[Federal Register Volume 63, Number 174 (Wednesday, September 9, 1998)]
[Proposed Rules]
[Page 48416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24140]



[[Page 48415]]

_______________________________________________________________________

Part VI





Department of Defense





_______________________________________________________________________





General Services Administration





_______________________________________________________________________





National Aeronautics and Space Administration





_______________________________________________________________________



48 CFR Part 16



Federal Acquisition Regulation; Competition Under Multiple Award Task 
and Delivery Order Contracts; Proposed Rule

  Federal Register / Vol. 63, No. 174 / Wednesday, September 9, 1998 / 
Proposed Rules  

[[Page 48416]]



DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 16

[FAR Case 98-007]
RIN 9000-AI08


Federal Acquisition Regulation; Competition Under Multiple Award 
Task and Delivery Order Contracts

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to clarify the procedures governing 
placement of orders under multiple award indefinite delivery contracts. 
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 November 9, 1998 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVR), Attn: Ms. 
Laurie Duarte, 1800 F Street, NW, Room 4035, Washington, DC 20405.
    E-mail comments submitted over Internet should be addressed to: 
[email protected].
    Please cite FAR case 98-007 in all correspondence related to this 
case.

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 Mr. Ralph DeStefano, Procurement Analyst, at (202) 
501-1758. Please cite FAR case 98-007.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the procedures for placing orders under 
multiple award contracts at FAR 16.505(b)(1) to emphasize that agencies 
shall not use any method of placing orders, such as allocation or 
designation of any preferred awardee(s), that would result in fair 
consideration not being given to all awardees prior to placing each 
order. The proposed rule also makes some editorial changes at FAR 
16.505(b)(2).

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 amends the FAR to clarify the existing prohibition against 
allocation of orders placed under multiple award contracts. An Initial 
Regulatory Flexibility Analysis has, therefore, not been performed. 
Comments are invited from small businesses and other interested 
parties. 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 98-007), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 16

    Government procurement.

    Dated: September 2, 1998.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, it is proposed that 48 CFR Part 16 be amended as set 
forth below:

PART 16--TYPES OF CONTRACTS

    1. The authority citation for 48 CFR Part 16 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 16.505 is amended by revising paragraphs (b)(1), 
(b)(2)(i), and (b)(2)(ii) to read as follows:


16.505  Ordering.

* * * * *
    (b) Orders under multiple award contracts. (1) Except as provided 
in paragraph (b)(2) of this section, for orders issued under multiple 
delivery order contracts or multiple task order contracts, each awardee 
shall be provided a fair opportunity to be considered for each order in 
excess of $2,500. In determining the procedures for providing awardees 
a fair opportunity to be considered for each order, contracting 
officers shall exercise broad discretion. The contracting officer, in 
making decisions on the award of any individual task order, should 
consider factors such as past performance on earlier tasks under the 
multiple award contract, quality of deliverables, cost control, price, 
cost, or other factors that the contracting officer believes are 
relevant. In evaluating past performance on individual orders, the 
procedural requirements in subpart 42.15 are not mandatory. The 
procedures and selection criteria that will be used to provide multiple 
awardees a fair opportunity to be considered for each order must be set 
forth in the solicitation and contract. The procedures for selecting 
awardees for the placement of particular orders need not comply with 
the competition requirements of part 6. However, methods such as 
allocation, or designation in any way of any preferred awardees, that 
would result in less than fair consideration being given to all 
awardees prior to placing each order is prohibited. Formal evaluation 
plans or scoring of quotes or offers are not required. Agencies may use 
oral proposals and streamlined procedures when selecting an order 
awardee. In addition, the contracting officer need not contact each of 
the multiple awardees under the contract before selecting an order 
awardee if the contracting officer has information available to ensure 
that each awardee is provided a fair opportunity to be considered for 
each order.
    (2) * * *
    (i) The agency need for the supplies or services is so urgent that 
providing the opportunity would result in unacceptable delays;
    (ii) Only one contractor is capable of providing the supplies or 
services at the level of quality required because the supplies or 
services are unique or highly specialized;
* * * * *
[FR Doc. 98-24140 Filed 9-8-98; 8:45 am]
BILLING CODE 6820-EP-P