[Federal Register Volume 66, Number 95 (Wednesday, May 16, 2001)]
[Rules and Regulations]
[Pages 27407-27414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12244]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 4, 5, 6, 7, 9, 12, 13, 14, 19, 22, 34, 35, and 36

[FAC 97-26; FAR Case 1997-304; Item I]
RIN 9000-AI10


Federal Acquisition Regulation; Electronic Commerce in Federal 
Procurement

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule with request for comments.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to further 
implement section 850 of the National Defense Authorization Act for 
Fiscal Year 1998; and implement section 810 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001.
    Section 850 calls for the use of cost-effective procedures and 
processes that employ electronic commerce in the conduct and 
administration of Federal procurement systems. This includes the 
designation in the FAR of a single point of universal electronic public 
access to Governmentwide procurement opportunities (the 
``Governmentwide Point of Entry'' or ``GPE''). Section 810 allows 
agencies to provide access to notices through the GPE, as designated in 
the FAR, instead of publishing them via the Commerce Business Daily 
(CBD).
    This rule designates Federal Business Opportunities 
(``FedBizOpps'') as the GPE. Agencies have until October 1, 2001, to 
complete their transition to, or integration with, FedBizOpps. By that 
date, all agencies must use FedBizOpps to provide access to public 
notices of procurement actions over $25,000 that are currently required 
to be published in the CBD along with associated solicitations and 
amendments. In addition, agencies will not be required to provide 
notice in the CBD as of January 1, 2002, since access to this 
information will be provided on the Internet through FedBizOpps.

DATES: Effective Date: May 16, 2001.
    Comment Date: Interested parties should submit comments to the FAR 
Secretariat at the address shown below on or before July 16, 2001 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVP), 1800 F Street, NW., Room 4035, Attn: Ms. Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: <a href="/cdn-cgi/l/email-protection#2e484f5c4d4f5d4b001f171719031d1e1a6e495d4f00494158"><span class="__cf_email__" data-cfemail="72141300111301175c434b4b455f414246321501135c151d04">[email protected]</span></a>
    Please submit comments only and cite FAC 97-26, FAR case 1997-304 
in all correspondence related to this case.

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. Victoria Moss, Procurement Analyst, at (202) 501-
4764. Please cite FAC 97-26, FAR case 1997-304.

SUPPLEMENTARY INFORMATION:

A. Background

1. The First Interim Rule

    An interim rule was published in the Federal Register at 63 FR 
58590, October 30, 1998, amending FAR Subpart 4.5 and making associated 
changes to FAR Parts 2, 5, 13, 14, and 32 to implement Section 850. 
Section 850 amended Titles 10, 15, 40, and 41 of the United States Code 
to eliminate the statutory preference for the Federal Acquisition 
Computer Network (FACNET) computer architecture in conducting 
transactions electronically. Towards this end, the first interim rule 
revised the FAR to--
    <bullet> Promote the use of cost-effective procedures and processes 
that employ electronic commerce in the conduct and administration of 
Federal procurement systems; and
    <bullet> Require Federal procurement systems that employ electronic 
commerce to apply nationally and internationally recognized standards 
that broaden interoperability and ease the electronic interchange of 
information.
    The Councils received and considered public comments from 28 
respondents that were used in the development of this second interim 
rule.

2. The Proposed Rule--Designation of FedBizOpps

    Section 850 calls for ``any notice of agency requirements or agency 
solicitation for contract opportunities'' to be provided in a form that 
allows ``convenient and universal user access through a single, 
Government-wide point of entry.'' Subsequent to the consideration of 
public comments on the first interim rule, the Office of Federal 
Procurement Policy (OFPP) recommended that FedBizOpps (http://www.fedbizopps.gov) be designated as the GPE. The Councils published a 
proposed rule in the Federal Register at 65 FR 50872, August 21, 2000, 
to solicit public comments on the implementation of OFPP's 
recommendation. The preamble to the proposed rule describes the 
Government's objectives in designating a GPE (i.e., to create a central 
point for electronic access to business opportunities, to follow the 
commercial lead, and to facilitate re-engineering for sellers and 
buyers) and how FedBizOpps meets these objectives.
    The Councils received and considered public comments from 22 
respondents. OFPP also reviewed the comments on the proposed 
designation and continues to believe that FedBizOpps can most 
effectively meet the Government's objectives, including improved and 
enhanced access to information for businesses small and large. Among 
other things, GSA and the agencies using FedBizOpps have sought to 
shape FedBizOpps to take advantage of electronic tools that have 
widespread commercial acceptance and interface with sellers' electronic 
tools, and can adapt to new tools as they gain commercial acceptance. 
FedBizOpps allows sellers and service providers to access and download 
information through different commercial electronic means and business 
applications, including web-based technology, bulk data feed, and push 
technology through electronic mail (e-mail). This ability to 
accommodate various business techniques means that sellers can choose 
the means they find more suitable (i.e., direct or service-provider

[[Page 27408]]

enhanced) for gaining access to Federal business opportunities.
    Some comments have urged greater reliance on the private sector in 
providing access. The Government has a strong interest in ensuring 
potential sources have reliable electronic access to notices of open 
market contracting opportunities. For this reason, until more 
standardized processes evolve to ensure more reliable and accurate 
searches, it is appropriate for the Government to ensure access by 
managing the technological architecture for doing so. In the future, it 
may be possible for the Government to rely on sellers' use of 
commercial tools to identify Government business opportunities without 
the Government having to manage a technological architecture.

3. This Second Interim Rule

    Public comments received in response to first interim rule and the 
proposed rule were considered in drafting this second interim rule. 
This rule designates FedBizOpps as the GPE. Agencies must make notices 
of contracting opportunities that meet the criteria in FAR 5.101 and 
5.201 accessible via FedBizOpps. In addition, the rule--
    <bullet> Adds place of contract performance and set-aside status to 
the required notice content;
    <bullet> Requires agencies to make accessible through FedBizOpps 
other notices that are currently published in the CBD, such as 
presolicitation notices and award notices supporting subcontracting 
opportunities;
    <bullet> Requires agencies to make accessible via FedBizOpps most 
solicitations and amendments associated with business opportunities 
listed on the FedBizOpps website;
    <bullet> Permits contractors to publicize subcontracting 
opportunities with the intent of supporting achievement of 
subcontracting goals; and
    <bullet> Permits agencies to make accessible via FedBizOpps 
information that allows potential offerors to better understand how 
they can meet the Government's needs.
    Agencies must provide access to all applicable actions through 
FedBizOpps by October 1, 2001. This phase-in period is designed to 
better enable agencies to achieve a smooth transition to FedBizOpps.
    This second interim rule also implements section 810, which was 
enacted after publication of the proposed rule. Public comment is 
specifically sought on this rule's implementation of section 810.
    Section 810 amends section 18 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 416) and section 8(e) of the Small Business Act 
(15 U.S.C. 637(e)). As amended, these provisions allow agencies to 
provide access to their notices of solicitation either by transmitting 
them to the GPE designated in the FAR or by publishing them in the 
Commerce Business Daily (CBD) rather than mandating notice through the 
CBD as had previously been required.
    This rule establishes FedBizOpps (the designated GPE) as the 
principal venue for procurement notices. As noted above, agencies must 
begin transmitting notices to FedBizOpps no later than October 1, 2001. 
Until January 1, 2002, agencies must also direct FedBizOpps to forward 
the information to the CBD, using the current format prescribed for the 
electronic version of CBD, Commerce Business Daily Network (CBDNet). 
The duplication of notices transmitted to FedBizOpps in the CBD through 
the end of calendar year 2001 will provide additional time for vendors 
to become acclimated to FedBizOpps as the GPE. On and after January 1, 
2002, agencies will no longer be required to provide duplicate notice 
in the CBD and instead may rely exclusively on the mandatory notice in 
FedBizOpps to provide the required access.
    Since public comments received in response to the first interim 
rule and the proposed rule have already been addressed, comments on the 
issues unique to this second interim rule are especially requested.
    This is a significant regulatory action and, therefore, was 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 changes may 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 interim rule 
establishes FedBizOpps as the single GPE for all large and small 
business entities accessing notices of proposed contract actions, 
solicitations, and related procurement information. We have prepared an 
Initial Regulatory Flexibility Analysis. The analysis is summarized as 
follows:

    The interim rule further implements section 850 of the National 
Defense Authorization Act for Fiscal Year 1998, Pub. L. 105-85 and 
section 810 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001, Pub. L. 106-398. Section 850 amends Titles 
10, 15, 40, and 41 of the United States Code to eliminate the 
preference for electronic commerce within Federal agencies to be 
conducted on the Federal Acquisition Computer Network (FACNET) 
computer architecture. Section 810 amends 41 U.S.C. 416 and 15 
U.S.C. 637 to allow solicitation notices to be published via a 
single point of entry on the Internet designated in the FAR or via 
the Commerce Business Daily.
    The objectives of the rule are (1) to designate a single point 
of entry on the Internet, http://www.fedbizopps.gov, where agencies 
will be required (as of October 1, 2001), to provide convenient and 
universal public access to information on their procurement 
opportunities, and (2) to permit electronic access to notices of 
solicitation through the single point of entry as a substitute for 
the currently required paper publication in the CBD beginning on 
January 1, 2002.
    The interim rule will apply to all large and small entities that 
do business or are planning to do business with the Government. 
FedBizOpps is designed to be sufficiently versatile to allow sellers 
and service providers to access and download information through 
different commercial electronic means, including web-based 
technology, bulk data feeds, and electronic mail. This versatility 
will enable the more than 47,340 small and 29,200 large businesses 
to have easy access to Government business opportunities.
    The rule imposes no reporting, recordkeeping, or other 
compliance requirements. Basic skill in operating a personal 
computer with access to the Internet is required to access the GPE 
website. The estimated purchase cost of a personal computer, modem, 
software, telephone lines, and Internet access is $1,600. The 
benefit of increased access to Federal contracting opportunities 
should far outweigh these additional costs.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules. There are no practical alternatives that will 
accomplish the objectives of this rule.

    The FAR Secretariat has submitted a copy of the IRFA to the Chief 
Counsel for Advocacy of the Small Business Administration. Interested 
parties may obtain a copy from the FAR Secretariat. The Councils will 
consider comments from small entities concerning the affected FAR Parts 
2, 4, 5, 6, 7, 9, 12, 13, 14, 19, 22, 34, 35, and 36 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. (FAC 97-26, FAR case 1997-304), 
in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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.

[[Page 27409]]

D. Determination To Issue an Interim Rule

    The public has previously been given an opportunity to comment on 
the proposed designation of FedBizOpps as the Governmentwide point of 
entry (GPE). A determination has been made under the authority of the 
Secretary of Defense (DoD), the Administrator of General Services 
(GSA), and the Administrator of the National Aeronautics and Space 
Administration (NASA) that urgent and compelling reasons exist to 
promulgate the remainder of this interim rule (i.e., the ending on 
January 1, 2002, of the mandatory forwarding of notices through the GPE 
to the Commerce Business Daily (CBD)) without prior opportunity for 
public comment. Permitting electronic notice of business opportunities 
through the designated GPE as a substitute for the currently required 
paper publication in the CBD is key to agencies' ability to realize the 
efficiencies in electronic processes that justify agency investments in 
these processes. This action is, therefore, necessary to reinforce 
agency commitment to the use of electronic processes that provide 
enhanced, user friendly vendor access to Federal business 
opportunities. However, pursuant to Public Law 98-577 and FAR 1.501, 
public comments received in response to this interim rule will be 
considered in formulating the final rule.

List of Subjects in 48 CFR Parts 2, 4, 5, 6, 7, 9, 12, 13, 14, 19, 
22, 34, 35, and 36

    Government procurement.

    Dated: May 10, 2001.
Al Matera,
Director, Acquisition Policy Division.


    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 4, 5, 6, 7, 9, 
12, 13, 14, 19, 22, 34, 35, and 36 as set forth below:
    1. The authority citation for 48 CFR parts 2, 4, 5, 6, 7, 9, 12, 
13, 14, 19, 22, 34, 35, and 36 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 adding, in alphabetical order, the 
definition ``Commerce Business Daily (CBD)''; revising the definition 
``Federal Acquisition Computer Network (FACNET) Architecture''; and 
adding the definition ``Governmentwide point of entry (GPE)'' to read 
as follows:


2.101  Definitions.

* * * * *
    Commerce Business Daily (CBD) means the publication of the 
Secretary of Commerce used to fulfill statutory requirements to publish 
certain public notices in paper form.
* * * * *
    Federal Acquisition Computer Network (FACNET) Architecture is a 
Government system that provides user access, employs nationally and 
internationally recognized data formats, and allows the electronic data 
interchange of acquisition information between the private sector and 
the Federal Government.
* * * * *
    Governmentwide point of entry (GPE) means the single point where 
Government business opportunities greater than $25,000, including 
synopses of proposed contract actions, solicitations, and associated 
information, can be accessed electronically by the public. The GPE is 
located at http://www.fedbizopps.gov.
* * * * *

PART 4--ADMINISTRATIVE MATTERS


4.502  [Amended]

    3.-4. Amend section 4.502 in paragraph (b)(4) by adding the word 
``single'' after the word ``a'' the first time it is used; and by 
removing ``single,'' which precedes ``Governmentwide''.

    5. Amend section 4.803 by revising paragraph (a)(4) to read as 
follows:


4.803  Contents of contract files.

* * * * *
    (a) * * *
    (4) Synopsis of proposed acquisition as required by part 5 or a 
reference to the synopsis.
* * * * *

PART 5--PUBLICIZING CONTRACT ACTIONS

    6. Add section 5.003 to read as follows:


5.003  Governmentwide point of entry.

    For any requirement in the FAR to publish a notice, the contracting 
officer may transmit the notice to the Commerce Business Daily (CBD) if 
the contracting office lacks the capability to access the 
Governmentwide point of entry (GPE) and the notice is issued prior to 
October 1, 2001. Effective October 1, 2001, the contracting officer 
must transmit all notices to the GPE.

    7. Amend section 5.101 by removing the introductory paragraph and 
revising paragraph (a) to read as follows:


5.101  Methods of disseminating information.

    (a) As required by the Small Business Act (15 U.S.C. 637(e)) and 
the Office of Federal Procurement Policy Act (41 U.S.C. 416), 
contracting officers must disseminate information on proposed contract 
actions as follows:
    (1) For proposed contract actions expected to exceed $25,000, by 
synopsizing in the GPE (see 5.201), unless covered by 5.003.
    (2) For proposed contract actions expected to exceed $10,000, but 
not expected to exceed $25,000, by displaying in a public place, or by 
any appropriate electronic means, an unclassified notice of the 
solicitation or a copy of the solicitation satisfying the requirements 
of 5.207(d) and (g). The notice must include a statement that all 
responsible sources may submit a response which, if timely received, 
must be considered by the agency. The information must be posted not 
later than the date the solicitation is issued, and must remain posted 
for at least 10 days or until after quotations have been opened, 
whichever is later.
    (i) If solicitations are posted instead of a notice, the 
contracting officer may employ various methods of satisfying the 
requirements of 5.207(d) and (g). For example, the contracting officer 
may meet the requirements of 5.207(d) and (g) by stamping the 
solicitation, by a cover sheet to the solicitation, or by placing a 
general statement in the display room.
    (ii) The contracting officer need not comply with the display 
requirements of this section when the exemptions at 5.202(a)(1), (a)(4) 
through (a)(9), or (a)(11) apply, when oral or Federal Acquisition 
Computer Network (FACNET) solicitations are used, or when providing 
access to a notice of proposed contract action and solicitation through 
the GPE and the notice permits the public to respond to the 
solicitation electronically.
    (iii) Contracting officers may use electronic posting of 
requirements in a place accessible by the general public at the 
Government installation to satisfy the public display requirement. 
Contracting offices using electronic systems for public posting that 
are not accessible outside the installation must periodically publicize 
the methods for accessing the information.
* * * * *

    8. Revise section 5.102 to read as follows:


5.102  Availability of solicitations.

    (a)(1) Except as provided in paragraph (a)(4) of this section, the 
contracting

[[Page 27410]]

officer must make available through the GPE solicitations synopsized 
through the GPE, including specifications and other pertinent 
information determined necessary by the contracting officer. 
Transmissions to the GPE must be in accordance with the interface 
description available via the Internet at http://www.fedbizopps.gov.
    (2) The contracting officer is encouraged, when practicable and 
cost-effective, to make accessible through the GPE additional 
information related to a solicitation.
    (3) The contracting officer must ensure that solicitations 
transmitted to FACNET are forwarded to the GPE to satisfy the 
requirements of paragraph (a)(1) of this section.
    (4) The contracting officer need not make a solicitation available 
through the GPE when--
    (i) Disclosure would compromise the national security (e.g., would 
result in disclosure of classified information) or create other 
security risks. The fact that access to classified matter may be 
necessary to submit a proposal or perform the contract does not, in 
itself, justify use of this exception;
    (ii) The nature of the file (e.g., size, format) does not make it 
cost-effective or practicable for contracting officers to provide 
access through the GPE;
    (iii) The agency's senior procurement executive makes a written 
determination that access through the GPE is not in the Government's 
interest; or
    (iv) The contracting office lacks the capability to access the GPE 
and the synopsis is issued prior to October 1, 2001.
    (b) When the contracting officer does not make a solicitation 
available through the GPE pursuant to paragraph (a)(4) of this section, 
the contracting officer--
    (1) Should employ other electronic means (e.g., CD-ROM or 
electronic mail) whenever practicable and cost-effective. When 
solicitations are provided electronically on physical media (e.g., 
disks) or in paper form, the contracting officer must--
    (i) Maintain a reasonable number of copies of solicitations, 
including specifications and other pertinent information determined 
necessary by the contracting officer (upon request, potential sources 
not initially solicited should be mailed or provided copies of 
solicitations, if available);
    (ii) Provide copies on a ``first-come-first-served'' basis, for 
pickup at the contracting office, to publishers, trade associations, 
information services, and other members of the public having a 
legitimate interest (for construction, see 36.211); and
    (iii) Retain a copy of the solicitation and other documents for 
review by and duplication for those requesting copies after the initial 
number of copies is exhausted; and
    (2) May require payment of a fee, not exceeding the actual cost of 
duplication, for a copy of the solicitation document.
    (c) In addition to the methods of disseminating proposed contract 
information in 5.101(a) and (b), provide, upon request to small 
business concerns, as required by 15 U.S.C. 637(b)--
    (1) A copy of the solicitation and specifications. In the case of 
solicitations disseminated by electronic data interchange, 
solicitations may be furnished directly to the electronic address of 
the small business concern;
    (2) The name and telephone number of an employee of the contracting 
office who will answer questions on the solicitation; and
    (3) Adequate citations to each applicable major Federal law or 
agency rule with which small business concerns must comply in 
performing the contract.
    (d) When electronic commerce (see subpart 4.5) is used in the 
solicitation process, availability of the solicitation may be limited 
to the electronic medium.
    (e) Provide copies of a solicitation issued under other than full 
and open competition to firms requesting copies that were not initially 
solicited, but only after advising the requester of the determination 
to limit the solicitation to a specified firm or firms as authorized 
under part 6.
    (f) This section 5.102 applies to classified contracts to the 
extent consistent with agency security requirements (see 5.202(a)(1)).

    9. Revise section 5.201 to read as follows:


5.201  General.

    (a) As required by the Small Business Act (15 U.S.C. 637(e)) and 
the Office of Federal Procurement Policy Act (41 U.S.C. 416), agencies 
must make notices of proposed contract actions available as specified 
in paragraph (b) of this section.
    (b)(1) For acquisitions of supplies and services, other than those 
covered by the exceptions in 5.202 and the special situations in 5.205, 
the contracting officer must transmit a notice to the GPE, for each 
proposed--
    (i) Contract action meeting the threshold in 5.101(a)(1);
    (ii) Modification to an existing contract for additional supplies 
or services that meets the threshold in 5.101(a)(1); or
    (iii) Contract action in any amount when advantageous to the 
Government.
    (2) When transmitting notices to the GPE before January 1, 2002, 
contracting officers must direct the GPE to forward the notice to the 
CBD.
    (3) When transmitting notices to FACNET, contracting officers must 
ensure the notice is forwarded to the GPE. For notices published before 
January 1, 2002, contracting officers must ensure that the notices are 
forwarded by the GPE to the CBD.
    (c) The primary purposes of the notice are to improve small 
business access to acquisition information and enhance competition by 
identifying contracting and subcontracting opportunities.
    (d)(1) The GPE may be accessed via the Internet at http://www.fedbizopps.gov.
    (2) Subscriptions to the CBD must be placed with the Superintendent 
of Documents, Government Printing Office, Washington, DC 20402, 
Telephone (202) 512-1800.
    10. Amend section 5.202 by revising paragraph (a)(13)(ii) to read 
as follows:


5.202  Exceptions.

* * * * *
    (a) * * *
    (13) * * *
    (ii) Will be made through a means that provides access to the 
notice of proposed contract action through the GPE; and
* * * * *

    11. Amend section 5.203 by revising the introductory text, 
paragraphs (a), (b), (e), the first sentence of paragraph (g), and 
paragraph (h) to read as follows:


5.203  Publicizing and response time.

    Whenever agencies are required to publicize notice of proposed 
contract actions under 5.201, they must proceed as follows:
    (a) An agency must transmit a notice of proposed contract action to 
the GPE (see 5.201). All publicizing and response times are calculated 
based on the date of publication. For notices published before January 
1, 2002, the publication date is the date the notice is published in 
the CBD. For notices published on or after January 1, 2002, the 
publication date is the date the notice appears on the GPE. The notice 
must be published at least 15 days before issuance of a solicitation 
except that, for acquisitions of commercial items, the contracting 
officer may--
    (1) Establish a shorter period for issuance of the solicitation; or
    (2) Use the combined synopsis and solicitation procedure (see 
12.603).

[[Page 27411]]

    (b) The contracting officer must establish a solicitation response 
time that will afford potential offerors a reasonable opportunity to 
respond to each proposed contract action, (including actions via FACNET 
or for which the notice of proposed contract action and solicitation 
information is accessible through the GPE), in an amount estimated to 
be greater than $25,000, but not greater than the simplified 
acquisition threshold; or each contract action for the acquisition of 
commercial items in an amount estimated to be greater than $25,000. The 
contracting officer should consider the circumstances of the individual 
acquisition, such as the complexity, commerciality, availability, and 
urgency, when establishing the solicitation response time.
* * * * *
    (e) Agencies must allow at least a 45-day response time for receipt 
of bids or proposals from the date of publication of the notice 
required in 5.201 for proposed contract actions categorized as research 
and development if the proposed contract action is expected to exceed 
the simplified acquisition threshold.
* * * * *
    (g) Contracting officers may, unless they have evidence to the 
contrary, presume that notice has been published 10 days (6 days if 
electronically transmitted through the GPE or other means) following 
transmittal of the synopsis to the CBD.
* * * * *
    (h) In addition to other requirements set forth in this section, 
for acquisitions subject to NAFTA or the Trade Agreements Act (see 
subpart 25.4), the period of time between publication of the synopsis 
notice and receipt of offers must be no less than 40 days. However, if 
the acquisition falls within a general category identified in an annual 
forecast, the availability of which is published, the contracting 
officer may reduce this time period to as few as 10 days.

    12. Revise section 5.204 to read as follows:


5.204  Presolicitation notices.

    Contracting officers must provide access to presolicitation notices 
through the GPE (see 15.201 and 36.213-2). The contracting officer must 
synopsize a proposed contract action before issuing any resulting 
solicitation (see 5.201 and 5.203).

    13. Revise section 5.205 to read as follows:


5.205  Special situations.

    (a) Research and development (R&D) advance notices. Contracting 
officers may transmit to the GPE advance notices of their interest in 
potential R&D programs whenever market research does not produce a 
sufficient number of concerns to obtain adequate competition. Advance 
notices must not be used where security considerations prohibit such 
publication. Advance notices will enable potential sources to learn of 
R&D programs and provide these sources with an opportunity to submit 
information which will permit evaluation of their capabilities. 
Potential sources which respond to advance notices must be added to the 
appropriate solicitation mailing list for subsequent solicitation. 
Advance notices must be entitled ``Research and Development Sources 
Sought,'' cite the appropriate Numbered Note, and include the name and 
telephone number of the contracting officer or other contracting 
activity official from whom technical details of the project can be 
obtained. This will enable sources to submit information for evaluation 
of their R&D capabilities. Contracting officers must synopsize (see 
5.201) all subsequent solicitations for R&D contracts, including those 
resulting from a previously synopsized advance notice, unless one of 
the exceptions in 5.202 applies.
    (b) Federally Funded Research and Development Centers. Before 
establishing a Federally Funded Research and Development Center (FFRDC) 
(see Part 35) or before changing its basic purpose and mission, the 
sponsor must transmit at least three notices over a 90-day period to 
the GPE and the Federal Register, indicating the agency's intention to 
sponsor an FFRDC or change the basic purpose and mission of an FFRDC. 
The notice must indicate the scope and nature of the effort to be 
performed and request comments. Notice is not required where the action 
is required by law. When transmitting notices to the GPE before January 
1, 2002, contracting officers must direct the GPE to forward the notice 
to the CBD.
    (c) Special notices. Contracting officers may transmit to the GPE 
special notices of procurement matters such as business fairs, long-
range procurement estimates, prebid or preproposal conferences, 
meetings, and the availability of draft solicitations or draft 
specifications for review.
    (d) Architect-engineering services. Contracting officers must 
publish notices of intent to contract for architect-engineering 
services as follows:
    (1) Except when exempted by 5.202, contracting officers must 
transmit to the GPE a synopsis of each proposed contract action for 
which the total fee (including phases and options) is expected to 
exceed $25,000. When transmitting notices to the GPE before January 1, 
2002, contracting officers must direct the GPE to forward the notice to 
the CBD. The notice must reference the appropriate CBD Numbered Note.
    (2) When the total fee is expected to exceed $10,000 but not exceed 
$25,000, the contracting officer must comply with 5.101(a)(2). When the 
proposed contract action is not required to be synopsized under 
paragraph (d)(1) of this section, the contracting officer must display 
a notice of the solicitation or a copy of the solicitation in a public 
place at the contracting office. Other optional publicizing methods are 
authorized in accordance with 5.101(b).
    (e) Effort to locate commercial sources under OMB Circular A-76. 
When determining the availability of commercial sources under the 
procedures prescribed in subpart 7.3 and OMB Circular A-76, the 
contracting officer must not arrive at a conclusion that there are no 
commercial sources capable of providing the required supplies or 
services until publicizing the requirement through the GPE at least 
three times in a 90 calendar-day period, with a minimum of 30 calendar 
days between notices. When necessary to meet an urgent requirement, 
this may be limited to a total of two notices through the GPE in a 30 
calendar-day period, with a minimum of 15 calendar days between each. 
When transmitting notices to the GPE before January 1, 2002, 
contracting officers must direct the GPE to forward the notice to the 
CBD.
    (f) Section 8(a) competitive acquisition. When a national buy 
requirement is being considered for competitive acquisition limited to 
eligible 8(a) concerns under subpart 19.8, the contracting officer must 
transmit a synopsis of the proposed contract action to the GPE. When 
transmitting notices to the GPE before January 1, 2002, contracting 
officers must direct the GPE to forward the notice to the CBD. The 
synopsis may be transmitted to the GPE concurrent with submission of 
the agency offering (see 19.804-2) to the Small Business Administration 
(SBA). The synopsis should also include information--
    (1) Advising that the acquisition is being offered for competition 
limited to eligible 8(a) concerns;

[[Page 27412]]

    (2) Specifying the North American Industry Classification System 
(NAICS) code;
    (3) Advising that eligibility to participate may be restricted to 
firms in either the developmental stage or the developmental and 
transitional stages; and
    (4) Encouraging interested 8(a) firms to request a copy of the 
solicitation as expeditiously as possible since the solicitation will 
be issued without further notice upon SBA acceptance of the requirement 
for the section 8(a) program.

    14. Amend section 5.206 by revising the introductory text of 
paragraph (a) to read as follows:


5.206  Notices of subcontracting opportunities.

    (a) The following entities may transmit a notice to the GPE, the 
CBD, or both to seek competition for subcontracts, to increase 
participation by qualified HUBZone small business, small, small 
disadvantaged, and small women-owned business concerns, and to meet 
established subcontracting plan goals:
* * * * *

    15. Amend section 5.207 by--
    a. Redesignating paragraphs (a) through (h) as (b) through (i), 
respectively, and by adding a new paragraph (a);
    b. Revising newly designated paragraph (b);
    c. Revising the introductory text of newly designated paragraph 
(c), and adding under ``Format Item and Explanation/Description of 
Entry'' item numbers 18 and 19; and
    d. Revising the newly designated paragraph (i). The revised text 
reads as follows:


5.207  Preparation and transmittal of synopses.

    (a) Content. Each synopsis transmitted to the GPE or CBD must 
address the following data elements, as applicable:
    (1) Action Code.
    (2) Date.
    (3) Year.
    (4) Government Printing Office (GPO) Billing Account Code.
    (5) Contracting Office Zip Code.
    (6) Classification Code.
    (7) Contracting Office Address.
    (8) Subject.
    (9) Proposed Solicitation Number.
    (10) Opening and Closing Response Date.
    (11) Contact Point or Contracting Officer.
    (12) Contract Award and Solicitation Number.
    (13) Contract Award Dollar Amount.
    (14) Contract Line Item Number.
    (15) Contract Award Date.
    (16) Contractor.
    (17) Description.
    (18) Place of Contract Performance.
    (19) Set-aside Status.
    (b) Transmittal--(1) GPE. Transmissions must be in accordance with 
the interface description available via the Internet at http://www.fedbizopps.gov.
    (2) CBD--(i) Electronic transmission. All synopses transmitted 
electronically to the CBD, other than through the GPE (see 5.003), must 
be in ASCII Code. Contact your agency's communications center for the 
appropriate transmission instructions or services.
    (ii) Hard copy transmission. When electronic transmission is not 
feasible (see 5.003), synopses should be sent to the CBD via mail or 
other physical delivery of hard copy and should be addressed to the 
Commerce Business Daily, U.S. Department of Commerce, P.O. Box 77880, 
Washington, DC 20013-8880.
    (c) Format for the CBD. The contracting officer must prepare the 
synopsis in the following style and format to assure timely processing 
of the synopsis by the Commerce Business Daily.
* * * * *
Format Item and Explanation/Description of Entry
* * * * *

    18. PLACE OF CONTRACT PERFORMANCE. (Include where applicable; where 
not applicable, enter N/A.)

    19. SET-ASIDES. (Identify if the proposed acquisition provides for 
a total or partial set-aside, a very small business set-aside, or a 
HUBZone small business set-aside. If not a set-aside, enter N/A.)
* * * * *
    (i) Cancellation of synopsis. Contracting officers should not 
publish notices of solicitation cancellations (or indefinite 
suspensions) of proposed contract actions in the GPE or CBD. 
Cancellations of solicitations must be made in accordance with 14.209 
and 14.404-1.

    16. Amend section 5.301 by revising the introductory text of 
paragraph (a); by revising paragraphs (b)(7)(ii) and (c); and by adding 
paragraph (d) to read as follows:


5.301  General.

    (a) Except for contract actions described in paragraph (b) of this 
section and as provided in 5.003, contracting officers must synopsize 
through the GPE awards exceeding $25,000 that are--
* * * * *
    (b) * * *
    (7) * * *
    (ii) Was made through a means where access to the notice of 
proposed contract action was provided through the GPE; and
* * * * *
    (c) With respect to acquisitions subject to the Trade Agreements 
Act, contracting officers must submit synopses in sufficient time to 
permit publication in the CBD, through the GPE, not later than 60 days 
after award.
    (d) When transmitting notices to the GPE before January 1, 2002, 
contracting officers must direct the GPE to forward the notice to the 
CBD.

    17. Amend section 5.404-1 by revising paragraph (b)(3)(iii) to read 
as follows:


5.404-1  Release procedures.

* * * * *
    (b) * * *
    (3) * * *
    (iii) More specific information relating to any individual item or 
class of items will not be furnished until the proposed action is 
synopsized through the GPE or the solicitation is issued;
* * * * *

    18. Revise section 5.404-2 to read as follows:


5.404-2  Announcements of long-range acquisition estimates.

    Further publicizing, consistent with the needs of the individual 
case, may be accomplished by announcing through the GPE that long-range 
acquisition estimates have been published and are obtainable, upon 
request, from the contracting officer.

PART 6--COMPETITION REQUIREMENTS


6.303-2  [Amended]

    19. Amend section 6.303-2 in paragraph (a)(6) by removing ``CBD''.

PART 7--ACQUISITION PLANNING

    20. Amend section 7.303 in paragraph (a) and the introductory text 
of paragraph (b) by removing ``shall'' and adding ``must'' in their 
place; and by revising paragraph (b)(1) to read as follows:


7.303  Determining availability of private commercial sources.

* * * * *
    (b) * * *
    (1) Synopsizing the requirement through the Governmentwide point of

[[Page 27413]]

entry (GPE) in accordance with 5.205(e) until a reasonable number of 
potential sources are identified. If necessary, a synopsis must be 
submitted up to three times in a 90-day period with a minimum of 30 
days between notices (but, when necessary to meet an urgent 
requirement, this notification may be limited to a total of two notices 
in a 30-day period with a minimum of 15 days between them); and
* * * * *

PART 9--CONTRACTOR QUALIFICATIONS

    21. Amend section 9.204 in the introductory text of paragraph (a) 
by removing ``shall'' and adding ``must'' in its place; and by revising 
paragraph (a)(1) to read as follows:


9.204  Responsibilities for establishment of a qualification 
requirement.

* * * * *
    (a) * * *
    (1) Periodically furnish through the Governmentwide point of entry 
(GPE) a notice seeking additional sources or products for qualification 
unless the contracting officer determines that such publication would 
compromise the national security. When transmitting notices to the GPE, 
contracting officers must direct the GPE to forward the notice to the 
Commerce Business Daily (CBD) to satisfy the requirements of 10 U.S.C. 
2319(d)(1)(A) and 41 U.S.C. 253c(d)(1)(A).
* * * * *

    22. Amend section 9.205 by revising the introductory text of 
paragraph (a) to read as follows:


9.205  Opportunity for qualification before award.

    (a) If an agency determines that a qualification requirement is 
necessary, the agency activity responsible for establishing the 
requirement must urge manufacturers and other potential sources to 
demonstrate their ability to meet the standards specified for 
qualification and, when possible, give sufficient time to arrange for 
qualification before award. The responsible agency activity must, 
before establishing any qualification requirement, furnish notice 
through the GPE. When transmitting notices to the GPE, contracting 
officers must direct the GPE to forward the notice to the CBD to 
satisfy the requirements of 10 U.S.C. 2319(d)(1)(A) and 41 U.S.C. 
253c(d)(1)(A). The notice must include--
* * * * *

PART 12--ACQUISITION OF COMMERCIAL ITEMS

    23. Amend section 12.603 by revising paragraphs (a), (c)(2)(xv), 
(c)(3), and (c)(4) to read as follows:


12.603  Streamlined solicitation for commercial items.

    (a) When a written solicitation will be issued, the contracting 
officer may use the following procedure to reduce the time required to 
solicit and award contracts for the acquisition of commercial items. 
This procedure combines the synopsis required by 5.203 and the issuance 
of the solicitation into a single document. Section 5.207 limits 
descriptions in the CBD to 12,000 textual characters (approximately 
3\1/2\ single-spaced pages).
* * * * *
    (c) * * *
    (2) * * *
    (xv) A statement regarding any applicable Numbered Notes.
* * * * *
    (3) Allow response time for receipt of offers as follows:
    (i) Because the synopsis and solicitation are contained in a single 
document, it is not necessary to publicize a separate synopsis 15 days 
before the issuance of the solicitation.
    (ii) When using the combined synopsis and solicitation, contracting 
officers must establish a response time in accordance with 5.203(b) 
(but see 5.203(h)).
    (4) Publicize amendments to solicitations in the same manner as the 
initial synopsis and solicitation.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

    24. Amend the introductory paragraph of section 13.104 and the 
introductory text of paragraph (a) by removing ``shall'' and adding 
``must'' in their place; and revise the first sentence of paragraph (b) 
to read as follows:


13.104  Promoting competition.

* * * * *
    (b) If using simplified acquisition procedures and neither using 
FACNET nor providing access to the notice of proposed contract action 
and solicitation information through the Governmentwide point of entry 
(GPE), maximum practicable competition ordinarily can be obtained by 
soliciting quotations or offers from sources within the local trade 
area.* * *


13.105  [Amended]

    25. Amend section 13.105 in the introductory text of paragraph (a) 
by removing ``shall'' and adding ``must'' in its place; in paragraph 
(a)(1)(ii) by removing ``single, Governmentwide point of entry'' and 
adding ``GPE'' in its place; in the first sentence of paragraph (b) by 
removing ``synopsis/solicitation'' and ``adding synopsis and 
solicitation'' in its place; and in the second sentence by removing 
``such'' and adding ``these'' in its place.

PART 14--SEALED BIDDING

    26. Revise section 14.203-2 to read as follows:


14.203-2  Dissemination of information concerning invitations for bids.

    (a) Procedures concerning display of invitations for bids in a 
public place, information releases to newspapers and trade journals, 
paid advertisements, and synopsizing through the Governmentwide point 
of entry (GPE) are set forth in 5.101 and Subpart 5.2.
    (b) For procedures that apply to publicizing notices through the 
GPE to determine whether commercial sources are available, as 
prescribed by OMB Circular A-76, see 5.205(e) and 7.303(b).
    27. Amend section 14.503-2 by revising paragraphs (a)(4) and (b) to 
read as follows:


14.503-2  Step two.

    (a) * * *
    (4) Not be synopsized through the Governmentwide point of entry 
(GPE) as an acquisition opportunity nor publicly posted (see 5.101(a)).
    (b) The names of firms that submitted acceptable proposals in step 
one will be listed through the GPE for the benefit of prospective 
subcontractors (see 5.207(b)(1)).

PART 19--SMALL BUSINESS PROGRAMS

    28. Amend section 19.202-2 by revising paragraph (c) to read as 
follows:


19.202-2  Locating small business sources.

* * * * *
    (c) Publicize solicitations and contract awards through the 
Governmentwide point of entry (see subparts 5.2 and 5.3).

    29. Amend section 19.804-2--
    a. In the first sentence of the introductory text of paragraph (a) 
by removing ``shall'' and adding ``must'' in its place;
    b. In paragraph (a)(9) by removing ``in'' and ``Commerce Business 
Daily'' and adding ``through'' and ``Governmentwide point of entry 
(GPE)'' in their places, respectively; and
    c. By revising the third and fourth sentences of paragraph (c) to 
read as follows:

[[Page 27414]]

19.804-2  Agency offering.

* * * * *
    (c) * * * All requirements, including construction, must be 
synopsized through the GPE. For construction, the synopsis must include 
the geographical area of the competition set forth in the SBA's 
acceptance letter.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

    30. Amend section 22.1009-4 in paragraph (a) by removing ``shall'' 
and adding ``must'' in its place; and by revising the introductory text 
of paragraph (b) to read as follows:


22.1009-4  All possible places of performance not identified.

* * * * *
    (b) Include the following information in the notice of contract 
action (see 5.207(g)(4)):
* * * * *

PART 34--MAJOR SYSTEM ACQUISITION


34.005-2  [Amended]

    31. Amend section 34.005-2 in paragraph (a)(1) by removing 
``publication in the Commerce Business Daily'' and adding ``publicizing 
through the Governmentwide point of entry'' in its place.

PART 35--RESEARCH AND DEVELOPMENT CONTRACTING

    32. Amend section 35.004 in the introductory text of paragraph (a) 
by removing ``shall'' and adding ``must'' in its place; and by revising 
paragraph (a)(1) to read as follows:


35.004  Publicizing requirements and expanding research and development 
sources.

    (a) * * *
    (1) Early identification and publication of agency R&D needs and 
requirements, including publicizing through the Governmentwide point of 
entry (GPE) (see part 5);
* * * * *

    33. Amend section 35.016 by revising paragraph (c) to read as 
follows:


35.016  Broad agency announcement.

* * * * *
    (c) The availability of the BAA must be publicized through the 
Governmentwide point of entry (GPE) and, if authorized pursuant to 
subpart 5.5, may also be published in noted scientific, technical, or 
engineering periodicals. The notice must be published no less 
frequently than annually. When transmitting a notice to the GPE before 
January 1, 2002, contracting officers must direct the GPE to forward 
the notice to the Commerce Business Daily.
* * * * *

PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

    34. Amend section 36.213-2 in the introductory text of paragraph 
(b) by removing ``shall'' and adding ``must'' in its place; and by 
revising paragraph (b)(9) to read as follows:


36.213-2  Presolicitation notices.

* * * * *
    (b) * * *
    (9) Be publicized through the Governmentwide point of entry in 
accordance with 5.204.
[FR Doc. 01-12244 Filed 5-15-01; 8:45 am]
BILLING CODE 6820-EP-P


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