[Federal Register Volume 62, Number 99 (Thursday, May 22, 1997)]
[Rules and Regulations]
[Pages 27972-27973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-13489]


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GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-21

RIN 3090-AG35


Pricing Practices for Reimbursable Work Authorizations

AGENCY: Public Buildings Service, General Services Administration.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule modifies the Public Buildings Service's 
(PBS's) pricing practices for Reimbursable Work Authorizations (RWAs). 
Currently, our customer agencies are billed the actual costs for 
supplies, materials, labor, contract costs and overhead related to the 
RWA. This interim rule establishes a fixed price policy for one-time 
RWA's, such as painting, cleaning and alterations. A fixed price RWA is 
one in which the authorized amount is the billed amount including all 
project changes. The fixed price will change only if the work request 
is modified or unforeseen site conditions arise. Customers will not 
have to pay for delays caused by GSA. Fixed price reimbursables will 
help PBS: Act as a provider of choice with the new delegation of 
alterations authority to agencies for alterations up to $100,000; 
implement predominant commercial sector pricing practices; and enhance 
the satisfaction and quality of service to our customers by making the 
work faster through streamlined processes.

DATES: Effective date: May 22, 1997.
    Comment date: July 21, 1997.
ADDRESSES: Comments should be submitted to the General Services 
Administration, Public Buildings Service, Office of Property 
Management, (PM), Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Jeffrey Neely, Acting Deputy Assistant 
Commissioner, Office of Property Management at (202) 501-0971.

SUPPLEMENTARY INFORMATION: In the past, PBS was a mandatory source on 
all reimbursable work done in PBS controlled buildings. However, PBS is 
now entering a new era. The National Performance Review and the ``Can't 
Beat GSA Alterations Program'' envision a more competitive PBS. Fixed 
pricing facilitates this objective. The fixed price method of charging 
RWAs to our customers will make their budgeting for reimbursable work 
an easier and more accurate process, as well as enhance their ability 
to make informed choices about RWA services. Billing problems should be 
reduced or eliminated. Total costs and a payment schedule will be 
determined clearly at the outset. It should also serve as incentive to 
PBS to ensure that the job is done efficiently and to the customer's 
satisfaction.
    The General Services Administration has determined that this rule 
is not a significant regulatory action for the purposes of Executive 
Order 12866 of September 30, 1993. This interim rule is not required to 
be published in the Federal Register for notice and comment. Therefore, 
the Regulatory Flexibility Act does not apply. The Paperwork Reduction 
Act does not apply to this action because the proposed changes to the 
Federal Property Management Regulations do not impose reporting, 
recordkeeping or information collection requirements which require the 
approval of the Office of Management and Budget pursuant to 44 U.S.C. 
3501, et seq. This rule also is exempt from congressional review 
prescribed under 5 U.S.C. 801 since it relates solely to agency 
management and personnel.

List of Subjects in 41 CFR Part 101-21

    Federal buildings and services, Government property management, 
Space and services.


[[Page 27973]]


    Dated: March 26, 1997.
David J. Barram,
Acting Administrator of General Services.

PART 101-21--[AMENDED]

    Therefore 41, CFR part 101-21 is amended as set forth below:
    1. The authority citation for 41 CFR part 101-21 continues to read 
as follows:

    Authority: Sec. 205(c), 63 Stat. 390, 40 U.S.C. 486(c).

Subpart 101-21.6--Billings, Payments, and Related Budgeting 
Information for Space and Services Furnished by the General 
Services Administration

    2. Section 101-21.604 is amended by revising paragraphs (d) through 
(h) and by adding paragraph (i) to read as follows:


Sec. 101-21.604  Billing procedures for reimbursable charges.

* * * * *
    (d) The following basic types of reimbursable work are performed by 
GSA on a fixed price basis. The fixed price is the amount of the 
Reimbursable Work Authorization (RWA) which is the authorized amount:
    (1) Non-recurring services performed above standard levels of 
service, such as out-of-cycle painting;
    (2) Recurring services not included in the standard level for which 
a price can be established;
    (3) Repairs and alterations in buildings not controlled by GSA;
    (4) Special space alterations and adjustments performed by GSA in 
GSA-operated buildings, which are requested and financed by other 
agencies in accordance with Sec. 101-20.106, Reimbursable services, of 
this chapter; and
    (5) Alteration projects up to the prospectus threshold.
    (e) Where the amount of the RWA is less than $25,000, billing will 
occur at termination date. Other bills will be rendered at the 
customer's option, based on delivered orders either monthly or 
quarterly.
    (f) RWAs above the prospectus threshold shall be performed on an 
actual cost basis. In special circumstances, when GSA and the ordering 
agency agree, non-prospectus alterations work may be performed on an 
actual cost basis. GSA will make every effort to obtain approval and 
certification of additional funds before incurring any obligations in 
excess of 10 percent of the authorized amount or $500, whichever is 
greater. However, failure of GSA to notify the agency that obligations 
will exceed the authorized amount, regardless of dollar amount, does 
not relieve the agency of paying in full the actual costs.
    (g) A Reimbursable Work Authorization request (Form 2957 or other 
acceptable request) must be completed and approved by GSA and an agency 
official certifying that he/she has the authority to order the services 
and commit the agency to payment.
    (h) Bills for recurring above-standard level services are rendered 
in advance at an established cost equal to the estimated amount. This 
type of work authorization, with the right to cancel (subject to 
incurred costs and obligations) upon 60 days notice by either party 
must be completed and forwarded to GSA prior to the commencement of the 
period for which services are required. With the exception of recurring 
work authorizations for utilities, which GSA may limit to 3-month 
periods, each recurring type work authorization must authorize charges 
for the full period during the fiscal year that the services will be 
required. These work authorizations must always begin and end within 
the same fiscal year.
    (i) Agencies shall be responsible for timely payment and resolving 
any billing problems regarding orders they place under GSA contracts.

[FR Doc. 97-13489 Filed 5-21-97; 8:45 am]
BILLING CODE 6820-BR-P