96-265. General Services Administration Acquisition Regulation; Implementation of FASA Small Business; Protest, Disputes and Appeals; Subcontractor Payments Rules, and Service Contract Funding  

  • [Federal Register Volume 61, Number 11 (Wednesday, January 17, 1996)]
    [Rules and Regulations]
    [Pages 1150-1152]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-265]
    
    
    
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    GENERAL SERVICES ADMINISTRATION
    
    48 CFR Parts 505, 519, 520, 532, 533, and 552
    
    [APD 2800.12A, CHGE 69]
    RIN 3090-AF87
    
    
    General Services Administration Acquisition Regulation; 
    Implementation of FASA Small Business; Protest, Disputes and Appeals; 
    Subcontractor Payments Rules, and Service Contract Funding
    
    AGENCY: Office of Acquisition Policy, GSA.
    
    ACTION: Final rule.
    
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    SUMMARY: The General Services Administration Acquisition Regulation 
    (GSAR) is amended to implement several sections of the Federal 
    Acquisition Streamlining Act of 1994 (Pub. L. 103-355) which related to 
    protests, disputes and appeals; subcontractor payments, service 
    contract funding and small business programs. This change revises the 
    GSAR to accommodate those changes and to reflect current organizational 
    changes within GSA. In addition, GSA Form 2677, Minority Contract Fact 
    Sheet, is removed and GSA Form 2689, Procurement Not Set Aside, is 
    revised to illustrate the new edition of the form.
    
    EFFECTIVE DATE: December 29, 1995.
    
    FOR FURTHER INFORMATION CONTACT: Victoria Moss, Office of GSA 
    Acquisition Policy, (202) 501-4764.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Public Comments
    
        This rule was not published in the Federal Register for public 
    comment because it merely revises the GSAR to conform to the Federal 
    Acquisition Regulation (FAR) and makes organizational changes within 
    GSA.
    
    B. Executive Order 12866
    
        This rule was not submitted to the Office of Management and Budget 
    for review because it is not a significant rule as defined in Executive 
    Order 12866, Regulatory Planning and Review.
    
    C. Regulatory Flexibility Act
    
        The Regulatory Flexibility Act does not apply because this rule is 
    not a significant revision as defined in FAR 1.501-1.
    
    D. Paperwork Reduction Act
    
        This rule does not impose any information collection or 
    recordkeeping requirements that require the approval of OMB under 44 
    U.S.C. 3501 et seq. Therefore, the requirements of the Paperwork 
    Reduction Act do not apply.
    
    List of Subjects in 48 CFR Parts 505, 519, 520, 532, 533, and 552
    
        Government procurement.
    
        Accordingly, 48 CFR Parts 505, 519, 520, 532, 533 and 552 are 
    amended as follows:
        1. The authority citation for 48 CFR Parts 505, 519, 520, 532, 533, 
    and 552 continues to read as follows:
    
        Authority: 40 U.S.C. 486(c).
    
    PART 505--PUBLICIZING CONTRACT ACTIONS
    
        2. Section 505.303-70 is amended by revising paragraphs (a)(1), 
    (b)(1), (b)(2), and (b)(3)(ii) to read as follows:
    
    
    505.303-70  Notification of proposed substantial awards and awards 
    involving Congressional interest.
    
        (a) * * *
        (1) A contract with the Small Business Administration (the 8(a) 
    program) exceeding or estimated to exceed $100,000.
    * * * * *
        (b) * * *
        (1) The Office of Congressional and Intergovernmental Affairs (S) 
    will notify the heads of contracting activities in writing with the 
    names of Members of Congress who wish to be notified of any or all 
    contract awards in excess of $100,000 to contractors located within 
    their district or State, as applicable. Upon such notification, the 
    contracting activities will provide, via electronic mail, facsimile or 
    hand delivery applicable notices of award to S. A copy of the submittal 
    should be provided to the regional congressional liaison office.
        (2) Except for submittals hand delivered to S, the submittal must 
    be made by electronic mail or facsimile transmission. Except for 
    contracts awarded under urgent and compelling circumstances, 
    notification to S of an award must made on the same day that the award 
    is made and 24 hours before telephonic notice (if applicable) is 
    provided to the contractor. If the timeframe for notification to S 
    cannot be met, the Contracting Director must notify S by telephone.
        (3) * * *
        (ii) Identify the type of contract and contractor using the 
    following codes:
        (A) DO for definite quantity contract.
        (B) SC for schedule contract.
        (C) TC for indefinite delivery contract other than schedule.
        (D) S for small business concern.
        (E) SD for small disadvantaged business concern.
        (F) WO for women-owned small business concern.
        (G) O for other than a small business concern.
    * * * * *
        3. Part 519 is amended by revising the heading to read as follows:
    
    PART 519--SMALL BUSINESS PROGRAMS
    
        4. Section 519.001 is revised to read as follows:
    
    
    519.001  Definitions.
    
        Agency small business technical advisors (SBTAs) as used in this 
    part, means the individuals designated in writing by the Office of 
    Enterprise Development (E). In addition to the duties outlined at FAR 
    19.201(c), the agency small business technical advisors perform the 
    functions of the small business specialist described in FAR 19.506 (a) 
    and (b) and 19.705-4(d)(5).
    
        5. Section 519.201 is revised to read as follows:
    
    
    519.201  General policy.
    
        The Associate Administrator for Enterprise Development (E) may make 
    recommendations to the contracting officer as to whether a particular 
    acquisition should be awarded under 
    
    [[Page 1151]]
    FAR 19.5 as a set-aside or under FAR 19.8 as a section 8(a) award 
    directly or through the SBTA.
        6. Section 519.202-2 is revised to read as follows:
    
    
    519.202-2  Locating small business sources.
    
        Contracting officers should request assistance from SBTAs in 
    locating small business sources.
    
    
    519.202-5  [Removed]
    
        7. Section 519.202-5 is removed.
        8. Section 519.502-70 is amended by revising paragraphs (a) and (d) 
    to read as follows:
    
    
    519.502-70  Review of non-set-aside determinations.
    
        (a) If the contracting officer decides that a procurement that is 
    expected to exceed $100,000 cannot be set aside for small business, the 
    reasons for the decision must be recorded on the GSA Form 2689, 
    Procurement Not Set Aside. The GSA Form 2689 must be submitted to the 
    SBTA for review and coordination with the SBA.
    * * * * *
        (d) Before the GSA or SBA reviewing officials provide additional 
    small business sources to the contracting officer when requesting 
    reconsideration of the non-set-aside determination, the reviewing 
    officials shall contact the sources to ensure the sources are 
    interested in submitting offers and to obtain information regarding the 
    capability of the sources to fulfill the Government's requirements. The 
    information obtained should be provided to the contracting officer for 
    consideration.
    * * * * *
    
    
    519.503  [Amended]
    
        9. Section 519.503 is amended in the last sentence of paragraph (b) 
    format: ``Small Business Class Set-Aside Determination,'' by removing 
    the words ``for which small purchase procedures are to be used'' and 
    inserting in their place ``of $100,000 or less.''
    
    
    519.602-3  [Amended]
    
        10. Section 519.602-3 is amended by removing the office symbol 
    ``AU'' once in paragraph (a) and where it appears three times in 
    paragraph (b) and inserting office symbol ``E'' in its place.
        11. Subpart 519.7 is amended by revising the heading to read as 
    follows.
    
    Subpart 519.7  Subcontracting With Small Business, Small 
    Disadvantaged Business and Women-Owned Small Business Concerns
    
        12. Section 519.708 is revised to read as follows:
    
    
    519.708  Solicitation provisions and contract clauses.
    
        (a) The contracting officer shall insert the provision at 552.219-
    72, Notice to Offerors of Subcontracting Plan Requirements, on the 
    cover page of the solicitation if the solicitation includes the clause 
    at FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small 
    Business Subcontracting Plan.
        (b) The contracting officer shall insert the provision at 552.219-
    73, Preparation, Submission, and Negotiation of Subcontracting Plans, 
    in negotiated solicitations if the solicitation includes the clause at 
    FAR 52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
    Subcontracting Plan, and the contract will be awarded on the basis of 
    an evaluation of technical and/or management proposals and cost or 
    price proposals using source selection procedures. The provision does 
    not apply to (1) solicitations for commercial products, or (2) 
    solicitations where, in the judgment of the contracting officer, 
    subcontracting opportunities are minimal.
        (c) The contracting officer shall insert the provision at 552.219-
    74, Goals for Subcontracting Plan, in sealed bid solicitations if the 
    solicitation includes the clause at FAR 52.219-9, Small, Small 
    Disadvantaged and Women-Owned Small Business Subcontracting Plan. The 
    basic provision should be used when the contracting officer is able to 
    realistically establish target goals. Alternate 1 should be used in 
    sealed bid solicitations when the contracting officer cannot establish 
    realistic target goals and in negotiated solicitations that include the 
    clause at FAR 52.219-9 but do not include the provision at 552.219-73.
    
        13. Section 519.803-70 is revised to read as follows:
    
    
    519.803-70  Contracting officer evaluation of recommendations for 8(a) 
    set-aside(s).
    
        If the Associate Administrator for Enterprise Development (E) or 
    the SBTA recommends that a procurement be set aside for award under the 
    8(a) program and the contracting officer disagrees, the contracting 
    officer shall discuss the matter with the official that made the 
    recommendation before making a decision. If the contracting officer 
    decides not to award the contract under the 8(a) program as 
    recommended, the reasons for the decision must be documented for the 
    record as required by FAR 19.202 and a copy of the documentation must 
    be forwarded to E within 10 working days of the contracting officer's 
    decision.
    
    PART 520--[RESERVED]
    
        14. Part 520 is removed and reserved.
    
    PART 532--CONTRACTING FINANCING
    
        15. Sections 532.112 and 532.112-1 are added to read as follows:
    
    
    532.112  Payment of subcontractors under contracts for non-commercial 
    items.
    
    
    532.112-1  Subcontractor assertions of nonpayment.
    
        Contracting officers who determine that a certification of payment 
    of a subcontractor or supplier under FAR 32.112-1 is inaccurate in any 
    material respect shall report the matter to the Office of Inspector 
    General. If appropriate, the Office of Inspector General will forward a 
    report and recommendation to the Department of Justice.
    
        16. Section 532.705-1 is revised to read as follows:
    
    
    532.705-1  Clauses for contracting in advance of funds.
    
        The contracting officer shall insert the clause at 552.232-77, 
    Availability of Funds, in solicitations and contracts for services 
    which are ``severable'' when the contact, or a portion of the contract, 
    will be chargeable to funds of the new fiscal year and the 
    circumstances described in the prescriptions for the FAR clauses at 
    52.232-18 or 52.232-19 do not apply.
    
    PART 533--PROTESTS, DISPUTES, AND APPEALS
    
        17. In Section 533.104 paragraph (a) the heading is revised to 
    read: ``General procedures,'' the FAR cite in paragraph (a)(1) is 
    revised to read ``FAR 33.104(a)(3);'' remove ``25 workdays'' in 
    paragraph (a)(3)(v) and insert ``35 days,''; revise the FAR cite in 
    paragraph (b)(5) introductory text to read ``FAR 33.104(a)(2), remove 
    the words ``within 7 calendar days of receiving this notice'' in the 
    last paragraph of (a)(5), remove the word ``calendar'' in the first 
    sentence of paragraph (b), and revise paragraphs (c) and (d) to read as 
    follows:
    
    
    533.104  Protests to GAO.
    
    * * * * *
        (c) Protests after award. If the protest is received from GAO (not 
    from protester or any other party) within the time periods specified in 
    FAR 33.104(c) contract performance must be suspended unless the HCA 
    determines in writing that contract performance is in the best 
    interests of the United States 
    
    [[Page 1152]]
    or that urgent and compelling circumstances that significantly affect 
    the interests of the United States do not permit waiting for the GAO's 
    decision. The written determination and findings (D&F), in the format 
    shown at 501.704-70(e)(2), should be prepared by the contracting 
    officer for signature of the HCA. The D&F must be concurred in by the 
    Regional Counsel (on regional procurements), and the appropriate AGC. 
    After the D&F is approved, it must be returned to the AGC who notifies 
    GAO of the agency's findings and intended action before contract 
    performance is authorized.
        (d) Notice to GAO. The HCA responsible for the solicitation, 
    proposed award, or award of the contract must report to the Comptroller 
    General through the OGC within 65 days of receipt of the GAO's 
    recommendation if the agency has decided not to comply with the 
    recommendation. The report must explain the reasons why the GAO's 
    recommendation will not be followed.
    
    
    533.105  [Amended]
    
        18. In section 533.105 paragraph (a)(1) introductory text, remove 
    the words ``Resources Management'' after the word ``Information'' and 
    insert in their place ``Technology.''
    
    PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
    
    552.219-9  [Removed]
    
        19. Section 552.219-9 and its Alternate I are removed.
    
    
    552.219-16  [Removed]
    
        20. Section 552.219-16 is removed.
        21. Section 552.219-72 is revised to read as follows:
    
    
    552.219-72  Notice to Offerors of Subcontracting Plan Requirements.
    
        As prescribed in 519.708(a), insert the following provision:
    
    NOTICE OF OFFERORS OF SUBCONTRACTING PLAN REQUIREMENTS (DEC 1995)
    
        The General Services Administration (GSA) is committed to 
    assuring that maximum practicable opportunity is provided to small, 
    small disadvantaged, and women-owned small business concerns to 
    participate in the performance of this contract consistent with its 
    efficient performance. GSA expects any subcontracting plan submitted 
    pursuant to FAR 52.219-9, Small, Small Disadvantaged and Women Owned 
    Small Business Subcontracting Plan, to reflect this commitment. 
    Consequently, an offeror, other than a small business concern, 
    before being awarded a contract exceeding $500,000 ($1,000,000 for 
    construction) will be required to demonstrate that its 
    subcontracting plan represents a creative and innovative program for 
    involving small, small disadvantaged, and women-owned small business 
    concerns as subcontractors in the performance of this contract.
    
    (End of Provision)
    
    
    552.219-73  [Amended]
    
        22. In section 552.219-73 introductory text revise the GSAR cite to 
    read ``519.708(b),'' and revise the date of the clause to read ``DEC 
    1995''; in paragraph (b) of the clause remove the GSAR cite ``552.219-
    9(d)'' and insert in its place ``FAR 52.219-9(d).'' Also in paragraph 
    (b) second sentence, revise the phrase ``Small Business'' to read 
    ``Small, Small Disadvantaged and Women-Owned Small Business''; in 
    paragraph (c)(1) remove ``552.219-9'' and insert in its place ``FAR 
    52.219-9.''
    
    
    552.219-74  [Amended]
    
        23. In section 552.219-74 introductory text, revise the GSAR cite 
    to read ``519.708(c),'' revise the clause date to read ``(DEC 1995),'' 
    in paragraph (a)(1) of the clause remove all the text after the word 
    ``at'' at the end of paragraph (a)(1) and insert in its place ``FAR 
    52.219-9, Small, Small Disadvantaged and Women-Owned Small Business 
    Subcontracting Plan;'' in paragraph (a)(2) remove ``552.219-9(d)'' and 
    insert in its place ``FAR 52.219-9(d); in paragraph (c)(1) remove 
    ``552.219-9'' and insert in its place ``FAR 52.219-9.''
    
        Dated: December 14, 1995.
    Ida M. Ustad,
    Associate Administrator for Acquisition Policy.
    [FR Doc. 96-265 Filed 1-16-96; 8:45 am]
    BILLING CODE 6820-61-M
    
    

Document Information

Effective Date:
12/29/1995
Published:
01/17/1996
Department:
General Services Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-265
Dates:
December 29, 1995.
Pages:
1150-1152 (3 pages)
Docket Numbers:
APD 2800.12A, CHGE 69
RINs:
3090-AF87
PDF File:
96-265.pdf
CFR: (6)
48 CFR 505
48 CFR 519
48 CFR 520
48 CFR 532
48 CFR 533
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