Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations 36025

b. Remove from paragraph (b)(1)

‘‘Ordering Offices can place’’ and add

‘‘Place’’ in its place; c. Revise the introductory text of

paragraph (b)(2); d. Revise paragraph (b)(2)(i);

e. Remove from the last sentence of

the introductory text of paragraph (b)(3)

‘‘, ordering offices shall’’; f. Revise paragraph (b)(3)(i);

g. Revise the first sentence in

paragraph (b)(3)(iii); and h. Revise paragraphs (b)(4), (b)(5), and

(b)(6) to read as follows:

8.404 Using schedules.

(a) General. Parts 13 and 19 do not

apply to orders placed against Federal

Supply Schedules, except for the

provision at 13.303–2(c)(3). Orders

placed against a Multiple Award

Schedule (MAS), using the procedures

in this subpart, are considered to be

issued using full and open competition

(see 6.102(d)(3)). Therefore, ordering

offices need not seek further

competition, synopsize the requirement,

make a separate determination of fair

and reasonable pricing, or consider

small business programs. GSA has

already determined the prices of items

under schedule contracts to be fair and

reasonable. By placing an order against

a schedule using the procedures in this

section, the ordering office has

concluded that the order represents the

best value and results in the lowest

overall cost alternative (considering

price, special features, administrative

costs, etc.) to meet the Government’s

needs.

(b) * * *

(2) Orders exceeding the micropurchase threshold but not exceeding

the maximum order threshold. Place

orders with the schedule contractor that

can provide the supply or service that

represents the best value. Before placing

an order, consider reasonably available

information about the supply or service

offered under MAS contracts by using

the ‘‘GSA Advantage!’’ on-line shopping

service, or by reviewing the catalogs or

pricelists of at least three schedule

contractors (see 8.404(b)(6)). Select the

delivery and other options available

under the schedule that meet the

agency’s needs. When selecting the

supply or service representing the best

value, the ordering office may

consider—

(i) Special features of the supply or

service required for effective program

performance;

* * * * *

(3) * * *

(i) Review additional schedule

contractors’ catalogs or pricelists, or use

the ‘‘GSA Advantage!’’ on-line shopping

service;

* * * * *

(iii) After seeking price reductions,

place the order with the schedule

contractor that provides the best value

and results in the lowest overall cost

alternative (see 8.404(a)). * * *

(4) Blanket purchase agreements

(BPAs). Agencies may establish BPAs

(see 13.303–2(c)(3)) when following the

ordering procedures in this subpart. All

schedule contracts contain BPA

provisions. Ordering offices may use

BPAs to establish accounts with

contractors to fill recurring

requirements. BPAs should address

ordering frequency, invoicing,

discounts, and delivery locations and

times.

(5) Price reductions. In addition to the

circumstances in paragraph (b)(3) of this

section, there may be other reasons to

request a price reduction. For example,

seek a price reduction when the supply

or service is available elsewhere at a

lower price or when establishing a BPA

to fill recurring requirements. The

potential volume of orders under BPAs,

regardless of the size of the individual

order, offer the opportunity to secure

greater discounts. Schedule contractors

are not required to pass on to all

schedule users a price reduction

extended only to an individual agency

for a specific order. (6) Small business. When conducting

evaluations and before placing an order,

consider including, if available, one or

more small, women-owned small, and/

or small disadvantaged business

schedule contractor(s). Orders placed

against the schedules may be credited

toward the ordering agency’s small

business goals. For orders exceeding the

micro-purchase threshold, ordering

offices should give preference to the

items of small business concerns when

two or more items at the same delivered

price will satisfy the requirement.

* * * * *

PART 38—FEDERAL SUPPLY

SCHEDULE CONTRACTING

4. Revise section 38.101 to read as

follows:

38.101 General.

(a) The Federal Supply Schedule

program, pursuant to 41 U.S.C.

259(b)(3)(A), provides Federal agencies

with a simplified process of acquiring

commonly used supplies and services in

varying quantities while obtaining

volume discounts. Indefinite-delivery

contracts (including requirements

contracts) are awarded using

competitive procedures to commercial

firms. The firms provide supplies and

services at stated prices for given

periods of time, for delivery within a

stated geographic area such as the 48

contiguous states, the District of

Columbia, Alaska, Hawaii, and overseas.

The schedule contracting office issues

Federal Supply Schedules that contain

information needed for placing orders.

(b) Each schedule identifies agencies

that are required to use the contracts as

primary sources of supply.

(c) Federal agencies not identified in

the schedules as mandatory users may

issue orders under the schedules.

Contractors are encouraged to accept the

orders.

(d) Although GSA awards most

Federal Supply Schedule contracts, it

may authorize other agencies to award

schedule contracts and publish

schedules. For example, the Department

of Veterans Affairs awards schedule

contracts for certain medical and

nonperishable subsistence items.

(e) When establishing Federal Supply

Schedules, GSA, or an agency delegated

that authority, is responsible for

complying with all applicable statutory

and regulatory requirements (e.g., Parts

5, 6, and 19). The requirements of Parts

5, 6, and 19 apply at the acquisition

planning stage prior to issuing the

schedule solicitation and do not apply

to orders and BPAs placed under

resulting schedule contracts (see 8.404).

[FR Doc. 00–13821 Filed 6–1–00; 4:00 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 97–18; FAR Case 2000–004; Item VI]

RIN 9000–AI78

Federal Acquisition Regulation; Trade

Agreements Thresholds

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to implement new

dollar thresholds for application of the

Trade Agreements Act (TAA) and North

American Free Trade Agreement

36026 Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations

(NAFTA), as published by the U.S.

Trade Representative in the Federal

Register at 65 FR 17332, March 31,

2000.

DATES: Effective Date: June 6, 2000.

Applicability Date: The FAR, as

amended by this rule, is applicable to

solicitations issued on or after June 6,

2000.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, (202)

501–4755, for information pertaining to

status or publication schedules. For

clarification of content, contact Mr. Paul

Linfield, Procurement Analyst, at (202)

501–1757. Please cite FAC 97–18, FAR

case 2000–004.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Subparts

25.2, 25.4, 25.6, and 25.11 to implement

new dollar thresholds for application of

the Trade Agreements Act (TAA) and

North American Free Trade Agreement

(NAFTA), as published by the U.S.

Trade Representative in the Federal

Register at 65 FR 17332, March 31,

2000.

The rule also amends the clauses at

FAR 52.225–11, Buy American Act—

Balance of Payments Program—

Construction Materials under Trade

Agreements, and 52.225–12, Notice of

Buy American Act—Balance of

Payments Program Requirements—

Construction Materials under Trade

Agreements. This rule revises Alternate

I to FAR 52.225–11, because the

threshold for NAFTA construction is

now higher than the threshold for TAA

construction, and adds the

corresponding alternate to 52.225–12.

This rule was not subject to Office of

Management and Budget 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 final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comments is not required. However, the

Councils will consider comments from

small entities concerning the affected

FAR subparts 25 and 52 in accordance

with 5 U.S.C. 610. Interested parties

must submit such comments separately

and should cite 5 U.S.C. 601, et seq.

(FAC 97–18, FAR case 2000–004), in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act

applies. However, the Councils’

amendments to the FAR do not change

information collection requirements

previously approved by the Office of

Management and Budget under 44

U.S.C. 3501, et seq. The approved OMB

clearances for the affected clauses are

9000–0022, 9000–0023, 9000–0024,

9000–0025, 9000–0130, and 9000–0141.

List of Subjects in 48 CFR Parts 25 and

52

Government procurement.

Dated: May 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 25 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 25 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

PART 25—FOREIGN ACQUISITION

2. In section 25.202, revise paragraph

(c) to read as follows:

25.202 Exceptions.

* * * * *

(c) Acquisitions under trade

agreements. For construction contracts

with an estimated acquisition value of

$6,806,000 or more, see 25.403. If the

acquisition value is $7,068,419 or more,

also see 25.405.

3. In section 25.403, revise paragraph

(b)(1) to read as follows:

25.403 Trade Agreements Act.

* * * * *

(b) Thresholds. (1) Except as provided

in 25.401, the Trade Agreements Act

applies to an acquisition for supplies or

services if the estimated value of the

acquisition is $177,000 or more; the

Trade Agreements Act applies to an

acquisition for construction if the

estimated value of the acquisition is

$6,806,000 or more. These dollar

thresholds are subject to revision by the

U.S. Trade Representative

approximately every 2 years (see

Executive Order 12260).

* * * * *

25.405 [Amended]

4. Amend section 25.405 as follows:

a. In paragraph (a) remove ‘‘$53,150’’

and add ‘‘$54,372’’ in its place;

b. In paragraph (b) remove

‘‘$6,909,500’’ and add ‘‘$7,068,419’’ in

its place; and

c. In paragraph (c) remove ‘‘$53,150’’

and ‘‘$6,909,500’’ and add in their

places ‘‘$54,372’’ and ‘‘$7,068,419’’,

respectively.

25.601 [Amended]

5. Amend paragraph (a) of section

25.601 as follows:

a. In paragraph (a)(1) remove

‘‘$186,000’’ and add ‘‘$177,000’’ in its

place;

b. In paragraph (a)(2) remove

‘‘$7,143,000’’ and add ‘‘$6,806,000’’ in

its place; and

c. In paragraph (a)(3)(ii) remove

‘‘$186,000’’ and add ‘‘$177,000’’ in its

place.

25.1101 [Amended]

6. Amend section 25.1101 as follows:

a. In paragraph (b)(1)(i) remove

‘‘$186,000’’ and add ‘‘$177,000’’ in its

place;

b. In paragraphs (b)(1)(iii) and

(b)(2)(iii) remove ‘‘$53,150’’ and add in

their places ‘‘$54,372’’; and

c. In paragraphs (c)(1) and (d) remove

‘‘$186,000’’ and add in their places

‘‘$177,000’’.

7. Amend section 25.1102 as follows:

a. In paragraphs (a) and (c) remove

‘‘$6,909,500’’ and add in their places

‘‘$6,806,000’’;

b. Revise paragraph (c)(3); and

c. Add paragraph (d)(3) to read as

follows:

25.1102 Acquisition of construction.

* * * * *

(c) * * *

(3) For acquisitions valued at

$6,806,000 or more, but less than

$7,068,419, use the clause with its

Alternate I.

* * * * *

(d) * * *

(3) For acquisitions valued at

$6,806,000 or more, but less than

$7,068,419, use the clause with its

Alternate II.

25.1103 [Amended]

8. Amend section 25.1103 in

paragraphs (c)(1)(i) and (c)(1)(ii)(B) by

removing ‘‘$186,000’’ and adding

‘‘$177,000’’ in their places.

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

9. In section 52.225–11, in the

introductory paragraph remove

‘‘25.1102(c)(1)’’ and add ‘‘25.1102(c)’’ in

its place; and revise Alternate I to read

as follows:

52.225–11 Buy American Act—Balance of

Payments Program—Construction Materials

under Trade Agreements.

* * * * *

Alternate I (June 2000). As prescribed in

25.1102(c)(3), delete the definitions of ‘‘North

Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations 36027

American Free Trade Agreement country’’

and ‘‘North American Free Trade Agreement

country construction material’’ from the

definitions in paragraph (a) of the basic

clause and substitute the following

paragraphs (b)(1) and (b)(2) for paragraphs

(b)(1) and (b)(2) of the basic clause:

(b) Construction materials. (1) This clause

implements the Buy American Act (41 U.S.C.

10a-10d) and the Balance of Payments

Program by providing a preference for

domestic construction material. In addition,

the Contracting Officer has determined that

the Trade Agreements Act applies to this

acquisition. Therefore, the Buy American Act

and Balance of Payments Program

restrictions are waived for designated

country construction materials.

(2) The Contractor shall use only domestic

or designated country construction material

in performing this contract, except as

provided in paragraphs (b)(3) and (b)(4) of

this clause.

10. In section 52.225–12, add

Alternate II to read as follows:

52.225–12 Notice of Buy American Act/

Balance of Payments Program

Requirement—Construction Materials under

Trade Agreements.

* * * * *

Alternate II (June 2000). As prescribed in

25.1102(d)(3), substitute the following

paragraphs (a) and (d) for paragraphs (a) and

(d) of the basic provision:

(a) Definitions. ‘‘Construction material,’’

‘‘designated country construction material,’’

‘‘domestic construction material,’’ and

‘‘foreign construction material,’’ as used in

this provision, are defined in the clause of

this solicitation entitled ‘‘Buy American

Act—Balance of Payments Program—

Construction Materials under Trade

Agreements’’ (Federal Acquisition Regulation

(FAR) clause 52.225–11).

(d) Alternate offers. (1) When an offer

includes foreign construction material, other

than designated country construction

material, that is not listed by the Government

in this solicitation in paragraph (b)(3) of FAR

clause 52.225–11, the offeror also may submit

an alternate offer based on use of equivalent

domestic or designated country construction

material.

(2) If an alternate offer is submitted, the

offeror shall submit a separate Standard Form

1442 for the alternate offer, and a separate

price comparison table prepared in

accordance with paragraphs (c) and (d) of

FAR clause 52.225–11 for the offer that is

based on the use of any foreign construction

material for which the Government has not

yet determined an exception applies.

(3) If the Government determines that a

particular exception requested in accordance

with paragraph (c) of FAR clause 52.225–11

does not apply, the Government will evaluate

only those offers based on use of the

equivalent domestic or designated country

construction material, and the offeror shall be

required to furnish such domestic or

designated country construction material. An

offer based on use of the foreign construction

material for which an exception was

requested—

(i) Will be rejected as nonresponsive if this

acquisition is conducted by sealed bidding;

or

(ii) May be accepted if revised during

negotiations.

[FR Doc. 00–13822 Filed 6–1–00; 4:01 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 97–18; FAR Case 1999–008; Item VII]

RIN 9000–AI54

Federal Acquisition Regulation;

Restrictions on Acquisitions from

Yugoslavia and Afghanistan

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to implement two

Executive orders, as modified by Office

of Foreign Assets Control (OFAC)

General Licenses Numbers 2 and 4.

These Executive orders prohibit the

importation into the United States of

any goods or services from Serbia

(excluding the territory of Kosovo) or

the territory of Afghanistan controlled

by the Taliban.

DATES: Effective Date: July 6, 2000.

Applicability Date: The FAR, as

amended by this rule, is applicable to

solicitations issued on or after July 6,

2000.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, (202)

501–4755, for information pertaining to

status or publication schedules. For

clarification of content, contact Mr. Paul

Linfield, Procurement Analyst, at (202)

501–1757. Please cite FAC 97–18, FAR

case 1999–008.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Subpart

25.7, section 25.1103, and the clauses at

FAR 52.212–5, Contract Terms and

Conditions Required to Implement

Statutes or Executive Orders—

Commercial Items, FAR 52.213–4,

Terms and Conditions—Simplified

Acquisitions (Other Than Commercial

Items), and FAR 52.225–13, Restrictions

on Foreign Purchases, to implement

Executive Order 13121 of April 30,

1999, Blocking Property and Prohibiting

Transactions With the Taliban; and

Executive Order 13129 of July 4, 1999,

Blocking Property of the Governments

of the Federal Republic of Yugoslavia

(Serbia and Montenegro), the Republic

of Serbia, and the Republic of

Montenegro, and Prohibiting Trade

Transactions Involving the Federal

Republic of Yugoslavia (Serbia and

Montenegro) in Response to the

Situation in Kosovo. These Executive

orders, as modified by OFAC General

Licenses Numbers 2 and 4, prohibit the

importation into the United States of

any goods or services from Serbia

(excluding the territory of Kosovo) or

the territory of Afghanistan controlled

by the Taliban. As a matter of policy,

the Government does not generally

acquire, even for overseas use, supplies

or services that cannot be imported

lawfully into the United States.

DoD, GSA, and NASA published a

proposed rule in the Federal Register on

December 1, 1999 (64 FR 67446). Four

respondents submitted comments. The

Councils considered all comments in

the formulation of this final rule. This

final rule differs from the proposed rule

as follows:

• Limits the restriction to Serbia

(excluding the territory of Kosovo),

rather than Serbia and Montenegro,

based on OFAC General Licenses

Numbers 2 and 4. General License No.

2 was issued by OFAC on May 5, 1999,

and relates to trade transactions with

Montenegro. General License No. 4 was

issued by OFAC on August 17, 1999,

and relates to trade transactions

involving the territory of Kosovo.

• Adds an exception at FAR

25.701(a)(2) permitting the contracting

officer, in unusual circumstances, to

acquire for use outside the United States

supplies and services restricted in

25.701(a)(1).

This rule was not subject to Office of

Management and Budget 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 Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not have a significant

economic impact on a substantial

number of small entities within the