[Federal Register Volume 63, Number 35 (Monday, February 23, 1998)]
[Rules and Regulations]
[Pages 9068-9069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4306]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 39
[FAC 97-04; FAR Case 96-605; Item XV]
RIN 9000-AH55
Federal Acquisition Regulation; Modular Contracting
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) to implement Section 5202 of
the Information Technology Management Reform Act (ITMRA) of 1996, which
encourages maximum practicable use of modular contracting in acquiring
information technology. ITMRA is part of the Clinger-Cohen Act of 1996
(Public Law 104-106). 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: April 24, 1998.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, 1800 F
Street, NW, 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 97-04, FAR case 96-605.
SUPPLEMENTARY INFORMATION:
A. Background
A proposed rule with request for comment and notice of public
meeting was published in the Federal Register (62 FR 14756) on March
27, 1997. Comments were received from four respondents. All comments
were considered in the development of the final rule. The final rule
differs from the proposed rule by adding in paragraph 39.103(d) ``task
order contracts'' as another example.
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, while it may affect
the structure of certain information technology (IT) acquisition
programs, it will not impose any specific cost burden on small
entities. The modular contracting approach should slightly benefit
small entities, because use of modular contracting techniques should
increase the number of business opportunities available to them. When a
modular contracting approach is used, large, complex IT systems
acquisitions will be divided into smaller, discrete increments that may
subsequently be made available to small entities for competition.
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 Part 39
Government procurement.
Dated: February 13, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 39 is amended as set forth below:
PART 39--ACQUISITION OF INFORMATION TECHNOLOGY
1. The authority citation for 48 CFR Part 39 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 39.002 is amended by adding in alphabetical order the
definition of ``Modular contracting'' to read as follows:
39.002 Definitions.
Modular contracting, as used in this part, means use of one or more
contracts to acquire information technology systems in successive,
interoperable increments.
* * * * *
3. Section 39.103 is added to read as follows:
39.103 Modular contracting.
(a) This section implements Section 5202, Incremental Acquisition
of Information Technology, of the Clinger-Cohen Act of 1996 (Public Law
104-106). Modular contracting is intended to reduce program risk and to
incentivize contractor performance while meeting the Governments need
for timely access to rapidly changing technology. Consistent with the
agency's information technology architecture, agencies should, to the
maximum extent practicable, use modular contracting to acquire major
systems (see 2.101) of information technology. Agencies may also use
modular contracting to acquire non-major systems of information
technology.
(b) When using modular contracting, an acquisition of a system of
information technology may be divided into several smaller acquisition
increments that--
(1) Are easier to manage individually than would be possible in one
comprehensive acquisition;
(2) Address complex information technology objectives incrementally
in order to enhance the likelihood of achieving workable systems or
solutions for attainment of those objectives;
(3) Provide for delivery, implementation, and testing of workable
systems or solutions in discrete increments, each of which comprises a
system or solution that is not dependent on any subsequent increment in
order to perform its principal functions;
(4) Provide an opportunity for subsequent increments to take
advantage of any evolution in technology or needs that occur during
implementation and use of the earlier increments; and
(5) Reduce risk of potential adverse consequences on the overall
project by
[[Page 9069]]
isolating and avoiding custom-designed components of the system.
(c) The characteristics of an increment may vary depending upon the
type of information technology being acquired and the nature of the
system being developed. The following factors may be considered:
(1) To promote compatibility, the information technology acquired
through modular contracting for each increment should comply with
common or commercially acceptable information technology standards when
available and appropriate, and shall conform to the agency's master
information technology architecture.
(2) The performance requirements of each increment should be
consistent with the performance requirements of the completed, overall
system within which the information technology will function and should
address interface requirements with succeeding increments.
(d) For each increment, contracting officers shall choose an
appropriate contracting technique that facilitates the acquisition of
subsequent increments. Pursuant to Parts 16 and 17 of the Federal
Acquisition Regulations, contracting officers shall select the contract
type and method appropriate to the circumstances (e.g., indefinite
delivery, indefinite quantity contracts, single contract with options,
successive contracts, multiple awards, task order contracts).
Contract(s) shall be structured to ensure that the Government is not
required to procure additional increments.
(e) To avoid obsolescence, a modular contract for information
technology should, to the maximum extent practicable, be awarded within
180 days after the date on which the solicitation is issued. If award
cannot be made within 180 days, agencies should consider cancellation
of the solicitation in accordance with 48 CFR 14.209 or 15.206(e). To
the maximum extent practicable, deliveries under the contract should be
scheduled to occur within 18 months after issuance of the solicitation.
[FR Doc. 98-4306 Filed 2-20-98; 8:45 am]
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