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[Federal Register Volume 89, Number 221 (Friday, November 15, 2024)]
[Rules and Regulations]
[Pages 90238-90240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25967]

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 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: Final rule.

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SUMMARY: The General Services Administration is issuing this final rule 
amending the General Services Administration Acquisition Regulation 
(GSAR) to remove the requirement for lease offerors to have an active 
System for Award Management registration when submitting offers and 
instead allow offers up until the time of award to obtain an active 
registration.

DATES: Effective December 16, 2024.

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 published a proposed rule in the Federal Register at 89 FR 
21230 on March 27, 2024, to amend the GSAR to create a SAM registration 
provision specific for the acquisitions of leasehold interests in real 
property. This 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 established a GSA specific version of the 
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 change will codify this provision in the GSAR.

II. Discussion and Analysis

A. Analysis of Public Comments

    GSA provided the public a 60-day comment period (March 27, 2024, to 
May 28, 2024). GSA did not receive any comments from the public.

B. Summary of Changes

    Two editorial fixes were made:
     GSA corrected the Office of Management and Budget (OMB) 
Control Number referenced in error in the proposed rule and included 
the OMB Control Number in GSAR 501.106 for this final rule.
     The prescribed Alternate I (552.270-35) language was 
erroneously not included in the proposed rule. This language is now 
included.

III. Expected Impact of the Rule

    There were no public comments received that are specific to the

[[Page 90239]]

economic impact statement of the rule. As such, the analysis remains 
the same as before. 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.s) 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 (https://www.federalregister.gov/documents/2023/04/11/2023-07760/modernizing-regulatory-review) supplements and reaffirms the principles, 
structures, and definitions governing contemporary regulatory review 
established in E.O. 12866 and E.O. 13563. The Office of Information and 
Regulatory Affairs (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. Congressional Review Act

    OIRA has determined this rule is not to be a ``major rule'' under 5 
U.S.C. 804(2). The Congressional Review Act, 5 U.S.C. 801 et seq., as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, generally provides that before a ``major rule'' may take effect, 
the agency promulgating the rule must submit a rule report, which 
includes a copy of the rule, to each House of the Congress and to the 
Comptroller General of the United States. The General Services 
Administration will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States. A 
major rule cannot take effect until 60 days after it is published in 
the Federal Register.

VI. Regulatory Flexibility Act

    GSA does not expect this 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, a Final 
Regulatory Flexibility Analysis (FRFA) has been prepared consistent 
with 5 U.S.C. 604.
    The Regulatory Secretariat will submit a copy of the FRFA to the 
Chief Counsel for Advocacy of the Small Business Administration. A copy 
of the FRFA may be obtained from the Regulatory Secretariat Division.
    The analysis is summarized as follows:

    GSA is amending the GSAR to permit the completion of the SAM 
representations at award instead of at offer for lease procurements.
    There were no comments submitted and therefore no significant 
issues raised by the public in response to the initial regulatory 
flexibility analysis.
    Two editorial fixes were made:
     GSA corrected the OMB Control Number referenced in 
error in the proposed rule and included the OMB Control Number in 
GSAR 501.106 for this final rule.
     The prescribed Alternate I (552.270-35) language was 
erroneously not included in the proposed rule. This language is now 
included.
    The objective of the 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.
    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 9000-0189, Certain Federal 
Acquisition Regulation Part 4 Requirements. 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.

VII. 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 9000-0189, 
Certain Federal Acquisition Regulation Part 4 Requirements.

List of Subjects in 48 CFR Parts 501, 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 is amending 48 CFR parts 501, 552, and 570 as set 
forth below:

0
1. The authority citation for 48 CFR parts 501, 552, and 570 continues 
to read as follows:

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

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM

0
2. In section 501.106, amend table 1 by adding in numerical order an 
entry for ``552.270-35''.
    The addition reads as follows:

501.106  OMB Approval under the Paperwork Reduction Act.

* * * * *

                           Table 1 to 501.106
------------------------------------------------------------------------
                                                            OMB control
                     GSAR reference                             No.
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                                * * * * *
552.270-35..............................................       9000-0189
 
                                * * * * *
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PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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

[[Page 90240]]

552.270-35   System for Award Management--Leasing.

    As prescribed in 570.702, insert the following provision:
System for Award Management--Leasing (12/2024)
    (a) Definitions. As used in this provision--
    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--
    (i) 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;
    (ii) The Offeror has completed the Core, Assertions, 
Representations and Certifications, and Points of Contact sections of 
the registration in SAM;
    (iii) 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
    (iv) 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 at time of 
award, and shall maintain registration in SAM during contract 
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 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)
    Alternate I (12/2024).As prescribed in 570.702, substitute the 
following paragraph (b)(1) for paragraph (b)(1) of the basic provision:
    (b)(1) An Offeror is required to be registered in SAM as soon as 
possible. If registration is not possible prior to award, the 
Contractor shall be registered in SAM within 30 days after award or 
before three days prior to submission of the first invoice, whichever 
occurs first.

PART 570--ACQUIRING LEASEHOLD INTERESTS IN REAL PROPERTY

570.701   [Amended]

0
4. In section 570.701 amend the table in paragraph (a), in the second 
column, by removing the entry ``52.204-7 System for Award Management.''

0
5. Amend section 570.702 by adding in numerical order and entry for 
``552.270-35'' to read as follows:

570.702   GSAR solicitation provisions.

* * * * *

552.270-35   System for Award Management--Leasing (in lieu of FAR 
52.204-7).

    Use Alternate I of the provision for procurements not providing for 
full and open competition due to unusual or compelling urgency.

[FR Doc. 2024-25967 Filed 11-14-24; 8:45 am]
BILLING CODE 6820-61-P
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