[Federal Register Volume 62, Number 163 (Friday, August 22, 1997)]
[Rules and Regulations]
[Pages 44817-44819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21493]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 13, and 51

[FAC 97-01; FAR Case 96-602; Item VIII]
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: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule amending 
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, and is not a major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405 (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAC 97-01, FAR case 96-602.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends FAR Parts 8, 13, and 51 to recognize 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, clarify when ordering offices should 
seek price reductions under schedule contracts, and to clarify 
procedures for placing schedule orders above the maximum order 
threshold.
    A proposed rule requesting comment was published in the Federal 
Register at 61 FR 52844, October 8, 1996. Thirty-eight comments were 
received from twelve respondents. All comments were considered in 
developing the final rule.

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 the rule merely updates 
and clarifies guidance for Government agencies regarding use of the GSA 
Federal Supply Schedule program.

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 the Office of 
Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 8, 13, and 51

    Government procurement.

    Dated: August 7, 1997.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 8, 13, and 51 are amended as set forth 
below:
    1. The authority citation for 48 CFR Parts 8, 13, and 51 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 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 commercial 
supplies and services at prices associated with volume buying (also see 
8.001). 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, 
entitled 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, TX 76115. Copies of GSA Form 457 
also may be obtained from this address.
    (c) GSA offers an on-line shopping service called ``GSA 
Advantage!'' that enables ordering offices to search product specific 
information (i.e., national stock number, 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

[[Page 44818]]

contractors for orders using the Governmentwide commercial purchase 
card (or pay GSA). Ordering offices may access the ``GSA Advantage!'' 
shopping service by connecting to the Internet and using a web browser 
to connect to the Acquisition Reform Network (http://www.arnet.gov) or 
the GSA, Federal Supply Service (FSS) Home Page (http://
www.fss.gsa.gov). For more information or assistance, contact GSA at 
Internet e-mail address: [email protected].
    3. Section 8.402 is added to read as follows:


8.402  Applicability.

    Procedures in this subpart apply to Federal Supply Schedule 
contracts. Occasionally, special ordering procedures may be 
established. In such cases the procedures will be outlined in the 
``Federal Supply Schedules''.
    4. Section 8.404 is amended by revising paragraphs (a) and (b), and 
the paragraph heading of (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, the 
simplified acquisition procedures of part 13 and the small business 
set-aside provisions of subpart 19.5 do not apply except for the 
provision at 13.202(c)(3). Orders placed pursuant to a Multiple Award 
Schedule (MAS), using the procedures in this subpart, 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. GSA 
has already determined the prices of items under schedule contracts to 
be fair and reasonable. By placing an order against a schedule using 
the procedures in this section, the ordering office has concluded that 
the order represents the best value and results in the lowest overall 
cost alternative (considering price, special features, administrative 
costs, etc.) to meet the Government's needs.
    (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 Federal Supply 
Schedule contractor.
    (2) Orders exceeding the micro-purchase threshold but not exceeding 
the maximum order threshold. Orders should be placed with the schedule 
contractor that can provide the supply or service that represents the 
best value. Before placing an order, ordering offices should consider 
reasonably available information about the supply or service offered 
under MAS contracts by using the ``GSA Advantage!'' on-line shopping 
service, or by reviewing the catalogs/pricelists of at least three 
schedule contractors and select the delivery and other options 
available under the schedule that meet the agency's needs. In selecting 
the supply or service representing the best value, the ordering office 
may consider--
    (i) Special features of the supply or service that are required in 
effective program performance and that are not provided by a comparable 
supply or service;
    (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.
    (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. In addition to following the procedures in 
paragraph (b)(2) of this section and before placing an order that 
exceeds the maximum order threshold, ordering offices shall--
    (i) Review additional schedule contractors' catalogs/pricelists or 
use the ``GSA Advantage!'' on-line shopping service;
    (ii) Based upon the initial evaluation, generally seek price 
reductions from the schedule contractor(s) appearing to provide the 
best value (considering price and other factors); and
    (iii) After price reductions have been sought, place the order with 
the schedule contractor that provides the best value and results in the 
lowest overall cost alternative (see 8.404(a)). If further price 
reductions are not offered, an order may still be placed, if the 
ordering office determines that it is appropriate.
    (4) Blanket purchase agreements (BPAs). The establishment of 
Federal Supply Schedule BPAs is permitted (see 13.202(c)(3)) when 
following the ordering procedures in this subpart. All schedule 
contracts contain BPA provisions. Ordering offices may use BPAs to 
establish accounts with contractors to fill recurring requirements. 
BPAs should address the frequency of ordering and invoicing, discounts, 
and delivery locations and times.
    (5) Price reductions. In addition to the circumstances outlined in 
paragraph (b)(3) of this section, there may be instances when ordering 
offices will find it advantageous to request a price reduction. For 
example, when the ordering office finds a schedule supply or service 
elsewhere at a lower price or when a 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 greater 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.
    (6) 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.
    (7) Documentation. Orders should be documented, at a minimum, by 
identifying the contractor the item was purchased from, the item 
purchased, and the amount paid. If an agency requirement in excess of 
the micro-purchase threshold is defined so as to require a particular 
brand name, product, or a feature of a product peculiar to one 
manufacturer, thereby precluding consideration of a product 
manufactured by another company, the ordering office shall include an 
explanation in the file as to why the particular brand name, product, 
or feature is essential to satisfy the agency's needs.
    (c) Ordering procedures for mandatory use schedules.  * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

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


13.202  Establishment of blanket purchase agreements (BPAs).

    (a) * * *
    (4) There is no existing requirements contract for the same supply 
or service that the contracting activity is required to use.
* * * * *
    (c) * * *
    (3) Federal Supply Schedule contractors, if not inconsistent with 
the

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terms of the applicable schedule contract.
* * * * *

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. 97-21493 Filed 8-21-97; 8:45 am]
BILLING CODE 6820-EP-P