96-33211. Federal Acquisition Regulation; Application of Special Simplified Procedures to Certain Commercial Items  

  • [Federal Register Volume 62, Number 1 (Thursday, January 2, 1997)]
    [Rules and Regulations]
    [Pages 262-266]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-33211]
    
    
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    DEPARTMENT OF DEFENSE
    48 CFR Parts 5, 6, 11, 12 and 13
    
    [FAC 90-45; FAR Case 96-307; Item VII]
    RIN 9000-AH20
    
    
    Federal Acquisition Regulation; Application of Special Simplified 
    Procedures to Certain Commercial Items
    
    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 to amend 
    the Federal Acquisition Regulation (FAR) to implement Section 4202 of 
    the Clinger-Cohen Act of 1996 (Public Law 104-106). Section 4202 
    requires revisions to the FAR to incorporate special simplified 
    procedures for the acquisition of certain commercial items with a value 
    greater than the simplified acquisition threshold ($100,000) but not 
    greater than $5 million. The purpose of this revision is to vest 
    contracting officers with additional procedural discretion, so that 
    commercial item acquisitions in this dollar range may be solicited, 
    offered, evaluated, and awarded in a simplified manner that maximizes 
    efficiency and economy and minimizes burden and administrative costs 
    for both the Government and industry. This regulatory action was not 
    subject to Office of Management and Budget review under Executive Order 
    12866, dated September 30, 1993. This is not a major rule under 5 
    U.S.C. 804.
    
    EFFECTIVE DATE: January 1, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Ms. Victoria Moss at (202) 501-4764 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 90-45, FAR case 96-307.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        This final rule amends the Federal Acquisition Regulation to 
    implement section 4202 of the Clinger-Cohen Act of 1996 (Public Law 
    104-106). Section 4202 authorizes special simplified procedures for 
    acquisitions of commercial items at amounts greater than the simplified 
    acquisition threshold ($100,000) but not greater than $5 million, when 
    the contracting officer reasonably expects, based on the nature of the 
    commercial items sought and on market research, that offers will 
    include only commercial items. The authority to use the special 
    simplified procedures under this section expires on January 1, 2000. 
    Section 4202 also amends 41 U.S.C. 416 to permit issuance of 
    solicitations for commercial items in fewer than 15 days after the 
    synopsis notice is published.
        A proposed rule was published in the Federal Register on September 
    6, 1996 (61 FR 47384). Twenty-four sources
    
    [[Page 263]]
    
    submitted comments in response to the proposed rule. All comments were 
    considered in the development of the final rule. Among other changes 
    adopted in this final rule, the proposed language at 13.604-2, 
    Alternative negotiation techniques, which introduced into the FAR an 
    auctioning-like concept, has been removed from this final rule for 
    further study and analysis under new FAR case 96-024.
    
    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 it is expected to 
    increase the number of Federal contracts awarded using procedures that 
    are familiar to small entities. A Final Regulatory Flexibility Analysis 
    (FRFA) has been prepared and will be provided to the Chief Counsel for 
    Advocacy of the Small Business Administration. A copy of the FRFA may 
    be obtained from the FAR Secretariat. The analysis is summarized as 
    follows: One public comment was received in response to the initial 
    regulatory flexibility analysis. The respondent stated that the 
    analysis did not indicate that regulatory alternatives were considered 
    in the process of drafting the proposed rule, and that there was no 
    estimated measure or quantification of small business impact or number 
    and dollar value of Federal contracts likely to be affected. The final 
    regulatory flexibility analysis contains a more complete description of 
    the alternatives that were considered for the purpose of minimizing any 
    adverse impact on small businesses and reflects data extrapolated from 
    the Federal Procurement Data System which show that in fiscal year 
    1995, 73 percent of all purchases made under the procedures used in 
    Part 13 were awarded to small businesses. As stated in the initial 
    regulatory flexibility analysis, the Federal Procurement Data System is 
    just beginning to track acquisitions of commercial items. Until more 
    complete data are collected, it will be difficult to precisely estimate 
    the number of small entities to which the rule will apply. The rule 
    imposes no new reporting, recordkeeping, or other compliance 
    requirements. We considered whether flexible compliance with this rule 
    would be appropriate. Since the rule is expected to have a beneficial 
    impact on industry, it was determined that flexible compliance would 
    not be appropriate in this case. Instead, the rule is intended to apply 
    to both small and large entities equally so that both may benefit. 
    However, in developing the final rule, alternatives were considered, 
    and revisions were made, to minimize possible economic impact on small 
    entities. The language on alternative negotiation techniques has been 
    removed from the rule pending further study and analysis. At the 
    present time, this rule does not extend authority to use the special 
    test procedures for construction. The proposed language included on 
    construction, in Part 13, was not intended to address the applicability 
    of the test procedures to construction and the language in the final 
    rule has been amended to eliminate this ambiguity. The broader issue of 
    the applicability of the FAR's commercial item policies to construction 
    contracting is under review.
    
    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.
    
    List of Subjects in 48 CFR Parts 5, 6, 11, 12 and 13
    
        Government procurement.
    
        Dated: December 24, 1996.
    Edward C. Loeb,
    Director, Federal Acquisition Policy Division.
    
        Therefore, 48 CFR Parts 5, 6, 11, 12 and 13 are amended as set 
    forth below:
        1. The authority citation for 48 CFR Parts 5, 6, 11, 12 and 13 
    continues to read as follows:
    
        Authority: 40 U.S.C. 486(c); 10 U.S.C. 2301 to 2331; and 42 
    U.S.C. 2473(c).
    
    PART 5--PUBLICIZING CONTRACT ACTIONS
    
        2. Section 5.203 is amended by revising paragraph (a) and adding 
    paragraph (h) to read as follows:
    
    
    5.203  Publicizing and response time.
    
    * * * * *
        (a) A notice of contract action shall be published in the Commerce 
    Business Daily at least 15 days before issuance of a solicitation 
    except when 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 CBD synopsis/solicitation procedure (see 
    12.603).
    * * * * *
        (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 shall 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 in the CBD, the 
    contracting officer may reduce this time period to as few as 10 days.
        3. Section 5.207 is amended by revising paragraph (e)(3) to read as 
    follows:
    
    
    5.207  Preparation and transmittal of synopses.
    
    * * * * *
        (e) * * *
        (3) Except for contract actions equal to or less than the 
    simplified acquisition threshold or acquisitions of commercial items, 
    the synopsis shall refer to Numbered Note 22 for noncompetitive 
    contract actions. If it is anticipated that award will be made via a 
    delivery order to an existing basic ordering agreement, the synopsis 
    shall so state.
    * * * * *
    
    PART 6--COMPETITION REQUIREMENTS
    
        4. Section 6.001(a) is revised to read as follows:
    
    
    6.001  Applicability.
    
    * * * * *
        (a) Contracts awarded using the simplified acquisition procedures 
    of part 13 (but see 13.602 for requirements pertaining to sole source 
    acquisitions of commercial items under subpart 13.6);
    * * * * *
    
    PART 11--SUBSCRIBING AGENCY NEEDS
    
        5. Section 11.002 is amended by revising paragraph (a)(1)(ii) and 
    adding paragraph (e) to read as follows:
    
    
    11.002  Policy.
    
        (a) * * *
        (1) * * *
        (ii) Only include restrictive provisions or conditions to the 
    extent necessary to satisfy the needs of the agency or as authorized by 
    law.
    * * * * *
        (e) Some or all of the performance levels or performance 
    specifications in a solicitation may be identified as targets rather 
    than as fixed or minimum requirements.
        6. Section 11.104 is amended by revising paragraph (a) to read as 
    follows:
    
    
    11.104  Items peculiar to one manufacturer.
    
    * * * * *
    
    [[Page 264]]
    
        (a) The particular brand-name, product, or feature is essential to 
    the Government's requirements, and market research indicates other 
    companies' similar products, or products lacking the particular 
    feature, do not meet, or cannot be modified to meet, the agency's 
    minimum needs; and
    * * * * *
    
    PART 12--ACQUISITION OF COMMERCIAL ITEMS
    
        7. Section 12.202 is amended by revising paragraph (b) to read as 
    follows:
    
    
    12.202  Market research and description of agency need.
    
    * * * * *
        (b) The description of agency need must contain sufficient detail 
    for potential offerors of commercial items to know which commercial 
    products or services may be suitable. Generally, for acquisitions in 
    excess of the simplified acquisition threshold, an agency's statement 
    of need for a commercial item will describe the type of product or 
    service to be acquired and explain how the agency intends to use the 
    product or service in terms of function to be performed, performance 
    requirement or essential physical characteristics. Describing the 
    agency's needs in these terms allows offerors to propose methods that 
    will best meet the needs of the Government.
    * * * * *
        8. Section 12.203 is amended by adding a sentence to the end of the 
    paragraph to read as follows:
    
    
    12.203  Procedures for solicitation, evaluation, and award.
    
        * * * For acquisitions of commercial items exceeding the simplified 
    acquisition threshold but not exceeding $5,000,000, including options, 
    contracting activities shall employ the simplified procedures 
    authorized by subpart 13.6 to the maximum extent practicable.
        9. Section 12.204 is revised to read as follows:
    
    
    12.204  Solicitation/contract form.
    
        (a) The contracting officer shall use the Standard Form 1449, 
    Solicitation/Contract/Order for Commercial Items, if (1) the 
    acquisition is expected to exceed the simplified acquisition threshold; 
    (2) a paper solicitation or contract is being issued; and (3) 
    procedures at 12.603 are not being used. Use of the SF 1449 is 
    nonmandatory but encouraged for commercial acquisitions not exceeding 
    the simplified acquisition threshold.
        (b) Consistent with the requirements at 5.203 (a) and (h), the 
    contracting officer may allow fewer than 15 days before issuance of the 
    solicitation.
        10. Section 12.205 is amended by revising paragraph (c) to read as 
    follows:
    
    
    12.205  Offers.
    
    * * * * *
        (c) Consistent with the requirements at 5.203 (b) and (h), the 
    contracting officer may allow fewer than 30 days response time for 
    receipt of offers for commercial items.
        11. Section 12.213 is revised to read as follows:
    
    
    12.213  Other commercial practices.
    
        It is a common practice in the commercial marketplace for both the 
    buyer and seller to propose terms and conditions written from their 
    particular perspectives. The terms and conditions prescribed in this 
    part seek to balance the interests of both the buyer and seller. These 
    terms and conditions are generally appropriate for use in a wide range 
    of acquisitions. However, market research may indicate other commercial 
    practices that are appropriate for the acquisition of the particular 
    item. These practices should be considered for incorporation into the 
    solicitation and contract if the contracting officer determines them 
    appropriate in concluding a business arrangement satisfactory to both 
    parties and not otherwise precluded by law or Executive order.
        12. Section 12.302(a) is revised to read as follows:
    
    
    12.302  Tailoring of provisions and clauses for the acquisition of 
    commercial items.
    
        (a) General. The provisions and clauses established in this subpart 
    are intended to address, to the maximum extent practicable, commercial 
    market practices for a wide range of potential Government acquisitions 
    of commercial items. However, because of the broad range of commercial 
    items acquired by the Government, variations in commercial practices, 
    and the relative volume of the Government's acquisitions in the 
    specific market, contracting officers may, within the limitations of 
    this subpart, and after conducting appropriate market research, tailor 
    the provision at 52.212--1, Instructions to Offerors-Commercial Items, 
    and the clause at 52.212--4, Contract Terms and Conditions- Commercial 
    Items, to adapt to the market conditions for each acquisition.
    * * * * *
        13. Section 12.602 is amended by revising paragraph (a) to read as 
    follows:
    
    
    12.602  Streamlined evaluation of offers.
    
        (a) When evaluation factors are used, the contracting officer may 
    insert a provision substantially the same as the provision at 52.212-2, 
    Evaluation--Commercial Items, in solicitations for commercial items or 
    comply with the procedures in 13.106-2 if the acquisition is being made 
    using simplified acquisition procedures. When the provision at 52.212-2 
    is used, paragraph (a) of the provision shall be tailored to the 
    specific acquisition to describe the evaluation factors and relative 
    importance of those factors. However, when using the simplified 
    acquisition procedures in part 13, contracting officers are not 
    required to describe the relative importance of evaluation factors.
    * * * * *
        14. Section 12.603 is amended by revising paragraph (c)(3)(ii) to 
    read as follows:
    
    
    12.603  Streamlined solicitation for commercial items.
    
    * * * * *
        (c) * * *
        (3) * * *
        (ii) When using the combined CBD synopsis/solicitation, contracting 
    officers shall establish a response time in accordance with 5.203(b) 
    (but see 5.203(h)).
    * * * * *
    
    PART 13--SIMPLIFIED ACQUISITION PROCEDURES
    
        15. Section 13.000 is revised to read as follows:
    
    
    13.000  Scope of part.
    
        This part prescribes policies and procedures for the acquisition of 
    supplies and services, including construction, research and 
    development, and commercial items, the aggregate amount of which does 
    not exceed the simplified acquisition threshold (see 2.101). Section 
    13.601 provides special authority for acquisitions of commercial items 
    exceeding the simplified acquisition threshold but not greater than 
    $5,000,000, including options. See part 12, Acquisition of Commercial 
    Items, for policies applicable to the acquisition of commercial items 
    exceeding the micro-purchase threshold. See 36.602-5 for simplified 
    procedures to be used when acquiring architect-engineering services.
        16. Section 13.103 is amended by revising paragraphs (b), (c) and 
    (j) to read as follows:
    
    
    13.103  Policy.
    
    * * * * *
        (b) The contracting office shall not use simplified acquisition 
    procedures for contract actions exceeding $50,000 after December 31, 
    1999, unless the office's
    
    [[Page 265]]
    
    cognizant agency has certified full FACNET capability in accordance 
    with 4.505-2. This limitation does not apply to acquisitions of 
    commercial items conducted using subpart 13.6.
        (c) Simplified acquisition procedures shall not be used in the 
    acquisition of supplies and services initially estimated to exceed the 
    simplified acquisition threshold (or $5,000,000, including options, for 
    acquisitions of commercial items using subpart 13.6), even though 
    resulting awards do not exceed the applicable threshold. Requirements 
    aggregating more than the simplified acquisition threshold (or 
    $5,000,000, including options, if using subpart 13.6) or the micro-
    purchase threshold shall not be broken down into several purchases that 
    are less than the applicable threshold merely to permit use of 
    simplified acquisition procedures, or to avoid any requirements that 
    apply to purchases exceeding the micro-purchase threshold.
    * * * * *
        (j) Contracting officers are encouraged to use innovative 
    approaches in awarding contracts using the simplified acquisition 
    procedures under the authority of this part. For acquisitions of other 
    than commercial items not expected to exceed the simplified acquisition 
    threshold, contracting officers may use any appropriate combination of 
    the procedures in part 13, 14, 15, 35, or 36, including the use of 
    Standard Form (SF) 1442, Solicitation, Offer and Award (Construction, 
    Alteration, or Repair), for construction contracts (see 36.701(b)). For 
    acquisitions of commercial items not expected to exceed $5 million, 
    contracting officers may use any appropriate combination of the 
    procedures in parts 12, 13, 14 and 15 (see 13.103(c)).
    * * * * *
        17. Section 13.104 is amended by revising paragraph (b) to read as 
    follows:
    
    
    13.104  Procedures.
    
    * * * * *
        (b) Related items (such as small hardware items or spare parts for 
    vehicles) may be included in one solicitation and the award made on an 
    ``all-or none'' or ``multiple award'' basis if suppliers are so advised 
    when quotations or offers are requested.
    * * * * *
        18. Section 13.106-2 is amended by revising paragraphs (a)(1) 
    through (a)(3), (a)(4) introductory text, (a)(5), (a)(6), (b)(1), 
    (b)(3), (c)(1), (c)(2), (d)(3) and (d)(4)(ii); redesignating (a)(6) 
    through (8) as (a)(7) through (9), respectively; and by adding new 
    (a)(6), and (a)(10) to read as follows:
    
    
    13.106-2  Purchases exceeding the micro-purchase threshold.
    
        (a) Soliciting competition. (1) Contracting officers shall promote 
    competition to the maximum extent practicable to obtain supplies and 
    services from the source whose offer is the most advantageous to the 
    Government, based, as appropriate, on either price alone or price and 
    other factors (e.g., past performance and quality) including the 
    administrative cost of the purchase. Contracting officers are 
    encouraged to use best value. Solicitations shall notify suppliers of 
    the basis upon which award is to be made.
        (2) For acquisitions not exceeding the simplified acquisition 
    threshold where FACNET is not available, or an exemption set forth in 
    4.506 applies, quotations may be solicited through other appropriate 
    means (e.g., orally, or in writing). The contracting officer shall 
    comply with the requirements of 5.101 when not soliciting via FACNET. 
    When a synopsis is required, sufficient information to permit suppliers 
    to develop quotations or offers may be incorporated into a combined 
    synopsis/ solicitation. In such cases, the contracting officer is not 
    required to issue a separate solicitation. For commercial item 
    acquisitions, also see 12.603.
        (3) For acquisitions not exceeding $25,000, requests for quotations 
    should be solicited orally to the maximum extent practicable when 
    FACNET is not available or a written determination has been made that 
    it is not practicable or cost-effective to purchase via FACNET. Paper 
    solicitations for contract actions not expected to exceed $25,000 
    should only be issued only when obtaining electronic or oral quotations 
    is not considered economical or practicable. Written solicitations 
    shall be issued for construction contracts over $2,000.
        (4) If a synopsis is not required (e.g., the acquisition does not 
    exceed $25,000 or an exemption to the synopsis requirement applies) and 
    FACNET is not being used, solicitation of at least three sources 
    generally may be considered to promote competition to the maximum 
    extent practicable. In such circumstances, maximum practicable 
    competition ordinarily can be obtained without soliciting quotations or 
    offers from sources outside the local trade area. If practicable, two 
    sources not included in the previous solicitation should be requested 
    to furnish quotations or offers. The following factors influence the 
    number of quotations or offers required in connection with any 
    particular purchase:
    * * * * *
        (5) For purchases not exceeding the simplified acquisition 
    threshold, Contracting officers may solicit from one source if the 
    contracting officer determines that the circumstances of the contract 
    action deem only one source reasonably available.
        (6) For sole source acquisitions of commercial items in excess of 
    the simplified acquisition threshold conducted pursuant to subpart 
    13.6, the requirements at 13.602(a) apply.
        (7) Contracting officers shall not limit competition to suppliers 
    of well-known and widely distributed makes or brands (see 11.104), or 
    solicit quotations or offers on a personal preference basis.
    * * * * *
        (10) Solicitations are not required to state the relative 
    importance assigned to each evaluation factor and subfactor, nor are 
    they required to include subfactors.
        (b) Evaluation of quotations or offers. (1) When evaluating 
    quotations or offers, the evaluation must be made on the basis 
    established in the solicitation. All quotations or offers must be 
    considered. However, the contracting officer has broad discretion in 
    fashioning suitable evaluation procedures. The procedures prescribed in 
    parts 14 and 15 are not mandatory. At the contracting officer's 
    discretion, one or more, but not necessarily all, of the evaluation 
    procedures in part 14 or 15 may be used. Formal evaluation plans, 
    establishment of a competitive range, conduct of discussions, and 
    scoring of quotes or offers are not required. Contracting offices may 
    conduct comparative evaluations of offers. Evaluation of other factors, 
    such as past performance, does not require the creation or existence of 
    a formal data base, but may be based on such information as the 
    contracting officer's knowledge of and previous experience with the 
    item or service being purchased, customer surveys, or other reasonable 
    basis.
    * * * * *
        (3) Contracting officers shall evaluate quotations or offers 
    inclusive of transportation charges from the shipping point of the 
    supplier to the delivery destination.
    * * * * *
        (c) Award. (1) Occasionally an item can be obtained only from a 
    supplier that quotes a minimum order price or quantity that either 
    unreasonably exceeds stated quantity requirements or results in an 
    unreasonable price for the
    
    [[Page 266]]
    
    quantities required. In these instances, the contracting officer should 
    inform the requiring activity of all facts regarding the quotation or 
    offer and ask it to confirm or alter its requirement. The file shall be 
    documented to support the final action taken.
        (2) For acquisitions not exceeding the simplified acquisition 
    threshold, except for awards conducted through FACNET, notification to 
    unsuccessful suppliers shall be given only if requested.
    * * * * *
        (d) * * *
        (3) If only one source is solicited and the acquisition does not 
    exceed the simplified acquisition threshold, an additional notation 
    shall be made to explain the absence of competition, except for 
    acquisition of utility services available only from one source.
        (4) * * *
        (ii) Written solicitations (see 2.101). For acquisitions not 
    exceeding the simplified acquisition threshold, written records of 
    solicitations/offers may be limited to notes or abstracts to show 
    prices, delivery, references to printed price lists used, the supplier 
    or suppliers contacted, and other pertinent data.
    * * * * *
        19. Section 13.107 is amended by revising paragraph (a) to read as 
    follows:
    
    
    13.107  Solicitation forms.
    
        (a) For use of the SF 1449, Solicitation/Contract/Order for 
    Commercial Items, see 12.204.
    * * * * *
        20. Section 13.202 is amended by revising paragraph (b)(2) to read 
    as follows:
    
    
    13.202  Establishment of blanket purchase agreements (BPAs).
    
    * * * * *
        (b) * * *
        (2) Consider suppliers whose past performance has shown them to be 
    dependable, and who offer quality supplies or services at consistently 
    lower prices and who have provided numerous purchases at or below the 
    simplified acquisition threshold.
    * * * * *
        21. Section 13.204 is amended by revising paragraphs (a) and (b) to 
    read as follows:
    
    
    13.204  Purchases under blanket purchase agreements.
    
        (a) The use of a BPA does not authorize purchases that are not 
    otherwise authorized by law or regulation. For example, the BPA, being 
    a method of simplifying the making of individual purchases, shall not 
    be used to avoid the simplified acquisition threshold, or $5,000,000 
    for acquisitions of commercial items conducted under subpart 13.6.
        (b) Unless otherwise specified in agency regulations, individual 
    purchases under BPAs, except those under BPAs established in accordance 
    with 13.202(c)(3), shall not exceed the simplified acquisition 
    threshold, or $5,000,000, for acquisitions of commercial items 
    conducted under subpart 13.6.
    * * * * *
        22. Subpart 13.6, consisting of sections 13.601 and 13.602, is 
    added to read as follows:
    
    Subpart 13.6-Test Program for Certain Commercial Items
    
    Sec.
    13.601  General.
    13.602  Special documentation requirements.
    
    
    13.601  General.
    
        (a) This subpart authorizes, as a test program, use of simplified 
    procedures for the acquisition of supplies and services in amounts 
    greater than the simplified acquisition threshold but not exceeding 
    $5,000,000, including options, if the contracting officer reasonably 
    expects, based on the nature of the supplies or services sought, and on 
    market research, that offers will include only commercial items. Under 
    this test program, contracting officers may use any simplified 
    acquisition procedure in this part, subject to any specific dollar 
    limitation applicable to the particular procedure. The purpose of this 
    test program is to vest contracting officers with additional procedural 
    discretion and flexibility, so that commercial item acquisitions in 
    this dollar range may be solicited, offered, evaluated, and awarded in 
    a simplified manner that maximizes efficiency and economy and minimizes 
    burden and administrative costs for both the Government and industry 
    (10 U.S.C. 2304(g) and 2305 and 41 U.S.C. 253(g) and 253a and 253b).
        (b) For the period of this test, contracting activities shall 
    employ the simplified procedures authorized by the test to the maximum 
    extent practicable.
        (c) When acquiring commercial items using the procedures in this 
    part, the requirements of part 12 apply subject to the order of 
    precedence provided at 12.102(c). This includes use of the provisions 
    and clauses at subpart 12.3.
        (d) The authority to issue solicitations under this subpart shall 
    expire on January 1, 2000. Contracts may be awarded after the 
    expiration of this authority for solicitations issued before the 
    expiration of the authority.
    
    
    13.602  Special documentation requirements.
    
        (a) Sole source acquisitions. Acquisitions conducted under 
    simplified acquisition procedures are exempt from the requirements in 
    part 6. However, contracting officers shall not conduct sole source 
    acquisitions, as defined in 6.003, under this subpart unless the need 
    to do so is justified in writing and approved at the levels specified 
    in paragraphs (a)(1) and (a)(2) of this section. Contracting officers 
    shall prepare sole source justifications using the format at 6.303-2, 
    modified to reflect an acquisition under the authority of the test 
    program for commercial items (section 4202 of the Clinger-Cohen Act). 
    Justifications and approvals are required under this subpart only for 
    sole source acquisitions.
        (1) For a proposed contract exceeding $100,000 but not exceeding 
    $500,000, the contracting officer's certification that the 
    justification is accurate and complete to the best of the contracting 
    officer's knowledge and belief will serve as approval, unless a higher 
    approval level is established in agency procedures.
        (2) For a proposed contract exceeding $500,000, the approval shall 
    be by the competition advocate for the procuring activity, designated 
    pursuant to 6.501; or an official described in 6.304 (a)(3) or (a)(4). 
    This authority is not delegable.
        (b) Contract file documentation. The contract file shall include--
        (1) A brief written description of the procedures used in awarding 
    the contract, including the fact that the test procedures in FAR 13.6 
    were used;
        (2) The number of offers received;
        (3) An explanation, tailored to the size and complexity of the 
    acquisition, of the basis for the contract award decision; and
        (4) Any justification approved under paragraph (a) of this section.
    
    [FR Doc. 96-33211 Filed 12-31-96; 8:45 am]
    BILLING CODE 6820-EP-P
    
    
    

Document Information

Published:
01/02/1997
Department:
Defense Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-33211
Dates:
January 1, 1997.
Pages:
262-266 (5 pages)
Docket Numbers:
FAC 90-45, FAR Case 96-307, Item VII
RINs:
9000-AH20: FAR Case 96-307, Application of Special Simplified Procedures to Certain Commercial Items
RIN Links:
https://www.federalregister.gov/regulations/9000-AH20/far-case-96-307-application-of-special-simplified-procedures-to-certain-commercial-items
PDF File:
96-33211.pdf
CFR: (2)
48 CFR 13.601
48 CFR 13.602