[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31663-31664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14545]



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DEPARTMENT OF DEFENSE
48 CFR Part 52

[FAC 90-39; FAR Case 91-031; Item XXX]
RIN 9000-AE41


Federal Acquisition Regulation; Contract Award--Sealed Bidding--
Construction

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).


[[Page 31664]]


ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) to inform offerors under 
construction solicitations that the Government may reject bids as 
nonresponsive if the prices are materially unbalanced. The proposed 
rule was published in the Federal Register at 56 FR 29539, June 27, 
1991. This regulatory action was not subject to Office of Management 
and Budget review under Executive Order 12866, dated September 30, 
1993, and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. Jack O'Neill at (202) 501-3856 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 FAC 90-39, FAR case 91-31.

SUPPLEMENTARY INFORMATION:

A. Background

    The FAR was previously amended to include unbalanced bidding 
provisions at 52.214-10, Contract Award--Sealed Bidding, and 52.215-16, 
Contract Award, for supplies and services procured under sealed bidding 
and negotiation procedures. At that time, the unbalanced bidding 
provisions were not made applicable to construction solicitations. 
However, the Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have decided that, for consistency, 
construction solicitations should include a similar provision to notify 
offerors that their bids may be rejected as nonresponsive if the prices 
are materially unbalanced.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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 unbalanced bidding 
provisions have already been incorporated in solicitations, for other 
than construction, with no known impact on the small business 
community. No comments were received on the impact of this rule on 
small entities during the public comment period.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 OMB under 44 
U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 52

    Government procurement.

    Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Part 52 is amended as set forth below:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR Part 52 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).

    2. Section 52.214-19 is amended by revising the date of the 
provision to read ``(AUG 1996)''; and by adding paragraph (d) to the 
provision to read as follows:


52.214-19  Contract Award--Sealed Bidding--Construction.

* * * * *

CONTRACT AWARD--SEALED BIDDING--CONSTRUCTION (AUG 1996)

* * * * *
    (d) The Government may reject a bid as nonresponsive if the 
prices bid are materially unbalanced between line items or subline 
items. A bid is materially unbalanced when it is based on prices 
significantly less than cost for some work and prices which are 
significantly overstated in relation to cost for other work, and if 
there is a reasonable doubt that the bid will result in the lowest 
overall cost to the Government even though it may be the low 
evaluated bid, or if it is so unbalanced as to be tantamount to 
allowing an advance payment.

[FR Doc. 96-14545 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P