[Federal Register Volume 61, Number 65 (Wednesday, April 3, 1996)]
[Proposed Rules]
[Pages 14946-14947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8015]
[[Page 14945]]
_______________________________________________________________________
Part V
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 9, 35, and 37
Federal Acquisition Regulation; OFPP Policy Letter 93-1, Management
Oversight of Service Contracting; Proposed Rule
Federal Register / Vol. 61, No. 65 / Wednesday, April 3, 1996 /
Proposed Rules
[[Page 14946]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 9, 35, and 37
[FAR Case 94-008]
RIN 9000-AG86
Federal Acquisition Regulation; OFPP Policy Letter 93-1,
Management Oversight of Service Contracting
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing amendments to the Federal
Acquisition Regulation to provide agency guidance on the management of
service contracts. This regulatory action was not subject to Office of
Management and Budget review under Executive Order 12866, dated
September 30, 1993.
DATES: Comments should be submitted on or before June 3, 1996 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (VRS), 18th & F
Streets, NW, Room 4037, Washington, DC 20405. Please cite FAR case 94-
008 in all correspondence related to this case.
FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such at (202) 501-1759 in
reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAR case 94-008.
SUPPLEMENTARY INFORMATION:
A. Background
On May 24, 1994, the Office of Federal Procurement Policy (OFPP)
reissued, as a final policy letter, and published in the Federal
Register (59 FR 26818), Policy Letter 93-1, entitled ``Management
Oversight of Service Contracting''. The policy letter provides
Governmentwide guiding principles which are intended to improve the
acquisition, management, and administration of service contracts.
The proposed FAR rule removes references to advisory and assistance
services at 9.505-3; removes the reference to OMB Circular No. A-120,
``Guidelines for the Use of Advisory and Assistance Services'' from
35.017-2(i); clarifies 37.000; adds paragraphs (d) through (g) to
37.102 to address additional agency responsibilities concerning service
contracts in general; and adds a new Subpart 37.5, Management Oversight
of Service Contracts, to address FAR implementation of OFPP Policy
Letter 93-1.
B. Regulatory Flexibility Act
The proposed changes may have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it
implements OFPP Policy Letter 93-1, Management Oversight of Service
Contracting, which establishes Governmentwide policies concerning
contracting for services. These changes will affect the manner in which
Federal agencies will develop requirements for, award, manage, and
administer contracts for services which, in turn, will affect each
small entity which is awarded a contract for services. An Initial
Regulatory Flexibility Analysis (IRFA) has been prepared and will be
provided to the Chief Counsel for Advocacy for the Small Business
Administration. A copy of the IRFA may be obtained from the FAR
Secretariat. Comments are invited. Comments from small entities
concerning the affected FAR subpart will be considered in accordance
with 5 U.S.C. 610. Such comments must be submitted separately and
should cite 5 U.S.C. 601, et seq. (FAR Case 94-008), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
changes to the FAR do not impose recordkeeping or information
collection requirements, or collections of information from offerors,
contractors, or members of the public which require the approval of the
Office of Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 9, 35, and 37
Government procurement.
Dated: March 26, 1996.
Edward C. Loeb,
Director, Federal Acquisition, Policy Division.
Therefore, it is proposed that 48 CFR Parts 9, 35, and 37 be
amended as set forth below:
1. The authority citation for 48 CFR Parts 9, 35, and 37 continues
to read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 9--CONTRACTOR QUALIFICATIONS
2. Section 9.505-3 is revised to read as follows:
9.505-3 Providing evaluation services.
Contracts for the evaluation of offers for products or services
shall not be awarded to a contractor that will evaluate its own offers
for products or services, or those of a competitor, without proper
safeguards to ensure objectivity to protect the Government's interests.
PART 35--RESEARCH AND DEVELOPMENT CONTRACTING
3. Section 35.017-2 is amended by revising paragraph (i) to read as
follows:
35.017-2 Establishing or changing an FFRDC.
* * * * *
(i) Quantity production or manufacturing is not performed unless
authorized by legislation.
* * * * *
PART 37--SERVICE CONTRACTING
4. Section 37.000 is revised to read as follows:
37.000 Scope of part.
This part prescribes policy and procedures which are specific to
the acquisition and management of services by contract. This part
applies to all contracts for services regardless of the type of
contract or kind of service being acquired. Additional guidance for
research and development services is in part 35; architect-engineering
services is in part 36; information resources is in part 39; and
transportation services is in part 47. Parts 35, 36, 39, and 47 take
precedence over this part in the event of inconsistencies. This part
includes, but is not limited to, contracts for services to which the
Service Contract Act of 1965, as amended, applies (see subpart 22.10).
5. Section 37.102 is amended by adding paragraphs (d) through (g)
to read as follows:
37.102 Policy.
* * * * *
(d) Agency program officials are responsible for accurately
describing the need to be filled, or problem to be resolved, through
service contracting in a manner that assures full understanding and
responsive performance by contractors and in so doing, should obtain
assistance from contracting officials, as needed;
[[Page 14947]]
(e) Agencies shall establish effective management practices in
accordance with the OFPP Policy Letter 93-1, Management Oversight of
Service Contracting, to prevent fraud, waste, and abuse in service
contracting.
(f) Services are to be obtained in the most cost-effective manner,
without barriers to full and open competition, and free of any
potential conflicts of interest.
(g) Agencies shall ensure that sufficiently trained and experienced
officials are available within the agency to manage and oversee the
contract administration function.
6. Subpart 37.5 is added to read as follows:
Subpart 37.5--Management Oversight of Service Contracts
Sec.
37.500 Scope of subpart.
37.501 Definition.
37.502 Exclusions.
37.503 Agency-head responsibilities.
37.504 Contracting officials responsibilities.
37.500 Scope of subpart.
This subpart establishes responsibilities for implementing Office
of Federal Procurement Policy (OFPP) Policy Letter 93-1, Management
Oversight of Service Contracting.
37.501 Definition.
Best practices, as used in this subpart, means techniques that
agencies may use to help detect problems in the acquisition, management
and administration of service contracts. Best practices are practical
techniques gained from experience that agencies may use to improve the
procurement process.
37.502 Exclusions.
(a) This subpart does not apply to services that are (1) obtained
through personnel appointments and advisory committees; (2) obtained
through personal service contracts authorized by statute; (3) for
construction as defined in FAR 36.102; or (4) obtained through
interagency agreements where the work is being performed by in-house
Federal employees.
(b) Services obtained under contracts below the simplified
acquisition threshold and services incidental to supply contracts are
excluded from coverage of this subpart. Good management practices and
contract administration techniques should be used regardless of the
contracting method.
37.503 Agency-head responsibilities.
The agency head or designee should ensure that--
(a) Requirements for services are clearly defined and appropriate
performance standards are developed so that the agency's requirements
can be understood by potential offerors and that performance in
accordance with contract terms and conditions will meet the agency's
requirements.
(b) Service contracts are awarded and administered in a manner that
will provide the customer its goods and services within budget and in a
timely manner.
(c) Specific procedures are in place before contracting for
services to assure compliance with OFPP Policy Letters 92-1, Inherently
Governmental Functions, 91-2, Service Contracting, and 89-1, Conflicts
of Interest Policies Applicable to Consultants.
(d) Strategies are developed and necessary staff training is
initiated to assure effective implementation of the policies in FAR
37.102.
37.504 Contracting officials responsibilities.
Contracting officials should ensure that ``best practices''
techniques are used when contracting for services and in contract
management and administration (see OFPP Policy Letter 93-1).
[FR Doc. 96-8015 Filed 4-2-96; 8:45 am]
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