[Federal Register Volume 65, Number 244 (Tuesday, December 19, 2000)]
[Proposed Rules]
[Pages 79702-79703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32235]



[[Page 79701]]

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

Part VI





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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



48 CFR Parts 8 and 51



Federal Acquisition Regulation; Federal Supply Schedule Order Disputes 
and Incidental Items; Proposed Rule

  Federal Register / Vol. 65 , No. 244 / Tuesday, December 19, 2000 / 
Proposed Rules  

[[Page 79702]]


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

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8 and 51

[FAR Case 1999-614]
RIN 9000-AJO1


Federal Acquisition Regulation; Federal Supply Schedule Order 
Disputes and Incidental Items

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to add policies on disputes and 
incidental items under Federal Supply Schedule contracts and to remove 
the requirement to notify the General Services Administration when a 
schedule contractor refuses to honor an order placed by a Government 
contractor.

DATES: Interested parties should submit comments in writing on or 
before February 20, 2001 to be considered in the formulation of a final 
rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVRS), 1800 F Street, NW., Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: [email protected]
    Please submit comments only and cite FAR case 1999-614 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC 20405, at (202) 501-4755 for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAR case 1999-614.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule--
     Adds to FAR 8.401 policy regarding incorporating 
incidental supplies or services that are not included in the schedule 
contract into an order placed against the schedule contract;
     Revises FAR 8.405-7 to permit the ordering office 
contracting officer to issue a final decision regarding disputes 
pertaining solely to performance of schedule orders;
     Deletes FAR 51.103(b) because agencies are no longer 
required to notify the General Services Administration when a Federal 
Supply Schedule contractor refuses to honor an order placed by a 
Government contractor under an agency authorization.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Councils do not expect this proposed rule 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 addresses internal Government administrative 
procedures and does not impose any additional requirements on 
Government offerors or contractors. An Initial Regulatory Flexibility 
Analysis has, therefore, not been performed. We invite comments from 
small businesses and other interested parties. The Councils will 
consider comments from small entities concerning the affected FAR Parts 
in accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq. (FAR case 
1999-614), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 Parts 8 and 51

    Government procurement.

    Dated: December 13, 2000.
Al Matera,
Acting Director, Federal Acquisition, Policy Division.
    Therefore, DoD, GSA, and NASA propose that 48 CFR parts 8 and 51 be 
amended as set forth below:
    1. The authority citation for 48 CFR parts 8 and 51 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Amend section 8.401 by adding paragraph (d) to read as follows:


8.401  General.

* * * * *
    (d) For administrative convenience, an ordering office contracting 
officer may add open market (noncontract) items to a Federal Supply 
Schedule blanket purchase agreement (BPA) or an individual task or 
delivery order only if--
    (1) All applicable acquisition regulations have been followed 
(e.g., publicizing (Part 5), competition requirements (Part 6), 
acquisition of commercial items (Part 12), and contracting methods 
(Parts 13, 14, and 15));
    (2) The ordering office contracting officer has determined the 
price for the open market items is reasonable; and
    (3) The items are clearly labeled as open market (noncontract) 
items on the order.
    3. Revise section 8.405-7 to read as follows:

[[Page 79703]]

8.405-7  Disputes.

    (a) Disputes pertaining to the performance of orders under a 
schedule contract. (1) Under the Disputes clause of the schedule 
contract, the ordering office contracting officer may--
    (i) Issue final decisions on disputes arising from performance of 
the order (but see paragraph (b)); or
    (ii) Refer the dispute to the schedule contracting officer.
    (2) The ordering office contracting officer must notify the 
schedule contracting officer promptly of any final decision.
    (b) Disputes pertaining to the terms and conditions of schedule 
contracts. The ordering office contracting officer must refer all 
disputes that relate to the contract terms and conditions to the 
schedule contracting officer for resolution under the Disputes clause 
of the contract and notify the schedule contractor of the referral.
    (c) Appeals. Contractors may appeal final decisions to either the 
Board of Contract Appeals servicing the agency that issued the final 
decision or the U.S. Court of Federal Claims.
    (d) Alternative dispute resolution. The contracting officer should 
use the alternative dispute resolution (ADR) procedures, when 
appropriate (see 33.214).

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS


51.103  [Amended]

    4. Amend section 51.103 by removing paragraph (b) and redesignating 
paragraph (c) as paragraph (b).

[FR Doc. 00-32235 Filed 12-18-00; 8:45 am]
BILLING CODE 6820-EP-U