[Federal Register Volume 67, Number 251 (Tuesday, December 31, 2002)]
[Rules and Regulations]
[Pages 80321-80322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32743]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 39

[FAC 2001-11; FAR Case 2002-012; Item II]
RIN 9000-AJ53


Federal Acquisition Regulation; Section 508 Micro-Purchase 
Exception Sunset Provision

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

ACTION: Interim rule with request for comments.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to extend the 
electronic and information technology (Section 508) micro-purchase 
exception to October 1, 2004.

DATES: Effective Date: January 1, 2003.
    Comment Date: Interested parties should submit comments to the FAR 
Secretariat at the address shown below on or before March 3, 2003 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVA), 1800 F Street, NW., Room 4035, Attn: Ms. Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: [email protected].
    Please submit comments only and cite FAC 2001-11, FAR case 2002-
012, in all correspondence related to this case.

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. The TTY Federal Relay 
Number for further information is 1-800-877-8973. For clarification of 
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900, or Ms. Angelena Moy, Case Manager, at (703) 602-1302. Please cite 
FAC 2001-11, FAR case 2002-012.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule extends the electronic and information technology 
(EIT) micro-purchase exception until October 1, 2004. Previously, in 
incorporating the Access Board standards, the FAR provided an exception 
from the procurement regulations for micro-purchases until January 1, 
2003. The Councils fully expected that many products would conform to 
the standards within that timeframe and be marketed and labeled by the 
manufacturer accordingly. However, industry is providing products at 
varying levels of conformance to the standards, and product packaging 
does not currently provide Section 508 conformance information, in most 
cases.
    The Government is continuing to make compliance a high priority, 
and the award of many Federal EIT procurements have hinged on 
accessibility. While the ``Buy Accessible'' information on the 
Section508.gov Web site is helpful, not all firms have templates 
completed for their products making it especially difficult for 
Government purchase cardholders who are not contracting officers to 
make informed EIT purchases through reasonable effort.
    Typically, Government personnel who are not warranted contracting 
officers use the purchase card to purchase commercial-off-the-shelf 
items. Use of the purchase card makes it generally impractical to 
comply with the EIT accessibility standards unless commercial-off-the-
shelf products are labeled for Section 508 standards compliance. The 
Councils recognize the fact that almost all micro-purchases are made 
using the Governmentwide commercial purchase cards, but also recognize 
that the Government purchases $52 billion per year for EIT products and 
services, of which only a very small percentage are acquired through 
the micro-purchase process with credit cards. Most Government desktop 
personal computers and other infrastructure are purchased and 
controlled through large agency acquisitions.
    By October 1, 2004, we are hopeful that vendors will provide 
statements related to product conformance to the Section 508 standards 
as part of their marketing information and their outer

[[Page 80322]]

packaging labeling. As this occurs, Federal Government cardholders can 
make informed EIT purchases that conform to the Access Board's 
standards, and the micro-purchase exception will no longer be needed.
    Without the extension of the micro-purchase exception, all micro-
purchases may have to go through a special evaluation to ensure they 
comply with EIT Standards. EIT micro-purchases would be forwarded to 
contracting offices for purchase. This would significantly increase the 
workload in procurement offices and the finance offices, causing a 
reduction in efficiency and delivery (increased procurement lead-
times). The potential costs to industry cannot be measured.
    The Councils realized there might be some concern within the 
disability advocacy groups and the Government that extending the micro-
purchase exemption will signal that the Government is relaxing the 
implementation period. That is not the case. It is only intended to 
deal with the small portion of EIT that is acquired with credit cards 
(micro-purchases) and the practical reality that the lack of package 
labeling, or other manufacturer accessibility information, makes 
informed decision making by cardholders especially difficult. To help 
in determining the appropriate next steps for addressing the 
accessibility of EIT micro-purchases, the Councils invite respondents 
to address the following questions in addition to providing comments on 
the rule.
    Any and all comments related to this rule are welcomed. Note that 
public comments provided in response to this notice will be available 
in their entirety to any requester, including any requester under the 
Freedom of Information Act (5 U.S.C. 552). Therefore, we caution 
respondents not to provide proprietary or other business sensitive 
information. Under no circumstances should respondents provide any 
information unless they do so with a clear understanding that it will 
be made available to the public.
    1. For EIT industry respondents, please include in your comments 
responses to the following questions:
    a. What type of training is your company employing to educate your 
developers (hardware and software) and salespersons regarding the 
section 508 requirements?
    b. What mechanisms or approaches should the Government consider to 
ensure EIT micro-purchases (products and services) are accessible?
    c. Do you anticipate your company will label its EIT products with 
buyer information regarding the accessibility aspects of the product 
being offered for sale? If so, when?
    d. Do you offer a complete template of accessibility information 
for each of your EIT products and services on your Web site? If no, why 
not?
    e. Currently, what process does your company employ to provide 
information to potential Government purchasers regarding the 
accessibility features of the products manufactured or sold?
    2. For other respondents, please include in your comments responses 
to the following questions:
    a. What mechanisms or approaches should the Government consider to 
ensure EIT micro-purchases (products and services) are accessible?
    b. Currently, what type of training is being employed by your 
organization to educate purchasers and users regarding the Section 508 
requirements? Is any training specifically geared towards cardholders 
and micro-purchases? If so, how do you explain and communicate the 
Section 508 requirements?
    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 interim rule is not expected 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 for 
purchases under $2,500 (a ``micro-purchase''), no competitive 
quotations have to be obtained and micro-purchases are no longer 
reserved exclusively for small firms. Therefore, an Initial Regulatory 
Flexibility Analysis has not been performed. The Councils will consider 
comments from small entities concerning the affected FAR Part 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. (FAC 2001-11, 
FAR case 2002-012), in correspondence.

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.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because the rule extends an exception that would otherwise 
impose burdens that the Government and contractors are not prepared to 
meet. However, pursuant to Public Law 98-577 and FAR 1.501, the 
Councils will consider public comments received in response to this 
interim rule in the formation of the final rule.

List of Subjects in 48 CFR Part 39

    Government procurement.

    Dated: December 20, 2002.
Jeremy F. Olson,
Acting Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR part 39 as set forth 
below:

PART 39--ACQUISITION OF INFORMATION TECHNOLOGY

    1. The authority citation for 48 CFR part 39 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).


39.204  [Amended]

    2. Amend section 39.204 in the first sentence of paragraph (a) by 
removing ``January 1, 2003'' and adding ``October 1, 2004'' in its 
place.

[FR Doc. 02-32743 Filed 12-30-02; 8:45 am]
BILLING CODE 6820-EP-P