[Federal Register Volume 60, Number 13 (Friday, January 20, 1995)]
[Notices]
[Pages 4205-4206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1397]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
Federal Acquisition Regulation (FAR) REWRITE
AGENCY: Office of Federal Procurement Policy, Office of Management and
Budget.
ACTION: Notice of Core Guiding Principles for the Federal Acquisition
System.
-----------------------------------------------------------------------
SUMMARY: The Board of Directors for the FAR Rewrite Project finalizes
the core guiding principles for the federal acquisition system.
DATES: Effective January 20, 1995.
FOR FURTHER INFORMATION CONTACT: Susan E. Alesi, Special Assistant for
Regulations, Office of Federal Procurement Policy, 202-395-6803.
SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President
released the report of the National Performance Review (NPR) which,
among other things, requires the Administration to simplify the
procurement process through reform of the federal acquisition
regulatory system. In response to the report, Steve Kelman, the
Administrator for Federal Procurement Policy, established a Board of
Directors, comprised of senior level individuals from the Executive
Branch, to develop a plan for regulatory reform.
As a first step the Board decided to formulate a set of core
guiding principles intended as a vision statement for the federal
acquisition system. The Board also decided to supplement the basic
principles with accompanying discussion and performance standards for
the system.
The first drafts of principles (59 FR 26772 and 59 FR 52844) drew
on the concepts espoused by the NPR and what the Board considered to be
good business practices such as greater reliance on the good sense and
business judgment of the procurement workforce; satisfying the needs of
the customer; reducing unnecessary layers of review; emphasizing the
importance of timeliness in the procurement process; and an orientation
to best value judgments in making contract awards.
The final version of the principles clarifies the principles set
forth in the first draft and includes an additional concept, suggested
through the public comment process, which the Board believes would
significantly increase the opportunity for innovation in procurement.
Thus, the revised set of principles make it clear that if a policy is
not specifically addressed in the FAR, Government members of the
acquisition team should not assume that it is prohibited.
It is intended that the core principles be used in a twofold
manner; first, they will be issued in the preface to the FAR not only
as a statement of the goals of the system but also to guide future
changes to the FAR; and second, they will be used by the drafting teams
in the actual rewrite of the FAR.
We encourage agencies to make this statement of core guiding
principles available to program customers and contractors, and to make
the core principles a part of the basic training materials provided to
all personnel involved in the acquisition process.
Statement of Guiding Principles Federal Acquisition System
The vision for the Federal Acquisition System is to deliver on a
timely basis the best value product or service to the customer, while
maintaining the public's trust and fulfilling public policy objectives.
Participants in the acquisition process should work together as a team
and should be empowered to make decisions within their area of
responsibility.
The Federal Acquisition System will:
* satisfy the customer in terms of cost, quality, and timeliness of
the delivered product or service, by, for example,
** maximizing the use of commercial products and services,
** using contractors with a track record of successful past
performance or who demonstrate a current superior ability to perform,
and
** promoting competition;
* minimize administrative operating costs;
* conduct business with integrity, fairness, and openness; and
* fulfill public policy objectives.
The Acquisition Team consists of all participants in Government
acquisition including not only representatives of the technical, supply
and procurement communities but also the customers they serve, and the
contractors who provide the products and services.
The role of each member of the Acquisition Team is to exercise
personal initiative and sound business judgment in providing the best
value product or service to meet the customer's needs. In exercising
initiative, Government members of the Acquisition Team may assume that
if a specific strategy, practice, policy or procedure is in the best
interests of the Government and is not addressed in the FAR, nor
prohibited by law (statute or case law), Executive Order or other
regulation, that the strategy, practice, policy or procedure is a
permissible exercise of authority.
Discussion
Introduction
The Statement of Acquisition Guiding Principles for the Federal
Acquisition System (System) represents a concise statement designed to
be user-friendly for all participants in Government acquisition. The
following discussion of the principles is provided in order to
illuminate the meaning of the terms and phrases used. The framework for
the System includes the Guiding Principles for the System and the
supporting policies and procedures in the Federal Acquisition
Regulation (FAR).
Vision
All participants in the System are responsible for making
acquisition decisions that deliver the best value product or service to
the customer. Best value must be viewed from a broad perspective and is
achieved by balancing the many competing interests in the System. The
result is a system which works better and costs less.
Performance Standards
Satisfy the Customer in Terms of Cost, Quality, and Timeliness
of the Delivered Product or Service
The principle customers for the product or service provided by the
System are the users and line managers, acting on behalf of the
American taxpayer.
The System must be responsive and adaptive to customer needs,
concerns, and feedback. Implementation of acquisition policies and
procedures, as well as consideration of timeliness, quality, and cost
throughout the process, must take into account the perspective of the
user of the product or service.
When selecting contractors to provide products or perform services,
the government will use contractors who have a track record of
successful past performance or who demonstrate a current superior
ability to perform.
The government must not hesitate to communicate with the commercial
sector as early as possible in the acquisition cycle to help the
[[Page 4206]] government determine the capabilities available in the
commercial marketplace. The government will maximize its use of
commercial products and services in meeting Government requirements.
It is the policy of the System to promote competition in the
acquisition process.
The System must perform in a timely, high quality, and cost-
effective manner.
All members of the Team are required to employ planning as an
integral part of the overall process of acquiring products or services.
Although advance planning is required, each member of the Team must be
flexible in order to accommodate changing or unforeseen mission needs.
Planning is a tool for the accomplishment of tasks, and application of
its discipline should be commensurate with the size and nature of a
given task.
Minimize Administrative Operating Costs
In order to ensure that maximum efficiency is obtained, rules,
regulations, and policies should be promulgated only when their
benefits clearly exceed the costs of their development, implementation,
administration, and enforcement. This applies to internal
administrative processes, including reviews, and to rules and
procedures applied to the contractor community.
The System must provide uniformity where it contributes to
efficiency or where fairness or predictability is essential. The System
should also, however, encourage innovation, and local adaptation where
uniformity is not essential.
Conduct Business With Integrity, Fairness, and Openness
An essential consideration in every aspect of the System is
maintaining the public's trust. Not only must the System have
integrity, but the actions of each member of the Team must reflect
integrity, fairness and openness. The foundation of integrity within
the System is a competent, experienced, and well-trained, professional
workforce. Accordingly, each member of the Team is responsible and
accountable for the wise use of public resources as well as acting in a
manner which maintains the public's trust. Fairness and openness
require open communication among team members, internal and external
customers, and the public.
To achieve efficient operations, the System must shift its focus
from ``risk avoidance'' to one of ``risk management.'' The cost to the
taxpayer of attempting to eliminate all risk is prohibitive. The
Executive Branch will accept and manage the risk associated with
empowering local procurement officials to take independent action based
on their professional judgment.
Fulfill Public Policy Objectives
The System must support the attainment of public policy goals
adopted by the Congress and the President. In attaining these goals,
and in its overall operations, the process shall ensure the efficient
use of public resources.
Acquisition Team
The purpose of defining the Federal Acquisition Team (Team) in the
Acquisition Guiding Principles is to ensure that participants in the
System are identified--beginning with the customer and ending with the
contractor of the product or service. By identifying the team members
in this manner, teamwork, unity of purpose and open communication among
the members of the Team in sharing the vision and achieving the goal of
the System are encouraged. Individual team members will participate in
the acquisition process at the appropriate time.
Role of the Acquisition Team
Government members of the Team must be empowered to make
acquisition decisions within their areas of responsibility, including
selection, negotiation, and administration of contracts consistent with
the Guiding Principles. In particular, the Contracting Officer must
have the authority, to the maximum extent practicable and consistent
with law, to determine the application of rules, regulations, and
policies, o a specific contract.
The authority to make decisions and the accountability for the
decisions made will be delegated to the lowest level within the System,
consistent with law.
The Team must be prepared to perform the functions and duties
assigned. The government is committed to provide training, professional
development, and other resources necessary for maintaining and
improving the knowledge, skills, and abilities for all Government
participants on the Team, both with regard to their particular area of
responsibility within the System, and their respective role as a team
member. The contractor community is encouraged to do likewise.
The System will foster cooperative relationships between the
government and its contractors consistent with its overriding
responsibility to the taxpayers.
The FAR outlines procurement policies and procedures that are used
by members of the acquisition team. If a policy or procedure, or a
particular strategy or practice is in the best interest of the
Government and is not specifically addressed in the FAR, nor prohibited
by law (statute or case law), Executive Order or other regulation,
Government members of the Team should not assume it is prohibited.
Rather, absence of direction should be interpreted as permitting the
Team to innovate and use sound business judgment that is otherwise
consistent with law and within the limits of their authority.
Steven Kelman,
Administrator.
[FR Doc. 95-1397 Filed 1-19-95; 8:45 am]
BILLING CODE 3110-01-M
