accept an offer (or part of an 
offer), whether or not there are negotiations after its receipt, 
unless a written notice of withdrawal is received before award.

(End of Provision)

[[Page 6172]]


Alternate I (FEB 1996)

    When anticipating competition of identical items, add the 
following paragraph after paragraph (b) of the basic provision.
    (c) The Government reserves the right to award only one contract 
for all or part of a manufacturer's product line. When two or more 
offerors (e.g., dealer/resellers) offer the identical product, award 
may be made competitively to only one offeror on the basis of the 
lowest price. (Discounts for early payment will not be considered as 
an evaluation factor in determining the low offeror). During initial 
open season for an option period, any offers that are equal to or 
lower than the current contract price received for identical items 
will be considered. Current contractors will also be allowed to 
submit offers for identical items during this initial open season. 
The current contractor which has the identical item on contract will 
be included in the evaluation process. The Government will evaluate 
all offers and may award only one contract for each specified 
product or aggregate group.

    56. Section 552.215-70 is amended by revising the date of the 
clause and the last sentence of the clause to read as follows:


552.215-70  Examination of records by GSA.

* * * * *

Examination of Records by GSA (Feb 1996)

* * * * *
    The term ``subcontract'' as used in this clause excludes (a) 
purchase orders not exceeding $100,000 and (b) subcontracts or purchase 
orders for public utility services at rates established for uniform 
applicability to the general public.
    57. Section 552.215-71 is added to read as follows:


552.215-71  Examination of records by GSA (Multiple Award Schedule).

    As prescribed in 48 CFR 515.106-70, insert the following clause:

Examination of Records by GSA (Multiple Award Schedule) (Feb 1996)

    The Contractor agrees that the Administrator of General Services 
or any duly authorized representative shall, until the expiration of 
2 years after the end of the basic contract period or after the end 
of the option period for any option periods, have access to and the 
right to examine any books, documents, papers and records of the 
Contractor involving transactions related to this contract for 
overbillings, billing errors, compliance with the Price Reduction 
clause and compliance with the Industrial Funding Fee clause of this 
contract. This right is in addition to the right to examine 
information provided by FAR 52.215-41 (Alt IV) and FAR 52.215-43, if 
applicable)

(End of Clause)

    58. Section 552.215-72 is added to read as follows:


552.215-72  Price adjustment for incomplete, not current or inaccurate 
information other than cost or pricing data.

    As prescribed in 48 CFR 515.804-6(d), insert the following clause:

Price Adjustment for Incomplete, not Current or Inaccurate Information 
Other Than Cost or Pricing Data (Feb 1996)

    (a) If, subsequent to the award of any contract resulting from 
this solicitation or modification of this contract, it is found that 
any price negotiated in this contract was increased by a significant 
amount because of the occurrence of (1), (2) or (3) below, the 
contract price shall be reduced by such amount of the increase.
    (i) The information requested by the Government and submitted by 
the offeror (contractor) was not complete; or
    (2) The information submitted was not current and accurate; or
    (3) Changes in the Contractor's commercial prices, discounts or 
discount policies which occurred after the original submission were 
not disclosed prior to the completion of negotiations.
    (b) The Government will consider information submitted to be 
current, accurate and complete if the data is current, accurate and 
complete as of 14 calendar days prior to the solicitation closing 
date or the date it is submitted whichever is later. Failure to 
agree on the amount of the decrease shall be resolved as a dispute.

(End of Clause)


552.216-71  [Amended]

    59. Section 552.216-71 is amended by revising the date of the 
clause to read ``FEB 1996'' and amending paragraph (d)(2) by removing 
``Discount Schedule and Marketing Data'' and inserting ``Commercial 
Sales Price format.''


552.238-74  [Amended]

    60. Section 552.238-74 is amended by removing ``GSA'' in the 
section heading, clause heading, paragraphs (b), (c)(1)(i), (c)(1)(ii), 
(c)(2)(i) and (e) and inserting ``FSS'' and by revising the date of the 
clause to read ``(FEB 1996)''.
    61. Section 552.243-72 is added to read as follows:


552.243-72  Modifications (Multiple Award Schedule).

    As prescribed in 48 CFR 543.205(c), insert the following clause:

552.243-72  MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1996)

    (a) General. The Contractor may request a contract modification 
by submitting a request to the Contracting Officer for approval, 
except as noted in paragraph (e) of this clause. A separate request 
should be submitted for each type of proposed modification. At a 
minimum, every request shall describe the proposed change(s) and 
provide the rationale for the requested change(s).
    (b) Types of Modifications.
    (1) Additional items/additional SIN's. When requesting 
additions, the following information must be submitted:
    (i) A request for an exemption from the requirement to submit 
cost and pricing data as required by 52.215-41 (ALT IV) shall be 
provided. To add items, submit the information requested in 
paragraph 1(a) of the Commercial Sales Format. To add SIN's provide 
the information requested in paragraph (1) and (2) of the Commercial 
Sales Practice Format.
    (ii) Discount information for the new item(s) or new SIN(s) as 
required by 52.215-41 (ALT IV) must be provided. Specifically, 
submit the information requested in paragraphs 3 through 5 of the 
Commercial Sales Practice Format. If this information is the same as 
the initial award, a statement to that effect may be submitted 
instead.
    (iii) Information about the new item(s) or new SIN(s) as 
described in 552.212-70, Preparation of Offer (Multiple Award 
Schedule) is required.
    (iv) Delivery time(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted in accordance with 552.211-78, 
Commercial Delivery Schedule (Multiple Award Schedules).
    (v) Production point(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted if required by 52.215-20, Place of 
Performance.
    (vi) Hazardous Material information (if applicable) must be 
submitted as required by 52.223-3 (ALT I), Hazardous Material 
Identification and Material Safety Data; and 552.223-71, Hazardous 
Material Information; and as requested by the Separate Charge for 
Performance Oriented Packaging clause of this contract, if 
applicable.
    (vii) Recovered Material estimate(s) and certification (if 
applicable) must be submitted as required by 52.223-8 (or 52.223-8 
(ALT I) or 52.223-8 (ALT II), Estimate of Percentage of Recovered 
Material for Designated Items to be used in the Performance of the 
Contract; and 52.223-9, Certification of Recovered Material Content 
for EPA Designated Items used in Performance of the Contract.
    (viii) A statement that the request for additional item(s) or 
item(s) under the new SIN(s) is in compliance with 552.225-9, Trade 
Agreements Act, and 552.225-8, Trade Agreements Act Certificate is 
required.
    (2) Deletions. The Contractors shall provide an explanation for 
the deletion. The Government reserves the right to reject any 
subsequent offer of the same item or a substantially equal item at a 
higher price during the same contract period, if the contracting 
officer finds the higher price to be unreasonable when compared with 
the deleted item.
    (3) Price Reduction. The Contractor shall indicate whether the 
price reduction falls under the item (i), (ii), or (iii) of 
subparagraph (c)(1) of the Price Reduction clause at 552.238-76. If 
the price reduction falls under item (i) or (ii), the Contractor 
shall submit a copy of the dated commercial price list. If the price 
reduction falls under item (iii), the Contractor shall submit a copy 
of the applicable price list(s), bulletins or letters or customer 
agreements which outline the effective date, duration, terms and 
conditions of the price reduction.

[[Page 6173]]

    (4) Revision of Commercial Price List. The Contractor may 
request a modification to substitute a new catalog or price list for 
the one originally submitted if, after award and no later than 30 
calendar days before the start of the schedule contract period, the 
Contractor changes its established commercial catalog or price list 
on which the contract was awarded. The new catalog or price list 
shall be submitted to the Contracting Officer along with a statement 
that (i) the new commercial price list is or will be in effect prior 
to the start of the contract period, and (ii) the discount(s) 
offered to the Government remain at the same ratio to those 
available to the customer (or category of customer) which was the 
basic of award.
    (c) Effective dates. The effective date of any modification is 
the date specified in the modification, except as otherwise provided 
in the Price Reduction clause at 552.238-76.
    (d) Electronic file updates. The Contractor shall update 
electronic file submissions to reflect all modifications. Except for 
price reductions and corrections, the Contractor shall obtain the 
contracting officer's approval before transmitting changes. Contract 
modifications will not be made effective until updates to electronic 
files are received. Price reductions and correction may be 
transmitted without prior approval. However, the contracting officer 
shall be notified as set forth in the Price Reduction clause at 
552.238-76.
    (e) Amendments to paper Federal Supply Schedule Price Lists. The 
Contractor shall distribute a supplemental paper Federal Supply 
Schedule Price List reflecting accepted changes within 15 days after 
the effective date of the modification. At a minimum, distribution 
shall be made to these ordering activities that previously received 
the basic document. In addition, two copies of the supplemental 
price list shall be submitted to the contracting officer, and one 
copy shall be submitted to the FSS Schedule Information Center.

(End of Clause)

Alternate I (Feb 1996)

    Substitute the following introductory text in subparagraph (1) 
for the introductory text in subparagraph (1) of the basic clause.
    (1) Additional items/additional SIN's. Consideration for adding 
new items or new SIN's will be given 3 months into the contract 
period. After then, the contractor may request additions at any 
time. When requesting additions the following information must be 
submitted.

    62. Section 552.246-73 is amended by revising the date of the 
clause and the basic clause to read as follows:


552.246-73  Warranty--Multiple Award Schedule.

* * * * *

Warranty--Multiple Award Schedule (Feb 1996)

    Unless specified otherwise in this contract, the Contractor's 
standard commercial warranty as stated in the Contractor's 
commercial price list will apply to this contract.

(End of Clause)


552.253-70  [Removed]

    63. Section 552.253-70 is removed.

PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY


570.308-2  [Amended]

    64. Section 570.308-2 is amended in paragraph (c) by removing ``and 
515.804-3'' at the end of the sentence.


570.602-2  [Amended]

    65. Section 570.602-2 is amended in paragraphs (c)(3) and (d) by 
removing ``and 515.804-3''.

    Dated: February 6, 1996.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 96-3593 Filed 2-15-96; 8:45 am]
BILLING CODE 6820-61-M