[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Proposed Rules]
[Pages 32274-32276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-12613]



48 CFR Part 517

[GSAR Case 2007-G500; Docket 2008-0007; Sequence 3]
RIN 3090-AI51

General Services Acquisition Regulation; GSAR Case 2007-G500; 
Rewrite of GSAR Part 517, Special Contracting Methods

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

ACTION: Proposed rule with request for comments.


SUMMARY: The General Services Administration (GSA) is proposing to 
amend the General Services Administration Acquisition Regulation (GSAR) 
to revise sections that provide requirements for special contracting 

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat on or before August 5, 2008 to be considered in 
the formulation of a final rule.

ADDRESSES: Submit comments identified by GSAR Case 2007-G500 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 

[[Page 32275]]

Case 2007-G500'' under the heading ``Comment or Submission''. Select 
the link ``Send a Comment or Submission'' that corresponds with GSAR 
Case 2007-G500. Follow the instructions provided to complete the 
``Public Comment and Submission Form''. Please include your name, 
company name (if any), and ``GSAR Case 2007-G500'' on your attached 
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VPR), 1800 F Street, NW., Room 4041, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite GSAR Case 2007-
G500 in all correspondence related to this case. All comments received 
will be posted without change to http://www.regulations.gov, including 
any personal and/or business confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Michael O. Jackson at (202) 208-4949, or by e-mail at 
[email protected]. For information pertaining to the status or 
publication schedules, contact the Regulatory Secretariat (VPR), Room 
4041, GS Building, Washington, DC 20405, (202) 501-4755. Please cite 
GSAR Case 2007-G500.


A. Background

    The General Services Administration (GSA) is amending the General 
Services Administration Acquisition Regulation (GSAR) to update the 
text addressing Part 517, Special Contracting Methods.
    This rule is a result of the General Services Administration 
Acquisition Manual (GSAM) Rewrite Initiative undertaken by GSA to 
revise the GSAM to maintain consistency with the FAR and implement 
streamlined and innovative acquisition procedures that contractors, 
offerors, and GSA contracting personnel can utilize when entering into 
and administering contractual relationships. The GSAM incorporates the 
General Services Administration Acquisition Regulation (GSAR) as well 
as internal agency acquisition policy.
    GSA will rewrite each part of the GSAR and GSAM, and as each GSAR 
part is rewritten, will publish it in the Federal Register.
    This proposed rule amends GSAR 517.200, Scope of subpart, to delete 
paragraph (b) because provisions inconsistent with the FAR are 
authorized only when a deviation has been obtained. GSAR 517.202 is 
revised to make minor edits and to delete paragraph (a)(2)(v) because 
the evaluation of performance before exercising an option is necessary 
in all option situations, and does not reflect a standard that only 
emerging small businesses need to meet. At GSAR 517.202(b), a cross-
reference was inserted to FAR 22.404-12 to remind contracting officers 
of special Davis Bacon Act requirements applicable to certain 
construction contract options. GSAR 517.202(c) was added to include a 
cross-reference to FAR 7.105(b)(4), reminding contracting officers to 
address options in the acquisition plan. Language in GSAR 517.203(c) 
was added to ensure there are funds available when a solicitation 
includes an option to extend. GSAR 517.207, Exercise of options, is 
revised to delete language that repeats the FAR and to include minor 
    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 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 revisions are not considered 
substantive. 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 Part 517 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 2007-G500), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the GSAM 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 517:

    Government procurement.

    Dated: May 30, 2008.
Al Matera,
Director, Office of Acquisition Policy, U.S. General Services 
    Therefore, GSA proposes to amend 48 CFR part 517 as set forth 


    1. The authority citation for 48 CFR part 517 is revised to read as 

    AUTHORITY:  40 U.S.C. 121(c).
    2. Revise section 517.200 to read as follows:

517.200  Scope of subpart.

    This subpart applies to all GSA contracts for supplies and 
services, including:
    (a) Services involving construction, alteration, or repair 
(including dredging, excavating, and painting) of buildings, bridges, 
roads, or other kinds of real property.
    (b) Architect-engineer services.
    3. Amend section 517.202 by--
    a. Revising the introductory text of paragraph (a)(1);
    b. Revising paragraphs (a)(2)(i) and (a)(2)(ii);
    c. Removing paragraph (a)(2)(v);
    d. Revising paragraph (b); and
    e. Adding paragraph (c).
    The revised and added text reads as follows:

517.202  Use of options.

    (a) * * * (1) Options should be used when they meet one or more of 
the following objectives:
* * * * *
    (2) * * *
    (i) There is an anticipated need for additional supplies or 
services during the contract term.
    (ii) Multiyear contracting authority is not available or its use is 
inappropriate and the contracting officer must anticipate a need for 
additional supplies or services beyond the initial contract term.
* * * * *
    (b) Construction. (1) Construction contracts which contain options 
that extend the term of the contract must comply with the requirements 
of FAR 22.404-12 regarding the Davis-Bacon Act, and must contain one of 
the three clauses described at FAR 22.407(e), (f) or (g).
    (2) For limitations on the use of options, see 536.213 and 536.270.
    (c) Acquisition Planning. The benefits of using options in a 
contract should be discussed in the acquisition plan as addressed in 
FAR 7.105(b)(4).
    4. Amend section 517.203 by removing from the introductory text the 
word ``both'' and adding the word ``all'' in its place, and adding 
paragraph (c) to read as follows:

517.203  Solicitations.

* * * * *
    (c) Availability of funds.

[[Page 32276]]

    5. Revise section 517.207 to read as follows:

517.207  Exercise of options.

    In addition to the requirements of FAR 17.207, the contracting 
officer must also--
    (a) Determine that the contractor's performance under the contract 
met or exceeded the Government's expectation for quality performance, 
unless another circumstance justifies an extended contractual 
relationship; and
    (b) Determine that the option price is fair and reasonable.

517.208  [Amended]

    5. Amend section 517.208 by removing from the introductory text the 
word ``FSS's'' and adding the word ``FAS's'' in its place.
[FR Doc. E8-12613 Filed 6-5-08; 8:45 am]