[Federal Register Volume 64, Number 147 (Monday, August 2, 1999)]
[Proposed Rules]
[Pages 41882-41883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18864]



[[Page 41882]]

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COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED

41 CFR Parts 51-2 and 51-5


Miscellaneous Amendments to Committee Regulations

AGENCY: Committee for Purchase From People Who Are Blind or Severely 
Disabled.

ACTION: Proposed rule.

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SUMMARY: The Committee is proposing to make changes to its pricing and 
shipping regulations to make them consistent with new Committee pricing 
policies reflecting a preference for negotiated rather than formula-
based fair market prices.

DATES: Submit comments on or before October 1, 1999.

ADDRESSES: Committee for Purchase From People Who Are Blind or Severely 
Disabled, Crystal Gateway 3, Suite 310, 1215 Jefferson Davis Highway, 
Arlington, Virginia 22202-4302.

FOR FURTHER INFORMATION CONTACT: G. John Heyer (703) 603-0665. Copies 
of this notice will be made available on request in computer diskette 
format.

SUPPLEMENTARY INFORMATION: The Committee is proposing to revise 41 CFR 
51-2.7, the Committee's general fair market pricing regulation, to 
reflect the preference for negotiated prices set forth in the 
Committee's recently-adopted pricing policies and the methods of price-
setting established by those policies. Paragraph (a) of 41 CFR 51-5.5 
is proposed to be revised to emphasize the statutory nature of the 
Committee's price-setting authority. This revision is intended to 
emphasize the exemption of the Committee's prices from a statutory 
requirement that cost or pricing data be submitted to contracting 
activities before a price can be negotiated and recommended to the 
Committee. Paragraph (d)(2) of 41 CFR 51-5.5 is proposed to be revised 
to change the minimum time for a contracting activity to submit 
required wage determination paperwork to the appropriate central 
nonprofit agency from 90 to 60 days before the beginning of a new 
service period, and to eliminate the requirement for submission of 
Standard Form 98, which is no longer needed to learn the applicable 
wage determination rate. Paragraph (e) of 41 CFR 51-5.5 is proposed to 
be revised to give more flexibility in pricing of special packaging and 
marking of products and to accommodate current contract documentation.
    Prior to a November 16, 1994 change to the Committee's regulations 
(59 FR 59338), pricing and delivery terms for JWOD commodities, other 
than military resale commodities, were on an ``F.O.B. origin'' basis. 
The 1994 change permitted use of ``F.O.B. destination'' as an 
alternative. Since then, the Committee's commodity pricing policies 
have been revised to designate ``F.O.B. destination'' as the preferred 
pricing and delivery basis. ``F.O.B. origin'' pricing and delivery 
remain available as an alternative when the nonprofit agency and the 
Government contracting activity agree to use this basis. The proposed 
revision of the shipping regulation (41 CFR 51-5.6) reflects the change 
in Committee pricing policy by identifying ``F.O.B. destination'' as 
the preferred pricing and shipping basis for all JWOD commodities, with 
``F.O.B. origin'' as a possible alternative basis.

Regulatory Flexibility Act

    I certify that this proposed revision of the Committee regulations 
will not have a significant economic impact on a substantial number of 
small entities because the revision clarifies program policies and does 
not essentially change the impact of the regulations on small entities.

Paperwork Reduction Act

    The Paperwork Reduction Act does not apply to this proposed rule 
because it contains no new information collection or recordkeeping 
requirements as defined in that Act and its regulations.

Executive Order No. 12866

    The Committee has been exempted from the regulatory review 
requirements of the Executive Order by the Office of Information and 
Regulatory Affairs. Additionally, the proposed rule is not a 
significant regulatory action as defined in the Executive Order.

List of Subjects

41 CFR Part 51-2

    Organization and functions (Government agencies).

41 CFR Part 51-5

    Government procurement, Handicapped.

    For the reasons set out in the preamble, Parts 51-2 and 51-5 of 
Title 41, Chapter 51 of the Code of Federal Regulations are proposed to 
be amended as follows:
    1. The authority citation for Parts 51-2 and 51-5 continues to read 
as follows:

    Authority: 41 U.S.C. 46-48c.

PART 51-2--COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR 
SEVERELY DISABLED

    2. Section 51-2.7 is revised to read as follows:


Sec. 51-2.7  Fair market price.

    (a) The Committee is responsible for determining fair market 
prices, and changes thereto, for commodities and services on the 
Procurement List. The Committee establishes an initial fair market 
price at the time a commodity or service is added to the Procurement 
List. This initial price is based on Committee procedures, which permit 
negotiations between the contracting activity and the nonprofit agency 
which will produce or provide the commodity or service to the 
Government, assisted by the appropriate central nonprofit agency. If 
agreed to by the negotiating parties, the initial price may be 
developed using other methodologies specified in Committee pricing 
procedures.
    (b) Prices are revised in accordance with changing market 
conditions under Committee procedures, which include negotiations 
between contracting activities and producing nonprofit agencies, 
assisted by central nonprofit agencies, or the use of economic indices, 
changes in nonprofit agency costs, or other methodologies permitted 
under these procedures.
    (c) Recommendations for initial fair market prices, or changes 
thereto, shall be submitted jointly by the contracting activities and 
nonprofit agencies concerned to the appropriate central nonprofit 
agency. After review and analysis, the central nonprofit agency shall 
submit the recommended prices and methods by which prices shall be 
changed to the Committee, along with the information required by 
Committee pricing procedures to support each recommendation. The 
Committee will review the recommendations, revise the recommended 
prices where appropriate, and establish a fair market price, or change 
thereto, for each commodity or service which is the subject of a 
recommendation.

PART 51-5--CONTRACTING REQUIREMENTS

    3. Section 51-5.5 is amended by revising paragraphs (a), (d)(2), 
and (e), to read as follows:

[[Page 41883]]

Sec. 51-5.5  Prices.

    (a) The prices for items on the Procurement List are fair market 
prices established by the Committee under authority of the Javits-
Wagner-O'Day Act (41 U.S.C. 47(b)).
* * * * *
    (d) * * *
    (2) Provide a copy of the new wage determination rate or the 
Department of Labor document stating that the wage determination rate 
is unchanged to the central nonprofit agency at least 60 days before 
the beginning of the new service period.
* * * * *
    (e) If a contracting activity desires packing, packaging, or 
marking of products other than the standard pack or as provided in the 
Procurement List, any difference in cost shall be negotiated with the 
nonprofit agency.
    4. Section 51-5.6 is revised to read as follows:


Sec. 51-5.6  Shipping.

    (a) Except as provided in paragraph (b) of this section, 
commodities are sold to the Government on an ``F.O.B. destination'' 
basis, with delivery being accomplished when the shipment reaches the 
facility designated by the contracting activity. Time of delivery is 
when the shipment is released by the carrier and accepted by the 
contracting activity or its agent. In this delivery method, the 
nonprofit agency will normally use commercial bills of lading and will 
be responsible for any loss or damage to the goods occurring before the 
commodities reach the designated delivery point. The nonprofit agency 
will prepare and distribute commercial bills of lading, furnish 
delivery schedules, designate the carriers, and pay all shipping 
charges to specified delivery points.
    (b) The Committee may determine that certain commodities are to be 
sold to the Government on an ``F.O.B. origin'' basis, with delivery 
being accomplished when a shipment is placed aboard the vehicle of the 
initial carrier. Time of delivery is when the shipment is released to 
and accepted by the initial carrier. In this delivery method, the 
nonprofit agency will normally use Government bills of lading, and 
responsibility for loss or damage to the goods while in transit passes 
to the Government at the time the initial carrier accepts a shipment. 
If the contracting activity fails to furnish a Government bill of 
lading promptly, such failure shall be considered an excusable delay in 
delivery.

    Dated: July 20, 1999.
Beverly L. Milkman,
Executive Director.
[FR Doc. 99-18864 Filed 7-30-99; 8:45 am]
BILLING CODE 6353-01-P