[Federal Register Volume 81, Number 92 (Thursday, May 12, 2016)]
[Proposed Rules]
[Pages 29514-29515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11177]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 14 and 52

[FAR Case 2016-003; Docket No. 2016-0003, Sequence No. 1]
RIN 9000-AN21


Federal Acquisition Regulation: Administrative Cost To Issue and 
Administer a Contract

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and the National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to revise the estimated administrative 
cost to award and administer a contract, for the purpose of evaluating 
bids for multiple awards.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at one of the addresses shown below on 
or before July 11, 2016 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAR case 2016-003 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching for ``FAR Case 
2016-003''. Select the link ``Comment Now'' that corresponds with ``FAR 
Case 2016-003.'' Follow the instructions provided on the screen. Please 
include your name, company name (if any), and ``FAR Case 2016-003'' on 
your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Ms. Flowers, 1800 F Street NW., 2nd 
Floor, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR Case 2016-
003, 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: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat Division at 202-501-4755. Please cite FAR Case 2016-003.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are proposing to revise the provision of the FAR 
that addresses the Government's cost to award and administer a 
contract, for the purpose of evaluating bids for multiple awards. The 
FAR provision at 52.214-22, Evaluation of Bids for Multiple Awards, 
which was issued in March 1990, reflects that $500 is the 
administrative cost to the Government for issuing and administering 
contracts. Based on inflation factors and escalating annual Consumer 
Price Index (CPI) data available, an upward adjustment of $500 in the 
provision to $1,000 is a realistic reflection of the actual cost to the 
Government. We used the CPI calculator at the following web address, 
http://data.bls.gov/cgi-bin/cpicalc.pl, to calculate the upward 
adjustment. We plugged in the base line year 1990 and $500 and it came 
up with $907.00, and we rounded up to $1,000. This cost will be 
reviewed periodically and updated as deemed appropriate.

II. Discussion and Analysis

    Amendments to FAR subparts 14.2 and 52.2 are proposed by this 
rulemaking. A monetary adjustment is proposed for FAR 14.201-8, Price 
Related Factors, and clause 52.214-22, Evaluation of Bids for Multiple 
Awards. The adjustment from $500 to $1,000 is to reflect a realistic 
estimate of the cost to the Government to issue and administer a 
contract.

III. 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 proposed rule is not a major 
rule under 5 U.S.C. 804.

V. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this proposed rule to have a 
significant

[[Page 29515]]

economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
However, an Initial Regulatory Flexibility Analysis (IRFA) has been 
performed. The IRFA is summarized as follows:

    FAR 14.201-8 and 52.214-22, Evaluation of Bids for Multiple 
Awards, reflect that $500 is the administrative cost to the 
Government for issuing and administering contracts. The rule is 
necessary to reestablish a more realistic estimate of the cost to 
award and administer a contract, for the purpose of evaluating bids 
for multiple awards. The current cost to award and administer a 
contract has not changed since 1990.
    The objective of this rule is to revise FAR 14.201-8 and 52.214-
22, Evaluation of Bids for Multiple Awards, to include an inflation 
adjustment based on Consumer Price Index (CPI), http://data.bls.gov/cgi-bin/cpicalc.pldata, since 1990. The adjustment will change the 
estimated cost to award and administer a contract from $500 to 
$1,000.
    According to the Federal Procurement Data System, in Fiscal Year 
2015, the Federal Government made approximately 2,019 definitive 
contract awards to small businesses using sealed bidding procedures 
and 103 indefinite-delivery contract awards to small businesses 
using sealed bidding procedures, 12 of which were multiple awards.
    DoD, GSA, and NASA do not expect this 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 pertains to Government administrative 
expenses only.
    There will be no burden on small businesses because this rule 
change does not place any new requirement on small entities.

    The Regulatory Secretariat Division has submitted a copy of the 
IRFA to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the IRFA may be obtained from the Regulatory 
Secretariat Division. DoD, GSA, and NASA invite comments from small 
business concerns and other interested parties on the expected impact 
of this rule on small entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the rule 
consistent with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 610 (FAR Case 2016-003), 
in correspondence.

VI. Paperwork Reduction Act

    This proposed rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 14 and 52

    Government procurement.

William Clark
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.

    Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR parts 
14 and 52, as set forth below:

0
1. The authority citation for 48 CFR parts 14 and 52 continues to read 
as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 14--SEALED BIDDING

0
2. Amend section 14.201-8 by revising the introductory text and 
removing from paragraph (c) the term ``$500'' and adding ``$1,000'' in 
its place.
    The revision reads as follows.


14.201-8  Price related factors.

    The factors set forth in paragraphs (a) through (e) of this section 
may be applicable in evaluation of bids for award and shall be included 
in the solicitation when applicable (see 14.201-5(c)):
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
3. Amend section 52.214-22 by revising the date of the provision and 
removing from the paragraph the term ``$500'' and adding ``$1,000'' in 
its place.
    The revision reads as follows:


52.214-22  Evaluation of Bids for Multiple Awards.

* * * * *

Evaluation of Bids for Multiple Awards (Date)

* * * * *
[FR Doc. 2016-11177 Filed 5-11-16; 8:45 am]
 BILLING CODE 6820-EP-P