[Federal Register Volume 85, Number 81 (Monday, April 27, 2020)]
[Proposed Rules]
[Pages 23299-23302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08005]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 5 and 7

[FAR Case 2019-003; Docket No. FAR-2019-0029, Sequence No. 1]
RIN 9000-AN86


Federal Acquisition Regulation: Consolidation and Substantial 
Bundling

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 the Federal 
Acquisition Regulation (FAR) to implement a section of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016, which 
requires providing public notices of determinations for substantial 
bundling and consolidation of contract requirements.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at one of the addresses shown below on 
or before June 26, 2020 to be considered in the formation of the final 
rule.

ADDRESSES: Submit comments in response to FAR Case 2019-003 by any of 
the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by

[[Page 23300]]

entering ``FAR Case 2019-003''. Select the link ``Comment Now'' that 
corresponds with FAR Case 2019-003. Follow the instructions provided on 
the screen. Please include your name, company name (if any), and ``FAR 
Case 2019-003'' on your attached document.
     Mail: General Services Administration, Regulatory 
Secretariat Division (MVCB), ATTN: Lois Mandell, 1800 F Street NW, 2nd 
Floor, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAR Case 2019-
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. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two-to-three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Mr. Kevin Funk, Procurement Analyst, 
at 202-357-5805 or via email at [email protected] 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 2019-003''.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA are proposing to amend the FAR to implement 
section 863 of the NDAA for FY 2016 (Pub. L. 114-92, codified at 15 
U.S.C. 644(e)(3) and 15 U.S.C. 657q(c)(2)) and SBA's implementing 
regulations. Section 863 requires public notification of an agency's 
determination to substantially bundle or consolidate contract 
requirements.
    Specifically, publication of a notice is required when the head of 
a contracting agency determines that an acquisition plan for a 
procurement involves substantial bundling of contract requirements. The 
head of the contracting agency must publish a notice on a public 
website that such determination has been made not later than 7 days 
after making the determination. Any solicitation for a procurement 
related to the acquisition plan may not be published earlier than 7 
days after such notice is published. A justification for the 
determination must be published with the solicitation. The 
justification must address the specific benefits anticipated, any 
alternative approaches, impediments to participation by small business 
concerns as prime contractors, and actions designed to maximize 
participation of small business concerns as subcontractors. See 15 
U.S.C. 644(e)(3)(A) through (C) for a list of the requirements.
    Section 863 also requires publication of a notice when the senior 
procurement executive (SPE) or chief acquisition officer (CAO) makes a 
determination that an acquisition strategy involving consolidation of 
contract requirements is necessary and justified under 15 U.S.C. 
657q(c)(2)(A). The SPE or CAO must publish a notice on a public website 
that such determination has been made not later than 7 days after 
making the determination. Any solicitation for a procurement related to 
the acquisition strategy may not be published earlier than 7 days after 
such notice is published. A justification for the determination must be 
published with the solicitation. The justification must include the 
information in 15 U.S.C. 657q(c)(1)(A) through (E).
    SBA published a rule to implement section 863 on November 29, 2019, 
at 84 FR 65647. SBA's implementation is very similar to the statutory 
language.

II. Discussion and Analysis

    The proposed changes to the FAR are summarized in the following 
paragraphs.

A. Notification of Substantial Bundling

    At FAR 7.107-5, Notifications, a requirement is added for 
publication of a notification of substantial bundling on the 
Governmentwide point of entry (GPE). Any solicitation for a procurement 
may not be published earlier than 7 days after a notice is published 
concerning a determination that the procurement involves substantial 
bundling of contract requirements. The head of the agency must also 
publish in the GPE the rationale for substantial bundling with the 
publication of the solicitation. The rationale must address the 
information required at 7.107-4(b), such as the specific benefits 
anticipated, any alternative approaches, impediments to participation 
by small business concerns as prime contractors, and actions designed 
to maximize participation of small business concerns as subcontractors. 
A reference to the notification requirement at FAR 7.107-5 is added to 
FAR 5.205, Special situations.

B. Notification of Consolidation

    At 7.107-5, Notifications, a requirement is added for the SPE or 
CAO to publish a notice on the GPE that a determination has been made 
that a consolidation of contract requirements is necessary and 
justified. The SPE or CAO must also publish the determination that 
consolidation is necessary and justified with the publication of the 
solicitation. A reference to the notification requirement at FAR 7.107-
5 is added to FAR 5.205, Special situations.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule proposes to implement a statutory requirement for Federal 
agencies to provide notifications to the public on consolidation and 
substantial bundling of contract requirements. No solicitation 
provisions or contract clauses are being created or revised in this 
proposed rule.

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 proposed rule is not expected to be subject to E.O. 13771, 
Reducing Regulation and controlling Regulatory Costs, because this rule 
is not a significant regulatory action under E.O. 12866.

VI. Regulatory Flexibility Act

    The change may 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 Initial Regulatory 
Flexibility Analysis (IRFA) has been performed and is summarized as 
follows:

    DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement section 863 of the 
National Defense Authorization Act for 2016 (Pub. L. 114-92, 
codified at 15 U.S.C. 644(e)(3) and 15 U.S.C. 657q(c)(2)) and the

[[Page 23301]]

Small Business Administration (SBA) implementing regulations. 
Section 863 requires that, if the head of a contracting agency 
determines that an acquisition plan involves a substantial bundling 
of contract requirements, the head of the agency shall publish a 
notice of such determination on a public website within 7 days of 
making such determination. Additionally, section 863 requires, upon 
determining that a consolidation of contract requirements is 
necessary and justified, the senior procurement executive (SPE) or 
chief acquisition officer (CAO) shall publish a notice on a public 
website that such determination has been made and that an agency may 
not issue the solicitation any earlier than 7 days after publication 
of such notice. The SPE or CAO must also publish the justification 
along with the solicitation.
    The objective of this rule is to implement section 863 of the 
NDAA for FY 2016 and SBA's implementing regulations. The legal basis 
for the rule is section 863 of the NDAA for FY 2016.
    This rule may have a positive economic impact on any small 
entity that is interested in participating in Federal procurement. 
By posting justifications and notices of upcoming procurements which 
are planned to be substantially bundled or consolidated, small 
business concerns are made aware of potential subcontracting 
opportunities and possibilities for participating in joint ventures 
or small business teaming arrangements, which will help small 
businesses increase their competitiveness. The System for Award 
Management (SAM) shows 315,655 entities which are small business 
concerns under at least one North American Industry Classification 
System code.
    This proposed rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small entities.
    This proposed rule does not duplicate, overlap, or conflict with 
any other Federal rules.
    There are no known significant alternative approaches that would 
accomplish the stated objectives of the applicable statute.

    The Regulatory Secretariat Division has submitted a copy of the 
IRFA to the Chief Counsel for Advocacy of the SBA. 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 this rule 
in accordance with 5 U.S.C. 610. Interested parties must submit 
comments separately and should cite 5 U.S.C. 610 (FAR case 2019-003) in 
correspondence.

VII. Paperwork Reduction Act

    This 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 5 and 7

    Government procurement.

William F. Clark,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.

    Therefore, DoD, GSA, and NASA are proposing to amend 48 CFR part(s) 
5 and 7, as set forth below:

0
1. The authority citation for 48 CFR part(s) 5 and 7 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 5--PUBLICIZING CONTRACT ACTIONS

0
2. Amend section 5.205 by revising paragraph (g) to read as follows:


5.205   Special Situations.

* * * * *
    (g) Notifications to the public regarding consolidation, bundling, 
or substantial bundling. (1) For the requirement to publish a 
notification of consolidation or substantial bundling of contract 
requirements, see 7.107-5(c) and (d).
    (2) The agency is encouraged to provide notification of the 
rationale for any bundled requirement to the GPE before issuing the 
solicitation of any bundled requirement (see 7.107-5(b)).

PART 7--ACQUISITION PLANNING


7.105   [Amended]

0
3. Amend section 7.105 by removing from paragraph (b)(16) ``GPE'' and 
adding ``Governmentwide point of entry (GPE)'' in its place.


7.107-1   [Amended]

0
4. Amend section 7.107-1 by removing from paragraph (a) ``7.107-3 and 
7.107-4'' and adding ``7.107-3, 7.107-4, and 7.107-5'' in its place.


7.107-2   [Amended]

0
5. Amend section 7.107-2 by:
0
 a. In paragraph (a) introductory text removing the words ``procurement 
executive'' and ``acquisition officer'' and adding in their place 
``procurement executive (SPE)'' and ``acquisition officer (CAO)'', 
respectively;
0
b. In from paragraph (b) removing the words ``senior procurement 
executive or chief acquisition officer'' and ``subsection'' and adding 
in their place ``SPE or CAO'' and ``section'', respectively;
0
 c. In from paragraph (d)(3) removing the words ``senior procurement 
executive or chief acquisition officer'' and adding in their place 
``SPE or CAO'';
0
d. In paragraph (e)(1) introductory text removing the word 
``subsection'' wherever it appears and adding in its place ``section'';
0
 e. In paragraph (e)(1)(i) removing the word ``subsection'' and adding 
in its place the word ``section''; and
0
 f. In paragraph (e)(2)(i) removing the words ``senior procurement 
executive'' and adding in their place ``SPE''.
0
6. Amend section 7.107-5 by:
0
 a. Revising paragraph (b);
0
b. Redesignating paragraphs (c) and (d) as paragraphs (e) and (g), and 
adding new paragraphs (c), (d), and (f); and
0
 c. In newly redesignated paragraph (g) removing the words ``Public 
notification'' and adding in their place ``Notification to public''.
    The revision and additions read as follows:


7.107-5   Notifications.

* * * * *
    (b) Notification to public of rationale for bundled requirement. 
The agency is encouraged to provide notification of the rationale for 
any bundled requirement to the GPE, before issuance of the solicitation 
(see 5.201).
    (c) Notification to public of consolidation of contract 
requirements. The SPE or CAO shall publish in the GPE--
    (1) A notice that the agency has determined a consolidation of 
contract requirements is necessary and justified (see 7.107-2) no later 
than 7 days after making the determination; the solicitation may not be 
publicized prior to 7 days after publication of the notice of the 
determination; and
    (2) The determination that consolidation is necessary and justified 
with the publication of the solicitation. See 7.107-2 for the required 
content of the determination.
    (d) Notification to public of substantial bundling of contract 
requirements. The head of the agency shall publish in the GPE--
    (1) A notice that the agency has determined that a procurement 
involves substantial bundling (see 7.107-4) no later than 7 days after 
such determination has been made; the solicitation may not be 
publicized prior to 7 days after publication of the notice of the 
determination; and
    (2) The rationale for substantial bundling with the publication of 
the solicitation. The rationale is the

[[Page 23302]]

information required for inclusion in the acquisition strategy at 
7.107-4(b).
* * * * *
    (f) Annual notification to public of rationale for bundled 
requirements. The agency shall publish on its website a list and 
rationale for any bundled requirement for which the agency solicited 
offers or issued an award. The notification shall be made annually 
within 30 days of the agency's data certification regarding the 
validity and verification of data entered in the Federal Procurement 
Data System to the Office of Federal Procurement Policy (see 4.604).
* * * * *
[FR Doc. 2020-08005 Filed 4-24-20; 8:45 am]
 BILLING CODE 6820-EP-P