[Federal Register Volume 78, Number 102 (Tuesday, May 28, 2013)]
[Proposed Rules]
[Pages 31879-31882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12566]
=======================================================================
-----------------------------------------------------------------------
GENERAL SERVICES ADMINISTRATION
48 CFR Parts 501, 538, and 552
[GSAR Case 2012-G501; Docket 2013-0006; Sequence 1]
RIN 3090-AJ36
General Services Administration Acquisition Regulation (GSAR);
Electronic Contracting Initiative (ECI)
AGENCY: Office of Acquisition Policy, General Services Administration.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The General Services Administration (GSA) is proposing to
amend the General Services Administration Acquisition Regulation (GSAR)
to add a Modifications (Federal Supply Schedule) clause, and an
Alternate I version of the clause that will require electronic
submission of modifications under Federal Supply Schedule (FSS)
contracts managed by GSA. The public reporting burdens associated with
both the basic and Alternate I clauses are also being updated.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat on or before July 29, 2013 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments identified by GSAR Case 2012-G501,
Electronic Contracting Initiative, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments by searching for ``GSAR Case 2012-G501''. Follow the
instructions provided to ``Submit a Comment''. Please include your
name, company name (if any), and ``GSAR Case 2012-G501'', on your
attached document.
Fax: 202-501-4067.
Mail: U.S. General Services Administration, Regulatory
Secretariat Division (MVCB), 1800 F Street NW., 2nd Floor, ATTN: Hada
Flowers, Washington, DC 20405-0001.
Instructions: Please submit comments only and cite GSAR Case 2012-
G501 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: Ms. Dana Munson, General Services
Acquisition Policy Division, GSA, 202-357-9652 or email
[email protected], for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite GSAR Case 2012-G501.
SUPPLEMENTARY INFORMATION:
I. Background
GSA is proposing to amend the GSAR to add a Modifications (Federal
Supply Schedule) clause, and an Alternate I version of the clause that
requires electronic submission of modifications for FSS contracts
managed by GSA. This change is the result of modernized technology that
will improve the process for submission of modifications under the
Federal Supply Schedules Program, and was developed by GSA to satisfy
customer demands.
The basic clause (previously at GSAR 552.243-72) was removed during
the initial GSAR rewrite under proposed rule 2006-G507 published in the
Federal Register at 74 FR 4596 on January 26, 2009. The initial GSAR
rewrite proposed amendments to the GSAR to update text addressing GSAR
Part 538. Withdrawal of GSAR case 2006-G507 was published in the
Federal Register at 77 FR 76446 on December 28, 2012.
The basic clause is being reinstated at GSAR 552.238-81,
Modifications (Federal Supply Schedule). The alternate version of the
clause implements and mandates electronic submission of modifications,
and only applies to FSS contracts managed by GSA. The alternate version
of the clause links to GSA's electronic tool, eMod at http://eoffer.gsa.gov/. Use of eMod will streamline the modification
submission process for both FSS contractors and contracting officers.
Use of eMod will establish automated controls in the modification
process that will ensure contract documentation is completed and
approved by all required parties. Additionally, eMod will foster GSA's
Rapid Action Modification (RAM), which allows contracting officers to
process certain modification requests to the FSS contract (e.g.,
administrative changes) as unilateral modifications with no requirement
for contractor signature on the Standard Form 30, Amendment of
Solicitation/Modification of Contract (SF30).
Current and new FSS contractors will be required to obtain a
digital certificate in order to comply with submission of information
via eMod. A digital certificate is an electronic credential that
asserts the identity of an individual and enables eMod to verify the
identity of the individual entering the system and signing documents.
The certificate will be valid for a period of two years, after which,
contractors must renew the
[[Page 31880]]
certificate at the associated cost during that time. At present, two
FSS vendors are authorized to issue digital certificates that
facilitate the use of eMod, at a price of $119 per issuance and at
renewals every two years. Having a digital certificate creates digital
signatures which are verifiable. GSA has developed training on eMod,
and obtaining a digital certificate. This information is posted on
GSA's eOffer Web site at http://eoffer.gsa.gov.
The Department of Veterans Affairs (VA) does not have access to
eMod, and is therefore not required to comply with the requirements of
the Alternate I version of GSAR clause 552.238-81, Modifications
(Federal Supply Schedule). VA will continue to utilize the basic
version of the clause in management of their FSS contracts.
GSA is in the process of rewriting each part of the GSAR and GSAM,
and as each GSAR part is rewritten, GSA will publish it in the Federal
Register for comments. This rule covers the rewrite of GSAR Part 538,
Electronic Contracting Initiative (Modifications).
On December 17, 2012, GSA published in the Federal Register at 77
FR 74631 a request for public comments on an information collection
requirement for a new OMB clearance. One comment was received and is
addressed in the Paperwork Reduction Act section of this notice.
II. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
III. 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 proposed rule will implement a
streamlined, electronic process for submission and processing of
modification requests pertaining to FSS contracts managed by GSA.
However, small businesses will be positively impacted by this
initiative in that the process for submitting information is
simplified, more structured and easy to use, and processing time is
significantly reduced. For example, submission of a paper modification
request is often a labor intensive process that involves repeated
exchanges of information via standard mail and/or facsimile. The
electronic process will include controls to prevent submission of
incomplete requests that require follow-up.
Contractors will be able to offer the latest products and services
to the Federal Government faster and more often due to this streamlined
submission process.
Contractors will be required to obtain a digital certificate in
order to comply with the eMod requirement. The cost of the digital
certificate will impose some economic impact on all contractors, both
small and other than small, doing business under Federal Supply
Schedule contracts managed by GSA. Therefore, an Initial Regulatory
Flexibility Analysis (IRFA) has been prepared consistent with 5 U.S.C.
603, and is summarized as follows:
The General Services Administration (GSA) is proposing to amend
the General Services Administration Acquisition Regulation (GSAR) to
add clause 552.238-81, Modifications (Federal Supply Schedule) back
into the GSAR, and an alternate version of the clause that requires
electronic submission of modifications for Federal Supply Schedule
(FSS) contracts managed by GSA via eMod. The addition of the basic
clause is an administrative change that reinstates a previous clause
inadvertently removed from the GSAR. The alternate clause has never
received public comment.
The alternate version of this clause mandates electronic
submission of modifications through GSA's electronic tool, eMod. Use
of eMod establishes automated controls in the modification process
that will ensure contract documentation is completed and approved by
all required parties. Additionally, eMod will foster Rapid Action
Modification (RAM), which allows contracting officers to process
certain modifications (e.g., administrative changes) as unilateral
modifications with no requirement for contractor signature on the
Standard Form 30, Amendment of Solicitation/Modification of Contract
(SF30). eMod will streamline the process and result in modification
actions being processed more timely and efficiently.
In addition to adding automated controls into the modification
process, mandating the electronic submission of modifications will
support several Federal Acquisition Service (FAS) initiatives that
are currently underway to enhance the MAS Program's ability to
transition to a completely electronic contracting environment. These
initiatives include but are not limited to digitization of Multiple
Award Schedule (MAS) contract files, Contracts Online, and the
Enterprise Acquisition Solution (EAS).
eMod is consistent with the Electronic Signatures In Global and
National Commerce Act (E-SIGN), enacted on June 20, 2000, and the
Office of Management and Budget (OMB) Memoranda M-00-15, Guidance on
Implementing the Electronic Signatures, dated September 25, 2000.
All of GSA's FSS contractors (19,000) will be required to obtain
a digital certificate in order to comply with this requirement.
Approximately 80 percent (15,200) GSA FSS contracts are held by
small businesses. A digital certificate is an electronic credential
that enables eMod to verify the identity of the individual entering
the system and signing documents. The certificate will be valid for
a period of two years, after which, contractors must renew the
certificate. At present, two FSS vendors are authorized to issue
digital certificates that facilitate the use of eMod, at a price of
$119 per issuance. The alternate version of this requirement does
not apply to FSS contracts managed by the Department of Veteran
Affairs (VA) because the VA does not utilize or have access to eMod.
The Regulatory Secretariat has submitted a copy of the Initial
Regulatory Flexibility Analysis (IRFA) to the Chief Counsel for
Advocacy of the Small Business Administration. A copy of the IRFA may
be obtained from the Regulatory Secretariat. GSA invites comments from
small business concerns and other interested parties on the expected
impact of this rule on small entities.
GSA will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule 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 2012-G501),
in correspondence.
IV. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. Chapter 35) applies. The
proposed rule contains information collection requirements.
Accordingly, the Regulatory Secretariat submitted a request for
approval of a revised information collection requirement concerning
(GSAR 2012-G501; Electronic Contracting Initiative) to the Office of
Management and Budget.
The 1st notice of the information collection requirement was
published in the Federal Register at 77 FR 74631 on December 17, 2012.
The comment period closed on February 15, 2013. One comment was
received. The commenter suggested that GSA increase the estimated
burden hours per response to reflect the additional time required for
[[Page 31881]]
complex modification requests. The commenter also recommended that the
number of estimated respondents per year be reduced, based on the logic
that companies with zero sales under their contracts are not likely to
submit modification requests.
GSA responded that the estimate of five burden hours per response
already takes into consideration that modification requests can range
from simple administrative changes to more complex changes involving
the award of additional products and services. Additionally, the
current estimate of 20,500 respondents per year is based on the total
number of contracts awarded under the Federal Supply Schedule program,
and is utilized consistent with other Federal Supply Schedule burden
calculations for clauses and provisions applicable to all Federal
Supply Schedule contracts. No change to the burden estimate was made as
a result of the comment.
However, the notice indicated that 20,500 contractors would use the
basic clause with an associated burden of 5 hours per response. This
notice revises the collection to explain that 1,500 contractors (VA
contractors) will use the basic clause with 5 hours of burden, and
19,000 contractors (GSA contractors) will use the alternate clause with
4 hours of burden. This will result in a total burden reduction for
this collection of 57,000 burden hours.
A 2nd notice of the information collection requirement was
published in the Federal Register at 78 FR 18285 on March 26, 2013. The
comment period closed on April 25, 2013. No comments were received.
A. Public reporting burden for this collection of information is
estimated to average 5 hours per response for manual modification
requests and 4 hours per response for eMod requests, including the time
for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the
collection of information.
The annual reporting burden is estimated as follows:
552.238-81 Modifications (VA FSS Contractors Manual process)
Respondents: 1,500.
Responses per Respondent: 3.
Total Responses: 4,500.
Hours per Response: 5.
Total Burden Hours: 22,500.
552.238-81 Modifications Alternate I (GSA FSS Contractors eMod
Electronic process)
Estimated Respondents/yr: 19,000.
Number of Submissions per Respondent: 3.
Total Responses: 57,000.
Estimated Hours/Response: 4.
Total Burden Hours: 228,000.
B. Request for Comments Regarding Paperwork Burden. Submit
comments, including suggestions for reducing this burden, not later
than July 29, 2013 to: U.S. General Services Administration, Regulatory
Secretariat Division (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd
Floor, Washington, DC 20405-0001.
Public comments are particularly invited on: Whether this
collection of information is necessary for the proper performance of
functions of the GSAR, and will have practical utility; whether our
estimate of the public burden of this collection of information is
accurate, and based on valid assumptions and methodology; ways to
enhance the quality, utility, and clarity of the information to be
collected; and ways in which we can minimize the burden of the
collection of information on those who are to respond, through the use
of appropriate technological collection techniques or other forms of
information technology.
Requesters may obtain a copy of the supporting statement from the
General Services Administration, Regulatory Secretariat (MVCB), ATTN:
Hada Flowers, 1275 First Street NE., 7th Floor, Washington, DC 20417.
Please cite OMB Control Number 3090-0302, Modifications (Multiple Award
Schedules): GSAR Part Affected: 552.243-72, in all correspondence.
List of Subjects in 48 CFR Parts 501, 538, and 552
Government procurement.
Dated: May 22, 2013.
Steven J. Kempf,
Acting Senior Procurement Executive, Office of Acquisition Policy,
General Services Administration.
Therefore, GSA proposes to amend 48 CFR parts 501, 538, and 552 as
set forth below:
0
1. The authority citation for 48 CFR parts 501, 538, and 552 continues
to read as follows:
Authority: 40 U.S.C 121(c).
PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION
SYSTEM
501.106 [Amended]
0
2. Amend section 501.106 in the table, by adding in sequence, GSAR
Reference ``552.238-81'' and its corresponding OMB Control Number
``3090-0320''.
PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING
0
3. Amend section 538.273 by adding paragraph (b)(3) to read as follows:
538.273 Contract clauses.
* * * * *
(b) * * *
(3) 552.238-81, Modifications (Federal Supply Schedule). Use
alternate I for Federal Supply Schedules that only accept electronic
modifications.
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Add section 552.238-81 to read as follows:
552.238-81 Modifications (Federal Supply Schedule).
As prescribed in 538.273(b), insert the following clause:
Modifications (Federal Supply Schedule) (DATE)
(a) General. The Contractor may request a contract modification
by submitting a request to the Contracting Officer for approval,
except as noted in paragraph (d) of this clause. At a minimum, every
request shall describe the proposed change(s) and provide the
rationale for the requested change(s).
(b) Types of Modifications. (1) Additional items/additional
SINs. When requesting additions, the following information must be
submitted:
(i) Information requested in paragraphs (1) and (2) of the
Commercial Sales Practice Format to add SINs.
(ii) Discount information for the new items(s) or new SIN(s).
Specifically, submit the information requested in paragraphs 3
through 5 of the Commercial Sales Practice Format. If this
information is the same as the initial award, a statement to that
effect may be submitted instead.
(iii) Information about the new item(s) or the item(s) under the
new SIN(s) as described in 552.212-70, Preparation of Offer
(Multiple Award Schedule), is required.
(iv) Delivery time(s) for the new item(s) or the item(s) under
the new SIN(s) must be submitted in accordance with FAR 552.211-78,
Commercial Delivery Schedule (Multiple Award Schedule).
(v) Production point(s) for the new item(s) or the item(s) under
the new SIN(s) must be submitted if required by FAR 52.215-6, Place
of Performance.
(vi) Hazardous Material information (if applicable) must be
submitted as required by FAR 52.223-3 (Alternate I), Hazardous
Material Identification and Material Safety Data.
(vii) Any information requested by FAR 52.212-3(f), Offeror
Representations and Certifications--Commercial Items, that may be
necessary to assure compliance with FAR 52.225-1, Buy American Act--
Balance of Payments Programs--Supplies.
(2) Deletions. The Contractors shall provide an explanation for
the deletion. The
[[Page 31882]]
Government reserves the right to reject any subsequent offer of the
same item or a substantially equal item at a higher price during the
same contract period, if the contracting officer finds the higher
price to be unreasonable when compared with the deleted item.
(3) Price Reduction. The Contractor shall indicate whether the
price reduction falls under the item (i), (ii), or (iii) of
paragraph (c)(1) of the Price Reductions clause at 552.238-75. If
the Price reduction falls under item (i), the Contractor shall
submit a copy of the dated commercial price list. If the price
reduction falls under item (ii) or (iii), the Contractor shall
submit a copy of the applicable price list(s), bulletins or letters
or customer agreements which outline the effective date, duration,
terms and conditions of the price reduction.
(c) Effective dates. The effective date of any modification is
the date specified in the modification, except as otherwise provided
in the Price Reductions clause at 552.238-75.
(d) Electronic File Updates. The Contractor shall update
electronic file submissions to reflect all modifications. For
additional items or SINs, the Contractor shall obtain the
Contracting Officer's approval before transmitting changes. Contract
modifications will not be made effective until the Government
receives the electronic file updates. The Contractor may transmit
price reductions, item deletions, and corrections without prior
approval. However, the Contractor shall notify the Contracting
Officer as set forth in the Price Reductions clause at 552.238-75.
(e) Amendments to Paper Federal Supply Schedule Price Lists.
(1) The Contractor must provide supplements to its paper price
lists, reflecting the most current changes. The Contractor may
either:
(i) Distribute a supplemental paper Federal Supply Schedule
Price List within 15 workdays after the effective date of each
modification.
(ii) Distribute quarterly cumulative supplements. The period
covered by a cumulative supplement is at the discretion of the
Contractor, but may not exceed three calendar months from the
effective date of the earliest modification. For example, if the
first modification occurs in February, the quarterly supplement must
cover February-April, and every three month period after. The
Contractor must distribute each quarterly cumulative supplement
within 15 workdays from the last day of the calendar quarter.
(2) At a minimum, the Contractor shall distribute each
supplement to those ordering activities that previously received the
basic document. In addition, the Contractor shall submit two copies
of each supplement to the Contracting Officer and one copy to the
FSS Schedule Information Center.
(End of Clause)
Alternate I (Date). As prescribed in 538.273(b)(3), add the
following paragraph (f) to the basic clause:
(f) Electronic submission of modification requests is mandatory via
eMod (http://eOffer.gsa.gov), unless otherwise stated in the electronic
submission standards and requirements at the Vendor Support Center Web
site (http://vsc.gsa.gov). If the electronic submissions standards and
requirements information is updated at the Vendor Support Center Web
site, Contractors will be notified prior to the effective date of the
change.
[FR Doc. 2013-12566 Filed 5-24-13; 8:45 am]
BILLING CODE 6820-61-P