[Federal Register Volume 69, Number 179 (Thursday, September 16, 2004)]
[Rules and Regulations]
[Pages 55933-55936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20848]



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Part V





General Services Administration





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48 CFR Parts 511 and 552



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

Federal Register / Vol. 69, No. 179 / Thursday, September 16, 2004 / 
Rules and Regulations

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 511 and 552

[GSAR Amendment 2004-02; GSAR Case 2003-G502; Change 10]
RIN 3090-AH88


General Services Administration Acquisition Regulation; Defense 
Priorities and Allocations System

AGENCIES: General Services Administration (GSA), Office of the Chief 
Acquisition Officer.

ACTION: Final rule.

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

DATES: Effective Date: September 16, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. Laurie Duarte, Regulatory 
Secretariat (V), Room 4035, GS Building, Washington, DC, 20405, (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 Amendment 2004-02, 
GSAR case 2003-G502.

SUPPLEMENTARY INFORMATION:

A. Background

    Federal Acquisition Regulation (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.
    A proposed rule was published in the Federal Register at 68 FR 
59510, October 15, 2003. No comments were received from the public. 
However, DOC submitted editorial changes that have been adopted in 
part.
    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.
    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 General Services Administration certifies 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 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.). A Final Regulatory Flexibility Act Analysis 
was, therefore, not performed.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping or information collection 
requirements, or otherwise collect information from offerors, 
contractors, or members of the public that require 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: September 8, 2004.
David A. Drabkin,
Deputy Chief Acquisition Officer,Office of the Chief Acquisition 
Officer.

0
Therefore, GSA amends 48 CFR parts 511 and 552 as set forth below:
0
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

0
2. Add subpart 511.6, consisting of sections 511.600 through 511.604, 
to read as follows:









Subpart 511.6--Priorities and Allocations

Sec
511.600 Scope of subpart.
511.601 Definitions.
511.602 General.
511.603 Procedures.
511.604 Solicitation provision and contract clause.


511.600   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.


511.601   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 by the Secretary of Defense, the Secretary of Energy, 
or the Department of Homeland Security Under Secretary for Emergency 
Preparedness and Response under the authority of the Defense Production 
Act, the Stafford Act, and Executive Order 12919, or the Selective 
Service Act and related statutes, and Executive Order 12742. See 
Schedule 1 of 15 CFR part 700 for a list of Delegate Agencies, approved 
programs, and program identification symbols at http://www.bis.doc.gov/DefenseIndustrialBasePrograms/OSIES/DPAS/Default.htm.
    Authorized person means a Delegate Agency, or other entity either 
permitted under 15 CFR part 700, or explicitly authorized by DOC to 
issue DPAS rated orders.
    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.
    Delegate Agency means an agency of the U.S. Government authorized 
by delegation from DOC to place priority ratings on contracts or orders 
needed to support approved programs.
    Rated order means a prime contract, a subcontract, a purchase 
order, or a delivery or task order in support of an approved program 
issued in accordance with the provisions of the DPAS regulation (15 CFR 
part 700).

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511.602  General.

    (a) The purpose of the DPAS 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 DOC to administer the 
DPAS.The 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 the 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 have equal 
priority with each other and 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 DPAS Delegation 3.
    (f) Executive Order 12919 defines the jurisdictional limitations as 
set forth in 15 CFR 700.18(b).


511.603  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 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 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 DPAS Delegation 3 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) A statement that reads substantially as follows:
    ``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.


511.604  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 700.18).

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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3. Add section 552.211-15 to read as follows:


552.211-15  Defense Priorities and Allocations System Requirements.

    As prescribed at 511.604, insert the following clause:

DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM REQUIREMENTS (SEPT. 2004)

    (a) Definitions.
    Approved program means a program determined to be necessary or 
appropriate for priorities and allocation support to promote the 
national defense by the Secretary of Defense, the Secretary of 
Energy, or the Department of Homeland Security Under Secretary for 
Emergency Preparedness and Response under the authority of the 
Defense Production Act, the Stafford Act, and Executive Order 12919, 
or the Selective Service Act and related statutes, and Executive 
Order 12742. See Schedule 1 of 15 CFR part 700 for a list of 
Delegate Agencies, approved programs, and program identification 
symbols at http://www.bis.doc.gov/DefenseIndustrialBasePrograms/OSIES/DPAS/Default.htm).
    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.
    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.
    Rated order means, for the purpose of this contract, a delivery 
or task order issued in accordance with the provisions of the DPAS 
regulation (15 CFR part 700).
    (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 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

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other and take preference over unrated orders. All ``DX'' rated 
orders have equal priority with each other and 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 website http://www.bis.doc.gov/DefenseIndustrialBasePrograms/OSIES/DPAS/Default.htm or by 
contacting the designated Administrative Contracting Officer.
[FR Doc. 04-20848 Filed 9-15-04; 8:45 am]
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