[Federal Register Volume 61, Number 196 (Tuesday, October 8, 1996)]
[Proposed Rules]
[Pages 52844-52845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25721]



[[Page 52843]]


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Part II

Department of Defense

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General Services Administration

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National Aeronautics and Space Administration
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48 CFR Part 8, et al.



Federal Acquisition Regulation; ADP/Telecommunications Federal Supply 
Schedules; Proposed Rule

  Federal Register / Vol. 61, No. 196 / Tuesday, October 8, 1996 / 
Proposed Rules  

[[Page 52844]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 13, 38, and 51

[FAR Case 96-602]
RIN 9000-AH29


Federal Acquisition Regulation; ADP/Telecommunications Federal 
Supply Schedules

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 to amend the Federal 
Acquisition Regulation (FAR) with respect to GSA''s Federal Supply 
Schedules program. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993. This is not a major rule under 5 U.S.C. 804.

DATES: Comments should be submitted on or before December 9, 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 and F 
Streets, NW, Room 4037, Washington, DC 20405.
    Please cite FAR case 96-602 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 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 96-602.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the FAR to reflect the reassignment of 
Federal Supply Schedule contracts for ADP/Telecommunications to GSA''s 
Federal Supply Service; to add new coverage on the GSA Advantage! 
program; to clarify when ordering offices should seek price reductions; 
and to implement changes pertaining to procedures when placing orders 
above the maximum order.

B. Regulatory Flexibility Act

    This proposed rule is not expected to 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 the rule 
merely updates and clarifies guidance for Government agencies regarding 
use of the GSA Federal Supply Schedule program. An Initial Regulatory 
Flexibility Analysis has, therefore, not been performed. Comments from 
small entities concerning the affected FAR subpart will be considered 
in accordance with 5 U.S.C. 610 of the Act. Such comments must be 
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 
96-602), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose any additional reporting 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 8, 13, 38, and 51

    Government procurement.

    Dated: October 2, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Parts 8, 13, 38, and 51 be 
amended as set forth below:
    1. The authority citation for 48 CFR Parts 8, 13, 38, and 51 
continues to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. 2301 to 2331; and 42 
U.S.C. 2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Section 8.401 is revised to read as follows:


8.401  General.

    (a) The Federal Supply Schedule program, directed and managed by 
the General Services Administration (GSA), provides Federal agencies 
with a simplified process for obtaining commonly used supplies and 
services at prices associated with volume buying. Indefinite delivery 
contracts (including requirements contracts) are established with 
commercial firms to provide supplies and services at stated prices for 
given periods of time. Similar systems of schedule-type contracting are 
used for military items managed by the Department of Defense. These 
systems are not included in the Federal Supply Schedule program covered 
by this subpart.
    (b) The GSA schedule contracting office issues publications, titled 
Federal Supply Schedules, containing the information necessary for 
placing delivery orders with schedule contractors. Ordering offices 
issue delivery orders directly to the schedule contractors for the 
required supplies and services. Ordering offices may request copies of 
schedules by completing GSA Form 457, FSS Publications Mailing List 
Application, and mailing it to the GSA Centralized Mailing List Service 
(7CAFL), P.O. Box 6477, Fort Worth, Texas, 76115. Copies of GSA Form 
457 also may be obtained from the above address.
    (c) GSA offers an on-line shopping service called ``GSA 
Advantage!'' that enables ordering offices to search product specific 
information (i.e., NSN, part number, common name), review delivery 
options, place orders directly with contractors (or ask GSA to place 
orders on the agency's behalf), and pay contractors for orders using 
the Governmentwide commercial purchase card (or pay GSA). Ordering 
offices may access the ``GSA Advantage!'' shopping service by 
connecting to Internet and using a web browser to connect to the GSA 
Home Page (http://www.gsa.gov, or http://www.fss.gsa.gov). For more 
information or assistance, contact GSA at Internet e-mail address: 
[email protected].
    3. Section 8.404 is amended by revising paragraphs (a) and (b), and 
the heading of paragraph (c) to read as follows:


8.404  Using schedules.

    (a) General. When agency requirements are to be satisfied through 
the use of Federal Supply Schedules as set forth in this subpart 8.4, 
the policies and procedures of FAR part 13 do not apply. Orders placed, 
pursuant to a Multiple Award Schedule (MAS), using the procedures in 
this subpart 8.4 are considered to be issued pursuant to full and open 
competition (see 6.102(d)(3)). Therefore, when placing orders under 
Federal Supply Schedules, ordering offices need not seek further 
competition, synopsize the requirement, make a separate determination 
of fair and reasonable pricing, or consider small business set-asides 
in accordance with subpart 19.5.
    (b) Ordering procedures for optional use schedules--(1) Orders at 
or below the micro-purchase threshold. Ordering offices can place 
orders at or below the micro-purchase threshold with any

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Federal Supply Schedule contractor. GSA has already determined the 
prices of items under these contracts to be fair and reasonable.
    (2) Orders exceeding the micro-purchase threshold and not exceeding 
the maximum order threshold. Before placing an order, ordering offices 
should consider reasonably available information about products offered 
under Multiple Award Schedule (MAS) contracts by using the ``GSA 
Advantage!'' on-line shopping service, or if an automated information 
system is not available, by reviewing the catalog, including price 
lists, of at least 3 schedule contractors.
    (3) Orders exceeding the maximum order threshold. Each schedule 
contract has an established maximum order threshold. This threshold 
represents the point where it is advantageous for the ordering office 
to seek a price reduction. Before placing an order that exceeds the 
maximum order threshold, ordering offices shall follow the procedures 
in paragraph (b)(2) of this section; and--
    (i) Review the catalogs, including price lists, of additional 
schedule contractors, if appropriate, considering the dollar value of 
the proposed order; and
    (ii) Seek a further reduction in price and/or more favorable 
delivery terms before selecting the contractor to receive the order.
    (4) Blanket purchase agreements (BPAs). All schedule contracts 
contain BPA provisions. Ordering offices are encouraged to use BPAs to 
establish accounts with contractors to fill recurring requirements. 
BPAs should address the frequency of ordering and invoicing, discounts, 
delivery locations and times. BPAs may be used for any size orders.
    (5) Price reductions. In addition to the circumstances outlined in 
paragraph (b)(3) of this section, there may be instances where ordering 
offices will find it advantageous to request a price reduction. For 
example, when the ordering office finds a schedule product elsewhere at 
a lower price or when a blanket purchase agreement (BPA) is being 
established to fill recurring requirements, requesting a price 
reduction could be advantageous. The potential volume of orders under 
these agreements, regardless of the size of the individual order, may 
offer the ordering office the opportunity to secure higher discounts. 
Schedule contractors are not required to pass on to all schedule users 
a price reduction extended only to an individual agency for a specific 
order or under a BPA.
    (6) Best value selection for orders exceeding the micro-purchase 
threshold. Orders should be placed with the schedule contractor that 
can provide an item which represents the best value. In selecting the 
item representing the best value, the ordering office may consider--
    (i) Special features of one item which are required in effective 
program performance and which are not provided by comparable items;
    (ii) Trade in considerations;
    (iii) Probable life of the item selected as compared with that of a 
comparable item;
    (iv) Warranty considerations;
    (v) Maintenance availability;
    (vi) Past performance; and
    (vii) Environmental and energy efficiency considerations.
    (7) Small business. For orders exceeding the micro-purchase 
threshold, ordering offices should give preference to the items of 
small business concerns when two or more items at the same delivered 
price will satisfy the requirement.
    (8) Documentation. Orders should be documented, at a minimum, by 
identifying the contractor the item was purchased from, the item 
purchased, and the amount paid.
    (c) Ordering procedures for mandatory use schedules. * * *
* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

    4. Section 13.202 is amended by revising paragraph (c)(3) to read 
as follows:


13.202  Establishment of blanket purchase agreements (BPA's).

* * * * *
    (c) * * *
    (3) Federal Supply Schedule contractors if not inconsistent with 
the terms of the applicable schedule or other contract.
* * * * *

PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING

    5. Section 38.000 is revised to read as follows:


38.000  Scope of part.

    This part prescribes policies and procedures for contracting for 
supplies and services under the Federal Supply Schedule program, which 
is directed and managed by the General Services Administration (see 
subpart 8.4, Federal Supply Schedules, for additional information). The 
Department of Defense uses a similar system of schedule contracting for 
military items that are not a part of the Federal Supply Schedule 
program.

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS


51.103  [Amended]

    6. Section 51.103 is amended by removing paragraph (c) and 
redesignating paragraph (d) as (c).

[FR Doc. 96-25721 Filed 10-7-96; 8:45 am]
BILLING CODE 6820-EP-U