[Federal Register Volume 63, Number 74 (Friday, April 17, 1998)]
[Rules and Regulations]
[Pages 19193-19195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10244]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 515, 538, and 552

[APD 2800.12A, CHGE 78]
RIN 3090-AG71


Acquisition Regulation: Requesting Debriefings at GSA; Electronic 
Sales Reporting; Schedule for Submission of Reports; Fees for 
Industrial Funding Under Federal Supply Service Schedule Contracts

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to provide for electronic reporting of sales under 
the Federal Supply Service (FSS) Schedule program and to require 
reporting of sales and payment of the industrial funding fee (IFF) on a 
calendar quarter basis. The GSAR is also amended to define General 
Services Administration (GSA) business hours for purposes of requesting 
postaward debriefings.

DATES: Effective Date: April 17, 1998.

FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy 
Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

    FSS, in consultation with industry, identified sales reporting 
under FSS Schedule contracts as an area in need of updating to make it 
more consistent with commercial business practices. The prior system 
required contractors to submit sales reports quarterly on paper forms. 
Quarters were based on the contract's start date and did not 
necessarily coincide with calendar quarters. These changes revise the 
system to require FSS Schedule contractors to submit sales reports 
electronically via the Internet and to eliminate the use of paper 
forms. Contractors will continue to report quarterly, but based on 
``standard business'' (i.e., calendar) quarters.
    The transition to electronic reporting facilitates contractors' 
compliance with sales reporting requirements. The updated system 
enables FSS Schedule contractors to use the Internet to eliminate the 
time-consuming paperwork required to manually complete paper reports. 
Since reports for all contracts are now due at the same time, 
contractors no longer have to maintain a unique reporting schedule for 
each contract. Furthermore, this streamlined transmittal method allows 
the Government to process reports more efficiently and allocate 
resources more effectively.
    Federal Acquisition Regulation (FAR) sections 15.505 and 15.506 
establish standards for timely submission of preaward protest requests 
and timely receipt of postaward debriefing requests. This rule defines 
GSA business hours to help offerors make timely debriefing requests and 
avoid unnecessary protests over timeliness.

[[Page 19194]]

B. Executive Order 12866

    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.

C. Regulatory Flexibility Act

    This final rule is not a significant revision requiring public 
comments and therefore the Regulatory Flexibility Act, 5 U.S.C. 601, et 
seq., does not apply.

D. Paperwork Reduction Act

    The revised clause at 552.238-72, Contractor's Report of Sales, 
contains an information collection requirement subject to the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.). However, the revisions to the 
clause made by this rule do not affect the information collection 
requirement which was approved previously by OMB and assigned control 
number 3090-0121.
    The revised clause at 552.238-77, Industrial Funding Fee, contains 
an information collection requirement subject to the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.). However, the revisions to the 
clause made by this rule do not affect the information collection 
requirement previously approved under GSA's blanket approval under 
control number 3090-0250 from OMB for information collections with a 
zero burden estimate.

E. Determination To Issue a Final Rule

    GSA expects this rule will have no significant cost or 
administrative burden on contractors or offerors. First, the rule 
requires contractors under the FSS program to report the industrial 
funding fee electronically. The requirement for reporting is not new, 
only the method of reporting is changed from paper-based to electronic. 
Contractors require Internet access to make the reports electronically. 
For those without Internet capability at their place of business, free 
access is readily available at public facilities such as libraries. 
Electronic reporting will be simpler, quicker, and less expensive than 
paper-based reporting. Second, the rule requires reporting sales on a 
calendar quarter schedule rather than quarters based from date of 
contract award. This change does not increase the frequency of 
reporting, but makes it simpler for contractors to track and follows 
more closely with other customary business reports and records. 
Finally, defining agency business hours will help offerors make timely 
debriefing requests and avoid unnecessary protests over timeliness. 
Therefore, GSA is promulgating this final rule without prior 
opportunity for public comment.

List of Subjects in 48 CFR Parts 501, 515, 538, and 552

    Government procurement.

    Accordingly, 48 CFR 501, 515, 538, and 552 are amended as follows:
    1. The authority citation for 48 CFR Parts 501, 515, 538, and 552 
continues to read as follows:

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

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
SYSTEM


Sec. 501.103  [Amended]

    2. Section 501.103 is amended in paragraph (b) by adding 
``515.406,'' immediately after ``515.1,'' in the first sentence.

PART 515--CONTRACTING BY NEGOTIATION

    3. Section 515.406-1 is amended by revising paragraph (b) to read 
as follows:


515.406-1  Uniform contract format.

* * * * *
    (b) All solicitations and contracts must include the two notices in 
paragraphs (b)(1) and (2), except solicitations for leases and leases 
of real property must include only the notice in paragraph (b)(1):
    (1) ``The information collection requirements contained in this 
solicitation/contract that are not required by regulation have been 
approved by the Office of Management and Budget pursuant to the 
Paperwork Reduction Act and assigned OMB Control No. 3090-0163.''
    (2) ``GSA's hours of operation are 8:00 a.m. to 4:30 p.m. Requests 
for preaward debriefings postmarked or otherwise submitted after 4:30 
p.m. will be considered submitted the following business day. Requests 
for postaward debriefings delivered after 4:30 p.m. will be considered 
received and filed the following business day.''

PART 538--GSA SCHEDULE CONTRACTING

    4. Section 538.203-71 is amended by revising paragraph (a) to read 
as follows:


538.203-71  Solicitation provisions and contract clauses.

    (a) The Contracting Officer shall insert the clause at 552.238-72, 
Contractor's Report of Sales, in solicitations issued and contracts 
awarded under GSA's schedule program.
* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    5. Section 552.238-72 is revised to read as follows:


552.238-72  Contractor's Report of Sales.

    As prescribed in 538.203-71(a), insert the following clause:

Contractor's Report of Sales (Apr 1998)

    (a) The Contractor must report the quarterly dollar value (in 
U.S. dollars and rounded to the nearest whole dollar) of all sales 
under this contract by calendar quarter (i.e., January-March, April-
June, July-September, and October-December). The dollar value of a 
sale is the price paid by the schedule user for products and 
services on a schedule contract delivery order, as recorded by the 
Contractor. The reported contract sales value must include the 
industrial funding fee (see Clause 552.238-77).
    (b) The Contractor must report the quarterly dollar value of 
sales on electronic GSA Form 72A, Contractor's Report of Sales, to 
the FSS Vendor Support Center (VSC) Website at Internet, <a href="http://
">http://
</a>VSC.gsa.gov. The Contractor must report sales separately for each 
National Stock Number (NSN), Special Item Number (SIN), or subitem. 
If no sales occur, the Contractor must show zero on the report for 
each separate NSN, SIN, or subitem.
    (c) The Contractor must register with the VSC before using the 
automated reporting system. To register, the Contractor (or its 
authorized representative) must call the VSC at (703) 305-6235 and 
provide the necessary information regarding the company, contact 
name(s), and telephone number(s). The VSC will then issue a 72A 
specific password and provide other information needed to access the 
reporting system. Instructions for electronic reporting are 
available at the VSC Website or by calling the above phone number.
    (d) The Contractor must convert the total value of sales made in 
foreign currency to U.S. dollars using the ``Treasury Reporting 
Rates of Exchange,'' issued by the U.S. Department of Treasury, 
Financial Management Service. The Contractor must use the issue of 
the Treasury report in effect on the last day of the calendar 
quarter. The report is available from: Department of the Treasury, 
Financial Management Service, International Funds Branch, 3700 East-
West Highway, PGCII, Room 5A19, Hyattsville, MD 20782, Telephone: 
(202) 874-7994, Internet: http://www.fms.treas.gov/intn.html
    (e) The report is due 30 days following the completion of the 
reporting period. The Contractor must provide a close-out report 
within 120 days after the expiration date of the contract. This 
close-out report must cover all sales not shown in the final 
quarterly report and reconcile all errors and credits. If the 
Contractor reported all contract sales and reconciled all errors and 
credits on the final quarterly report, then show zero sales in the 
close-out report.

(End of Clause)

    6. Section 552.238-77 is revised to read as follows:

[[Page 19195]]

552.238-77  Industrial Funding Fee.

    As prescribed in 538.203-71(f) insert the following clause:

Industrial Funding Fee (Apr 1998)

    (a) The Contractor must pay the Federal Supply Service, GSA, an 
industrial funding fee (IFF). The Contractor must remit the IFF in 
U.S. dollars within 30 days after the end of each quarterly 
reporting period as established in clause 552.238-72, Contractor's 
Report of Sales. The IFF equals ______* of total quarterly sales 
reported. The IFF reimburses the GSA Federal Supply Service for the 
costs of operating the Federal Supply Schedules Program and recoups 
its operating costs from ordering activities. Offerors must include 
the IFF in their prices. The fee is included in the award price(s) 
and reflected in the total amount charged to ordering activities.
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    * The Commissioner, Federal Supply Service, or a designee 
determines and provides to contracting officers the percentage 
amount of the fee to insert in the above clause.
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    (b) The Contractor must remit any monies due as a result of the 
close-out report required by Clause 552.238-72 at the time the 
close-out report is submitted to GSA.
    (c) The contractor must pay the IFF amount due by check, or 
electronic funds transfer through the Automated Clearing House 
(ACH), to the ``General Services Administration.'' If the payment 
involves multiple special item numbers or contracts, the Contractor 
may consolidate the IFFs into one payment. To ensure that the 
payment is credited properly, the Contractor must identify the check 
or electronic transmission as an ``Industrial Funding Fee'' and 
include the following information: contract number(s); report 
amount(s); and report period(s). If the Contractor makes payment by 
check, provide this information on either the check, check stub, or 
other remittance material.
    (1) If paying the IFF by check, the Contractor must forward the 
check to the following address: General Services Administration, 
Accounts Receivable Branch, P.O. Box 70500, Chicago, IL 60673-0500.
    (2) If paying by electronic funds transfer through the ACH, the 
Contractor must call GSA, Financial Information Control Branch, 
Receivables, Collections and Sales Section (6BCDR) at [Contracting 
Officer to insert phone number] to make arrangements.
    (d) If the full amount of the IFF is not paid within 30 calendar 
days after the end of the applicable reporting period, it 
constitutes a contract debt to the United States Government under 
the terms of FAR 32.6. The Government may exercise all rights under 
the Debt Collection Act of 1982, including withholding or setting 
off payments and interest on the debt (see FAR 52.232-17, Interest).
    (e) If the Contractor fails to submit sales reports, falsifies 
sales reports, or fails to pay the IFF in a timely manner, the 
Government may terminate or cancel this contract. Willful failure or 
refusal to furnish the required reports, falsification of sales 
reports, or failure to pay the IFF timely constitutes sufficient 
cause for terminating the Contractor for cause under the termination 
provisions of this contract.

(End of Clause)

    Dated: April 10, 1998.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 98-10244 Filed 4-16-98; 8:45 am]
BILLING CODE 6820-61-P