[Federal Register Volume 61, Number 96 (Thursday, May 16, 1996)]
[Rules and Regulations]
[Pages 24720-24722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12198]



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GENERAL SERVICES ADMINISTRATION

48 CFR Part 570

[APD 2800.12A, CHGE 71]
RIN 3090-AF92


General Services Administration Acquisition Regulation; 
Acquisition of Leasehold Interests in Real Property

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule.

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SUMMARY: The General Services Administration Acquisition Regulation 
(GSAR) is amended to revise sections 570.106 and 570.303 to authorize 
the use of design-build selection procedures in section 303M of the 
Federal Property and Administrative Services Act of 1949, as amended by 
Pub. L. 104-106, February 10, 1996, for lease construction projects 
when the statutory criteria for use are met.

DATES: Effective Date: May 16, 1996.
    Comment Date: Comments should be submitted in writing to the 
address shown below on or before July 15, 1996 to be considered in 
formulating the final rule.

ADDRESSES: Interested parties should submit written comments to the 
Office of Acquisition Policy (MV), General Services Administration, 
Room 4010, 18th & F Streets, NW, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Tom Wisnowski, GSA Acquisition Policy 
Division, (202) 501-1224.

SUPPLEMENTARY INFORMATION:

A. Determination To Issue an Interim Rule

    A determination has been made under the authority of the 
Administrator of General Services that urgent and compelling reasons 
exist to publish an interim rule prior to affording the public 
opportunity for comment.
    Section 4105 of Public Law 104-106 amended the Federal Property and 
Administrative Services Act of 1949 to add a new section 303M on 
design-build selection procedures. The law authorizes use of two-phase 
selection

[[Page 24721]]

procedures for entering into a contract for the design and construction 
of a public building, facility or work when certain criteria for use 
are met. GSA has made a determination that the new authority may be 
used for a contract for the design and construction of a building, 
facility or work for lease to the Government.
    The new two-phase selection process substantially reduces the cost 
and time involved in such procurements for offerors and for the 
Government. In the current environment of downsizing, it is critical 
for both industry and Government to enhance the efficiency of the 
contracting process.
    Urgent and compelling reasons exist to make this rule effective 
prior to full consideration of public comments. Proceeding with this 
interim rule is required to permit GSA to take advantage of the 
opportunity to use a more efficient contracting process for space 
requirements that are currently pending and cannot be delayed, and to 
cope with the continued downsizing of GSA and its customer agencies. 
This interim rule only applies to the use of the new two-phase 
selection process in the context of leases of real property. The 
Federal Acquisition Regulation (FAR) will address the use of the 
authority for direct Federal construction.
    All public comments received in response to this interim rule will 
be fully considered in formulating the final rule.

B. Executive Order 12866

    This rule is not a significant rule as defined in Executive Order 
12866.
    This rule was submitted to the Office of Management and Budget 
under Executive Order 12866, Regulatory Planning and Review.

C. Regulatory Flexibility Act

    This interim rule is not expected to have a significant 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 rule will 
apply to a very small number of leases per year (less than 25) and the 
rule simplifies procedures and reduces the cost of competing in the 
initial phases of a procurement. Therefore, the rule should have a 
positive impact.
    An Initial Regulatory Flexibility Analysis (IRFA) has been prepared 
and may be obtained from the address stated above. A copy of the IRFA 
has been submitted to the Chief Counsel for Advocacy of the Small 
Business Administration. Comments from small entities will be 
considered in accordance with Section 610 of the Act.

D. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the GSAR do not impose recordkeeping or information collection 
requirements, or otherwise collect information from offerors, 
contractors or members of the public that require approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

E. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule under 5 U.S.C. 804. This rule was 
submitted to Congress and GAO under 5 U.S.C. 804.

List of Subjects in 48 CFR Part 570

    Government procurement.

    Accordingly, 48 CFR 570 is amended as follows:

PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY

    1. The authority citation for 48 CFR 570 continues to read as 
follows:

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

    2. Section 570.106 is amended by adding paragraph (c) to read as 
follows:


570.106  Methods of contracting.

* * * * *
    (c) The design-build selection procedures in section 303M of the 
Federal Property and Administrative Services Act of 1949, as amended, 
may be used for lease construction projects, including lease 
construction projects with options to purchase the real property 
leased. The design-build selection procedures may be used when the 
lease involves the design and construction of a public building, 
facility or work for lease to the Government if the contracting officer 
makes a determination that:
    (1) Three or more offers are likely to be received,
    (2) Design work must be performed before an offeror can develop a 
price or cost proposal, and
    (3) The offeror will incur a substantial amount of expense in 
preparing the offer.
    3. Section 570.303 is amended by revising paragraph (a)(7), by 
deleting paragraph (a)(8) and redesignating paragaphs (a)(9) and 
(a)(10) as (a)(8) and (a)(9) to read as follows:


570.303  Solicitation for offers (SFO).

    (a) * * *
    (7) Describe the source selection procedures to be used.
    (i) Unless the design-build selection procedures are being used as 
authorized by 570.106(c), the solicitation must either:
    (A) State that award will be made to the offeror that meets the 
SFO's minimum requirements at the lowest cost or price, or
    (B) Identify all factors, including price or cost, and any 
significant subfactors that will be considered in awarding the lease 
and state the relative importance the Government places on those 
evaluation factors and subfactors. In describing the evaluation factors 
to be considered, the SFO shall clearly disclose whether all evaluation 
factors other than cost or price when combined, are significantly more 
important than cost or price, approximately equal in importance to cost 
or price, or significantly less important than cost or price. Numerical 
weights, which may be employed in the evaluation of proposals, need not 
be disclosed in the solicitation. The SFO must inform offerors of 
minimum requirements that apply to the procurement. The other factors 
that will be considered in evaluating proposals should be tailored to 
each acquisition and include only those factors that will have an 
impact on the award decision. The evaluation factors that apply to an 
acquisition and the relative importance of those factors are within the 
broad discretion of the contracting officer. However, price or cost to 
the Government must be included as an evaluation factor in every case.
    (ii) When the design-build selection procedures are being used as 
authorized by 570.106(c), the solicitation must
    (A) Identify the evaluation factors and subfactors to be used in 
evaluating phase-one proposals and indicate their relative importance,
    (B) State the maximum number of offerors that are to be selected to 
submit competitive proposals in phase-two, and
    (C) Identify the evaluation factors and subfactors, including cost 
or price, to be used in evaluating phase-two proposals and selecting 
the successful offeror. Evaluation factors to be used in evaluating 
phase-one proposals must be stated in the solicitation. Phase-one 
factors include specialized experience and technical competence, 
capability to perform, past performance of the offeror's team 
(including the architect-engineer and construction members of the team) 
and other appropriate factors, such as site or location. In phase-one, 
offerors will not be required to submit detailed design information or 
cost or price information and use of cost related or price related 
evaluation factors is not permitted. The maximum number of

[[Page 24722]]

offerors to be selected for phase-two must not exceed 5 unless the 
contracting officer determines that specifying a number greater than 5 
is in the Government's interest and is consistent with the purpose and 
objectives of the two-phase selection process. For phase-two the 
solicitation should identify all factors, including price or cost, and 
any significant subfactors that will be considered in awarding the 
lease and state the relative importance the Government places on those 
evaluation factors and subfactors and otherwise comply with paragraph 
(a)(7)(i) of this section.

* * * * *
    Dated: May 10, 1996.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 96-12198 Filed 5-15-96; 8:45 am]
BILLING CODE 6820-61-P