Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations 863 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Parts 542 and 552 

[GSAR Amendment 2008–05; GSAR Case 

2008–G512 (Change 26); Docket 2009–0012; 

Sequence 1] 

RIN 3090–AI59 

General Services Administration 

Acquisition Regulation; GSAR Case 

2008–G512; Rewrite of GSAR Part 542; 

Contract Administration and Audit 

Services 

AGENCIES: General Services 

Administration (GSA), Office of the 

Chief Acquisition Officer. 

ACTION: Final rule. 

SUMMARY: The General Services 

Administration (GSA) is amending the 

General Services Administration 

Acquisition Regulation (GSAR) to revise 

sections of GSAR Part 542 that provide 

requirements for contract administration 

and audit services. 

DATES: Effective Date: February 9, 2009. 

FOR FURTHER INFORMATION CONTACT

Contact Ms. Jeritta Parnell, Procurement 

Analyst, at (202) 501–4082 for 

clarification of content. For information 

pertaining to the status or publication 

schedules, please contact the Regulatory 

Secretariat (VPR), Room 4041, GS 

Building, Washington, DC, 20405, (202) 

501–4755. Please cite Amendment 

2008–04, GSAR case 2008–G512 

(Change 26). 

SUPPLEMENTARY INFORMATION: 

A. Background 

The General Services Administration 

(GSA) is amending the General Services 

Administration Acquisition Regulation 

(GSAR) to update the text addressing 

GSAR Subpart 542.1107, Production 

Surveillance and Reporting, and the 

clause at 552.242–70, Status Report of 

Orders and Shipments. The language in 

the contract clause at 542.1107 is 

revised to add emphasis to the 

contracting officer’s responsibilities. 

The clause at 552.242–70, Status Report 

of Orders and Shipments, is revised to 

update information about the referenced 

GSA office. The language in 542.15, 

Contractor Performance Information, is 

reorganized and removed from the 

GSAR because it is considered guidance 

that is internal to the agency. 

GSA published a proposed rule with 

request for comments in the Federal 

Register at 73 FR 35614, June 24, 2008. 

There were three public comments, 

pertaining to GSAM 542.1503, received 

from one respondent. This language in 

542.1503, previously shown as GSAR 

coverage, is now, not included in the 

GSAR but provided as instruction to 

contracting officers in the GSA Manual 

(GSAM). This is internal GSA guidance 

for contracting officers. 

The respondent suggested ‘‘putting 

oversight mechanisms in place to 

review evaluations in the database for 

disagreements where no review, or an 

inadequate review, exists from 

Contracting Directors.’’ GSA does not 

agree. GSA’s procedures allow 

flexibility for the Heads of the Services 

to identify the officials responsible for 

collecting, disseminating, and applying 

contractor performance information in 

the acquisition process. In addition, 

contracting directors, as specified by 

Service organizations, are responsible 

for reviewing and making the final 

determination. GSA believes that the 

information provided to agency 

personnel is adequate. 

The respondent suggested that the 

contractor and the contracting director 

respond to the evaluation within 30 

days from receipt of the contractor’s 

rebuttal statements. GSA does not agree. 

The current coverage allows flexibility 

for the contracting office to make final 

determinations as needed for the 

contract at hand. In addition, FAR 

42.1503(b) allows agencies to address 

final decisions as soon as is practical. 

The respondent also recommended 

that GSAR 542.1503 should ‘‘provide 

guidance to Contracting Directors on 

what should be included in any review 

comments to satisfy the FAR and ensure 

an honest and unbiased evaluation.’’ 

GSA does not agree. The current 

coverage allows flexibility for the 

contracting director to make final 

determinations as needed for the 

contract at hand. Each contractor 

performance evaluation is tailored to the 

contract requirements and, therefore, is 

specific to the contract at hand. 

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. 

B. Regulatory Flexibility Act 

The General Services Administration 

certifies that this final rule will not 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 rule provides clarity for 

existing language and updates other 

language. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

apply; however, these changes to the 

GSAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved on July 30, 2008, under OMB 

Control Number3090–0027. 

List of Subjects in 48 CFR Parts 542 and 

552 

Government procurement. 

Dated: October 30, 2008. 

David A. Drabkin, 

Senior Procurement Executive, Office of the 

Chief Acquisition Officer, General Services 

Administration. 

■ Therefore, GSA amends 48 CFR parts 

542 and 552 as set forth below: 

PART 542—CONTRACT 

ADMINISTRATION AND AUDIT 

SERVICES 

■ 1. The authority citation for 48 CFR 

part 542 is revised to read as follows: 

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

■ 2. Revise section 542.1107 to read as 

follows: 

542.1107 Contract clause. 

The contracting officer shall insert 

552.242–70, Status Report of Orders and 

Shipments, in solicitations and 

indefinite quantity and requirements 

contracts for Stock or Special Order 

Program items. The clause may be used 

in indefinite-delivery definite-quantity 

contracts for Stock or Special Order 

Program items when close monitoring is 

necessary because numerous shipments 

are involved. 

SUBPART 542.15 [Removed] 

■ 3. Remove Subpart 542.15. 

PART 552—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. The authority citation for 48 CFR 

part 552 continues to read as follows: 

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

■ 5. Amend section 552.242–70 by— 

■ a. Revising the date of the clause; 

■ b. Removing from paragraph (a) 

‘‘FQC’’ and adding ‘‘QVOC’’ in its place; 

and 

■ c. Revising paragraph (b) to read as 

follows: 

552.242–70 Status Report of Orders and 

Shipments. 

* * * * * 

STATUS REPORT OF ORDERS AND 

SHIPMENTS February 9, 2009. 

* * * * * 


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864 Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations 

(b) A copy of GSA Form 1678 will be 

forwarded to the Contractor with the 

contract. Additional copies of the form, 

if needed, may be reproduced by the 

Contractor. 

(End of clause) 

[FR Doc. E9–216 Filed 1–8–09; 8:45 am] 

BILLING CODE 6820–61–S 

GENERAL SERVICES 

ADMINISTRATION 

48 CFR Parts 543 and 552 

[GSAR Amendment 2005–04; GSAR Case 

2008–G513 (Change 25); Docket 2009–0012; 

Sequence 2] 

RIN 3090–AI83 

General Services Administration 

Acquisition Regulation; GSAR Case 

2008–G513; Rewrite of GSAR Part 543, 

Contract Modifications 

AGENCIES: General Services 

Administration (GSA), Office of the 

Chief Acquisition Officer. 

ACTION: Final rule. 

SUMMARY: The General Services 

Administration (GSA) is amending the 

GSA Acquisition Regulation (GSAR) to 

revise the language that provides 

requirements for contract modifications. 

DATES: Effective Date: January 9, 2009. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeritta Parnell at (202) 501–4082, for 

clarification of content. For information 

pertaining to the status or publication 

schedules, contact the Regulatory 

Secretariat (VPR), Room 4041, GS 

Building, Washington, DC 20405, (202) 

501–4755. Please cite Amendment 

2005–04, GSAR case 2008–G513 

(Change 25). 

SUPPLEMENTARY INFORMATION: 

A. Background 

The GSA is amending the GSAR to 

revise GSAR 543.205, Contract clauses, 

and associated clauses in GSAR 

552.243. The information in GSAR 

543.205, Contract clauses, is revised to 

remove 543.205(a)(1) and 543.205(b) 

and be re-numbered accordingly. The 

information in 543.205(a)(1) is deleted. 

This clause prescription is no longer 

necessary. The information in 

543.205(b) is relocated to part 538. The 

prescription for the clause at 552.243– 

71, Equitable Adjustment, is revised to 

include the clause title for FAR 52.243– 

4, Changes. The clause at 552.243–70, 

Pricing of Adjustments, is deleted. 

Information formerly contained in this 

clause is now contained in the revised 

clause at 552.243–71, Equitable 

Adjustments. The clause at 552.243–71, 

Equitable Adjustments, is revised to 

clarify costs, overhead, profit, and 

proposal preparation costs. The clause 

at 552.243–72, Modifications, (Multiple 

Award Schedule) is relocated to GSAR 

part 538. 

The GSA published a proposed rule 

with request for comments in the 

Federal Register at 73 FR 35614 on June 

24, 2008. There were four public 

comments from two respondents. One 

respondent recommended adding the 

phrase ‘‘impacted by the change’’ to 

paragraph (e) of the clause at 552.243– 

71 to limit the equitable adjustment to 

only the work impacted by the change. 

The GSA agrees and the language was 

revised to include this recommendation. 

The second respondent made three 

suggestions regarding internal GSA 

procedures. These suggestions are 

outside the scope of the GSAR case as 

published. Additional editorial 

corrections were made in paragraphs 

(b), (d), and (j)(2)of the clause at 

552.243–71. 

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. 

B. Regulatory Flexibility Act 

The General Services Administration 

certifies that this final rule will not 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 rule updates, clarifies, and 

reorganizes existing language. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

GSAR do not impose recordkeeping or 

information collection requirements, or 

otherwise collect information from 

offerors, contractors, or members of the 

public that require approval of the 

Office of Management and Budget under 

44 U.S.C.3501, et seq. 

List of Subjects in 48 CFR Parts 543 and 

552 

Government procurement. 

Dated: December 8, 2008. 

David A. Drabkin, 

Senior Procurement Executive, Office of the 

Chief Acquisition Officer, General Services 

Administration. 

■ Therefore, GSA amends 48 CFR parts 

543 and 552 as set forth below: 

■ 1. The authority citation for 48 CFR 

parts 543 and 552 continues to read as 

follows: 

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

PART 543—CONTRACT 

MODIFICATONS 

■ 2. Revise section 543.205 to read as 

follows: 

543.205 Contract clauses. 

The contracting officer shall insert 

552.243–71, Equitable Adjustments, in 

solicitations and contracts containing 

FAR 52.243–4, Changes. 

PART 552—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

552.243–70 [Removed] 

■ 3. Remove section 552.243–70. 

■ 4. Revise section 552.243–71 to read 

as follows: 

552.243–71 Equitable Adjustments. 

As prescribed in 543.205, insert the 

following clause: 

Equitable Adjustments 

(JAN 2009) 

(a) This clause governs the 

determination of equitable adjustments 

to which the Contractor may be entitled 

under the ‘‘Changes’’ clause prescribed 

by FAR 52.243–4, the ‘‘Differing Site 

Conditions’’ clause prescribed by FAR 

52.236–2, and any other provision of 

this contract allowing entitlement to an 

equitable adjustment. This clause does 

not govern determination of the 

Contractor’s relief allowable under the 

‘‘Suspension of Work’’ clause prescribed 

by FAR 52.242–14. 

(b) At the written request of the 

Contracting Officer, the Contractor shall 

submit a proposal, in accordance with 

the requirements set forth herein, for an 

equitable adjustment to the contract for 

changes or other conditions that may 

entitle a Contractor to an equitable 

adjustment. If the Contractor deems an 

oral or written order to be a change to 

the contract, it shall promptly submit to 

the Contracting Officer a proposal for 

equitable adjustment attributable to 

such deemed change. The proposal shall 

also conform to the requirements set 

forth herein. 

(c) The proposal shall be submitted 

within the time specified in the 

‘‘Changes’’ clause, or such other time as 

may reasonably be required by the 

Contracting Officer. In the case of a 

proposal submitted based on the 

‘‘Differing Site Conditions’’ clause, the 

notice requirement of that clause shall 

be met. 

(d) Proposals for equitable 

adjustments, including no cost requests 

for adjustment of the contract’s required 


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