95-19859. Federal Acquisition Regulation; Contract Award Implementation  

  • [Federal Register Volume 60, Number 158 (Wednesday, August 16, 1995)]
    [Rules and Regulations]
    [Pages 42652-42657]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-19859]
    
    
    
    -----------------------------------------------------------------------
    
    
    DEPARTMENT OF DEFENSE
    48 CFR Parts 2, 4, 5, 6, 14, 15, 17, 19, 25, 36, 51 and 52
    
    [FAC 90-31; FAR Case 94-701; Item II]
    RIN 9000-AG39
    
    
    Federal Acquisition Regulation; Contract Award Implementation
    
    AGENCIES: Department of Defense (DOD), General Services Administration 
    (GSA), and National Aeronautics and Space Administration (NASA).
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This final rule is issued pursuant to the Federal Acquisition 
    Streamlining Act of 1994 to (1) identify new Federal Procurement Data 
    System reporting requirements, (2) expand the reasons for establishing 
    or maintaining alternative sources of supplies or services, (3) allow 
    acquisition of expert services to support litigation by other than full 
    and open competition and provide an exception to synopsis requirements, 
    (4) clarify procedures for award to a source identified in a statute, 
    (5) clarify approval authority for use of other than full and open 
    competition, (6) revise procedures for use of source selection 
    evaluation factors in solicitations, for conducting written or oral 
    discussions, and for providing postaward notices and debriefing to 
    offerors, (7) require a determination that an option is likely to be 
    exercised before providing for evaluation of sealed bid options, (8) 
    allow nonprofit agencies for the blind or severely disabled to use 
    Government supply sources in performing certain Javits-Wagner-O'Day 
    contracts, and (9) make procedures for award without discussion the 
    same for Department of Defense and civilian agencies. This regulatory 
    action was subject to Office of Management and Budget review under 
    Executive Order 12866, dated September 30, 1993.
    
    EFFECTIVE DATE: October 1, 1995.
    
    FOR FURTHER INFORMATION CONTACT:
    Ms. Melissa Rider, Contract Award Team Leader, at (703) 614-1634 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 90-31, FAR case 94-701.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        The Federal Acquisition Streamlining Act of 1994, Pub. L. 103-355 
    (the Act), provides authorities that streamline the acquisition process 
    and minimize burdensome Government-unique requirements. Major changes 
    that can be expected in the acquisition process as a result of the 
    Act's implementation include changes in the areas of Commercial Item 
    Acquisition, the Truth in Negotiations Act, and introduction of the 
    Federal Acquisition Computer Network.
        This notice announces FAR revisions developed under FAR Case 94-
    701, Contract Award Implementation, which implements the following 
    sections of the Act:
    
    --Sections 1002 and 1052 amend 10 U.S.C. 2304(b) and 41 U.S.C. 253(b) 
    to--(1) Ensure the continuous availability of a reliable source of 
    supply; (2) satisfy projected needs based on a history of high demand; 
    and (3) satisfy a critical need for medical, safety, or emergency 
    supplies, as reasons for establishing or maintaining alternative 
    sources. (Implementation at FAR 6.202.)
    --Sections 1003 and 1053 amend 10 U.S.C. 2304(f)(1)(B)(i) and 41 U.S.C. 
    253(f)(1)(B)(i) to clarify the approval authority for use of other than 
    full and open competition. (Implementation at FAR 6.304.)
    --Sections 1005 and 1055 amend 10 U.S.C. 2304(c)(3) and 41 U.S.C. 
    253(c) to add the acquisition of expert services for use in any 
    litigation or dispute involving the Federal Government as an exception 
    to use of full and open competition. (Implementation at FAR 6.302-3.) 
    Section 1055 also amended 41 U.S.C. 416(c) and 15 U.S.C. 637(c) to 
    provide an exception to the publication of notices in the Commerce 
    Business Daily for acquisition of expert services. (Implementation at 
    FAR 5.201, 5.202, 5.301, and 6.302-3.)
    --Sections 1011 and 1061 amend 10 U.S.C. 2305(a) and 41 U.S.C. 253a and 
    253b to (1) Make procedures for award of contracts without discussion 
    comparable in Department of Defense and civilian agencies, (2) require 
    solicitations for competitive proposals to include all significant 
    factors and subfactors and whether they are more important, of equal 
    importance or less important than cost or price, (3) permit agencies to 
    disclose numerical weights assigned to evaluation factors at their 
    discretion, and (4) allow award without discussion to other than the 
    lowest overall cost offeror. (Implementation at FAR 15.406-5, 15.407, 
    15.605, 15.610, and 52.215-16.)
    --Sections 1012 and 1062 amend 10 U.S.C. 2305(a) and 41 U.S.C. 253a to 
    require a determination that it is likely that an option will be 
    exercised before providing for evaluation of prices of options in 
    solicitations for contracts awarded using sealed bid procedures. 
    (Implementation at FAR 17.202 and 17.208.)
    --Sections 1013 and 1063 amend 10 U.S.C. 2305(b) and 41 U.S.C. 253b to 
    require, within three days of contract award, notification to 
    unsuccessful offerors that a contract has been awarded and to allow 
    electronic transmission of the notice. (Implementation at FAR 2.101, 
    14.408-1, 14.409-1, 15.1002, 15.1003, 25.405, and 36.304.)
    --Sections 1014 and 1064 amend 10 U.S.C. 2305(b) and 41 U.S.C. 253b to 
    (1) Allow offerors to request a debriefing within three days of receipt 
    of notice of award and require agencies, to the maximum extent 
    practicable, to conduct the debriefings within five days, and (2) 
    specify minimum requirements for content of the debriefings. 
    (Implementation at FAR 15.1001, 15.1004, 36.607, and 52.215-16.)
    --Section 1555 amends 40 U.S.C. 481 to allow nonprofit agencies for the 
    blind or severely disabled providing supplies or services under a 
    Javitts-Wagner-O'Day Act contract to use Government supply sources in 
    performing the contract. (Implementation at FAR 51.101 and 
    
    [[Page 42653]]
    51.102.) Other parts of Section 1555 are being implemented separately 
    by GSA (see proposed rule of April 7, 1995, 60 FR 17764).
    --Section 7203 amends 10 U.S.C. 2304 and 41 U.S.C. 253 to state 
    Congressional policy regarding legislative requirements for award of a 
    new contract to a specific non-Federal Government entity. 
    (Implementation at FAR 6.302-5.)
    --Section 10004 requires the Federal Procurement Data System to collect 
    from contracts in excess of $25,000 data on awards to small and 
    disadvantaged businesses using either set asides or full and open 
    competition, awards to businesses owned and controlled by women, the 
    number of offers received in response to a solicitation, task or 
    delivery order contracts and contracts for the acquisition of 
    commercial items. (Implementation at FAR 4.601.)
    
    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 within the meaning of the Regulatory 
    Flexibility Act, 5 U.S.C. 601, et seq., because the regulatory changes 
    contained in the rule relate primarily to the content of solicitations, 
    debriefings and notifications to offerors, internal Government 
    procedures, and procedures which apply only to the acquisition of 
    expert services for litigation or to decisions to maintain alternative 
    sources of supply. The rule will increase the amount of pre-award and 
    post-award information provided to the public, but will not have a 
    significant economic impact.
    
    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 the Office of 
    Management and Budget under 44 U.S.C. 3501, et seq.
    
    D. Public Comments
    
        Eighteen public comments were received in response to the proposed 
    rule published in the Federal Register on January 9, 1995 (60 FR 2472). 
    These comments were considered in formulation of this final rule.
    
    List of Subjects in 48 CFR Parts 2, 4, 5, 6, 14, 15, 17, 19, 25, 
    36, 51 and 52
    
        Government procurement.
    
        Dated: August 7, 1995.
    Edward C. Loeb,
    Deputy Project Manager for the Implementation of the Federal 
    Acquisition Streamlining Act of 1994.
    
        Therefore, 48 CFR Chapter 1 is amended as set forth below:
        1. The authority citation for 48 CFR Parts 2, 4, 5, 6, 14, 15, 17, 
    19, 25, 36, 51 and 52 continue 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. Section 2.101 is amended by adding, in alphabetical order, the 
    definition Day to read as follows:
    
    
    2.101  Definitions.
    
    * * * * *
        Day means, unless otherwise specified, a calendar day.
    * * * * *
    
    PART 4--ADMINISTRATIVE MATTERS
    
        3. Section 4.601 is amended by redesignating existing paragraph (d) 
    as (e); and adding a new paragraph (d) to read as follows:
    
    
    4.601  Record requirements.
    
    * * * * *
        (d) In addition to the information described in paragraphs (b) and 
    (c) of this section, for procurements in excess of $25,000, agencies 
    shall be able to access information on the following from the computer 
    file:
        (1) Awards to small disadvantaged businesses using either set-
    asides or full and open competition.
        (2) Awards to business concerns owned and controlled by women.
        (3) The number of offers received in response to a solicitation.
        (4) Task or delivery order contracts.
        (5) Contracts for the acquisition of commercial items.
    * * * * *
    
    PART 5--PUBLICIZING CONTRACT--ACTIONS
    
        4. Section 5.201 is amended by revising paragraph (a) 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 
    shall furnish for publication in the Commerce Business Daily (CBD) 
    notices of proposed contract actions as specified in paragraph (b) of 
    this section.
    * * * * *
        5. Section 5.202 is amended at the end of paragraph (a)(13) by 
    removing the word ``or''; at the end of paragraph (a)(14) by removing 
    the period and inserting ``; or'' in its place; and by adding paragraph 
    (a)(15) to read as follows:
    
    
    5.202  Exceptions.
    
    * * * * *
        (a) * * *
        (15) The contract action is made under conditions described in 
    6.302-3 with respect to the services of an expert to support the 
    Federal Government in any current or anticipated litigation or dispute.
    * * * * *
        6. Section 5.301 is amended at the end of paragraph (b)(6) by 
    removing ``or''; at the end of paragraph (b)(7) by removing the period 
    and inserting ``; or''; and by adding paragraph (b)(8) to read as 
    follows:
    
    
    5.301  General.
    
    * * * * *
        (b) * * *
        (8) The award is for the services of an expert to support the 
    Federal Government in any current or anticipated litigation or dispute 
    pursuant to the exception to full and open competition authorized at 
    6.302-3.
    * * * * *
    
    
    5.303  [Amended]
    
        7. Section 5.303 is amended in paragraph (b)(2) by removing the 
    citation ``15.1001(c)'' and inserting ``15.1002(c)'' in its place.
    
    PART 6--COMPETITION REQUIREMENTS
    
        8. Section 6.202 is amended by revising paragraph (a)(1); at the 
    end of paragraph (a)(2) by removing ``or''; at the end of paragraph 
    (a)(3) by removing the period and inserting a semicolon; and adding 
    paragraphs (a)(4) through (a)(6) to read as follows:
    
    
    6.202  Establishing or maintaining alternative sources.
        (a) * * *
        (1) Increase or maintain competition and likely result in reduced 
    overall costs for the acquisition, or for any anticipated acquisition;
     * * * * *
        (4) Ensure the continuous availability of a reliable source of 
    supplies or services;
        (5) Satisfy projected needs based on a history of high demand; or
    
    [[Page 42654]]
    
        (6) Satisfy a critical need for medical, safety, or emergency 
    supplies.
     * * * * *
        9. Section 6.302-3 is amended by revising the heading and paragraph 
    (a)(2); and by adding paragraph (b)(3) to read as follows:
    
    
    6.302-3  Industrial mobilization; engineering, developmental, or 
    research capability; or expert services.
    
        (a) * * *
        (2) Full and open competition need not to be provided for when it 
    is necessary to award the contract to a particular source or sources in 
    order:
        (i) to maintain a facility, producer, manufacturer, or other 
    supplier available for furnishing supplies or services in case of a 
    national emergency or to achieve industrial mobilization,
        (ii) to establish or maintain an essential engineering, research, 
    or other nonprofit institution or a federally funded research and 
    development center, or
        (iii) to acquire the services of an expert for any current or 
    anticipated litigation or dispute.
        (b) * * *
        (3) Use of the authority in paragraph (a)(2)(iii) of this section 
    may be appropriate when it is necessary to acquire the services of 
    either--
        (i) An expert to use, in any litigation or dispute (including any 
    reasonably foreseeable litigation or dispute) involving the Government 
    in any trial, hearing, or proceeding before any court, administrative 
    tribunal, or agency, whether or not the expert is expected to testify. 
    Examples of such services include, but are not limited to:
        (A) Assisting the Government in the analysis, presentation, or 
    defense of any claim or request for adjustment to contract terms and 
    conditions, whether asserted by a contractor or the Government, which 
    is in litigation or dispute, or is anticipated to result in dispute or 
    litigation before any court, administrative tribunal, or agency, or
        (B) Participating in any part of an alternative dispute resolution 
    process, including but not limited to evaluators, fact finders, or 
    witnesses, regardless of whether the expert is expected to testify; or
        (ii) A neutral person, e.g., mediators or arbitrators, to 
    facilitate the resolution of issues in an alternative dispute 
    resolution process.
     * * * * *
        10. Section 6.302-5 is amended by revising paragraph (c)(1) and 
    adding paragraph (c)(3) to read as follows:
    
    
    6.302-5  Authorized or required by statute.
    
     * * * * *
        (c) Limitations. (1) This authority shall not be used when a 
    provision of law requires an agency to award a new contract to a 
    specified non-Federal Government entity unless the provision of law 
    specifically--
        (i) Identifies the entity involved;
        (ii) Refers to 10 U.S.C. 2304(j) for armed services acquisitions or 
    section 303(h) of the Federal Property and Administrative Services Act 
    of 1949 for civilian agency acquisitions; and
        (iii) States that award to that entity shall be made in 
    contravention of the merit-based selection procedures in 10 U.S.C. 
    2304(j) or section 303(h) of the Federal Property and Administrative 
    Services Act, as appropriate. However, this limitation does not apply--
        (A) When the work provided for in the contract is a continuation of 
    the work performed by the specified entity under a preceding contract; 
    or
        (B) To any contract requiring the National Academy of Sciences to 
    investigate, examine, or experiment upon any subject of science or art 
    of significance to an executive agency and to report on those matters 
    to the Congress or any agency of the Federal Government.
    * * * * *
        (3) The authority in (a)(2)(ii) of this subsection may be used only 
    for purchases of brand-name commercial items for resale through 
    commissaries or other similar facilities. Ordinarily, these purchases 
    will involve articles desired or preferred by customers of the selling 
    activities (but see 6.301(d)).
        11. Section 6.304 is amended by revising paragraph (a)(2) to read 
    as follows:
    
    
    6.304  Approval of the justification.
    
        (a) * * *
        (2) For a proposed contract over $100,000 but not exceeding 
    $1,000,000, by the competition advocate for the procuring activity 
    designated pursuant to 6.501 or an official described in paragraph 
    (a)(3) or (a)(4) of this section. This authority is not delegable.
    * * * * *
    
    PART 14--SEALED BIDDING
    
        12. Section 14.408-1 is amended by revising paragraphs (a)(1) and 
    (d)(2) to read as follows:
    
    
    14.408-1  General.
    
        (a) * * *
        (1) by written or electronic notice,* * *
    * * * * *
        (d) * * *
        (2) Use of the Award portion of SF 33, SF 26, or SF 1447, does not 
    preclude the additional use of informal documents, including telegrams 
    or electronic transmissions, as notices of awards.
        13. Section 14.409-1 is revised to read as follows:
    
    
    14.409-1  Award of unclassified contracts.
    
        (a)(1) The contracting officer shall as a minimum (subject to any 
    restrictions in Subpart 9.4)--
        (i) Notify each unsuccessful bidder in writing or electronically 
    within three days after contract award, that its bid was not accepted. 
    ``Day,'' for purposes of the notification process, means calendar day, 
    except that the period will run until a day which is not a Saturday, 
    Sunday, or legal holiday;
        (ii) Extend appreciation for the interest the unsuccessful bidder 
    has shown in submitting a bid; and
        (iii) When award is made to other than a low bidder, state the 
    reason for rejection in the notice to each of the unsuccessful low 
    bidders.
        (2) For acquisitions subject to the Trade Agreements Act or the 
    North American Free Trade Agreement (NAFTA) Implementation Act (see 
    25.405(e)), agencies shall include in notices given unsuccessful 
    bidders from designated or NAFTA countries--
        (i) The dollar amount of the successful bid; and
        (ii) The name and address of the successful bidder.
        (b) Information included in paragraph (a)(2) of this subsection 
    shall be provided to any unsuccessful bidder upon request except when 
    multiple awards have been made and furnishing information on the 
    successful bids would require so much work as to interfere with normal 
    operations of the contracting office. In such circumstances, only 
    information concerning location of the abstract of offers need be 
    given.
        (c) When a request is received concerning an unclassified 
    invitation from an inquirer who is neither a bidder nor a 
    representative of a bidder, the contracting officer should make every 
    effort to furnish the names of successful bidders and, if requested, 
    the prices at which awards were made. However, when such requests 
    require so much work as to interfere with the normal operations of the 
    contracting office, the inquirer will be advised where a copy of the 
    abstract of offers may be seen.
        (d) Requests for records shall be governed by agency regulations 
    implementing Subpart 24.2.
    
    
    14.503-1  [Amended]
    
        14. Section 14.503-1 is amended at the end of paragraph (g) by 
    removing the phrase ``(see 15.1003)'' and inserting ``(see 15.1004)'' 
    in its place.
    
    [[Page 42655]]
    
    
    PART 15--CONTRACTING BY NEGOTIATION
    
    
    15.406-5  [Amended]
    
        15. Section 15.406-5 is amended in paragraph (c) by inserting the 
    word ``significant'' after the word ``all''; and by removing the phrase 
    ``(see 15.605(e) and (f)'' and inserting in its place ``(see 15.605(d) 
    and (e)''.
        16. Section 15.407 is amended by revising paragraph (d)(4) to read 
    as follows:
    
    
    15.407  Solicitation provisions.
    
    * * * * *
        (d) * * *
        (4) Insert in RFP's the provision at 52.215-16, Contract Award.
        (i) If the RFP is for construction, the contracting officer shall 
    use the provision with its Alternate I. If awards are to be made 
    without discussions, also use Alternate II.
        (ii) If the contracting officer intends to evaluate offers and make 
    award without discussions, use the basic provision with its Alternate 
    II.
    * * * * *
    
    
    15.412  [Amended]
    
        17. Section 15.412 is amended in the second sentence of paragraph 
    (d) by removing the citation ``15.1001(c)(1)'' and inserting 
    ``15.1002(c)(1)'' in its place.
        18. Section 15.605 is amended by revising the heading, and 
    paragraphs (a), (b)(1) introductory text, (b)(1)(iii), (b)(2), and (d) 
    to read as follows:
    
    
    15.605  Evaluation factors and subfactors.
    
        (a) The factors and subfactors that will be considered in 
    evaluating proposals shall be tailored to each acquisition and shall 
    include only those factors that will have an impact on the source 
    selection decision.
        (b)(1) The evaluation factors and subfactors that apply to an 
    acquisition and the relative importance of those factors and subfactors 
    are within the broad discretion of agency acquisition officials except 
    that--
    * * * * *
        (iii) Quality shall be addressed in every source selection through 
    inclusion in one or more of the non-cost evaluation factors or 
    subfactors, such as past performance, technical excellence, management 
    capability, personnel qualifications, prior experience, and schedule 
    compliance.
    * * * * *
        (2) Any other relevant factors or subfactors, such as cost realism, 
    may also be included.
    * * * * *
        (d)(1) The solicitation should be structured to provide for the 
    selection of the source whose proposal offers the greatest value to the 
    Government in terms of performance, risk management, cost or price, and 
    other factors. At a minimum, the solicitation shall clearly state the 
    significant evaluation factors, such as cost or price, cost or price-
    related factors, past performance and other non-cost or non-price-
    related factors, and any significant subfactors, that will be 
    considered in making the source selection, and their relative 
    importance (see 15.406-5(c)). The solicitation shall inform offerors of 
    minimum requirements that apply to particular evaluation factors and 
    significant subfactors. Further, the solicitation shall state whether 
    all evaluation factors other than cost or price, when combined, are--
        (i) Significantly more important than cost or price;
        (ii) Approximately equal to cost or price; or
        (iii) Significantly less important than cost or price.
        (2) The solicitation may elaborate on the relative importance of 
    factors and subfactors at the discretion of the contracting officer. 
    Agencies may elect to assign numerical weights to evaluation factors 
    and employ those weights when evaluating proposals. Numerical weights 
    need not be disclosed in solicitations; however, nothing precludes an 
    agency from disclosing the weights on a case-by-case basis. The 
    solicitation may state that award will be made to the offeror that 
    meets the solicitation's minimum criteria for acceptable award at the 
    lowest cost or price.
    * * * * *
    
    
    15.609  [Amended]
    
        19. Section 15.609 is amended in paragraph (c) by removing ``(see 
    15.1001(b))'' and inserting ``(see 15.1002(b))'' in its place.
        20. Section 15.610 is amended by revising paragraphs (a) and (b) to 
    read as follows:
    
    
    15.610  Written or oral discussion.
    
        (a) The requirement in paragraph (b) of this section for written or 
    oral discussion need not be applied in acquisitions--
        (1) In which prices are fixed by law or regulation;
        (2) Of the set-aside portion of a partial set-aside; or
        (3) In which the solicitation notified all offerors that the 
    Government intends to evaluate proposals and make award without 
    discussion, unless the contracting officer determines that discussions 
    (other than communications conducted for the purpose of minor 
    clarification) are considered necessary (see 15.407(d)(4)). Once the 
    Government states its intent to award without discussion, the rationale 
    for reversal of this decision shall be documented in the contract file.
        (b) Except as provided in paragraph (a) of this section, the 
    contracting officer shall conduct written or oral discussions with all 
    responsible offerors who submit proposals within the competitive range. 
    The content and extent of the discussions is a matter of the 
    contracting officer's judgment, based on the particular facts of each 
    acquisition (but see paragraphs (c) and (d) of this section).
    * * * * *
        21. Section 15.612 is amended by revising paragraph (f) to read as 
    follows:
    
    
    15.612  Formal source selection.
    
    * * * * *
        (f) Postaward notices and debriefings. See 15.1002(c) and 15.1004.
    
    
    15.1001 through 15.1005  [Redesignated as 15.1002 through 15.1006]
    
        22. Sections 15.1001 through 15.1005 are redesignated as 15.1002 
    through 15.1006, respectively; and a new 15.1001 is added to read as 
    follows:
    
    
    15.1001  General.
    
        This subpart applies to the use of competitive proposals, as 
    described in 6.102(b), and a combination of competitive procedures, as 
    described in 6.102(c). To the extent practicable, however, the 
    procedures and intent of this subpart, with reasonable modification, 
    should be followed for acquisitions described in 6.102(d): broad agency 
    announcements, small business innovation research contracts, and 
    architect-engineer contracts. However, they do not apply to multiple 
    award schedules, as described in 6.102(d)(3).
        23. Newly designated section 15.1002 is amended by revising 
    paragraph (a), and the introductory text of paragraph (b)(2); by 
    removing paragraph (c)(2) and redesignating paragraph (c)(3) as (c)(2); 
    and by amending the newly designated paragraph (c)(2) by removing 
    ``15.1001(c)(1)(i)'' and inserting ``15.1002(c)(1)(i)''. The revised 
    text reads as follows:
    
    
    15.1002  Notifications to unsuccessful offerors.
    
        (a) General. Within three days after the date of contract award, 
    the contracting officer shall notify, in writing or electronically, 
    each offeror whose proposal is determined to be 
    
    [[Page 42656]]
    unacceptable or whose offer is not selected for award. ``Day,'' for 
    purposes of the notification process, means calendar day, except that 
    the period will run until a day which is not a Saturday, Sunday, or 
    legal holiday.
        (b) * * *
        (2) In a small business set-aside (see Subpart 19.5), upon 
    completion of negotiations and determinations of responsibility, but 
    prior to award, the contracting officer shall notify each unsuccessful 
    offeror in writing or electronically of the name and location of the 
    apparent successful offeror. The notice shall also state that:
    * * * * *
        24. Newly designated section 15.1003 is amended by revising the 
    first sentence to read as follows:
    
    
    15.1003  Notification to successful offeror.
    
        The contracting officer shall award a contract with reasonable 
    promptness to the successful offeror (selected in accordance with 
    15.611(d)) by transmitting written or electronic notice of the award to 
    that offeror (but see 15.608(b)). * * *
        25. Newly designated section 15.1004 is revised to read as follows:
    
    
    15.1004  Debriefing of offerors.
    
        (a) When a contract is awarded on the basis of competitive 
    proposals, an offeror, upon its written request received by the agency 
    within three days after the date on which that offeror has received 
    notice of contract award, shall be debriefed and furnished the basis 
    for the selection decision and contract award. When practicable, 
    debriefing requests received more than three days after the offeror 
    receives notice of contract award shall be accommodated. However, 
    accommodating such untimely debriefing requests does not extend the 
    time within which suspension of performance can be required, as this 
    accommodation is not a ``required debriefing'' as described in FAR Part 
    33. To the maximum extent practicable, the debriefing should occur 
    within five days after receipt of the written request. ``Day,'' for 
    purposes of the debriefing process, means calendar day, except that the 
    period will run until a day which is not a Saturday, Sunday, or legal 
    holiday.
        (b) Debriefings of successful and unsuccessful offerors may be done 
    orally, in writing, by electronic means, or any other method acceptable 
    to the contracting officer.
        (c) The contracting officer should normally chair any debriefing 
    session held. Individuals actually responsible for the evaluations 
    shall provide support. If the contracting officer is unavailable, 
    another agency representative may be designated by the contracting 
    officer on a case-by-case basis, with the approval of an individual a 
    level above the contracting officer.
        (d) At a minimum, the debriefing information shall include--
        (1) The Government's evaluation of the significant weaknesses or 
    deficiencies in the offeror's proposal, if applicable;
        (2) The overall evaluated cost or price and technical rating, if 
    applicable, of the successful offeror and the debriefed offeror;
        (3) The overall ranking of all offerors when any ranking was 
    developed by the agency during the source selection;
        (4) A summary of the rationale for award;
        (5) For acquisitions of commercial end items, the make and model of 
    the item to be delivered by the successful offeror; and
        (6) Reasonable responses to relevant questions about whether source 
    selection procedures contained in the solicitation, applicable 
    regulations, and other applicable authorities were followed.
        (e) The debriefing shall not include point-by-point comparisons of 
    the debriefed offeror's proposal with those of other offerors. 
    Moreover, debriefing shall not reveal any information exempt from 
    release under the Freedom of Information Act including--
        (1) Trade secrets;
        (2) Privileged or confidential manufacturing processes and 
    techniques;
        (3) Commercial and financial information that is privileged or 
    confidential, including cost breakdowns, profit, indirect cost rates, 
    and similar information; and
        (4) The names of individuals providing reference information about 
    an offeror's past performance.
        (f) The contracting officer shall include an official summary of 
    the debriefing in the contract file.
        (g) If, within one year of contract award, a protest causes the 
    agency to issue either a new solicitation or a new request for best and 
    final offers on the protested contract award, the agency shall make 
    available to all prospective offerors--
        (1) Information provided in any debriefings conducted on the 
    original award about the successful offeror's proposal; and
        (2) Other nonproprietary information that would have been provided 
    to the original offerors.
    
    PART 17--SPECIAL CONTRACTING METHODS
    
        26. Section 17.202 is amended by revising paragraph (a); and at the 
    end of paragraph (b)(1)(ii) by removing ``; or'' and inserting a period 
    in its place. The revised text reads as follows:
    
    
    17.202  Use of options.
    
        (a) Subject to the limitations of paragraphs (b) and (c) of this 
    section, for both sealed bidding and contracting by negotiation, the 
    contracting officer may include options in contracts when it is in the 
    Government's interest. When using sealed bidding, the contracting 
    officer shall make a written determination that there is a reasonable 
    likelihood that the options will be exercised before including the 
    provision at 52.217-5, Evaluation of Options, in the solicitation. (See 
    17.207(f) with regard to the exercise of options.)
    * * * * *
        27. Section 17.208 is amended by revising paragraphs (b) and (c)(4) 
    to read as follows:
    
    
    17.208  Solicitation provisions and contract clauses.
    
    * * * * *
        (b) The contracting officer shall insert a provision substantially 
    the same as the provision at 52.217-4, Evaluation of Options Exercised 
    at Time of Contract Award, in solicitations when the solicitation 
    includes an option clause, the contracting officer has determined that 
    there is a reasonable likelihood that the option will be exercised, and 
    the option may be exercised at the time of contract award.
        (c) * * *
        (4) The contracting officer has determined that there is a 
    reasonable likelihood that the option will be exercised. For sealed 
    bids, the determination shall be in writing.
    * * * * *
    
    PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
    
    
    19.302  [Amended]
    
        28. Section 19.302 is amended in paragraph (d)(1) introductory text 
    by removing the word ``below'' and inserting ``of this section'' in its 
    place; and removing ``(see 15.1001(b)(2))'' and inserting ``(see 
    15.1002(b)(2))'' in its place.
    
    
    19.501  [Amended]
    
        29. Section 19.501 is amended in the second sentence of paragraphs 
    (h)(1) and (h)(2) by removing the citation ``15.1001(b)(2)'' and 
    inserting ``15.1002(b)(2) in their place.
    
    [[Page 42657]]
    
    
    PART 25--FOREIGN ACQUISITION
    
        30. Section 25.405 is amended by revising paragraph (e) to read as 
    follows:
    
    
    25.405  Procedures.
    
    * * * * *
        (e) Within three days after a contract award for an eligible 
    product, agencies shall give unsuccessful offerors from designated or 
    NAFTA countries notice in accordance with 14.409-1 and 15.1002. 
    ``Day,'' for purposes of the notification process, means calendar day, 
    except that the period will run until a day which is not a Saturday, 
    Sunday, or legal holiday.
    
    PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
    
        31. Section 36.304 is amended by revising the introductory text to 
    read as follows:
    
    
    36.304  Notice of award.
    
        When a notice of award is issued, it shall be done in writing or 
    electronically, shall contain information required by 14.408, and 
    shall--
    * * * * *
        32. Section 36.607 is amended by designating the existing text as 
    paragraph (a) and adding paragraph (b) to read as follows:
    
    
    36.607  Release of information on firm selection.
    
    * * * * *
        (b) Debriefings of successful and unsuccessful firms will be held 
    after final selection has taken place and will be conducted, to the 
    extent practicable, in accordance with 15.1004 (b) through (g). Note 
    that 15.1004 (d)(2) through (d)(5) does not apply to architect-engineer 
    contracts.
    
    PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS
    
        33. Section 51.101 is amended at the end of paragraph (a)(1) by 
    removing ``or'' and at the end of paragraph (a)(2) by removing the 
    period and inserting ``; or'' and by adding paragraph (a)(3) to read as 
    follows:
    
    
    51.101  Policy.
    
        (a) * * *
        (3) A contract under the Javits-Wagner-O'Day Act (41 U.S.C. 46, et 
    seq.) if:
        (i) the nonprofit agency requesting use of the supplies and 
    services is providing a commodity or service to the Federal Government, 
    and
        (ii) the supplies or services received are directly used in making 
    or providing a commodity or service, approved by the Committee for 
    Purchase From People Who Are Blind or Severely Disabled, to the Federal 
    Government (See Subpart 8.7).
    * * * * *
        34. Section 51.102 is amended by revising the second sentence of 
    paragraph (a) introductory text to read as follows:
    
    
    51.102  Authorization to use Government supply sources.
        (a) * * * Except for findings under 51.101(a)(3), the determination 
    shall be based on, but not limited to, considerations of the following 
    factors:
    * * * * *
    
    PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
        35. Section 52.215-16 is amended by revising the date in the 
    provision heading and by revising paragraph (c); by adding paragraph 
    (h); by removing Alternate II and redesignating Alternate III as 
    Alternate II; and revising Alternates I and II to read as follows:
    
    
    52.215-16  Contract Award.
    
    * * * * *
    
    Contract Award (Oct 1995)
    
    * * * * *
        (c) The Government intends to evaluate proposals and award a 
    contract after conducting written or oral discussions with all 
    responsible offerors whose proposals have been determined to be 
    within the competitive range. However, each initial offer should 
    contain the offeror's best terms from a cost or price and technical 
    standpoint.
    * * * * *
        (h) The Government may disclose the following information in 
    post-award debriefings to other offerors: (1) the overall evaluated 
    cost or price and technical rating of the successful offeror; (2) 
    the overall ranking of all offerors, when any ranking was developed 
    by the agency during source selection; (3) a summary of the 
    rationale for award; and (4) for acquisitions of commercial end 
    items, the make and model of the item to be delivered by the 
    successful offeror.
    
    (End of provision)
        Alternate I (OCT 1995). As prescribed in 15.407(d)(4)(i), 
    substitute the following paragraph (d) for paragraph (d) of the 
    basic provision:
        (d) The Government may accept any item or combination of items, 
    unless doing so is precluded by a restrictive limitation in the 
    solicitation or offer.
        Alternate II (OCT 1995). As prescribed in 15.407(d)(4)(ii), 
    substitute the following paragraph (c) for paragraph (c) of the 
    basic provision:
        (c) The Government intends to evaluate proposals and award a 
    contract without discussions with offerors (except communications 
    conducted for the purpose of minor clarification). Therefore, each 
    initial offer should contain the offeror's best terms from a cost or 
    price and technical standpoint. However, the Government reserves the 
    right to conduct discussions if later determined by the Contracting 
    Officer to be necessary.
    
    [FR Doc. 95-19859 Filed 8-15-95; 8:45 am]
    BILLING CODE 6820-EP-M
    
    

Document Information

Effective Date:
10/1/1995
Published:
08/16/1995
Department:
Defense Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-19859
Dates:
October 1, 1995.
Pages:
42652-42657 (6 pages)
Docket Numbers:
FAC 90-31, FAR Case 94-701, Item II
RINs:
9000-AG39
PDF File:
95-19859.pdf
CFR: (12)
48 CFR 2
48 CFR 4
48 CFR 5
48 CFR 6
48 CFR 14
More ...