[Federal Register Volume 89, Number 60 (Wednesday, March 27, 2024)]
[Proposed Rules]
[Pages 21230-21232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06442]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 552 and 570

[GSAR Case 2020-G512; Docket No. 2024-0010; Sequence No. 1]
RIN 3090-AK22


General Services Administration Acquisition Regulation; SAM 
Representation for Leases

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Proposed rule.

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SUMMARY: GSA is proposing to amend the General Services Administration 
Acquisition Regulation (GSAR) to remove the requirement for lease 
offerors to have an active System for Award Management (SAM) 
registration when submitting offers and instead allow offers up until 
the time of award to obtain an active SAM registration.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
May 28, 2024 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to GSAR Case 2020-G512 to 
https://www.regulations.gov via the Federal eRulemaking portal by 
searching for ``GSAR Case 2020-G512''. Select the link ``Comment Now'' 
that corresponds with GSAR Case 2020-G512. Follow the instructions 
provided at the ``Comment Now'' screen. Please include your name, 
company name (if any), and ``GSAR Case 2020-G512'' on your attached 
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR 
FURTHER INFORMATION CONTACT section of this document for alternate 
instructions.
    Instructions: Please submit comments only and cite GSAR Case 2020-
G512, 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: For clarification of content, contact 
Ms. Michaela Mastroianni, Procurement Analyst, or Ms. Amy Lara, 
Procurement Analyst, at [email protected] or 816-926-7172. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at [email protected] or 202-501-4755. Please 
cite GSAR Case 2020-G512.

SUPPLEMENTARY INFORMATION:

I. Background

    GSA is proposing to amend the General Services Administration 
Acquisition Regulation (GSAR) to create a SAM registration provision 
specific for the acquisitions of leasehold interests in real property. 
This proposed provision was prompted by the implementation of FAR Case 
2015-005 (see 83 FR 48691), which clarified the timing of registration 
in the System for Award Management (SAM). Effective October 2018, this 
FAR case implemented the requirement for an offeror to be registered in 
SAM prior to the submission of an offer as opposed to the offerer being 
registered prior to award as was previously followed before the FAR 
change. While leasing of real property is not subject to the FAR, GSA 
prescribed FAR clause 52.204-7 in solicitations for the lease of real 
property. It found this FAR amendment had a significant effect on 
prospective GSA lessors.
    On February 12, 2020, GSA issued a deviation to the updated FAR 
clause to permit the completion of SAM representation for leases prior 
to award instead of prior to offer for leasing companies. GSA would 
therefore only require the apparent awardee to complete the SAM 
registration. This proposed change would codify this provision in the 
GSAR.

II. Discussion and Analysis

    Upon the implementation of FAR Case 2015-005, GSA found the change 
problematic for the use in real property leases. Due to the nature of 
real property leases, this change created a negative impact on 
competition. It is common practice in real estate transactions for an 
offeror to form a separate entity (LLCs) for each building under their 
control. Therefore, owners with multiple buildings in their portfolio 
may have to create a separate SAM registration for every building they 
wish to submit for the Government's consideration. This becomes 
burdensome for property owners and becomes a deterrent for property 
owners to submit offers to the Government. Additionally, this could 
disqualify an offeror from competition solely based on the lack of SAM 
registration. This decreases competition and does not promote maximum 
competition to realize the best value or cost savings to the 
Government.
    While the representation is important for FAR based acquisition, 
the leasing of real property is not based on the FAR. The protections 
that SAM registration representations provide to the

[[Page 21231]]

Government will still be assured by requiring this SAM representation 
prior to award but in a way more tailored to the lessor community.
    This proposed provision will have a positive effect on the 
Government and the lessor community as it decreases the burden 
ultimately leading to increased competition whilst still ensuring SAM 
registration. Therefore, this rule proposes to use GSAR 552.270-35 in 
lieu of FAR 52.204-7.

III. Expected Impact of the Rule

    This rule is not expected to have a significant impact to 
Government or industry. This rule will reduce the burden on leasing 
companies by allowing offerors to complete SAM representation for 
leases prior to award instead of prior to offer. Completing SAM 
representations prior to offer for each property is time consuming for 
a leasing company and burdensome to effective competition. This will 
streamline the process and encourage competition, which will benefit 
the Government.

IV. Executive Orders 12866, 13563 and 14904

    Executive Orders (E.O.) 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. 
E.O. 14094 (Modernizing Regulatory Review) supplements and reaffirms 
the principles, structures, and definitions governing contemporary 
regulatory review established in E.O. 12866 and E.O. 13563. OIRA has 
determined this rule not to be a significant regulatory action and, 
therefore, is not subject to review under section 6(b) of E.O. 12866, 
Regulatory Planning and Review, dated September 30, 1993.

V. Regulatory Flexibility Act

    GSA 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. 601, et seq. because 
it reduces the burden on small business entities by allowing offerors 
to complete SAM representation for leases prior to award instead of 
prior to offer and does not implement new or changed requirements. 
However, an Initial Regulatory Flexibility Analysis (IRFA) has been 
prepared consistent with 5 U.S.C. 603.
    The Regulatory Secretariat will submit 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 Division. 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. 610 (GSAR Case 2020-G512) in 
correspondence.
    The analysis is summarized as follows:

    The General Services Administration (GSA) is proposing to amend 
the General Services Administration Acquisition Regulation (GSAR) to 
permit the completion of the System for Award Management (SAM) 
representations at award instead of at offer for lease procurements.
    GSAR coverage does not currently include internal policy and 
guidance issued in other forms such as Procurement Instructional 
Bulletins (PIBs). This internal guidance has never been fully vetted 
to the regulatory level for analysis. This rule proposes to 
incorporate existing policy and guidance regarding SAM registration 
for leases into the GSAR.
    The objective of the proposed rule is to amend the GSAR to amend 
Part 552, Solicitation Provisions and Contract Clauses, of the GSAR 
by creating Subsection 552.270-35, System for Award Management--
Leasing.
    Currently, each business entity submitting a bid must complete 
all SAM representations prior to submitting its offer. It is common 
practice for leasing companies to register each individual property 
within its portfolio as a separate legal entity. Under the current 
SAM representation process, a leasing company will have to make 
separate SAM representations prior to offer for each property within 
its portfolio as each property is considered a separate entity.
    Completing SAM representations prior to offer for each property 
is time consuming for a leasing company and burdensome to effective 
competition. To streamline the process and encourage competition, 
GSA is proposing to permit the completion of SAM representation for 
leases prior to award instead of prior to offer for leasing 
companies.
    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.
    GSA has approximately 8,000 leases in total. Approximately 70 
percent of leasing entities were small entities. This information is 
based on internal inventory data sources.
    GSA does not expect this rule to have a significant economic 
impact on a substantial number of small business entities within the 
meaning of the Regulatory Flexibility Act, at 5 U.S.C. 601. This 
rule reduces the burden on small business entities by allowing 
offerors to complete SAM representation for leases prior to award 
instead of prior to offer, and does not implement new or changed 
requirements.
    The rule involves reporting and recordkeeping that are currently 
covered under OMB Control Number 9000-0159, System for Award 
Management Registration (SAM). This rule does not include any new 
reporting, recordkeeping, or other compliance requirements for small 
business entities.
    This rule does not duplicate, overlap, or conflict with any 
other Federal rules.
    There are no known alternatives to this rule which would 
accomplish the stated objectives. This rule does not initiate or 
impose any new administrative or performance requirements on small 
business contractors.

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply; 
however, these changes to the GSAR do not impose additional information 
collection requirements to the paperwork burden previously approved 
under the Office of Management and Budget Control Number 9000-0159, 
System for Award Management Registration (SAM).

List of Subjects in 48 CFR Parts 552 and 570

    Government procurement.

Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of 
Government-wide Policy, General Services Administration.

    Therefore, GSA proposes to amend 48 CFR parts 552 and 570 as set 
forth below:

0
1. The authority citation for 48 CFR parts 552 and 570 continues to 
read as follows:

    Authority: 40 U.S.C. 121(c).

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
2. Add section 552.270-35 to read as follows:


552.270-35   System for Award Management--Leasing.

    As prescribed in 570.702, insert the following provision:

System for Award Management--Leasing (DATE)

    In lieu of FAR provision 52.204-7 use the following:
    (a) Definitions. As used in this provision--

[[Page 21232]]

    ``Electronic Funds Transfer (EFT) indicator'' means a four-
character suffix to the unique entity identifier. The suffix is 
assigned at the discretion of the commercial, nonprofit, or 
Government entity to establish additional System for Award 
Management records for identifying alternative EFT accounts (see 
subpart 32.11) for the same entity.
    ``Registered in the System for Award Management (SAM)'' means 
that--
    (1) The Offeror has entered all mandatory information, including 
the unique entity identifier and the EFT indicator, if applicable, 
the Commercial and Government Entity (CAGE) code, as well as data 
required by the Federal Funding Accountability and Transparency Act 
of 2006 (see subpart 4.14) into SAM;
    (2) The offeror has completed the Core, Assertions, 
Representations and Certifications, and Points of Contact sections 
of the registration in SAM;
    (3) The Government has validated all mandatory data fields, to 
include validation of the Taxpayer Identification Number (TIN) with 
the Internal Revenue Service (IRS). The offeror will be required to 
provide consent for TIN validation to the Government as a part of 
the SAM registration process; and
    (4) The Government has marked the record ``Active''.
    ``Unique entity identifier'' means a number or other identifier 
used to identify a specific commercial, nonprofit, or Government 
entity. See www.sam.gov for the designated entity for establishing 
unique entity identifiers.
    (b)(1) An Offeror is required to be registered in SAM prior to 
award, and shall continue to be registered during performance, and 
through final payment of any contract, basic agreement, basic 
ordering agreement, or blanket purchasing agreement resulting from 
this solicitation.
    (2) The Offeror shall enter, in the block with its name and 
address on the cover page of its offer, the annotation ``Unique 
Entity Identifier'' followed by the unique entity identifier that 
identifies the Offeror's name and address exactly as stated in the 
offer. The Offeror also shall enter its EFT indicator, if 
applicable. The unique entity identifier will be used by the 
Contracting Officer to verify that the Offeror is registered in the 
SAM.
    (c) If the Offeror does not have a unique entity identifier, it 
should contact the entity designated at www.sam.gov for 
establishment of the unique entity identifier directly to obtain 
one. The Offeror should be prepared to provide the following 
information:
    (1) Company legal business name.
    (2) Tradestyle, doing business, or other name by which the 
entity is commonly recognized.
    (3) Company physical street address, city, state, and Zip Code.
    (4) Company mailing address, city, state and Zip Code (if 
separate from physical).
    (5) Company telephone number.
    (6) Date the company was started.
    (7) Number of employees at your location.
    (8) Chief executive officer/key manager.
    (9) Line of business (industry).
    (10) Company headquarters name and address (reporting 
relationship within the entity).
    (d) If the Offeror does not become registered in the SAM 
database in the time prescribed by the Contracting Officer, the 
Contracting Officer will proceed to award to the next otherwise 
successful registered Offeror.
    (e) Processing time should be taken into consideration when 
registering. Offerors who are not registered in SAM should consider 
applying for registration immediately upon receipt of the 
solicitation. See https://www.sam.gov for information on 
registration.
[(End of provision)]

PART 570--ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY


 570.701   [Amended]

0
3. In section 570.701 amend the table by removing from paragraph (a), 
in the second column, the entry ``52.204-7 System for Award 
Management.''
0
4. Amend section 570.702 by adding in numerical order the entry for 
``552.270-35'' to read as follows:


570.702  GSAR solicitation provisions.

* * * * *
552.270-35--System for Award Management--Leasing
[FR Doc. 2024-06442 Filed 3-26-24; 8:45 am]
BILLING CODE 6820-61-P