[Federal Register Volume 64, Number 20 (Monday, February 1, 1999)]
[Rules and Regulations]
[Pages 4788-4790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1973]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 511, 516, 542, and 552

[APD 2800.12A, CHGE 81]
RIN 3090-AG81


General Services Administration Acquisition Regulation; 
Streamlining Administration of Federal Supply Service (FSS) Multiple 
Award Schedule (MAS) Contracts and Clarifying Marking Requirements

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule with request for comments.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to clarify requirements for marking deliveries under 
contracts that provide for delivery to both civilian and military 
locations, clarify the contracting activities that are authorized to 
place orders under Federal Supply Service (FSS) contracts, allowing 
Procuring Contracting Officers (PCOs) in FSS in authorize 
Administrative Contracting Officers (ACOs) to issue cure or show cause 
notices, revise the time for submission to close-out reports under FSS 
multiple award schedule (MAS) contracts, and simplify the process for 
deleting items from FSS MAS contracts.

DATES: Effective date: February 1, 1999. Comments should be submitted 
in writing to the address shown below on or before April 2, 1999.

ADDRESSES: Mail comments to General Services Administration, Office of 
Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F 
Street, NW., Room 4012, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:
Gloria Sochon, GSA Acquisition Policy Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

    GSA is amending the GSAR for clarification and to delete 
unnecessary review requirements. GSAR 511.204 is amended to clarify the 
applicability of the clause at GSAR 552.211-73, Marking, so that 
deliveries are properly labeled for delivery at military or civilian 
locations. GSAR 516.505 and 552.216-73 are amended to define activities 
authorized to place orders under an FSS schedule contract when the 
contract provides that ordering activities may place orders directly. 
They are also amended to reflect that schedule contracts may provide 
for either or both task and delivery orders. GSAR 542.302 is amended to 
allow FSS PCOs to authorize ACOs to issue show cause or cure notices. 
This will streamline FSS's internal processes and allow for quicker 
response to contractor performance problems. GSAR 552.238-72 is amended 
to change the time for submission to contract close-out reports to 
eliminate a potential conflict between the required report date and the 
final date of performance of delivery orders. GSAR 552.238-76 is 
amended to change the reference to ``maximum order limit'' to ``maximum 
order threshold.'' This is an administrative change to make 552.238-76 
consistent with Federal Acquisition Regulation (FAR) subpart 8.4. GSAR 
552.243-72 is amended to allow FSS MAS contractors to delete items 
without prior approval. This will remove a burdensome and time-
consuming procedure that does not have value for the Government. GSAR 
552.243-72 is also revised to give contractors the option of publishing 
supplemental price lists as modifications occur or on a quarterly 
basis. This recognizes that many contractors now issue electronic 
notices of changes and that modifications occur with such frequency 
that grouping changes to periodic updates in paper is more efficient 
for both contractors and the Government. GSAR 552.243-72 is also 
revised to update a FAR reference and to delete a reference to an 
obsolete cause.

B. Executive Order 12866

    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.

C. Regulatory Flexibility Act

    The GSA certifies that this interim 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. The change will benefit all FSS MAS contractors, large and small, 
by streamlining administrative requirements.

--The change to the time for submission of contract close-out reports 
eliminates a potential conflict between the required report date and 
the final date of performance of delivery orders; this avoids placing a 
potentially impracticable requirement on FSS contractors.
--Updating the definition of activities authorized to place orders 
under FSS schedule contracts is necessary to accurately reflect current 
authority and avoid inconsistency with other order FSS solicitation and 
contract terms.
--Allowing FSS MAS contractors to delete items without prior approval 
will remove a burdensome and time-consuming procedure that does not 
have value for the Government. It allows contractors to provide 
potential customers the most current information on contract items.
--Contractors will have the option of publishing supplemental price 
lists as modifications occur or on a quarterly basis; letting them 
choose the most efficient method based on their individual 
circumstances.

D. Paperwork Reduction Act

    The revised clause at 552.216-73 contains an information collection 
requirement subject to the Paperwork Reduction Act (44 U.S.C. 3501 et 
seq.). However, the revisions to the clause made by this rule do not 
affect the information collection requirement which was approved 
previously by OMB and assigned control number 3090-0248. The revised 
clause at 552.238-72, Contractor's Report of Sales, also contains an 
information collection requirement subject to the Paperwork Reduction 
Act. However, the revisions to the clause made by this rule do not 
affect the information collection requirement which was approved

[[Page 4789]]

previously by OMB and assigned control number 3090-0121. The other 
changes in this rule do not impose recordkeeping or information 
collection requirements, or otherwise collect information from 
offerors, contractors, or members of the public that require approval 
of the Office of Management and Budget under 44 U.S.C. 3501 et seq.

E. Determination To Issue an Interim Rule

    Urgent and compelling reasons exist to promulgate this interim rule 
without prior opportunity for public comment. GSA believes this rule 
will provide significant benefits to both the Federal government and 
GSA contractors:

--The change to 511.204 clarifies the applicability of the clause at 
552.211-73, Marking, so that deliveries are properly labeled for 
delivery at military or civilian locations, helping to avoid delays or 
misdeliveries.
--Updating the definition of activities authorized to place orders 
under FSS schedule contracts is necessary to accurately reflect current 
authority and avoid inconsistency with other FSS solicitation and 
contract terms.
--Allowing FSS PCOs to authorize ACOs to issue show cause or cure 
notices streamlines FSS's internal processes and allows for quicker 
response to contractor performance problems.
--The change to the time for submission of contract close-out reports 
eliminates a potential conflict between the required report date and 
the final date of performance of delivery orders; this avoids placing a 
potentially impracticable requirement on FSS contractors.
--The change to allow FSS MAS contractors to delete items without prior 
approval will remove a burdensome and time-consuming procedure that 
does not have value for the Government. Preapproval of deletions is not 
necessary either for ascertaining cost reasonableness or to maintain 
control over the contract. Quicker notification of deletions will in 
fact help Federal agencies avoid ordering discontinued items.
--Giving contractors the option of publishing supplemental price lists 
as modifications occur or on a quarterly basis allows contractors to 
choose the most efficient method of notification and reduces the filing 
burden on Government users.

    However, Pursuant to Pub. L. 98-577 and FAR 1.501, GSA will 
consider public comments received in response to this interim rule in 
the formation of the final rule.

List of Subjects in 48 CFR Parts 511, 516, 542, and 552

    Government procurement.

    Accordingly, 48 CFR is amended as follows:
    1. The authority citation for 48 CFR parts 511, 516, 542, and 552 
continues to read as follows:

    Authority: 40 U.S.C. 486(c).

PART 511--DESCRIBING AGENCY NEEDS

    2. Section 511.204 is amended by revising paragraph (c) to read as 
follows:


511.204  Solicitation provisions and contract clauses.

* * * * *
    (c) The contracting officer shall include the clause at 552.211-73, 
Marking, in solicitations and contracts for supplies when deliveries 
may be made to both civilian and military activities and the contract 
amount is expected to exceed the simplified acquisition threshold.
* * * * *

PART 516--TYPES OF CONTRACTS

    3. Section 516.505 is amended by revising paragraph (a) to read as 
follows:


516.505  Contract clauses.

    (a) The contracting officer shall insert the clause at 552.216-73. 
Placement of Orders, in solicitations and contracts for stock or 
special order program items when the contract authorizes FSS and other 
agencies to issue delivery orders. If only FSS will issue delivery 
orders under any of its supply programs, use Alternate I. If a Federal 
Supply Schedule contract (single or multiple award) permits other 
organizations to issue task or delivery orders, use Alternate II.
* * * * *

PART 542--CONTRACT ADMINISTRATION

    4. Section 542.302 is amended by revising paragraph (b)(5) to read 
as follows:


542.302  Contract administration functions.

* * * * *
    (b) * * *
* * * * *
    (5) Issue cure or show cause notices (only applies to ACOs in FSS).
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 552.216-73 is amended by revising Alternate II to read 
as follows:


552.216-73  Placement of orders.

* * * * *
    Alternate II (Feb. 1999). As prescribed in 516.505(a), substitute 
the following paragraph (a) for paragraph (a) of this basic clause:

    (a) The organizations listed below may place orders under this 
contract. Questions regarding organizations authorized to use this 
schedule should be directed to the Contracting Officer.
    (1) Executive agencies.
    (2) Other Federal agencies.
    (3) Mixed-ownership Government corporations.
    (4) The District of Columbia.
    (5) Government contractors authorized in writing by a Federal 
agency pursuant to 48 CFR 51.1.
    (6) Other activities and organizations authorized by statute or 
regulation to use GSA as a source of supply.

    6. Section 552.238-72 is amended by revising the date of the clause 
and paragraph (e) to read as follows:


552.238-72  Contractor's report of sales.

* * * * *

CONTRACTOR'S REPORT OF SALES (FEB 1999)

* * * * *
    (e) The report is due 30 days following the completion of the 
reporting period. The Contractor must also provide a close-out 
report within 120 days after the expiration of the contract. The 
contract expires upon physical completion of the last, outstanding 
task or delivery order of the contract. The close-out report must 
cover all sales not shown in the final quarterly report and 
reconcile all errors and credits. If the Contractor reported all 
contract sales and reconciled all errors and credits on the final 
quarterly report, then show zero sales in the close-out report.

(End of Clause)

    7. Section 552.238-76 is amended by revising the date of the clause 
and paragraph (d)(1) to read as follows:


552.238-76  Price reductions.

* * * * *

PRICE REDUCTIONS (FEB 1999)

* * * * *
    (d) * * *
    (1) To commercial customers under firm, fixed-price definite 
quantity contracts with specified delivery in excess of the maximum 
order threshold specified in this contract;
* * * * *
    8. Section 552.243-72 is amended by revising the date of the clause 
and paragraphs (b)(1) (v) and (vi), the first sentence of (b)(3), (c), 
(d) and (e) to read as follows:


552.243-72  Modifications (Multiple Award Schedule).

* * * * *

[[Page 4790]]

MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1999)

* * * * *
    (b) * * *
    (1) * * *
    (v) Production point(s) for the new item(s) or the item(s) under 
the new SIN(s) must be submitted if required by 52.215-6, Place of 
Performance.
    (vi) Hazardous material information (if applicable) must be 
submitted as required by 52.223-3 (ALT I), Hazardous Material 
Identification and Material Safety Data.
* * * * *
    (3) Price Reduction, The Contractor shall indicate whether the 
price reduction falls under item (i), (ii), or (iii) of paragraph 
(c)(1) of the Price Reductions clause at 552.238-76. * * *
    (c) Effective Dates. The effective date of any modification is 
the date specified in the modification, except as otherwise provided 
in the Price Reductions clause at 552.238-76.
    (d) Electronic File Updates. The Contractor shall update 
electronic file submissions to reflect all modifications. For 
additional items or SINs, the Contractor shall obtain the 
contracting officer's approval before transmitting changes. Contract 
modifications will not be made effective until the Government 
receives the electronic file updates. The Contractor may transmit 
price reductions, item deletions, and corrections without prior 
approval. However, the Contractor shall notify the contracting 
officer as set forth in the Price Reductions clause at 552.238-76.
    (e) Amendments to Paper Federal Supply Schedule Price Lists.
    (1) The Contractor must provide supplements to its paper price 
lists, reflecting the most current changes. The Contractor may 
either:
    (i) Distribute a supplemental paper Federal Supply Schedule 
Price List within 15 days after the effective date of each 
modification.
    (ii) Distribute cumulative supplements. The period covered by a 
cumulative supplement is at the discretion of the Contractor, but 
may not exceed three months from the effective date of the earliest 
modification. The Contractor must distribute a cumulative supplement 
within 15 days from the date of the latest modification covered.
    (2) At a minimum, the Contractor shall distribute each 
supplement to those ordering activities that previously received the 
basic document. In addition, the Contractor shall submit two copies 
of each supplement to the contracting officer and one copy to the 
FSS Schedule Information Center.

(End of Clause)

    Dated: January 21, 1999.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 99-1973 Filed 1-29-99; 8:45 am]
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