[Federal Register Volume 64, Number 14 (Friday, January 22, 1999)]
[Proposed Rules]
[Pages 3618-3619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1316]
[[Page 3617]]
_______________________________________________________________________
Part IV
Department of Defense
General Services Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 17 and 52
Federal Acquisition Regulation: Option Clause Consistency; Proposed
Rule
Federal Register / Vol. 64, No. 14 / Friday, January 22, 1999 /
Proposed Rules
[[Page 3618]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 17 and 52
[FAR Case 98-606]
RIN 9000-AI26
Federal Acquisition Regulation; Option Clause Consistency
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) to make the format of the Option to Extend
Services clause consistent with the format of other FAR option clauses.
The change also permits the time period for providing a preliminary
notice of the Government's intent to exercise a contract option to be
tailored.
DATES: Comments should be submitted on or before March 23, 1999 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: 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 98-606 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 98-606.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends the clause at FAR 52.217-8, Option to
Extend Services, to permit the contracting officer to insert, in the
clause, a time period for exercise of the option consistent with other
option clauses at FAR 52.217-6, -7, and -9. This proposed rule also
amends the clause at FAR 52.217-9, Option to Extend the Term of the
Contract, to clarify that the time period for providing preliminary
notice of option exercise may be tailored. The current prescription for
the clause permits the use of a clause ``substantially the same as''
the clause at FAR 52.217-9. This proposed change emphasizes that 60
days is the standard number of days within which to provide notice, but
the contracting officer may specify a different number of days, when
appropriate. Finally, an editorial amendment is made at FAR 17.208(g).
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 clause pertaining to option to extend services to
permit insertion of an option period within the clause, rather than in
the contract schedule. The rule also clarifies existing FAR guidance
pertaining to preliminary notice of the Government's intent to exercise
a contract option. 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 subparts 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 98-606), 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. 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.
List of Subjects in 48 CFR Parts 17 and 52
Government procurement.
Dated: January 14, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, it is proposed that 48 CFR Parts 17 and 52 be amended as
set forth below:
1. The authority citation for 48 CFR Parts 17 and 52 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 17--SPECIAL CONTRACTING METHODS
2. Section 17.208 is amended by revising paragraph (g) to read as
follows:
17.208 Solicitation provisions and contract clauses.
* * * * *
(g) The contracting officer shall insert a clause substantially the
same as the clause at 52.217-9, Option to Extend the Term of the
Contract, in solicitations and contracts when the inclusion of an
option is appropriate (see 17.200 and 17.202) and it is necessary to
include in the contract any or all of the following:
(1) A requirement that the Government shall give the contractor a
preliminary written notice of its intent to extend the contract.
(2) A statement that an extension of the contract includes an
extension of the option.
(3) A specified limitation on the total duration of the contract.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Section 52.217-8 is amended by revising the clause date and the
clause to read as follows:
52.217-8 Option to Extend Services.
* * * * *
OPTION TO EXTEND SERVICES [DATE]
The Government may require continued performance of any services
within the limits and at the rates specified in the contract. These
rates may be adjusted only as a result of revisions to prevailing
labor rates provided by the Secretary of Labor. The option provision
may be exercised more than once, but the total extension of
performance hereunder shall not exceed 6 months. The Contracting
Officer may exercise the option by written notice to the Contractor
within [insert the period of time within which the Contracting
Officer may exercise the option].
(End of clause)
3. Section 52.217-9 is amended by revising the clause date and
paragraph (a) of the clause to read as follows:
52.217-9 Option to Extend the Term of the Contract.
* * * * *
OPTION TO EXTEND THE TERM OF THE CONTRACT [DATE]
(a) The Government may extend the term of this contract by
written notice to the Contractor within [insert the period of time
within which the Contracting Officer may
[[Page 3619]]
exercise the option], provided that the Government shall give the
Contractor a preliminary written notice of its intent to extend at
least ______ days [60 days unless a different number of days is
inserted] before the contract expires. The preliminary notice does
not commit the Government to an extension.
* * * * *
(End of clause)
[FR Doc. 99-1316 Filed 1-21-99; 8:45 am]
BILLING CODE 6820-EP-P