[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Proposed Rules]
[Page 649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-250]
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 /
Proposed Rules
[[Page 649]]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 44
[FAR Case 97-016]
RIN 9000-AH82
Federal Acquisition Regulation; Contractor Purchasing System
Review Exclusions
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council are proposing to amend the Federal
Acquisition Regulation (FAR) to eliminate unnecessary contractor
purchasing system reviews (CPSRs). 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.
DATES: Comments should be submitted on or before March 9, 1998 to be
considered in the formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVRS), 1800 F Street,
NW, Room 4035, Washington, DC 20405.
E-mail comments submitted over Internet should be addressed to:
farcase.97-016@gsa.gov.
Please cite FAR case 97-016 in all correspondence related to this
case.
FOR FURTHER INFORMATION CONTACT:
The FAR Secretariat, Room 4035, GS Building, Washington, DC 20405,
(202) 501-4755, for information pertaining to status or publication
schedules. For clarification of content, contact Ms. Linda Klein,
Procurement Analyst, at (202) 501-3775. Please cite FAR case 97-016.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends (1) FAR 44.302 to exclude competitively
awarded firm-fixed-price and competitively awarded fixed-price with
economic price adjustment contracts for the dollar amount used to
determine if a contractor's level of sales to the Government warrants
the conduct of a CPSR; and (2) FAR 44.303 to exclude subcontracts
awarded by a contractor exclusively in support of competitively awarded
firm-fixed-price and competitively awarded fixed-price with economic
price adjustment contracts from evaluation during a CPSR.
B. Regulatory Flexibility Act
This proposed rule is not expected to 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 rule
only applies to a contractor if its sales to the Government (excluding
competitively awarded firm-fixed-price and competitively awarded fixed-
price with economic price adjusted contracts) are expected to exceed
$25 million during the next year. and no small entities meet this
criteria. Therefore, an Initial Regulatory Flexibility Analysis has not
been performed. Comments from small entities concerning the affected
FAR subpart will be considered in accordance with 5 U.S.C. 610 of the
Act. Such comments must be submitted separately and should cite 5
U.S.C. 601, et seq. (FAR case 97-016), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does apply not apply because the
proposed 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 Part 44
Government procurement.
Dated: December 30, 1997.
Linda Klein,
Acting Director, Federal Acquisition Policy Division.
Therefore, it is proposed that 48 CFR Part 44 be amended as set
forth below:
PART 44--SUBCONTRACTING POLICIES AND PROCEDURES
1. The authority citation for 48 CFR Part 44 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
2. Section 44.302 is revised to read as follows:
44.302 Requirements.
(a) The ACO shall determine the need for a CPSR based on, but not
limited to, the past performance of the contractor, and the volume,
complexity and dollar value of subcontracts. If a contractor's sales to
the Government (excluding competitively awarded firm-fixed price and
competitively awarded fixed-price with economic price adjustment
contracts) are expected to exceed $25 million during the next year,
perform a review to determine if a CPSR is needed. Sales include those
represented by prime contracts, subcontracts under Government prime
contracts, and modifications. Generally, a CPSR is not performed for a
specific contract. The head of the agency responsible for contract
administration may raise or lower the $25 million review level if it is
considered to be in the Government's best interest.
(b) Once an initial determination has been made under paragraph (a)
of this section, at least every 3 years the ACO shall determine whether
a purchasing system review is necessary. If necessary, the cognizant
contract administration office will conduct a purchasing system review.
3. Section 44.303 is amended by revising the introductory paragraph
to read as follows:
44.303 Extent of review.
A CPSR requires an evaluation of the contractor's purchasing
system. Unless segregation of subcontracts is impracticable, this
evaluation shall not include subcontracts awarded by the contractor
exclusively in support of competitively awarded firm-fixed price or
competitively awarded fixed-price with economic price adjustment
Government contracts. The considerations listed in 44.202-2 for consent
evaluation of particular subcontracts also shall be used to evaluate
the contractor's purchasing system, including the contractor's
policies, procedures, and performance under that system. Special
attention shall be given to--
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[FR Doc. 98-250 Filed 1-5-98; 8:45 am]
BILLING CODE 6820-EP-U
