94-25811. Federal Acquisition Regulation (FAR) Rewrite  

  • [Federal Register Volume 59, Number 201 (Wednesday, October 19, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-25811]
    
    
    [[Page Unknown]]
    
    [Federal Register: October 19, 1994]
    
    
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    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: Request for comments.
    
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    SUMMARY: On May 24, 1994, the Board of Directors for the FAR Rewrite 
    Project published a set of core guiding principles in the Federal 
    Register. Comments from that notice have been reviewed and changes made 
    to the principles. In the course of making these changes the Board 
    added another principle to make it clear that if a policy or procedure 
    is not addressed in the FAR, members of the Government acquisition team 
    should not assume it is prohibited. Although the entire statement is 
    being republished for comment, the Board is particularly interested in 
    comments from the public on the new principle.
    
    DATES: Written comments must be received in the Office of Federal 
    Procurement Policy within 30 days after publication of this notice.
    
    ADDRESSES: Susan E. Alesi, Office of Federal Procurement Policy, 725 
    17th Street, NW, Washington, DC, 20503.
    
    FOR FURTHER INFORMATION CONTACT:
    Susan E. Alesi, Office of Federal Procurement Policy, at 202-295-6803.
    
    SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President 
    released the report of the National Performance Review which, among 
    other things, required the Administration to simplify the procurement 
    process by rewriting the FAR, shifting from rigid rules to guiding 
    principles. As a first step, the Board drafted a set of core guiding 
    principles intended to define and guide the Government's general vision 
    for the Federal acquisition process.
        The Board requested comments on the set of core guiding principles 
    and the accompanying discussion through a notice issued in the Federal 
    Register published on May 24, 1994. As a result of that notice the 
    Board received approximately 50 comments from 19 different commentors. 
    The comments ranged from general structural to specific substantive 
    changes. Some editing was done and the Board added a new principle to 
    the statement.
        Some of the more significant changes included: the document was 
    retitled as ``Statement of Guiding Principles For The Federal 
    Acquisition System''; the success paragraph was eliminated; the lead-in 
    to the goals paragraph was changed; the term ``customer'' was 
    clarified; the phrase ``each level of the process'' was changed to 
    ``throughout the process''; the phrase ``using commercial products and 
    services in preference to unique specification'' was replaced with 
    ``maximizing the use of commercial products and services to meet 
    Government requirements''; and the term ``vendor'' was replaced with 
    ``contractor.''
        In addition to these changes the Board is considering another 
    concept under the role of the acquisition team. The intent of the Board 
    is to make it clear that if a policy is not specifically addressed in 
    the FAR, members of the Government acquisition team should not assume 
    that it is prohibited. This concept was added to encourage members of 
    the team to innovate in the course of their procurements.
    
    Statement of Guiding Principles for the 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, members of the Government acquisition team may assume that 
    if a specific policy or procedure is not prohibited by the FAR, law 
    (statute or case law), Executive Order or other regulation, that the 
    policy or procedure is a permissible exercise of authority.
    
    Discussion on the Statement of Guiding Principles for the Federal 
    Acquisition System
    
    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 provided in the Federal Acquisition 
    Regulation (FAR).
    
    Discussion
    
    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 for the Federal Acquisition System
    
     Satisfy the Customer in Terms of Cost, Quality, and Timeliness 
    of the Delivered Product or Service
        The principal 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 
    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 that 
    integrity. 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
    
        Members of the Government Acquisition 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, to 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 is not 
    specifically addressed in the FAR, 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. 94-25811 Filed 10-18-94; 8:45 am]
    BILLING CODE 3110-01-M
    
    
    

Document Information

Published:
10/19/1994
Department:
Federal Procurement Policy Office
Entry Type:
Uncategorized Document
Action:
Request for comments.
Document Number:
94-25811
Dates:
Written comments must be received in the Office of Federal Procurement Policy within 30 days after publication of this notice.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: October 19, 1994