[Federal Register Volume 85, Number 191 (Thursday, October 1, 2020)]
[Rules and Regulations]
[Pages 61871-61872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18597]
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GENERAL SERVICES ADMINISTRATION
48 CFR Part 532
[GSAR Case 2020-G521 Docket No. 2020-0017; Sequence No. 1]
RIN 3090-AK25
General Services Administration Acquisition Regulation; Remove
Office of General Counsel Review for Final Payments
AGENCY: Office of Acquisition Policy, General Services Administration
(GSA).
ACTION: Direct final rule with request for comments.
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SUMMARY: The General Services Administration (GSA) is issuing a final
rule amending the General Services Administration Acquisition
Regulation (GSAR) to revise internal agency approval procedures for
processing a final payment for construction and building service
contracts where, after 60 days, a contracting officer is unable to
obtain a release of claims from a contractor.
DATES: This final rule is effective on November 30, 2020 without
further notice unless adverse comments are received by November 2,
2020. If GSA receives adverse comments, we will publish a timely
withdrawal in the Federal Register informing the public that the rule
will not take effect.
ADDRESSES: Submit comments in response to GSAR Case 2020-G521 via the
Federal eRulemaking portal at Regulations.gov by searching for ``GSAR
Case 2020-G521''. Select the link ``Comment Now'' that corresponds with
GSAR Case 2020-G521. Follow the instructions provided at the ``Comment
Now'' screen. Please include your name, company name (if any), and
``GSAR Case 2020-G521'' on your attached document.
Instructions: Please submit comments only and cite GSAR Case 2020-
G521 in all correspondence related to this case. Comments received
generally will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov approximately two-to-three days after submission to
verify posting.
FOR FURTHER INFORMATION CONTACT: Mr. Alexander Beyrent, GSA Acquisition
Policy Division, at [email protected], for clarification of content.
For information pertaining to status or publication schedules, contact
the
[[Page 61872]]
Regulatory Secretariat at 202-501-4755. Please cite GSAR Case 2020-
G521.
SUPPLEMENTARY INFORMATION:
I. Background
As part of GSA's regulatory reform efforts, GSA determined that
GSAR 532.905-70 should no longer require contracting officers to obtain
approval of legal counsel before processing final payments for
construction and building service contracts where, after 60 days, the
contracting officers are unable to obtain releases of claims from
contractors. Legal review is not a statutory requirement, and the
decision to process final payments in such cases is a business
decision, rather than a legal one.
II. Authority for This Rulemaking
Title 40 of the United States Code (U.S.C.) Section 121 authorizes
GSA to issue regulations, including the GSAR, to control the
relationship between GSA and contractors.
III. Discussion and Analysis
Prior to the issuance of this rule, GSA guidance on final payments
for construction and building service contracts provided that, ``in
cases where, after 60 days from the initial attempt, the contracting
officer is unable to obtain a release of claims from the contractor,
the final payment may be processed with the approval of assigned legal
counsel.'' GSA is proposing to amend GSAR 532.905-70(c) by removing the
legal approval requirement because this is a business decision to be
made by the contracting officer, not a legal decision. Therefore, upon
implementation of this rule, a contracting officer may instead process
a final payment in such a situation after documenting in the contract
file: (i) That the contracting officer requested a release of claims
from the contractor and did not receive a response within 60 calendar
days; and (ii) approval to process the final payment from one level
above the contracting officer.
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 Executive Order 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 final rule was not subject to E.O. 13771 because this rule is
not a significant regulatory action under E.O. 12886.
VI. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because
this final rule does not constitute a significant GSAR revision.
VII. Paperwork Reduction Act
The final 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 532
Government procurement.
Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of
Governmentwide Policy, General Services Administration.
Therefore, GSA amends 48 CFR part 532 as set forth below:
PART 532--CONTRACT FINANCING
0
1. The authority citation for 48 CFR part 532 continues to read as
follows:
Authority: 40 U.S.C. 121(c).
0
2. Amend section 532.905-70 by:
0
a. Removing from paragraph (a) ``amount due the Contractor'' and adding
``amount due to the contractor'' in its place;
0
b. Revising paragraph (b); and
0
c. Removing paragraphs (c) and (d).
The revision reads as follows:
532.905-70 Final payment--construction and building service
contracts.
* * * * *
(b) A contracting officer may only process the final payment for a
construction or building service contract once:
(1) The contractor submits a properly executed GSA Form 1142,
Release of Claims; or
(2) The contracting officer documents in the contract file:
(i) That the contracting officer requested a release of claims from
the contractor and did not receive a response within 60 calendar days;
and,
(ii) Approval to process the final payment from one level above the
contracting officer.
[FR Doc. 2020-18597 Filed 9-30-20; 8:45 am]
BILLING CODE 6820-61-P