[Federal Register Volume 62, Number 193 (Monday, October 6, 1997)]
[Proposed Rules]
[Pages 52081-52083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26287]
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DEPARTMENT OF AGRICULTURE
48 CFR Parts 426 and 452
[AGAR Case 96-01]
RIN 0599-AA00
Office of Procurement and Property Management; Agriculture
Acquisition Regulation; Preference for Selected Biobased Products
AGENCY: Office of Procurement and Property Management, USDA.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document invites written comments on a proposed amendment
to the Department of Agriculture's Acquisition Regulation (AGAR). We
are proposing to amend the AGAR to establish policy and procedures for
set-asides and preferences for products developed with assistance
provided by the Alternative Agricultural Research and Commercialization
Corporation (AARC).
DATES: Submit comments on or before December 5, 1997.
ADDRESSES: Submit written comments to U.S. Department of Agriculture,
Office of Procurement and Property Management, Procurement Policy
Division, STOP 9303, 1400 Independence Avenue SW, Washington, DC 20250-
9303. See SUPPLEMENTARY INFORMATION section for electronic access
addresses for comments.
FOR FURTHER INFORMATION CONTACT: J. R. Holcombe, Jr., (202) 720-8484.
SUPPLEMENTARY INFORMATION:
I. Background
II. Procedural Requirements
A. Executive Order Nos. 12866 and 12988.
B. Regulatory Flexibility Act.
C. Paperwork Reduction Act.
III. Public Comments
IV. Electronic Access Addresses
I. Background
The AGAR implements the Federal Acquisition Regulation (FAR) (48
CFR Ch. 1) where further implementation is needed, and supplements the
FAR when coverage is needed for subject matter not covered by the FAR.
This proposed rule would amend the AGAR to establish acquisition
preferences for selected biobased products; i.e., nonfood, nonfeed
products made from agricultural and forestry materials and animal by-
products (AGAR Case 96-01).
The Alternative Agricultural Research and Commercialization
Corporation (AARC), a wholly-owned government corporation of the
Department of Agriculture (USDA), provides financial assistance to
private companies and other parties to commercialize biobased products.
Section 1665 of the Food, Agriculture, Conservation, and Trade Act of
1990 (7 U.S.C. 5909), added by section 729 of the Federal Agricultural
Improvement and Reform Act of 1996, authorizes Federal executive
agencies to establish set asides and preferences for biobased products
that have been commercialized with assistance provided by AARC.
Pursuant to the authority provided by Section 1665, USDA proposes to
add subpart 426.70 to the AGAR to establish policies and procedures for
AARC preferences and set-asides.
The following changes to the AGAR are proposed:
(a) AGAR part 426 is proposed to be added, with a subpart 426.70,
Preference for Selected Biobased Products. This proposed subpart
establishes policy and procedures for preferences and set-asides for
products developed with AARC assistance.
(b) Provisions 452.226-70, Preferred Products, 452.226-71, Set-
aside for Mandatory Products, and 452.226-72, Price Preference for
Award, are proposed to be added to AGAR part 452.
II. Procedural Requirements
A. Executive Order Nos. 12866 and 12988
A work plan was prepared for this proposed regulation and submitted
to the Office of Management and Budget pursuant to Executive Order No.
12866. The proposed rule has been determined to be not significant for
the purposes of Executive Order No. 12866. Therefore, the proposed rule
has not been reviewed by the Office of Management and Budget. This rule
has been reviewed in accordance with Executive Order No. 12988, Civil
Justice Reform. The proposed rule meets the applicable standards in
section 3 of Executive Order No. 12988.
B. Review Under the Regulatory Flexibility Act
This rule was reviewed under the Regulatory Flexibility Act, 5
U.S.C. 601-611, which requires preparation of a regulatory flexibility
analysis for any rule which is likely to have significant economic
impact on a substantial number of small entities. USDA certifies that
this proposed rule will not have a significant economic effect on a
substantial number of small entities, and, therefore, no regulatory
flexibility analysis has been prepared. However, comments from small
entities concerning parts affected by the proposed rule will be
considered. Such comments must be submitted separately and cite 5
U.S.C. 609 (AGAR Case 96-01) in correspondence.
C. Paperwork Reduction Act
No information collection or recordkeeping requirements are imposed
on the public by this proposed rule. Accordingly no OMB clearance is
required by section 350(h) of the Paperwork Reduction Act, 44 U.S.C.
3501, et. seq., or OMB's implementing regulation at 5 CFR Part 1320.
III. Public Comments
Interested persons are invited to participate in this rule making
by submitting views and comments with respect to the proposed AGAR
revision set out in this notice. All written comments will be carefully
assessed and fully considered prior to publication of the final rule.
IV. Electronic Access Addresses
You may submit comments by sending electronic mail (E-mail) to
[email protected], or via fax at (202) 720-8972.
[[Page 52082]]
List of Subjects in 48 CFR Parts 426 and 452
Agriculture, Government procurement.
For the reasons set out in this preamble, the Department proposes
to amend Chapter 4 of Title 48 of the Code of Federal Regulations as
follows:
Add Part 426 to subchapter D to read as follows:
PART 426--OTHER SOCIOECONOMIC PROGRAMS
Subpart 426.70--Preference for Selected Biobased Products
Sec.
426.7000 Scope of subpart.
426.7001 Applicability.
426.7002 Authority.
426.7003 Policy.
426.7004 Definitions.
426.7005 Preference list.
426.7006 Use of a set-aside or a price preference.
426.7007 Use of a technical evaluation preference.
426.7008 Identification of preferred products.
426.7009 Contract provisions.
Authority: 5 U.S.C. 301; 7 U.S.C. 5909; 40 U.S.C. 486(c)
Subpart 426.70--Preference for Selected Biobased Products
426.7000 Scope of subpart.
This subpart supplements the FAR to implement the set-asides and
preferences described in section 1665 of the Food, Agriculture,
Conservation and Trade Act of 1990 (7 U.S.C. 5909).
426.7001 Applicability.
This subpart applies to USDA and all of its components, including
corporations.
426.7002 Authority.
Section 1665 of the Food, Agriculture, Conservation and Trade Act
of 1990 (7 U.S.C. 5909) authorizes USDA to establish set-asides and
other preferences for products that have been assisted by the
Alternative Agricultural Research and Commercialization Corporation
(AARC).
426.7003 Policy.
(a) AARC provides financial assistance to private companies and
other parties to commercialize nonfood, nonfeed products made from
agricultural and forestry materials and animal by-products (biobased
products). Biobased products by their nature are environmentally
friendly, and, in many instances, use agricultural material that
otherwise would be wasted. It is the policy of USDA to acquire AARC
products to the maximum extent practicable. This policy applies to all
acquisitions of products regardless of dollar value.
(b) USDA shall satisfy its requirements for products the same or
essentially the same as AARC products by applying the preferences or
set-asides described by this subpart.
426.7004 Definitions.
As used in this subpart--
AARC products are products developed with assistance provided by
AARC as authorized by 7 U.S.C. 5905.
Acquisitions involving the use of products means an acquisition in
which a Government contractor uses products in contract performance.
Acquisitions of products means an acquisition of one or more
products for the use of the Government.
Price preference means an amount, expressed as a percentage, to be
used in the evaluation of offers in an acquisition of products.
Set-aside means a requirement that vendors responding to a
solicitation offer AARC products.
Solicitation includes actions taken under parts 12, 13, 14, 15, and
36 of the Federal Acquisition Regulation.
Technical evaluation preference means the use of an award factor or
subfactor in which the Government expresses its preference for AARC
products.
426.7005 Preference list.
(a) The Office of Procurement and Policy Management (OPPM) and AARC
jointly shall establish and maintain a Preference List for AARC
products.
(b) The Preference List shall contain the list of preferred
products, source information for these products, the type(s) of
preference to be applied, the beginning and ending dates for the use of
preferences, and other terms established to define the preference given
to a product.
(c) The Preference List will be publicized within USDA by means of
AGAR Advisories (see 401.371). Copies of the Preference List may be
obtained from OPPM. The Preference List will also be posted on the
World Wide Web at the USDA Procurement Home Page.
426.7006 Use of a set-aside or a price preference.
Acquisitions for products the same or essentially the same as those
products appearing on the Preference List shall either be set-aside
exclusively or shall include a price preference for those products
shown on the Preference List. The actual price preference to be used
shall be determined by the requiring office but may not exceed the
percentage shown on the Preference List.
426.7007 Use of a technical evaluation preference.
Acquisitions involving the use of products the same or essentially
the same as those products appearing on the Preference List shall
include a technical evaluation preference, if authorized in the
Preference List. The technical evaluation preference may be determined
by the contracting officer specifically for each acquisition.
426.7008 Identification of preferred products.
(a) Products subject to a set-aside or technical preference shall
be separately listed in the schedule, specification, or performance
work statement.
(b) Products subject to a price preference shall be separately
listed in the schedule.
426.7009 Contract provisions.
(a) Each solicitation containing a price or technical preference
under this subpart shall contain the provision 452.226-70, Preferred
Products.
(b) Each solicitation for products subject to a set-aside shall
include the provision 452.226-71, Set-Aside For Mandatory Products.
(c) Each solicitation for products subject to a price preference
shall include the provision 452.226-72, Price Preference for Award.
(d) Solicitations for products may contain both the provision in
452.226-71 and the provision found in 452.226-72.
(e) The provisions prescribed in this section are not required for
acquisitions accomplished using the purchase card as a stand alone
tool.
PART 452--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1. The authority citation for Part 452 continues to read as
follows:
Authority: 5 U.S.C. 301 and 40 U.S.C. 486(c).
2. Add sections 452.226-70, 452.226-71, and 452.226-72 to read as
follows:
452.226-70 Preferred Products.
As prescribed in 426.7009(a), include the following provision:
PREFERRED PRODUCTS (XXXX 1997)
Specific products required by this solicitation and resulting
contract, are subject to a price or a technical preference. A list
of these products, the specific preference, and
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the manufacturer or producer is included below.
Contract Line Item (or other location in this solicitation):*
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Product:*--------------------------------------------------------------
Manufacturer/Producer:*------------------------------------------------
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Preference:*
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(End of provision)
*For each line item to which a preference applies. Contracting
officer shall insert appropriate information.
452.26-71 Set-aside for Mandatory Products.
As prescribed in 426.7009(b), include the following provision.
SET-ASIDE FOR MANDATORY PRODUCTS (XXXX 1997)
Specific products are set-aside as mandatory products. These are
separately listed in the schedule, specifications, or performance
work statement. Specific terms governing the set-aside, and source
information for the products are shown below.
Contract Line Item (or other location in this solicitation):*
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Product:*--------------------------------------------------------------
Manufacturer/Producer:*
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Set-Aside Terms:*------------------------------------------------------
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(End of provision)
* For each line item to which a set-aside applies, Contracting
officer shall insert appropriate information.
452.226-72 Price Preference for Award.
As prescribed in 426.7009(c), include the following provision:
Price Preference for Award (XXXX 1997)
Certain products listed in the schedule of this solicitation are
subject to a price preference. A list of these products, the amount
of the preference, and source information is included in provision
452.226-70, Preferred Products. For purposes of evaluation of offers
only, the offered prices for these products will be reduced by the
price preference listed in the solicitation.
(End of provision)
W.R. Ashworth,
Director, Office of Procurement and Property Management.
[FR Doc. 97-26287 Filed 10-3-97; 8:45 am]
BILLING CODE 3410-XE-P
