[Federal Register Volume 84, Number 164 (Friday, August 23, 2019)]
[Proposed Rules]
[Pages 44270-44272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18141]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 52
[FAR Case 2018-022; Docket No. FAR-2019-0010, Seq. No. 01]
RIN 9000-AN80
Federal Acquisition Regulations: Orders Issued via Fax or
Electronic Commerce
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: DoD, GSA, and NASA are proposing to amend a Federal
Acquisition Regulation (FAR) clause to permit the issuance of task or
delivery orders via fax or electronic commerce
[[Page 44271]]
and clarify when an order is considered ``issued'' when using these
methods.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat at one of the addresses shown below on or before
October 22, 2019 to be considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAR Case 2018-022 by any of
the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by entering ``FAR Case
2018-022'' under the heading ``Enter keyword or ID'' and selecting
``Search.'' Select the link ``Comment Now'' that corresponds with ``FAR
Case 2018-022.'' Follow the instructions provided on the screen. Please
include your name, company name (if any), and ``FAR Case 2018-022'' on
your attached document.
Mail: General Services Administration, Regulatory
Secretariat Division (MVCB), 1800 F Street NW, Second floor, ATTN: Lois
Mandell, Washington, DC 20405.
Instructions: Please submit comments only and cite ``FAR Case 2018-
022'' 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. Curtis E. Glover, Sr., Procurement
Analyst, at 202-501-1448 for clarification of content. Please cite FAR
Case 2018-022. For information pertaining to status or publication
schedules, contact the Regulatory Secretariat at (202) 501-4755. Please
cite ``FAR Case 2018-022.''
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing to amend the FAR to update a
clause to permit the issuance of task or delivery orders via fax or
electronic commerce, and to clarify when an order is considered to be
``issued'' when using these methods. FAR clause 52.216-18, Ordering,
currently states that task or delivery orders may be issued orally, by
facsimile, or electronic commerce only if authorized in the contract
schedule. If mailed, task or delivery orders are considered ``issued''
when the Government puts the order in the mail. The clause is included
in solicitations and contracts when an indefinite-delivery definite-
quantity, requirements, or indefinite-delivery indefinite-quantity
contract is contemplated.
As part of today's business environment, the Government and Federal
contractors frequently use email, fax, or other electronic commerce
methods to communicate with one another. In an effort to reflect
current business practices and maintain speed and efficiency in the
ordering process, this rule updates FAR clause 52.216-18 to no longer
require a separate authorization in the contract to use electronic
commerce or fax to issue task or delivery orders. The rule also
identifies when a task or delivery order is considered ``issued'' when
using such methods. As a result, contracting officers will no longer
need to include supplemental ordering language in the contract when
anticipating the use of fax or electronic commerce to issue task or
delivery orders. Ordering information will be located in one place in
the contract. A common understanding of when a task or delivery order
is considered issued, in such situations, will be applied
Governmentwide.
As task or delivery orders are not issued orally as frequently as
other issuance methods and the use of such a method is dependent upon
the particular circumstances of the procurement, the authority to issue
orders orally must still be authorized under the contract and is not
being amended by this rule.
II. Discussion and Analysis
This rule proposes to amend FAR clause 52.216-18, Ordering, to (1)
remove the language stating that the use of fax or electronic commerce
may only be used if authorized in the contract; and (2) identify the
point in time in which a task or delivery order is considered issued
when sent by fax or electronically.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Items, Including Commercially
Available Off-the-Shelf (COTS) Items
This proposed rule does not create any new provisions or clauses,
nor does it change the applicability or burden of any existing
provisions or clauses included in solicitations and contracts valued at
or below the SAT, or for commercial items, including COTS items.
IV. 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.
V. Executive Order 13771
This rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
VI. Regulatory Flexibility Act
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.
However, an initial regulatory flexibility analysis (IRFA) has been
performed and is summarized as follows:
The Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA) are
proposing to revise the Federal Acquisition Regulation (FAR) to update
a clause to automatically permit the issuance of task or delivery
orders via fax or electronic commerce, without additional authorization
text in the contract and to clarify when an order is considered to be
``issued'' when using these methods.
The objective of the rule is to update the clause language to
reflect current business practices and maintain speed and efficiency
when issuing task and delivery orders under a contract.
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. The
rule simply formalizes a current business practice. The Government does
not collect data on the total number of task and delivery orders issued
by mail, fax, and/or electronic commerce. However, the Federal
Procurement Data System (FPDS) provides the following information for
fiscal year 2018:
The Federal Government awarded approximately 17,690 new indefinite-
delivery indefinite-quantity, indefinite-delivery definite-quantity,
and requirements contracts; of which approximately 62% were awarded to
approximately 7,420 unique small businesses.
[[Page 44272]]
The proposed rule does not impose any Paperwork Reduction Act
reporting, recordkeeping, or other compliance requirements on any small
entities. The proposed rule does not duplicate, overlap, or conflict
with any other Federal rules. There are no known significant
alternative approaches to the proposed rule that would meet the
proposed objectives.
The Regulatory Secretariat 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. 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 this 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 2018-022) in
correspondence.
VII. Paperwork Reduction Act
The 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 Part 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 52 as
set forth below:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
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1. The authority citation for 48 CFR part 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.
0
2. Amend section 52.216-18 by--
0
a. Revising the date of the clause;
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b. Revising paragraph (c); and
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c. Adding paragraph (d).
The revisions and additions reads as follows:
52.216-18 Ordering.
* * * * *
Ordering (Date)
* * * * *
(c) A delivery order or task order is considered ``issued''
when--
(1) If sent by mail (includes transmittal by U.S. mail or
private delivery service), the Government deposits the order in the
mail;
(2) If sent by fax, the Government transmits the order to the
Contractor's fax number; or
(3) If sent electronically, the Government either--
(i) Posts a copy of the delivery order or task order to a
Government document access system, and notice is sent to the
Contractor; or
(ii) Distributes the delivery order or task order via email to
the Contractor's email address.
(d) Orders may be issued by methods other than those enumerated
in this clause only if authorized in the contract.
(End of clause)
[FR Doc. 2019-18141 Filed 8-22-19; 8:45 am]
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