[Federal Register Volume 86, Number 166 (Tuesday, August 31, 2021)]
[Proposed Rules]
[Pages 48617-48619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18517]


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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 517, 538, and 552

[GSAR Case 2020-G509; Docket No. GSA-GSAR 2021-0015; Sequence No. 1]
RIN 3090-AK19


General Services Administration Acquisition Regulation (GSAR); 
Extending Federal Supply Schedule Orders Beyond the Contract Term

AGENCY: Office of Acquisition Policy, General Services Administration 
(GSA).

ACTION: Proposed rule.

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SUMMARY: GSA is proposing to amend the General Services Administration 
Acquisition Regulation (GSAR) to incorporate existing internal Federal 
Supply Schedule (FSS) policy concerning the option to extend the term 
of the contract and performance of orders beyond the term of the base 
FSS contract.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
November 1, 2021 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to GSAR Case 2020-G509 to: 
Regulations.gov: https://www.regulations.gov. Submit comments via the 
Federal eRulemaking portal by searching for ``GSAR Case 2020-G509''. 
Select the link ``Comment Now'' that corresponds with GSAR Case 2020-
G509. Follow the instructions provided at the ``Comment Now'' screen. 
Please include your name, company name (if any), and ``GSAR Case 2020-
G509'' on your attached document. If your comment cannot be submitted 
using https://www.regulations.gov, call or email the points of contact 
in the FOR FURTHER INFORMATION CONTACT section of this document for 
alternate instructions.

[[Page 48618]]

    Instructions: Please submit comments only and cite GSAR Case 2020-
G509 in all correspondence related to this case. Comments received 
generally will be posted without change to https://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov approximately two to three days after submission to 
verify posting.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas O'Linn, Procurement 
Analyst, at <a href="/cdn-cgi/l/email-protection#1c7b6f7d6e6c7370757f655c7b6f7d327b736a"><span class="__cf_email__" data-cfemail="e087938192908f8c898399a0879381ce878f96">[email protected]</span></a> for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat Division at 202-501-4755 or <a href="/cdn-cgi/l/email-protection#591e0a180b3c3e0a3c3a193e2a38773e362f"><span class="__cf_email__" data-cfemail="4c0b1f0d1e292b1f292f0c2b3f2d622b233a">[email protected]</span></a>. 
Please cite GSAR Case 2020-G509.

SUPPLEMENTARY INFORMATION:

I. Background

    As a part of GSA's comprehensive review of the regulatory 
requirements in the GSAR, GSA identified supplemental internal GSA 
policy related to the FSS program that should be placed within the 
GSAR. Specifically, GSA is seeking to incorporate into the GSAR FSS 
clause I-FSS-163, Option to Extend the Term of the Contract 
(Evergreen), and FSS policy concerning standard fill-in information for 
paragraph (d) of FAR clause 52.216-22, Indefinite Quantity.

II. Authority for This Rulemaking

    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.

III. Discussion and Analysis

    GSA is amending the GSAR to revise subpart 517.2 for purposes of 
clarifying requirements contained in 517.207. Additionally, GSA is 
revising subpart 538.2 for purposes of revising the title of section 
538.270 and adding paragraphs (d)(36) and (e) to section 538.273. 
Lastly, GSA is revising subpart 552.2 to add the following new GSAR 
clause: 552.238-116, Option to Extend the Term of the FSS Contract. 
This new GSAR clause incorporates FSS clause, I-FSS-163, Option to 
Extend the Term of the Contract (Evergreen).
    FSS clause I-FSS-163, Option to Extend the Term of the Contract 
(Evergreen), has been in use by the FSS program since 2000. This clause 
is currently implemented through internal GSA policy and incorporated 
into FSS solicitations and contracts. Incorporating this clause into 
the GSAR allows for greater transparency and ensures FSS regulations 
are in one area (i.e., part 538).
    The internal policy concerning standard fill-in information for 
paragraph (d) of FAR clause 52.216-22, Indefinite Quantity, has been in 
use by the FSS program since 2016. The use of standard fill-in 
information supports the administration of orders issued during the FSS 
contract ordering period that remain active beyond expiration of the 
FSS contract ordering period. This requirement is currently implemented 
through internal GSA policy and incorporated into FSS solicitations and 
contracts. Incorporating this requirement into the GSAR allows for 
greater transparency and ensures FSS regulations are in one area (i.e., 
part 538).
    To support the incorporation of these internal GSA policies to the 
GSAR the following amendments to the GSAR are being made: The title of 
section 538.270 is being revised from ``Evaluation of Federal Supply 
Schedule (FSS) offers'' to ``Solicitation, evaluation and award of 
Federal Supply Schedule (FSS) contracts''; GSAR clause 552.238-116, 
Option to Extend the Term of the FSS Contract, is being added (i.e., 
this clause incorporates and will replace the existing FSS clause I-
FSS-163, Option to Extend the Term of the Contract (Evergreen)); adding 
paragraph (d)(36) to GSAR section 538.273 for purposes of incorporating 
the prescription for 552.238-116, Option to Extend the Term of the FSS 
Contract; adding paragraph (e) to GSAR section 538.273 for purposes of 
incorporating the standard fill-in requirement for paragraph (d) of FAR 
clause 52.216-22, Indefinite Quantity; and making technical changes to 
517.207 for purposes of clarity and conformity.

IV. Executive Orders 12866 and 13563

    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. 
This rulemaking has been reviewed and determined by Office of 
Management and Budget (OMB) not to be a significant regulatory action 
and, therefore, was not subject to review under section 6(b) of E.O. 
12866, Regulatory Planning and Review, dated September 30, 1993.

V. Congressional Review Act

    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. A major rule cannot take 
effect until 60 days after it is published in the Federal Register. 
This rulemaking has been reviewed and determined by OMB not to be a 
``major rule'' under 5 U.S.C. 804(2).

VI. Regulatory Flexibility Act

    GSA does 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.
    Therefore, an Initial Regulatory Flexibility Analysis has not been 
performed. GSA invites comments from small business concerns and other 
interested parties on the expected impact of this proposed rule on 
small entities.
    GSA will also consider comments from small entities concerning the 
existing regulations in subparts affected by the rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C 610 (GSAR Case 2020-G509), in 
correspondence.

VII. Paperwork Reduction Act

    This rulemaking does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 517, 538, and 552

    Government procurement.

Jeffrey A. Koses,
Senior Procurement Executive, Office of Acquisition Policy, Office of 
Government-wide Policy, General Services Administration.
    Therefore, GSA proposes amending 48 CFR parts 517, 538, and 552 as 
set forth below:

0
1. The authority citation for 48 CFR parts 517, 538, and 552 continues 
to read as follows:

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

[[Page 48619]]

PART 517--SPECIAL CONTRACTING METHODS

0
2. Amend section 517.207 by revising the introductory text and 
paragraph (a) to read as follows:


517.207  Exercise of options.

    In addition to the requirements of FAR 17.207, the contracting 
officer shall:
    (a) Document the contract file with the rationale for exercising 
the contract option to extend the period of performance if the 
contractor's performance under the contract is less than satisfactory.
* * * * *

PART 538--FEDERAL SUPPLY SCHEDULE CONTRACTING

0
3. Revise section 538.270 heading to read as follows:


538.270  Solicitation, evaluation, and award of Federal Supply Schedule 
(FSS) contracts.

0
4. Amend section 538.273 by adding paragraphs (d)(36) and (e) to read 
as follows:


538.273  FSS solicitation provisions and contract clauses.

* * * * *
    (d) * * *
    (36) 552.238-116, Option to Extend the Term of the FSS Contract. 
Use in all FSS solicitations and contracts.
    (e) Insert the following fill-in information within the blank of 
paragraph (d) of FAR clause 52.216-22, Indefinite Quantity: ``the 
completion of customer order, including options, 60 months following 
the expiration of the FSS contract ordering period''.

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Add section 552.238-116 to read as follows:


552.238-116  Option to Extend the Term of the FSS Contract.

    As prescribed in 538.273(d)(36), insert the following clause:

Option To Extend the Term of the FSS Contract (Date)

    (a) The Government may require continued performance of this 
contract for an additional 5 year period. This option may be 
exercised up to three times.
    (b) The Contracting Officer may exercise the option by providing 
written notice to the Contractor 30 days before the contract 
expires.


(End of clause)

[FR Doc. 2021-18517 Filed 8-30-21; 8:45 am]
BILLING CODE 6820-61-P


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