[Federal Register Volume 74, Number 151 (Friday, August 7, 2009)]
[Rules and Regulations]
[Pages 39563-39564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-19001]



48 CFR Part 502

[GSAR Amendment 2009-10; GSAR Case 2008-G501 (Change 38) Docket 2009-
0012; Sequence 1]
RIN 3090-AI90

General Services Administration Acquisition Regulation; GSAR Case 
2008-0501, Rewrite of Part 502, Definitions of Words and Terms

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

ACTION: Final rule.


SUMMARY: The General Services Administration (GSA) is amending the 
General Services Administration Acquisition Regulation (GSAR) to revise 
sections of GSAR Part 502 that provide definitions for general words 
and terms. This section will only contain definitions for terms that 
are used in more than one place in the GSAR.

DATES: Effective Date: August 7, 2009.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Mr. Edward Loeb, Procurement Analyst, at (202) 501-0650. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat (VPR), Room 4041, 1800 F Street, NW., 
Washington, DC 20405, (202) 501-4755. Please cite Amendment 2009-10, 
GSAR case 2008-G501 (Change 38).


A. Background

    The GSA is amending the GSAR to update the text addressing GSAR 
502.101, Definition of Words and Terms. This rule is a result of the 
GSA Acquisition Manual (GSAM) Rewrite initiative undertaken by GSA to 
revise the GSAM to maintain consistency with the FAR, and to implement 
streamlined and innovative acquisition procedures that contractors, 
offerors, and GSA contracting personnel can use when entering into and 
administering contractual relationships. The GSAM incorporates the GSAR 
as well as internal agency acquisition policy.
    The GSA will rewrite each part of the GSAR and GSAM, and as each 
part is rewritten, will publish it in the Federal Register.
    This rule covers the rewrite of GSAR Part 502. The rule revises 
Part 502 to update the text addressing GSAR 502.101, Definition of 
Words and Terms. The section was changed to reflect the merger of the 
Federal Technology Service and Federal Supply Service; creation of the 
Federal Acquisition Service; and deletion of the title Deputy Associate 
Administrator of Acquisition Policy, and introduction of Deputy Chief 
Acquisition Officer. No additional definitions were added. The GSA is 
publishing this as a final rule. The changes are considered 

Discussion of Comments

    The GSA published an Advance Notice of Proposed Rulemaking (ANPR) 
with request for comments at 71 FR 7910 on February 15, 2006. The 
comments have been addressed in previous Federal Register Notices (FRN) 
based on the part to which the comment referred. Remaining comments 
that were not addressed in previous FRN are being addressed here. 
Following are five comments.
1. Comment
    One comment was received from numerous small businesses stating 
that they believe the GSAR may unnecessarily impose an adverse 
significant economic impact on a substantial number of small entities 
and is concerned that any changes GSA might propose will fail to 
address the biggest problem affecting small business today. The 
commenter further states that GSA policies must address the major 
problems that continue to allow this to happen. The commenter's main 
concern is that there is not enough oversight at the Federal level and 
large businesses have been finding loopholes that result in small 
business contracts not getting their fair share of Federal Government 
small business contracts. The commenter further states that GSA 
policies must address the major problems that continue to allow this to 
happen and that GSA propose policies to ensure that 23 percent of 
Federal contracts go to legitimate small businesses, as the law 


    The GSA non-concurs. The comment is outside the scope of the GSAM. 
The U.S. Government Accountability Office has the primary oversight for 
fraud, abuse and loopholes. Further, the GSA is only one agency that 
contributes to the government-wide statutory 23 percent goal. GSA 
continually exceeds the 23 percent goal.
2. Comment
    Another commenter recommended that the GSAR be revised to provide 
that contractors may apply general and administrative costs (G&A) to 
travel costs and other direct changes in

[[Page 39564]]

accordance with each vendor's approved cost accounting standards 
disclosure statement.


    The GSA non-concurs. Part 31 of the FAR does not prescribe the 
types of direct charges, such as travel, against which indirect costs 
may be applied. Rather, it provides broad discretion to an organization 
in selecting the bases for charging indirect costs. Travel is one of 
innumerable direct costs that can serve as a base for the application 
of indirect costs, provided that such indirect charges are in 
compliance with the organization's approved Cost Accounting Standards 
(CAS) disclosure statement. To the extent that travel is among a large 
number of potential bases for the charging of indirect costs, there is 
no compelling reason to single out travel in the FAR, much less the 
GSAR, as such a base.
3. Comment
    Another commenter recommended that the GSAM clarify the requirement 
to establish and maintain Earned Value Management Systems in a manner 
consistent with current Department of Defense policy.


    The GSA non-concurs. Change 19 to the GSAM adds coverage to Part 
534, Major Systems Acquisition, to provide guidance on the 
implementation of Earned Value Management Systems in GSA contracts.
4. Comment
    Another commenter recommended revision of the GSAR to clarify the 
ability of agencies to enter into share-in-savings contracts.


    The GSA non-concurs. The statute governing share-in-savings 
contracts for information technology expired several years ago. Some 
agencies still have authority to enter into share-in-savings contracts 
for other purposes, such as energy savings performance contracting. 
Those agencies may provide guidance regarding share-in-savings 
contracts pertaining to their respective agencies.
5. Comment
    Another commenter recommended revising the Assignment of Claims 
clause to facilitate contractor teaming arrangements. The commenter 
further stated that the clause should permit one teammate to be the 
lead and issue invoices and accept payment on behalf of the other 


    The GSA non-concurs. This change is outside the scope of the GSAM 
rewrite. A change of this nature would require a change to the FAR, not 
the GSAM.
    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 revisions are not considered 
substantive. The revisions only update and clarify existing coverage. 
No new definitions were added.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies; however, these changes to the 
GSAR do not impose additional information collection requirements to 
the paperwork burden previously approved under OMB Control Number 3090-

List of Subjects in 48 CFR Part 502

    Government procurement.

    Dated: July 6, 2009.
Rodney P. Lantier,
Acting Senior Procurement Executive and Acting Deputy Chief Acquisition 
Officer, Office of the Chief Acquisition Officer, General Services 

Therefore, GSA amends 48 CFR part 502 as set forth below:


1. The authority citation for 48 CFR part 502 continues to read as 

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

2. Revise section 502.101 to read as follows:

502.101  Definitions.

    Agency competition advocate means the GSA Competition Advocate in 
the Office of the Chief Acquisition Officer.
    Assigned counsel means the attorney employed by the Office of 
General Counsel (including offices of Regional Counsel) assigned to 
provide legal review or assistance.
    Contracting activity competition advocate means the individual 
designated in writing by the Head of the Contracting Activity (HCA). 
This authority may not be redelegated. The HCA must ensure that the 
designated competition advocate is not assigned any duty or 
responsibility that is inconsistent with the advocacy function. The 
identity of the designated official shall be communicated to procuring 
staff and the Senior Procurement Executive.
    Contracting director means:
    (a) Except in the Federal Acquisition Service (FAS), a director of 
a Central Office or Regional office Division responsible for performing 
contracting or contract administration functions.
    (b) In FAS Central Office--
    (1) The Assistant Commissioner for Assisted Acquisition Services or 
    (2) The Assistant Commissioner for General Supplies and Services or 
    (3) The Assistant Commissioner for Integrated Technology Services 
or designee;
    (4) The Assistant Commissioner for Travel, Motor Vehicle and Card 
Services or designee; and
    (5) The Assistant Commissioner for Acquisition Management or 
designee for support offices with contracting functions.
    (c) In FAS Regions, the Assistant Regional Commissioner or 
    Contracting officer's representative (COR), contracting officer's 
technical representative (COTR), or contract administrator means a 
Government employee designated in writing by the contracting officer to 
perform specific limited activities for the contracting officer, such 
as contract administration.
    Debarring official or ``suspending official'' means the Senior 
Procurement Executive or a designee.
    Head of the contracting activity means the Deputy Chief Acquisition 
Officer; Commissioners of the Federal Acquisition Service (FAS) or 
Public Buildings Service (PBS); or Regional Commissioners. The Deputy 
Chief Acquisition Officer serves as the HCA for Central Office 
contracting activities outside of FAS and PBS.
    Senior procurement executive means the Deputy Chief Acquisition 
    Senior program official means a person reporting to, and designated 
by, the HCA to have overall program responsibility for determining how 
the agency will meet its needs. The official should have a position of 
authority over the participating offices. Examples include Assistant 
Regional Commissioners or Deputy Commissioners.

[FR Doc. E9-19001 Filed 8-6-09; 8:45 am]