[Federal Register Volume 69, Number 65 (Monday, April 5, 2004)]
[Rules and Regulations]
[Pages 17768-17769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-7408]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 15

[FAC 2001-22; FAR Case 2002-027; Item IV]
RIN 9000-AJ66


Federal Acquisition Regulation; Unsolicited Proposals

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to implement Section 
834 of the Homeland Security Act of 2002 (Public Law 107-296). Section 
834 adds new considerations concerning the submission, receipt, 
evaluation, and acceptance or rejection of unsolicited proposals.

DATES: Effective Date: May 5, 2004.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755 
for information pertaining to status or publication schedules. For 
clarification of content, contact Ms. Julia Wise, Procurement Analyst, 
at (202) 208-1168. Please cite FAC 2001-22, FAR case 2002-027.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule amends the FAR to implement section 834 of the Homeland 
Security Act of 2002 (Pub. L. 107-296). Section 834 adds new 
considerations concerning the submission, receipt, evaluation, and 
acceptance or rejection of unsolicited proposals. The rule will require 
that a valid unsolicited proposal not address a previously published 
agency requirement. It also requires that, before initiating a 
comprehensive evaluation, the agency must determine that the proposal 
contains sufficient cost-related or price-related information for 
evaluation, and that it has overall scientific, technical, or 
socioeconomic merit.
    DOD, GSA, and NASA published a proposed rule in the Federal 
Register at 68 FR 33330, June 3, 2003. A comment was received from one 
respondent. The Councils considered the comment before agreeing to 
publish the proposed rule as final. A summary of the comment and the 
disposition follows:
    Comment: The proposed language in FAR 15.606-1(a)(4), Receipt and 
initial review, should be revised to more closely mirror the wording in 
Section 834 as follows: ``Contains sufficient technical and cost 
information including cost-related or price related factors for 
evaluation.''
    Response: The Councils do not concur. Proposals do not typically 
include cost-related or price-related factors. Such factors are 
developed by agencies in competitive acquisitions prior to soliciting 
proposals and are used to assess the offeror's proposal and the 
offeror's ability to perform the prospective contract successfully. 
This allows all proposals to be evaluated for award based on the 
identical factors. Inserting a requirement for proposals to contain 
factors would likely create confusion between the competitive

[[Page 17769]]

selection process and the unsolicited proposal process. The addition of 
the phrase ``and cost-related or price-related information'' instead of 
``factors'' more clearly addresses the requirements of statute and is 
consistent with established procedures for initial review of 
unsolicited proposals.
    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 Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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, while we have made 
changes in accordance with plain language guidelines, we have not 
substantively changed procedures for award and administration of 
contracts.

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.

List of Subjects in 48 CFR Part 15

    Government procurement.

    Dated: March 26, 2004.
Laura Auletta,
Director, Acquisition Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR part 15 as set forth below:

PART 15--CONTRACTING BY NEGOTIATION

0
1. The authority citation for 48 CFR part 15 is revised to read as 
follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).


0
2. Amend section 15.603 by removing ``and'' from the end of paragraph 
(c)(4); removing the period from the end of paragraph (c)(5) and adding 
``; and'' in its place; and adding a new paragraph (c)(6) to read as 
follows:


15.603  General.

* * * * *
    (c) * * *
    (6) Not address a previously published agency requirement.
* * * * *

0
3. In section 15.606-1, amend paragraph (a) by--
0
a. Revising paragraph (a)(4);
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b. Redesignating paragraphs (a)(5) and (a)(6) as (a)(6) and (a)(7), 
respectively; and
0
c. Adding a new paragraph (a)(5). The revised and added text reads as 
follows:


15.606-1  Receipt and initial review.

    (a) * * *
    (4) Contains sufficient technical information and cost-related or 
price-related information for evaluation;
    (5) Has overall scientific, technical, or socioeconomic merit;
* * * * *

[FR Doc. 04-7408 Filed 4-2-04; 8:45 am]
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