Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44813

ESTIMATE

EPA designated

item

Total dollar

value of EPA

designated

item

Percentage of

recovered material content*

.................. ........................ ........................

.................. ........................ ........................

.................. ........................ ........................

* Where applicable, also include the percentage of postconsumer material content.

(c) The Contractor shall submit this

certification and estimate upon completion of

the contract to

lllllllllllllllllllll

*To be completed in accordance with

agency procedures.

(End of clause)

26. Section 52.223–10 is amended by

revising the clause date and paragraph

(b) to read as follows:

52.223–10 Waste Reduction Program.

* * * * *

Waste Reduction Program (Oct 1997)

* * * * *

(b) Consistent with the requirements of

Section 701 of Executive Order 12873, the

Contractor shall establish a program to

promote cost-effective waste reduction in all

operations and facilities covered by this

contract. Any such program shall comply

with applicable Federal, State, and local

requirements, specifically including Section

6002 of the Resource Conservation and

Recovery Act (42 U.S.C. 6901, et seq.) and

implementing regulations.

(End of clause)

[FR Doc. 97–21490 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Part 1

[FAC 97–1; FAR Case 96–329; Item VI]

RIN 9000–AH67

Federal Acquisition Regulation; New

FAR Certifications

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

reflect the provisions of Section

4301(b)(2) of the Clinger-Cohen Act of

1996 (Pub. L. 104–106). Section

4301(b)(2) prohibits the inclusion of a

new certification requirement in the

FAR for contractors or offerors unless

the certification requirement is

specifically imposed by statute, or

unless written justification for such

certification requirement is provided to

the Administrator for Federal

Procurement Policy by the FAR Council

and the Administrator approves in

writing the inclusion of the certification.

This regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993, and is not a

major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

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.

Ralph De Stefano, Procurement Analyst,

at (202) 501–1758. Please cite FAC 97–

01, FAR case 96–329.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule adds a new section at

FAR 1.107 to reflect the provisions of

Section 4301(b)(2) of the Clinger-Cohen

Act of 1996 (Pub. L. 104–106). Section

4301(b)(2) amends Section 29 of the

Office of Federal Procurement Policy

Act (41 U.S.C. 425) to prohibit the

inclusion of a new certification

requirement in the FAR for contractors

or offerors unless the certification

requirement is specifically imposed by

statute, or unless written justification

for such certification requirement is

provided to the Administrator for

Federal Procurement Policy by the FAR

Council and the Administrator approves

in writing the inclusion of the

certification.

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

comment is not required. However,

comments from small entities

concerning the affected FAR subpart

will be considered in accordance with 5

U.S.C. 610. Such comments must be

submitted separately and cite 5 U.S.C.

601, et seq. (FAC 97–1, FAR case 96–

329), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 1

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 1 is amended

as set forth below:

PART 1—FEDERAL ACQUISITION

REGULATIONS SYSTEM

1. The authority citation for 48 CFR

Part 1 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).

2. Section 1.107 is added to read as

follows:

1.107 Certifications.

In accordance with Section 29 of the

Office of Federal Procurement Policy

Act (41 U.S.C. 425), as amended by

Section 4301 of the Clinger-Cohen Act

of 1996 (Public Law 104–106), a new

requirement for a certification by a

contractor or offeror may not be

included in this chapter unless—

(a) The certification requirement is

specifically imposed by statute; or

(b) Written justification for such

certification is provided to the

Administrator for Federal Procurement

Policy by the Federal Acquisition

Regulatory Council, and the

Administrator approves in writing the

inclusion of such certification

requirement.

[FR Doc. 97–21491 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 7, 16, 37, 42, 46, and 52

[FAC 97–01; FAR Case 95–311; Item VII]

RIN 9000–AH14

Federal Acquisition Regulation;

Service Contracting

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).
44814 Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR) to

implement Office of Federal

Procurement Policy (OFPP) Policy

Letter 91–2, Service Contracting. The

OFPP policy letter prescribes policies

and procedures for use of performancebased contracting methods. This

regulatory action was not subject to

Office of Management and Budget

review under Executive Order 12866,

dated September 30, 1993. This action

is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: October 21, 1997.

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. Jack

O’Neill, Procurement Analyst, at (202)

501–3856. Please cite FAC 97–01, FAR

case 95–311.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Parts 7,

16, 37, 42, 46, and 52 to establish policy

for the Government’s acquisition of

services through the use of performancebased contracting methods.

A proposed rule was published in the

Federal Register at 61 FR 40284, August

1, 1996. Thirty-three comments were

received from nine respondents. All

comments were considered in

developing the final rule.

B. Regulatory Flexibility Act

A Final Regulatory Flexibility

Analysis has been performed. The

analysis is summarized as follows:

The rule revises the Federal Acquisition

Regulation (FAR) to implement the Office of

Federal Procurement Policy (OFPP) Policy

Letter 91–2, Service Contracting. It also

implements the statutory requirements of

Section 834, Public Law 101–510 by adding

language concerning uncompensated

overtime and a prescription for use of a new

solicitation provision, ‘‘Identification of

Uncompensated Overtime.’’ Offerors are

required to identify uncompensated overtime

hours and the uncompensated overtime rate

per hour, whether at the prime or subcontract

level, when submitting a proposal

responding to a solicitation estimated at

$100,000 or more, for services being acquired

on the basis of the number of hours to be

provided rather than on the task to be

performed. The final rule applies to all

businesses, large and small that submit offers

of $100,000 or more on service contracts that

are based on the number of hours to be

provided.

The adoption of the DoD provision

concerning uncompensated overtime in the

FAR conforms with the goals of the OFPP

policy letter to avoid problems commonly

found with service contracts resulting from:

(1) Unnecessarily vague statements of work,

which increase costs or make it difficult to

control costs; (2) Insufficient use of fixedprice and incentive fee pricing arrangements

for repetitive requirements, resulting in

increased costs and inadequate incentive to

improve performance; and (3) Inadequate

contract administration plans, which lead to

unauthorized commitments by the

Government and delayed contract

completion. The primary purpose for

obtaining the information and using it during

the source selection process is to discourage

the use of mandatory uncompensated

overtime in proposals from the entire

professional and technical services industry.

The provision regarding uncompensated

overtime applies equally to large and small

business entities and provides an additional

method to improve the Government’s ability

to acquire services of the requisite quality

and to assess contractor performance and

price. Because both large and small business

concerns must be dealt with equally in this

matter, we believe that the rule does not

create a disproportionate burden on small

entities.

C. Paperwork Reduction Act

The Paperwork Reduction Act is

deemed to apply because the final rule

contains information collection

requirements. Accordingly, a request for

approval of a new information

collection requirement concerning

service contracting was submitted to the

Office of Management and Budget under

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

under OMB Control No. 9000–0152.

Public comments concerning this

request were invited through the

Federal Register notice published at 61

FR 40288, August 1, 1996.

List of Subjects in 48 CFR Parts 7, 16,

37, 42, 46, and 52

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 7, 16, 37, 42,

46, and 52 are amended as set forth

below:

1. The authority citation for 48 CFR

Parts 7, 16, 37, 42, 46, 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 7—ACQUISITION PLANNING

2. Section 7.103 is amended by

adding paragraph (q) to read as follows:

7.103 Agency-head responsibilities.

* * * * *

(q) Ensuring that knowledge gained

from prior acquisitions is used to further

refine requirements and acquisition

strategies. For services, greater use of

performance-based contracting methods

and, therefore, fixed-price contracts (see

37.602–5) should occur for follow-on

acquisitions.

3. Section 7.105 is amended in the

introductory text by adding a sentence

at the end of the paragraph; by revising

paragraphs (a)(1), (a)(4), and (b)(6); by

redesignating paragraphs (b)(18) through

(b)(20) as (b)(19) through (b)(21) and

adding a new (b)(18) to read as follows:

7.105 Contents of written acquisition

plans.

* * * Acquisition plans for service

contracts shall describe the strategies for

implementing performance-based

contracting methods or shall provide

rationale for not using those methods

(see subpart 37.6).

(a) Acquisition background and

objectives—(1) Statement of need.

Introduce the plan by a brief statement

of need. Summarize the technical and

contractual history of the acquisition.

Discuss feasible acquisition alternatives,

the impact of prior acquisitions on those

alternatives, and any related in-house

effort.

* * * * *

(4) Capability or performance. Specify

the required capabilities or performance

characteristics of the supplies or the

performance standards of the services

being acquired and state how they are

related to the need.

* * * * *

(b) * * *

(6) Product or service descriptions.

Explain the choice of product or service

description types (including

performance-based contracting

descriptions) to be used in the

acquisition.

* * * * *

(18) Contract administration. Describe

how the contract will be administered.

In contracts for services, include how

inspection and acceptance

corresponding to the work statement’s

performance criteria will be enforced.

* * * * *

PART 16—TYPES OF CONTRACTS

4. Section 16.104 is amended by

adding paragraph (k) to read as follows:

16.104 Factors in selecting contract types.

* * * * *

(k) Acquisition history. Contractor risk

usually decreases as the requirement is

repetitively acquired. Also, product

descriptions or descriptions of services
Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44815

to be performed can be defined more

clearly.

5. Section 16.402–2 is amended by

revising the heading and paragraph (a);

by redesignating paragraphs (b) through

(g) as (c) through (h) and adding a new

paragraph (b); and by revising the newly

designated paragraph (e) to read as

follows:

16.402–2 Performance incentives.

(a) Performance incentives may be

considered in connection with specific

product characteristics (e.g., a missile

range, an aircraft speed, an engine

thrust, or a vehicle maneuverability) or

other specific elements of the

contractor’s performance. These

incentives should be designed to relate

profit or fee to results achieved by the

contractor, compared with specified

targets.

(b) To the maximum extent

practicable, positive and negative

performance incentives shall be

considered in connection with service

contracts for performance of objectively

measurable tasks when quality of

performance is critical and incentives

are likely to motivate the contractor.

* * * * *

(e) Performance tests and/or

assessments of work performance are

generally essential in order to determine

the degree of attainment of performance

targets. Therefore, the contract must be

as specific as possible in establishing

test criteria (such as testing conditions,

instrumentation precision, and data

interpretation) and performance

standards (such as the quality levels of

services to be provided).

* * * * *

6. Section 16.405–1 is amended by

revising the introductory text of

paragraph (b)(1), and the last sentence of

paragraph (b)(2) to read as follows:

16.405–1 Cost-plus-incentive-fee

contracts.

* * * * *

(b) Application. (1) A cost-plusincentive-fee contract is appropriate for

services or development and test

programs when—

* * * * *

(2) * * * This approach also may

apply to other acquisitions, if the use of

both cost and technical performance

incentives is desirable and

administratively practical.

* * * * *

PART 37—SERVICE CONTRACTING

7. Section 37.000 is amended by

adding the following text as a new third

sentence:

37.000 Scope of part.

* * * This part requires the use of

performance-based contracting to the

maximum extent practicable and

prescribes policies and procedures for

use of performance-based contracting

methods (see subpart 37.6). * * *

8. Section 37.101 is amended by

adding, in alphabetical order, the

definition ‘‘Performance-based

contracting’’ to read as follows:

37.101 Definitions.

* * * * *

Performance-based contracting means

structuring all aspects of an acquisition

around the purpose of the work to be

performed as opposed to either the

manner by which the work is to be

performed or broad and imprecise

statements of work.

* * * * *

9. Section 37.102 is amended by

redesignating paragraphs (a) through (g)

as (b) through (h) and adding a new

paragraph (a) to read as follows:

37.102 Policy.

(a) Agencies shall use performancebased contracting methods (see subpart

37.6), to the maximum extent

practicable, for the acquisition of

services, including those acquired under

supply contracts, except—

(1) Architect-engineer services

acquired in accordance with 40 U.S.C.

541–544, as amended (see part 36);

(2) Construction (see part 36);

(3) Utility services (see part 41); or

(4) Services that are incidental to

supply purchases.

* * * * *

10. Section 37.103 is amended by

redesignating paragraphs ‘‘(c)’’ and

‘‘(d)’’ as ‘‘(d)’’ and ‘‘(e)’’ respectively,

and adding a new paragraph (c) to read

as follows:

37.103 Contracting officer responsibility.

* * * * *

(c) Ensure that performance-based

contracting methods are used to the

maximum extent practicable when

acquiring services.

* * * * *

11. Section 37.106 is amended by

adding paragraph (c) to read as follows:

37.106 Funding and term of service

contracts.

* * * * *

(c) Agencies with statutory multiyear

authority shall consider the use of this

authority to encourage and promote

economical business operations when

acquiring services.

12. Sections 37.115 through 37.115–3

are added to read as follows:

37.115 Uncompensated overtime.

37.115–1 Scope.

The policies in this section are based

on Section 834 of Public Law 101–510

(10 U.S.C. 2331).

37.115–2 General policy.

(a) Use of uncompensated overtime is

not encouraged.

(b) When professional or technical

services are acquired on the basis of the

number of hours to be provided, rather

than on the task to be performed, the

solicitation shall require offerors to

identify uncompensated overtime hours

and the uncompensated overtime rate

for direct charge Fair Labor Standards

Act—exempt personnel included in

their proposals and subcontractor

proposals. This includes

uncompensated overtime hours that are

in indirect cost pools for personnel

whose regular hours are normally

charged direct.

37.115–3 Solicitation provision.

The contracting officer shall insert the

provision at 52.237–10, Identification of

Uncompensated Overtime, in all

solicitations valued above the simplified

acquisition threshold, for professional

or technical services to be acquired on

the basis of the number of hours to be

provided.

13. Subpart 37.6, consisting of

sections 37.600 through 37.602–5, is

added to read as follows:

Subpart 37.6—Performance-Based

Contracting

Sec.

37.600 Scope of subpart.

37.601 General.

37.602 Elements of performance-based

contracting.

37.602–1 Statements of work.

37.602–2 Quality assurance.

37.602–3 Selection procedures.

37.602–4 Contract type.

37.602–5 Follow-on and repetitive

requirements.

Subpart 37.6—Performance-Based

Contracting

37.600 Scope of subpart.

This subpart prescribes policies and

procedures for use of performance-based

contracting methods. It implements

OFPP Policy Letter 91–2, Service

Contracting.

37.601 General.

Performance-based contracting

methods are intended to ensure that

required performance quality levels are

achieved and that total payment is

related to the degree that services

performed meet contract standards.

Performance-based contracts—
44816 Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations

(a) Describe the requirements in terms

of results required rather than the

methods of performance of the work;

(b) Use measurable performance

standards (i.e., terms of quality,

timeliness, quantity, etc.) and quality

assurance surveillance plans (see

46.103(a) and 46.401(a));

(c) Specify procedures for reductions

of fee or for reductions to the price of

a fixed-price contract when services are

not performed or do not meet contract

requirements (see 46.407); and

(d) Include performance incentives

where appropriate.

37.602 Elements of performance-based

contracting.

37.602–1 Statements of work.

(a) Generally, statements of work shall

define requirements in clear, concise

language identifying specific work to be

accomplished. Statements of work must

be individually tailored to consider the

period of performance, deliverable

items, if any, and the desired degree of

performance flexibility (see 11.105). In

the case of task order contracts, the

statement of work for the basic contract

need only define the scope of the overall

contract (see 16.504(a)(4)(iii)). The

statement of work for each task issued

under a task order contract shall comply

with paragraph (b) of this subsection. To

achieve the maximum benefits of

performance-based contracting, task

order contracts should be awarded on a

multiple award basis (see 16.504(c) and

16.505(b)).

(b) When preparing statements of

work, agencies shall, to the maximum

extent practicable—

(1) Describe the work in terms of

‘‘what’’ is to be the required output

rather than either ‘‘how’’ the work is to

be accomplished or the number of hours

to be provided (see 11.002(a)(2) and

11.101);

(2) Enable assessment of work

performance against measurable

performance standards;

(3) Rely on the use of measurable

performance standards and financial

incentives in a competitive environment

to encourage competitors to develop and

institute innovative and cost-effective

methods of performing the work; and

(4) Avoid combining requirements

into a single acquisition that is too

broad for the agency or a prospective

contractor to manage effectively.

37.602–2 Quality assurance.

Agencies shall develop quality

assurance surveillance plans when

acquiring services (see 46.103 and

46.401(a)). These plans shall recognize

the responsibility of the contractor (see

46.105) to carry out its quality control

obligations and shall contain

measurable inspection and acceptance

criteria corresponding to the

performance standards contained in the

statement of work. The quality

assurance surveillance plans shall focus

on the level of performance required by

the statement of work, rather than the

methodology used by the contractor to

achieve that level of performance.

37.602–3 Selection procedures.

Agencies shall use competitive

negotiations when appropriate to ensure

selection of services that offer the best

value to the Government, cost and other

factors considered (see 15.605).

37.602–4 Contract type.

Contract types most likely to motivate

contractors to perform at optimal levels

shall be chosen (see subpart 16.1 and,

for research and development contracts,

see 35.006). To the maximum extent

practicable, performance incentives,

either positive or negative or both, shall

be incorporated into the contract to

encourage contractors to increase

efficiency and maximize performance

(see subpart 16.4). These incentives

shall correspond to the specific

performance standards in the quality

assurance surveillance plan and shall be

capable of being measured objectively.

Fixed-price contracts are generally

appropriate for services that can be

defined objectively and for which the

risk of performance is manageable (see

subpart 16.1).

37.602–5 Follow-on and repetitive

requirements.

When acquiring services that

previously have been provided by

contract, agencies shall rely on the

experience gained from the prior

contract to incorporate performancebased contracting methods to the

maximum extent practicable. This will

facilitate the use of fixed-price contracts

for such requirements for services. (See

7.105 for requirement to address

performance-based contracting

strategies in acquisition plans. See also

16.104(k).)

PART 42—CONTRACT

ADMINISTRATION

14. Section 42.1102 is amended by

adding the following sentence to the

end of the paragraph:

42.1102 Applicability.

* * * See part 37, especially subpart

37.6, regarding surveillance of contracts

for services.

PART 46—QUALITY ASSURANCE

15. Section 46.103 is amended by

revising paragraph (a) to read as follows:

46.103 Contracting office responsibilities.

* * * * *

(a) Receiving from the activity

responsible for technical requirements

any specifications for inspection,

testing, and other contract quality

requirements essential to ensure the

integrity of the supplies or services (the

activity responsible for technical

requirements is responsible for

prescribing contract quality

requirements, such as inspection and

testing requirements or, for service

contracts, a quality assurance

surveillance plan);

* * * * *

16. Section 46.401 is amended by

revising paragraph (a) to read as follows:

46.401 General.

(a) Government contract quality

assurance shall be performed at such

times (including any stage of

manufacture or performance of services)

and places (including subcontractors’

plants) as may be necessary to

determine that the supplies or services

conform to contract requirements.

Quality assurance surveillance plans

should be prepared in conjunction with

the preparation of the statement of

work. The plans should specify—

(1) All work requiring surveillance;

and

(2) The method of surveillance.

* * * * *

17. Section 46.407 is amended in the

introductory text of paragraph (f) by

adding new second and third sentences

to read as follows:

46.407 Nonconforming supplies or

services.

* * * * *

(f) * * * For services, the contracting

officer can consider identifying the

value of the individual work

requirements or tasks (subdivisions) that

may be subject to price or fee reduction.

This value may be used to determine an

equitable adjustment for nonconforming

services. * * *

* * * * *

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

18. Section 52.237–10 is added to

read as follows:

52.237–10 Identification of

Uncompensated Overtime.

As prescribed in 37.115–3, insert the

following provision:
Federal Register / Vol. 62, No. 163 / Friday, August 22, 1997 / Rules and Regulations 44817

Identification of Uncompensated Overtime

(Oct 1997)

(a) Definitions. As used in this provision—

Uncompensated overtime means the hours

worked without additional compensation in

excess of an average of 40 hours per week by

direct charge employees who are exempt

from the Fair Labor Standards Act.

Compensated personal absences such as

holidays, vacations, and sick leave shall be

included in the normal work week for

purposes of computing uncompensated

overtime hours.

Uncompensated overtime rate is the rate

that results from multiplying the hourly rate

for a 40-hour work week by 40, and then

dividing by the proposed hours per week. For

example, 45 hours proposed on a 40-hour

work week basis at $20 per hour would be

converted to an uncompensated overtime rate

of $17.78 per hour ($20.00×40 divided by

45=$17.78).

(b) For any proposed hours against which

an uncompensated overtime rate is applied,

the offeror shall identify in its proposal the

hours in excess of an average of 40 hours per

week, by labor category at the same level of

detail as compensated hours, and the

uncompensated overtime rate per hour,

whether at the prime or subcontract level.

This includes uncompensated overtime

hours that are in indirect cost pools for

personnel whose regular hours are normally

charged direct.

(c) The offeror’s accounting practices used

to estimate uncompensated overtime must be

consistent with its cost accounting practices

used to accumulate and report

uncompensated overtime hours.

(d) Proposals that include unrealistically

low labor rates, or that do not otherwise

demonstrate cost realism, will be considered

in a risk assessment and will be evaluated for

award in accordance with that assessment.

(e) The offeror shall include a copy of its

policy addressing uncompensated overtime

with its proposal.

(End of provision)

[FR Doc. 97–21492 Filed 8–21–97; 8:45 am]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 8, 13, and 51

[FAC 97–01; FAR Case 96–602; Item VIII]

RIN 9000–AH29

Federal Acquisition Regulation; ADP/

Telecommunications Federal Supply

Schedules

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 have

agreed on a final rule amending the

Federal Acquisition Regulation (FAR)

with respect to GSA’s Federal Supply

Schedules program. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993, and is not a major

rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

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 Ms.

Linda Nelson, Procurement Analyst, at

(202) 501–1900. Please cite FAC 97–01,

FAR case 96–602.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Parts 8,

13, and 51 to recognize the reassignment

of Federal Supply Schedule contracts

for ADP/Telecommunications to GSA’s

Federal Supply Service to add new

coverage on the ‘‘GSA Advantage!’’

program, clarify when ordering offices

should seek price reductions under

schedule contracts, and to clarify

procedures for placing schedule orders

above the maximum order threshold.

A proposed rule requesting comment

was published in the Federal Register at

61 FR 52844, October 8, 1996. Thirtyeight comments were received from

twelve respondents. All comments were

considered in developing the final rule.

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

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601, et seq., because the

rule merely updates and clarifies

guidance for Government agencies

regarding use of the GSA Federal

Supply Schedule program.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 8, 13,

and 51

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 8, 13, and 51

are amended as set forth below:

1. The authority citation for 48 CFR

Parts 8, 13, and 51 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 8—REQUIRED SOURCES OF

SUPPLIES AND SERVICES

2. Section 8.401 is revised to read as

follows:

8.401 General.

(a) The Federal Supply Schedule

program, directed and managed by the

General Services Administration (GSA),

provides Federal agencies with a

simplified process for obtaining

commonly used commercial supplies

and services at prices associated with

volume buying (also see 8.001).

Indefinite delivery contracts (including

requirements contracts) are established

with commercial firms to provide

supplies and services at stated prices for

given periods of time. Similar systems

of schedule-type contracting are used

for military items managed by the

Department of Defense. These systems

are not included in the Federal Supply

Schedule program covered by this

subpart.

(b) The GSA schedule contracting

office issues publications, entitled

Federal Supply Schedules, containing

the information necessary for placing

delivery orders with schedule

contractors. Ordering offices issue

delivery orders directly to the schedule

contractors for the required supplies

and services. Ordering offices may

request copies of schedules by

completing GSA Form 457, FSS

Publications Mailing List Application,

and mailing it to the GSA Centralized

Mailing List Service (7CAFL), P.O. Box

6477, Fort Worth, TX 76115. Copies of

GSA Form 457 also may be obtained

from this address.

(c) GSA offers an on-line shopping

service called ‘‘GSA Advantage!’’ that

enables ordering offices to search

product specific information (i.e.,

national stock number, part number,

common name), review delivery

options, place orders directly with

contractors (or ask GSA to place orders

on the agency’s behalf), and pay