[Federal Register Volume 64, Number 199 (Friday, October 15, 1999)]
[Rules and Regulations]
[Pages 55841-55843]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26987]


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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: Final rule.

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SUMMARY: The Committee is changing 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.

EFFECTIVE DATE: November 15, 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 revising 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 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 revised to change the minimum time for a contracting activity 
to submit required wage determination paperwork to the appropriate 
central nonprofit agency

[[Page 55842]]

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 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 current 
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.

Public Comments on the Proposed Rule

    The Committee published the proposed rule in the Federal Register 
of August 2, 1999 (64 FR 41882). No comments were received. 
Accordingly, the Committee's regulations are being amended as stated in 
the proposed rule.

Regulatory Flexibility Act

    I certify that this 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 final 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 final rule is not a significant 
regulatory action as defined in the Executive Order.

List of Subjects in

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 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:


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

[[Page 55843]]

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: October 12, 1999.
Beverly L. Milkman,
Executive Director.
[FR Doc. 99-26987 Filed 10-14-99; 8:45 am]
BILLING CODE 6353-01-P