65698 Federal Register / Vol. 65, No. 212 / Wednesday, November 1, 2000 / Proposed Rules

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 2 and 4

[FAR Case 2000–304]

RIN 9000–AI94

Federal Acquisition Regulation;

Electronic Signatures

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Proposed rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) are proposing to amend the

Federal Acquisition Regulation (FAR) to

clarify and encourage the use of

electronic signatures in Federal

procurement.

DATES: Interested parties should submit

comments in writing on or before

January 2, 2001 to be considered in the

formulation of a final rule.

ADDRESSES: Submit written comments

to: General Services Administration,

FAR Secretariat (MVRS), 1800 F Street,

NW, Room 4035, ATTN: Laurie Duarte,

Washington, DC 20405.

Submit electronic comments via the

Internet to: farcase.2000–304@gsa.gov.

Please submit comments only and cite

FAR case 2000–304 in all

correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405, at

(202) 501–4755 for information

pertaining to status or publication

schedules. For clarification of content,

contact Ralph De Stefano, Procurement

Analyst, at (202) 501–1758. Please cite

FAR case 2000–304.

SUPPLEMENTARY INFORMATION:

A. Background

On October 21, 1998, the Government

Paperwork Elimination Act (Title XVII

of Division C of Public Law 105–277)

was enacted. On June 30, 2000, the

Electronic Signatures in Global and

National Commerce Act (Pub. L. 106–

229) was enacted. These laws eliminate

legal barriers to using electronic

technology in business transactions,

such as the formation and signing of

contracts.

The proposed rule furthers

Government participation in electronic

commerce when conducting Federal

procurements by—

1. Revising the definitions of ‘‘in

writing’’ and ‘‘signature’’ at FAR 2.101

to clarify that these terms include

electronic, in addition to paper,

transactions; and

2. Adding a policy statement at FAR

Subpart 4.5, Electronic Commerce in

Contracting, to encourage agencies to

use electronic commerce, such as

electronic signature, in the transaction

of Federal procurements.

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 Councils do 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.C. 601, et seq., because this

rule does not change procedures for

award or administration of contracts,

but, rather, only clarifies and

encourages the use of electronic

commerce for Federal procurement. An

Initial Regulatory Flexibility Analysis

has, therefore, not been performed. We

invite comments from small businesses

and other interested parties. The

Councils will consider comments from

small entities concerning the affected

FAR Parts 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. (FAR case 2000–304),

in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the proposed changes

to the FAR do not impose information

collection requirements that 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 2 and

4

Government procurement.

Dated: October 26, 2000.

Al Matera,

Acting Director, Federal Acquisition Policy

Division.

Therefore, DoD, GSA, and NASA

propose that 48 CFR parts 2 and 4 be

amended as set forth below:

1. The authority citation for 48 CFR

parts 2 and 4 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 2—DEFINITIONS OF WORDS

AND TERMS

2. Amend section 2.101 by revising

the definitions ‘‘Electronic commerce’’,

‘‘In writing’’, and ‘‘Signature’’ to read as

follows:

2.101 Definitions

* * * * *

Electronic commerce means business

transactions accomplished by electronic

techniques such as electronic mail or

messaging, World Wide Web

technology, electronic bulletin boards,

purchase cards, electronic funds

transfer, or electronic data interchange.

* * * * *

In writing or written means any

expression of information in words,

numbers, or other symbols, including

electronic expressions, that can be read,

reproduced, and stored.

* * * * *

Signature or signed means the

discrete, verifiable symbol of an

individual that, when attached to or

logically associated with a written

contract or other record with the

knowledge and consent of the

individual, indicates a present intention

to authenticate the contract or other

record. This includes an electronic

signature made by electronic sound,

symbols, or process.

* * * * *

PART 4—ADMINISTRATIVE MATTERS

3. Amend section 4.502 by adding

paragraph (d) to read as follows:

4.502 Policy

* * * * *

(d) As required by the Government

Paperwork Elimination Act (GPEA)

(Title XVII of Division C of Public Law

105–277), by October 21, 2003, agencies

must allow individuals or entities the

option to submit information or transact

with the agency electronically when

practicable. The GPEA requirement

includes execution of contracts and

associated records using electronic

signatures of the offeror or contractor

and the agency.

[FR Doc. 00–27964 Filed 10–31–00; 8:45 am]

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