[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
[[Page 44819]]
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