[Federal Register Volume 69, Number 128 (Tuesday, July 6, 2004)]
[Proposed Rules]
[Pages 40730-40731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15154]



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Part III





General Services Administration





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48 CFR Parts 533 and 552



General Services Acquisition Regulation; Disputes and Appeals; Proposed 
Rule

  Federal Register / Vol. 69, No. 128 / Tuesday, July 6, 2004 / 
Proposed Rules  

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 533 and 552

[GSAR 2004-G501]
RIN 3090-AH98


General Services Acquisition Regulation; Disputes and Appeals

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

ACTION: Proposed rule with request for comments.

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SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Acquisition Regulation (GSAR) to add a 
clause that supplements the Disputes clause in the Federal Acquisition 
Regulation (see 48 CFR Chapter 1).

DATES: Interested parties should submit comments in writing on or 
before September 7, 2004, to be considered in the formulation of a 
final rule.

ADDRESSES: Submit comments identified by GSAR case 2004-G501 by any of 
the following methods:
     Federal eRulemaking Portal:
    http://www.regulations.gov. Follow the instructions for submitting 
comments.
     Agency Web Site:
    http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the 
GSAR Case number to submit comments.
     E-mail: [email protected]. Include GSAR case 
2004-G501 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVA), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR case 2004-
G501 in all correspondence related to this case. All comments received 
will be posted without change to http://www.acqnet.gov/far/ProposedRules/proposed.htm, including any personal information 
provided.

FOR FURTHER INFORMATION CONTACT: The Regulatory Secretariat, Room 4035, 
GS Building, Washington, DC 20405, (202) 208-7312, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Ernest Woodson at (202) 501-3775, or by e-mail at 
[email protected]. Please cite GSAR case 2004-G501.

SUPPLEMENTARY INFORMATION:

A. Background

    Federal Acquisition Regulation (FAR) Subpart 33.2 (48 CFR Subpart 
33.2) implements the requirements of the Contract Disputes Act of 1978, 
as amended (41 U.S.C 601-613)(the Act), which establishes procedures 
and requirements for asserting and resolving claims subject to the Act. 
It is the Government's policy to resolve all contractual issues in 
controversy by mutual agreement at the contracting officer level. The 
Act provides for Agencies Boards of Contract Appeals (Boards) and the 
United States Court of Federal Claims (Court) to resolve appeals of a 
contracting officer's decision. However, the Boards and Court do not 
have authority to interpret tariffs or tariff related matters 
established through public hearings in each jurisdiction for regulated 
utilities. The authority pertaining to these matters lie with state 
public utility commissions.
    As a means to resolve disputes that evolve from a contracting 
officer's decision, FAR 33.215 requires that the FAR clause at 52.233-
1, Disputes, be inserted in all solicitations and contracts except 
those with a foreign government or agency of that government, or an 
international organization or subsidiary body of that organization, if 
the agency head determines that the application of the Act to the 
contract would not be in the public interest. GSA's Public Building 
Service awards contracts for public utility services. From time-to-
time, disputes may arise from those contracts that involve tariffs and 
tariff related matters. This proposed rule would provide for a 
supplement to the FAR clause at 52.233-1, Disputes, allowing for such 
disputes to be subject to the jurisdiction and regulation of the 
utility rate commission having jurisdiction. This proposed rule also 
would provide GSA contracting officers and contractors, acting under a 
utility service contract, with specific guidance regarding the 
resolution of disputes involving tariffs and tariff related matters.
    This rule 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 under5 U.S.C. 804.

B. Regulatory Flexibility Act

    The General Services Administration 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 majority of small entities that are in 
the industry were established as a result of deregulation and are not 
subject to the utility rate commissions. An Initial Regulatory 
Flexibility Analysis has, therefore, not been performed. We invite 
comments from small businesses and other interested parties. GSA will 
consider comments from small entities concerning the affected GSAR 
Parts 533 and 552 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. (GSAR case 2004-G501), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes 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 533 and 552

    Government procurement.

    Dated: June 28, 2004
David A. Drabkin,
Deputy Chief Acquisition Officer,Office of Chief Acquisition Officer.
    Therefore, GSA proposes amending 48 CFR parts 533 and 552 as set 
forth below:
    1. The authority citation for 48 CFR parts 533 and 552 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c).

PART 533-PROTESTS, DISPUTES, AND APPEALS

    2. Add section 533.215 to read as follows:


533.215  Contract clause.

    Insert the clause at 552.233-71, Disputes (Utility Contracts), in 
solicitations and contracts for utility services subject to the 
jurisdiction and regulation of a utility rate commission.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Add section 552.233-71 to read as follows:


552.233-71  Disputes (utility contracts).

    As prescribed in 533.215, insert the following clause:

DISPUTES (UTILITY CONTRACTS) (DATE)

    The requirements of the Disputes clause at Federal Acquisition 
Regulation (FAR)

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52.233-1 are supplemented to provide that matters involving the 
interpretation of tariffed retail rates, tariff rate schedules, and 
tariffed terms provided under this contract are subject to the 
jurisdiction and regulation of the utility rate commission having 
jurisdiction.
    (End of clause)
[FR Doc. 04-15154 Filed 7-2-04; 8:45 am]
BILLING CODE 6820-61-S