[Federal Register Volume 60, Number 38 (Monday, February 27, 1995)]
[Rules and Regulations]
[Pages 10508-10510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4270]



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GENERAL SERVICES ADMINISTRATION

41 CFR Part 201-39

[FIRMR Amendment 4]
RIN 3090-AF17


Amendment of FIRMR To Remove Provisions for Using GSA 
Nonmandatory Schedule Contracts for FIP Resources

agency: Information Technology Service, GSA.

action: Final rule.

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summary: This rule revises Federal Information Resources Management 
Regulation (FIRMR) provisions regarding Federal Information Processing 
(FIP) multiple award schedule (MAS) contract orders. Specifically, the 
rule removes the requirement to synopsize orders in excess of $50,000 
placed against MAS contracts and incorporates the new guiding 
principles for FIP MAS orders, including a $2,500 ``micro-purchase'' 
threshold. The micro-purchase procedures will speed up the acquisition 
process for low dollar, low risk FIP acquisitions. These changes are 
examples of GSA's ongoing efforts to improve the MAS program and 
streamline the procurement process. GSA strongly encourages agencies to 
use the schedules program as a proven method to purchase commercial 
goods in a manner that is both time and cost effective.

[[Page 10509]] dates: This rule is effective March 29, 1995.

for further information contact: Judy Steele, FTS/Commercial (202) 501-
3194 (v) or (202) 501-0657 (tdd).

supplementary information: (1) A notice of proposed rulemaking was 
published in the Federal Register on February 23, 1994. This notice 
removed all provisions for using GSA nonmandatory schedule contracts 
for FIP resources from the FIRMR. Thirty-four (34) comments were 
received on the proposed rule. All comments were considered, and, where 
possible, incorporated into the final rule. For example, several 
respondents requested that the FIP MAS procedures remain in the FIRMR 
to ensure that all ordering activities and schedule vendors would know 
where to find them. Respondents also suggested incorporation of the MAS 
``guiding principles'' into the FIRMR procedures. This rule has been 
revised to reflect their concerns.
    (2) To address recurring issues of concern to GSA customer 
agencies, the General Accounting Office (GAO), and MAS contractors, GSA 
initiated a MAS Improvement Project in October 1990. GSA prepared a 
uniform set of ``guiding principles'' to simplify and expedite the 
ordering process for all types of MAS buys. According to a recent GAO 
report, agencies state that a reason for failing to comply with the MAS 
ordering procedures is that it is too time-consuming and difficult. One 
major objective of the MAS Improvement Project consistent with those 
concerns was to streamline and unify the procedures for ordering 
products and services provided under the MAS program. In line with this 
objective, this rule removes the FIRMR requirement that agencies 
synopsize orders valued at $50,000 or higher that are placed against 
FIP MAS contracts. Since the FIP MAS contracts are now indefinite 
delivery/indefinite quantity contracts, there is no longer a legal 
requirement to synopsize these orders.
    GAO has also previously suggested that the ordering procedures for 
low dollar value items be less stringent than the procedures which 
apply to high dollar value orders. A micropurchase threshold of $2,500 
is incorporated in the guiding principles which will alleviate that 
situation. Below the $2,500 threshold, agencies are allowed to place an 
order to any FIP schedule contractor without seeking competition. Above 
$2,500, agencies must consider reasonably available information about 
products offered under MAS contracts to ensure that the selection meets 
the agency's needs at the lowest overall cost. The guiding principles 
also reflect that MAS contractors no longer are required to pass on a 
price reduction extended to only one agency for a specific order to all 
MAS users. This rule incorporates GSA's guiding principles for MAS 
acquisitions.
    (3) Explanation of the specific changes being made by this issuance 
are shown below:
    (a) Subpart 201-39.5 is removed to delete the synopsizing 
requirements related to the FIP MAS contracts.
    (b) Section 201-39.601-2 is removed since synopsizing is no longer 
required.
    (c) Section 201-39.803-3 is revised to add the MAS ``guiding 
principles'' which streamline and simplify the procedures for using the 
FIP MAS contracts.
    (d) The FIRMR Index reference is revised to change the phrase ``GSA 
nonmandatory schedule contract'' to ``GSA nonmandatory FIP schedule 
contract'' to differentiate the FIP MAS contracts from the newly 
nonmandatory FSS MAS contract programs.
    (4) This rule was submitted to, and approved by, the Office of 
Management and Budget in accordance with Executive Order 12866, 
Regulatory Planning and Review. The rule will not have a significant 
economic impact on a substantial number of small entities under the 
Regulatory Flexibility Act (U.S.C. 601 et seq.).
    (5) The Paperwork Reduction Act does not apply because the FIRMR 
changes do not impose recordkeeping information collection requirements 
or collection of information from offerors, contractors, or members of 
the public which require the approval of OMB under 44 U.S.C. 3501 et 
seq.

List of Subjects in 41 CFR Part 201-39

    Archives and records, Computer technology, Federal information 
processing resources activities, Government procurement, Property 
management, Records management, and Telecommunications.

    For the reasons set forth in the preamble, GSA is amending 41 CFR 
Part 201 as follows:

PART 201-39--ACQUISITION OF FEDERAL INFORMATION PROCESSING (FIP) 
RESOURCES BY CONTRACTING

    1. The authority citation for part 201-39 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c) and 751(f).

Subpart 201-39.5--[Reserved]

    2. Subpart 201-39.5 is removed and reserved.


Sec. 201-39.601-2  [Removed and reserved]

    3. Section 201-39.601-2 is removed and reserved.
    4. Section 201-39.803-3 is revised to read as follows:


Sec. 201-39.803-3  Procedures.

    (a) Prior to selecting a GSA nonmandatory FIP schedule contract and 
placing an order, the agency shall justify any restrictive requirement 
(e.g., an ``all or none'' requirement or a requirement for ``only new'' 
equipment).
    (b) Ordering activities can place orders of $2,500 or less with any 
GSA nonmandatory FIP schedule contractor. GSA has already determined 
the prices of items under these contracts to be fair and reasonable.
    (c) To reasonably ensure that a selection represents the best value 
and meets the agency's needs at the lowest overall cost alternative, 
before placing a MAS order of more than $2,500, an ordering activity 
should--
    (1) Consider reasonably available information about products 
offered under Multiple Award Schedule contracts; this standard is met 
if the ordering activity does the following:
    (i) Considers products and prices contained in any GSA MAS 
automated information system (e.g., Information Resources Management--
On-line Schedules System); or
    (ii) If automated information is not available, reviews at least 
three (3) price lists.
    (2) In selecting the best value item at the lowest overall cost 
(the price of the item plus administrative costs), the ordering 
activity may consider such factors as--
    (i) Special features of one item not provided by comparable items 
which are required in effective program performance;
    (ii) Trade-in considerations;
    (iii) Probable life of the item selected as compared with that of a 
comparable item;
    (iv) Warranty conditions; and
    (v) Maintenance availability.
    (3) Give preference to the items of small business concerns when 
two or more items at the same delivered price will meet an ordering 
activity's needs.
    (d) MAS contractors will not be required to pass on to all schedule 
users a price reduction extended only to an individual agency for a 
specific order. There may be circumstances where an ordering activity 
finds it advantageous to request a price reduction, such as where the 
ordering activity finds that a schedule product is available elsewhere 
at a lower price, or where the quantity of an individual order clearly 
indicates the potential for obtaining a reduced price. [[Page 10510]] 
    (e) Ordering activities should document orders of $2,500 or less by 
identifying the contractor the item was purchased from, the item 
purchased, and the amount paid. For orders over $2,500, MAS ordering 
files should be documented in accordance with internal agency 
practices. Agencies are encouraged to keep documentation to a minimum.
    (f) Requirements or orders shall not be fragmented in order to 
circumvent the applicable MOL.
    5. The reference to ``GSA nonmandatory schedule contract'' in the 
FIRMR Index is revised to ``GSA nonmandatory FIP schedule contract.''

    Dated: January 19, 1995.
Julia M. Stasch,
Acting Administrator of General Services.
[FR Doc. 95-4270 Filed 2-24-95; 8:45 am]
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