[Federal Register Volume 68, Number 199 (Wednesday, October 15, 2003)]
[Proposed Rules]
[Pages 59510-59512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-26024]



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Part III





General Services Administration





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48 CFR Parts 511 and 552



General Services Administration Acquisition Regulation; Defense 
Priorities and Allocations System; Proposed Rule

  Federal Register / Vol. 68, No. 199 / Wednesday, October 15, 2003 / 
Proposed Rules  

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 511 and 552

[GSAR Case No. 2003-G502]
RIN 3090-AH88


General Services Administration Acquisition Regulation; Defense 
Priorities and Allocations System

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Proposed rule.

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SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Administration Acquisition Regulation (GSAR) 
to implement the Defense Priorities and Allocations System (DPAS) 
within the GSA Federal Supply Service (FSS).

DATES: Interested parties should submit comments to the Regulatory 
Secretariat at the address shown below on or before November 14, 2003, 
to be considered in the formulation of a final rule.

ADDRESSES: Submit written comments to--

    General Services Administration, Regulatory 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 2003-G502 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat at (202) 
501-4225, for information pertaining to status or publication 
schedules. For clarification of content, contact Mr. Gerald Zaffos, 
Procurement Analyst, at (202) 208-6091. Please cite GSAR case 2003-
G502.

SUPPLEMENTARY INFORMATION:

A. Background

    FAR Subpart 11.6 implements the Defense Priorities and Allocations 
System (DPAS), a Department of Commerce (DoC) regulation in support of 
the national defense (see 15 CFR part 700). The DoC delegates authority 
to Delegate Agencies to place priority ratings on contracts and orders 
that support authorized programs. GSA is a Delegate Agency.
    FAR 11.603(f) instructs agencies to provide contracting officers 
with specific guidance on the issuance of rated orders. The GSA Federal 
Supply Service issues single award and multiple award Federal Supply 
Schedule contracts. These contracts are not rated orders as defined by 
DPAS. However, from time to time, an order placed against one of these 
schedule contracts may be a rated order. This rule would provide GSA 
contracting officers with the required specific guidance by adding a 
new subpart to the GSAR. The rule also requires the use of a clause 
that explains to schedule contractors their obligations under DPAS.

B. Executive Order 12866

    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.

C. Regulatory Flexibility Act

    GSA does 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 primarily provides instructions for GSA contracting 
officers on including a contract clause in Federal Supply Schedules, 
and information on placing DPAS rated orders. Contractors are already 
required to give priority to DPAS rated orders under Title I of the 
Defense Production Act of 1950, as amended (50 U.S.C. app 2061, et 
seq.) An Initial Regulatory Flexibility Analysis has, therefore, not 
been performed. GSA will consider comments from small entities 
concerning the affected GSAR subparts 511 and 552 in accordance with 5 
U.S.C. 610. Interested parties must submit such comments separately and 
should cite GSAR case 2003-502, in correspondence.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
change to the GSAR does 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 511 and 552

    Government procurement.

    Dated: October 7, 2003.
David A. Drabkin,
Deputy Associate Administrator, Office of Acquisition Policy.

    Therefore, GSA proposes to amend 48 CFR parts 511 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 511 and 552 continues to 
read as follows:

    Authority: 40 U.S.C. 121(c).

PART 511--DESCRIBING AGENCY NEEDS

    2. Subpart 511.X is added to read as follows:

Subpart 511.X--PRIORITIES AND ALLOCATIONS

Sec.
511.X00 Scope of subpart.
511.X01 Definitions.
511.X02 General.
511.X03 Procedures.
511.X04 Solicitation provision and contract clause.


511.X00  Scope of subpart.

    FAR Subpart 11.6 implements the Defense Priorities and Allocations 
System (DPAS), a Department of Commerce (DoC) regulation (15 CFR part 
700) to assure timely delivery of industrial resources (products, 
materials, and services) in support of approved national defense, 
energy, and civil emergency preparedness (Homeland Security) programs. 
Pursuant to DPAS Delegation 3, DoC delegated GSA the authority to use 
the DPAS in support of the GSA Federal supply system. This subpart 
implements the DPAS within GSA.


511.X01  Definitions.

    As used in this subpart--
    Approved Program means a program determined as necessary or 
appropriate for priorities and allocations support to promote the 
national defense. See Schedule 1 of 15 CFR part 700 for a list of 
Delegate Agencies, approved programs, and program identification 
symbols at http://www.bxa.doc.gov/ DefenseIndustrial BasePrograms /
OSIES/DPAS/Default.htm.
    Authorized person means a Delegate Agency, or other entity either 
permitted under 15 CFR part 700, or explicitly authorized by Department 
of Commerce to issue DPAS rated orders.
    Delegate Agency means an agency of the U.S. Government authorized 
by delegation from Department of Commerce to place priority ratings on 
contracts or orders needed to support approved programs.
    Defense Priorities and Allocations System (DPAS) means the 
regulation published at 15 CFR part 700 that requires preferential 
treatment for certain contracts and orders placed by a Delegate Agency 
in support of an approved program.
    Rated Order means a delivery or task order placed by a Delegate 
Agency

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under the provisions of the Defense Priorities and Allocations System 
in support of an approved program and which requires preferential 
treatment as necessary to meet delivery requirements. This includes 
orders placed by the contractor to subcontractors or suppliers for 
required products, materials, and services resulting from such orders.


511.X02  General.

    (a) The purpose of the Defense Priorities and Allocations System is 
to assure the timely availability of industrial resources to meet 
current national defense, energy, and civil emergency preparedness 
program requirements and to provide an operating system to support 
rapid industrial response in a national emergency. The primary 
statutory authority for the DPAS is Title I of the Defense Production 
Act of 1950, as amended, with additional authority from the Selective 
Service Act of 1948, and the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act. Executive Orders 12919 and 12742 delegate 
this authority to the Department of Commerce to administer the DPAS. 
DoC is further authorized to redelegate to heads of other departments 
and agencies (Delegate Agencies) authority under the DPAS for the 
priority rating of contracts and orders in support of approved 
programs. Within DoC, the Office of Strategic Industries and Economic 
Security (SIES) is assigned the implementation, administration, and 
compliance responsibilities for the system.
    (b) The DPAS is published in the Code of Federal Regulations at 15 
CFR part 700. This regulation provides an overview, a detailed 
explanation of operations and procedures, and other implementing 
guidance, including information on special priorities assistance and 
compliance.
    (c) Orders placed under DPAS are ``rated orders.'' Rated orders 
must receive preferential treatment only as necessary to meet delivery 
requirements. Rated orders are identified by a rating symbol of either 
``DX'' or ``DO'' followed by a program identification symbol. All 
``DO'' rated orders have equal priority with each other and take 
preference over unrated orders. All ``DX'' rated orders take preference 
over ``DO'' rated orders and unrated orders. A program identification 
symbol indicates which approved program is supported by the rated 
order.
    (d) Only authorized persons may place an order containing a DPAS 
priority rating.
    (e) Within GSA, the Federal Supply Service (FSS) has been delegated 
the authority to issue rated orders to meet approved national defense, 
energy, and civil emergency preparedness program requirements of the 
supply distribution program. The Commissioner, FSS, shall issue 
additional guidance, as may be necessary, to ensure effective 
implementation of its delegated DPAS authority, such as the exclusions 
listed in paragraph F.(2) of the 1998 Doc Delegation.
    (f) Executive Order 12919 defines the jurisdictional limitations as 
set forth in 15 CFR 700.18(b).


511.X03  Procedures.

    (a) A DPAS rating may be placed against an entire contract at time 
of award or an individual order issued under an existing, otherwise 
unrated, contract.
    (b) When a DPAS rating is placed against an entire contract, the 
contracting officer must include the clause and provision prescribed at 
FAR 11.604, as well as the elements listed in paragraphs (c)(1) through 
(c)(3) of this section (see 15 CFR part 700.12.)
    (c) When a DPAS rating is placed against an individual order issued 
under an existing, otherwise unrated, contract, the order must include 
the following elements (see 15 CFR part 700.12):
    (1) The appropriate priority rating symbol (i.e., either ``DO'' or 
``DX'') along with the program identification symbol. As required by 
the 1998 DoC Delegation to GSA, when GSA contracting officers place DO 
rated orders, they will use program identification symbol K1. When 
placing a DX rated order for other agencies, GSA contracting officers 
will use the requesting agency program identification symbol. When a 
Delegate Agency places its own orders, it uses its own program 
identification symbol. (See Schedule 1 of 15 CFR part 700 for a listing 
of Delegate Agencies, approved programs, and program identification 
symbols).
    (2) A required delivery date. The words ``as soon as possible'' or 
``immediately'' do not constitute a required delivery date. A specific 
date or a specified number of days ARO (after receipt of order) is 
acceptable.
    (3) The written signature on a manually placed order, or the 
digital signature or name on an electronically placed order of an 
individual authorized to place rated orders.
    (4)(i) A statement that reads substantially as follows:
    (ii) ``This is a rated order certified for national defense use, 
and you are required to follow all the provisions of the Defense 
Priorities and Allocations System regulation (15 CFR part 700).''
    (d) Multiple and Single Award Schedule contracts are not rated at 
time of award. Individual DPAS rated orders must include the elements 
listed in paragraphs (c)(1) through (c)(4), of this section.


511.X04  Solicitation provision and contract clause.

    The contracting officer must insert in full text the clause at 
552.211-15, Defense Priorities and Allocations System Requirements, in 
Single and Multiple Award Schedule solicitations and resultant 
contracts except where the contract is wholly for products, materials, 
or services excluded from DPAS applicability (see 15 CFR part 700.18).

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Add section 552.211-XX to read as follows:


552.211-XX  Defense Priorities and Allocations System Requirements.

    As prescribed at 511.X04, insert the following clause:

Defense Priorities and Allocations System Requirements (Date)

    (a) Definitions. Approved Program means a program determined to 
be necessary or appropriate for priorities and allocations support 
to promote the national defense (see Schedule 1 of 15 CFR part 700 
for a list of Delegate Agencies, approved programs, and program 
identification symbols.)
    Delegate Agency means an agency of the U.S. Government 
authorized by delegation from the Department of Commerce (DoC) to 
place priority ratings on contracts or orders needed to support 
approved programs.
    Defense Priorities and Allocations System (DPAS) means the 
regulation published at 15 CFR part 700 that requires preferential 
treatment for certain contracts and orders placed by a Delegate 
Agency in support of an approved program.
    Rated order means, for the purpose of this contract, a delivery 
or task order placed by a Delegate Agency under the provisions of 
the DPAS in support of an approved program and which requires 
preferential treatment as necessary to meet delivery requirements. 
This includes orders placed by the Contractor to subcontractors or 
suppliers for required products, materials, and services resulting 
from such orders.
    (b) Rated order requirement. From time to time, the Contractor 
may receive a rated order under this contract from a Delegate 
Agency. The Contractor must give preferential treatment to rated 
orders as required by the Defense Priorities and Allocations System 
(DPAS) regulation (15 CFR part 700). The existence of previously 
accepted unrated or lower rated orders is not sufficient reason to 
reject a rated order. Rated

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orders take preference over all unrated orders as necessary to meet 
required delivery dates. There are two levels of ratings designated 
by the symbol of either ``DO'' or ``DX.'' All ``DO'' rated orders 
have equal priority with each other and take preference over unrated 
orders. All ``DX'' rated orders take preference over ``DO'' rated 
orders and unrated orders. The rating designation is followed by a 
program identification symbol. Program identification symbols 
indicate which approved program is supported by the rated order (see 
Schedule 1 of 15 CFR part 700 for a list of Delegate Agencies, 
approved programs, and program identification symbols).
    (c) Additional information. Additional information may be 
obtained at the DoC DPAS web site www.bxa.doc.gov/DefenseIndustrialBasePrograms/OSIES/DPAS/Def ault.htm or by 
contacting the designated Administrative Contracting Officer.

(End of clause)

[FR Doc. 03-26024 Filed 10-14-03; 8:45 am]
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