[Federal Register Volume 64, Number 116 (Thursday, June 17, 1999)]
[Rules and Regulations]
[Page 32746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15149]



[[Page 32746]]

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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 16

[FAC 97-12; FAR Case 98-007; Item IV]
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: Final rule.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (the Councils) have agreed on a final 
rule. The final rule amends the Federal Acquisition Regulation (FAR) to 
clarify the procedures governing placement of orders under multiple 
award indefinite-delivery contracts.

EFFECTIVE DATE: August 16, 1999.

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 FAC 97-12, FAR case 98-007.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule amends the procedures for placing orders under 
multiple award contracts at FAR 16.505(b). The rule emphasizes that 
agencies must use only fair methods when placing orders. For example, 
the contracting officer must not employ allocation or designation of 
any preferred awardee(s) that would result in less than fair 
consideration being given to all awardees prior to placing each order.
    The Councils published a proposed rule in the Federal Register at 
63 FR 48416, September 9, 1998.
    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.

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. The rule merely amends the FAR 
to clarify the existing prohibition against allocation of orders placed 
under multiple award contracts.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose information collection requirements that 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: June 9, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 16 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. Amend section 16.505 by revising paragraph (b)(1); by 
redesignating paragraphs (b)(2), (b)(3), and (b)(4) as (b)(4), (b)(5), 
and (b)(6), respectively and adding new paragraphs (b)(2) and (b)(3); 
and by revising newly designated paragraphs (b)(4)(i) and (b)(4)(ii) to 
read as follows:


16.505  Ordering.

* * * * *
    (b) Orders under multiple award contracts. (1) Except as provided 
in paragraph (b)(4) of this section, for orders issued under multiple 
delivery order contracts or multiple task order contracts, each awardee 
must 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 must exercise broad discretion. The contracting officer, in 
making decisions on the award of any individual task order, should 
consider factors such as--
    (i) Past performance on earlier tasks under the multiple award 
contract;
    (ii) Quality of deliverables;
    (iii) Cost control;
    (iv) Price;
    (v) Cost; or
    (vi) Other factors that the contracting officer believes are 
relevant.
    (2) In evaluating past performance on individual orders, the 
procedural requirements in subpart 42.15 are not mandatory.
    (3) The contracting officer must set forth in the solicitation and 
contract the procedures and selection criteria that will be used to 
provide multiple awardees a fair opportunity to be considered for each 
order. 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 awardee(s), that would result in less than fair 
consideration being given to all awardees prior to placing each order, 
are prohibited. Formal evaluation plans or scoring of quotes or offers 
is 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.
    (4) * * *
    (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. 99-15149 Filed 6-16-99; 8:45 am]
BILLING CODE 6820-EP-P