[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2630-2631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1016]



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DEPARTMENT OF DEFENSE
DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 51, and 52

[FAC 90-37; FAR Case 91-108; Item II]
RIN 9000-AF71


Federal Acquisition Regulation; Javits-Wagner-O'Day Program 
(JWOD)

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

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule amending 
the Federal Acquisition Regulation (FAR) to clarify that the 
Government's obligation to purchase items from statutorily mandated 
sources of supply also applies when contractors purchase items for 
Government use. This regulatory action was not subject to Office of 
Management and Budget review under Executive Order 12866, dated 
September 30, 1993.

EFFECTIVE DATE: March 26, 1996.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For 
general information, contact the FAR Secretariat, Room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-37, 
FAR case 91-108.Q02

SUPPLEMENTARY INFORMATION:

A. Background

    A proposed rule was published in the Federal Register at 59 FR 
14454, March 28, 1994. The rule amended FAR Parts 8, 51, and 52 to 
clarify that the statutory obligation for Government agencies to 
purchase certain items from the Committee for Purchase from People Who 
are Blind or Severely Disabled also applies when contractors purchase 
items for Government use.
    Five substantive comments from three sources were received during 
the public comment period. Clarifying revisions have been made to 
Secs. 51.101(c) and 52.208-9 of the rule as a result of the public 
comments.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because it merely clarifies that contractors must 
purchase certain items from the same statutorily mandated sources that 
Government agencies are required to use, when a contractor is 
performing an agency's supply function.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose recordkeeping or information collection 
requirements, or collections 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 48 CFR Parts 8, 51, and 52

    Government procurement.

    Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.

    Therefore, 48 CFR parts 8, 51, and 52 are amended as set forth 
below:
    1. The authority citation for 48 CFR parts 8, 51, and 52 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    2. Section 8.001 is amended by revising paragraphs (a)(2) (ii) and 
(iii) and adding paragraph (c) to read as follows:


8.001  Priorities for use of Government supply sources.

    (a) * * *
    (2) * * *
    (ii) Mandatory Federal Supply Schedules (see subpart 8.4);
    (iii) Optional use Federal Supply Schedules (see subpart 8.4); and
* * * * *
    (c) The statutory obligation for Government agencies to satisfy 
their 

[[Page 2631]]
requirements for supplies available from the Committee for Purchase 
From People Who Are Blind or Severely Disabled also applies when 
contractors purchase the supply items for Government use.
    3. Section 8.003 is added to read as follows:


8.003  Contract clause.

    The contracting officer shall insert the clause at 52.208-9, 
Contractor Use of Mandatory Sources of Supply, in solicitations and 
contracts which require a contractor to purchase supply items for 
Government use that are available from the Committee for Purchase from 
People Who Are Blind or Severely Disabled. The contracting officer 
shall identify in the contract schedule the items which must be 
purchased from a mandatory source and the specific source.

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS

    4. Section 51.101 is amended by adding paragraph (c) to read as 
follows:


51.101  Policy.

* * * * *
    (c) Contracting officers shall authorize contractors purchasing 
supply items for Government use that are available from the Committee 
for Purchase from People Who Are Blind or Severely Disabled (see 
subpart 8.7) to purchase such items from the Defense Logistics Agency 
(DLA), the General Services Administration (GSA), and the Department of 
Veterans Affairs (VA) if they are available from these agencies through 
their distribution facilities. Mandatory supplies that are not 
available from DLA/GSA/VA shall be ordered through the appropriate 
central nonprofit agency (see 52.208-9(c)).
    5. Section 51.102 is amended in the first sentence of the 
introductory text of paragraph (a) by inserting after the word 
``sources'' the phrase ``in accordance with 51.101 (a) or (b),''; 
adding a new second sentence; and revising paragraph (c)(3) to read as 
follows:


51.102  Authorization to use Government supply sources.

    (a) * * * A written finding is not required when authorizing use of 
the Government supply sources in accordance with 51.101(c). * * *
* * * * *
    (c) * * *
    (3) Approval for the contractor to use Department of Veterans 
Affairs (VA) supply sources from the Deputy Assistant Secretary for 
Acquisition and Materiel Management (Code 90), Office of Acquisition 
and Materiel Management, Department of Veterans Affairs, 810 Vermont 
Avenue, NW., Washington, DC 20420;
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    6. Section 52.208-9 is added to read as follows:


52.208-9  Contractor Use of Mandatory Sources of Supply.

    As prescribed in 8.003, insert the following clause:

Contractor Use Of Mandatory Sources Of Supply (Mar 1996)

    (a) Certain supplies to be provided under this contract for use 
by the Government are required by law to be obtained from the 
Committee for Purchase from People Who Are Blind or Severely 
Disabled (Javits-Wagner-O' Day Act (JWOD) (41 U.S.C. 48)). 
Additionally, certain of these supplies are available from the 
Defense Logistics Agency (DLA), the General Services Administration 
(GSA), or the Department of Veterans Affairs (VA). The Contractor 
shall obtain mandatory supplies to be provided for Government use 
under this contract from the specific sources indicated in the 
contract schedule.
    (b) The Contractor shall immediately notify the Contracting 
Officer if a mandatory source is unable to provide the supplies by 
the time required, or if the quality of supplies provided by the 
mandatory source is unsatisfactory. The Contractor shall not 
purchase the supplies from other sources until the Contracting 
Officer has notified the Contractor that the mandatory source has 
authorized purchase from other sources.
    (c) Price and delivery information for the mandatory supplies is 
available from the Contracting Officer for the supplies obtained 
through the DLA/GSA/VA distribution facilities. For mandatory 
supplies that are not available from DLA/GSA/VA, price and delivery 
information is available from the appropriate central nonprofit 
agency. Payments shall be made directly to the source making 
delivery. Points of contract for JWOD central nonprofit agencies 
are:

(1) National Industries for the Blind (NIB) 1901 North Beauregard 
Street, Suite 200 Alexandria, VA 22311-1705 (703) 998-0770
(2) NISH, 2235 Cedar Lane, Vienna, VA 22182-5200 (703) 560-6800

(End of clause)

[FR Doc. 96-1016 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M