[Federal Register Volume 64, Number 20 (Monday, February 1, 1999)]
[Rules and Regulations]
[Pages 4788-4790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1973]
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GENERAL SERVICES ADMINISTRATION
48 CFR Parts 511, 516, 542, and 552
[APD 2800.12A, CHGE 81]
RIN 3090-AG81
General Services Administration Acquisition Regulation;
Streamlining Administration of Federal Supply Service (FSS) Multiple
Award Schedule (MAS) Contracts and Clarifying Marking Requirements
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Interim rule with request for comments.
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SUMMARY: The General Services Administration Acquisition Regulation
(GSAR) is amended to clarify requirements for marking deliveries under
contracts that provide for delivery to both civilian and military
locations, clarify the contracting activities that are authorized to
place orders under Federal Supply Service (FSS) contracts, allowing
Procuring Contracting Officers (PCOs) in FSS in authorize
Administrative Contracting Officers (ACOs) to issue cure or show cause
notices, revise the time for submission to close-out reports under FSS
multiple award schedule (MAS) contracts, and simplify the process for
deleting items from FSS MAS contracts.
DATES: Effective date: February 1, 1999. Comments should be submitted
in writing to the address shown below on or before April 2, 1999.
ADDRESSES: Mail comments to General Services Administration, Office of
Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F
Street, NW., Room 4012, Washington, DC 20405.
FOR FURTHER INFORMATION CONTACT:
Gloria Sochon, GSA Acquisition Policy Division, (202) 208-6726.
SUPPLEMENTARY INFORMATION:
A. Background
GSA is amending the GSAR for clarification and to delete
unnecessary review requirements. GSAR 511.204 is amended to clarify the
applicability of the clause at GSAR 552.211-73, Marking, so that
deliveries are properly labeled for delivery at military or civilian
locations. GSAR 516.505 and 552.216-73 are amended to define activities
authorized to place orders under an FSS schedule contract when the
contract provides that ordering activities may place orders directly.
They are also amended to reflect that schedule contracts may provide
for either or both task and delivery orders. GSAR 542.302 is amended to
allow FSS PCOs to authorize ACOs to issue show cause or cure notices.
This will streamline FSS's internal processes and allow for quicker
response to contractor performance problems. GSAR 552.238-72 is amended
to change the time for submission to contract close-out reports to
eliminate a potential conflict between the required report date and the
final date of performance of delivery orders. GSAR 552.238-76 is
amended to change the reference to ``maximum order limit'' to ``maximum
order threshold.'' This is an administrative change to make 552.238-76
consistent with Federal Acquisition Regulation (FAR) subpart 8.4. GSAR
552.243-72 is amended to allow FSS MAS contractors to delete items
without prior approval. This will remove a burdensome and time-
consuming procedure that does not have value for the Government. GSAR
552.243-72 is also revised to give contractors the option of publishing
supplemental price lists as modifications occur or on a quarterly
basis. This recognizes that many contractors now issue electronic
notices of changes and that modifications occur with such frequency
that grouping changes to periodic updates in paper is more efficient
for both contractors and the Government. GSAR 552.243-72 is also
revised to update a FAR reference and to delete a reference to an
obsolete cause.
B. Executive Order 12866
This regulatory action was not subject to Office of Management and
Budget review under Executive Order 12866, dated September 30, 1993,
and is not a major rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
The GSA certifies that this interim rule will not 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. The change will benefit all FSS MAS contractors, large and small,
by streamlining administrative requirements.
--The change to the time for submission of contract close-out reports
eliminates a potential conflict between the required report date and
the final date of performance of delivery orders; this avoids placing a
potentially impracticable requirement on FSS contractors.
--Updating the definition of activities authorized to place orders
under FSS schedule contracts is necessary to accurately reflect current
authority and avoid inconsistency with other order FSS solicitation and
contract terms.
--Allowing FSS MAS contractors to delete items without prior approval
will remove a burdensome and time-consuming procedure that does not
have value for the Government. It allows contractors to provide
potential customers the most current information on contract items.
--Contractors will have the option of publishing supplemental price
lists as modifications occur or on a quarterly basis; letting them
choose the most efficient method based on their individual
circumstances.
D. Paperwork Reduction Act
The revised clause at 552.216-73 contains an information collection
requirement subject to the Paperwork Reduction Act (44 U.S.C. 3501 et
seq.). However, the revisions to the clause made by this rule do not
affect the information collection requirement which was approved
previously by OMB and assigned control number 3090-0248. The revised
clause at 552.238-72, Contractor's Report of Sales, also contains an
information collection requirement subject to the Paperwork Reduction
Act. However, the revisions to the clause made by this rule do not
affect the information collection requirement which was approved
[[Page 4789]]
previously by OMB and assigned control number 3090-0121. The other
changes in this rule do not impose recordkeeping or information
collection requirements, or otherwise collect information from
offerors, contractors, or members of the public that require approval
of the Office of Management and Budget under 44 U.S.C. 3501 et seq.
E. Determination To Issue an Interim Rule
Urgent and compelling reasons exist to promulgate this interim rule
without prior opportunity for public comment. GSA believes this rule
will provide significant benefits to both the Federal government and
GSA contractors:
--The change to 511.204 clarifies the applicability of the clause at
552.211-73, Marking, so that deliveries are properly labeled for
delivery at military or civilian locations, helping to avoid delays or
misdeliveries.
--Updating the definition of activities authorized to place orders
under FSS schedule contracts is necessary to accurately reflect current
authority and avoid inconsistency with other FSS solicitation and
contract terms.
--Allowing FSS PCOs to authorize ACOs to issue show cause or cure
notices streamlines FSS's internal processes and allows for quicker
response to contractor performance problems.
--The change to the time for submission of contract close-out reports
eliminates a potential conflict between the required report date and
the final date of performance of delivery orders; this avoids placing a
potentially impracticable requirement on FSS contractors.
--The change to allow FSS MAS contractors to delete items without prior
approval will remove a burdensome and time-consuming procedure that
does not have value for the Government. Preapproval of deletions is not
necessary either for ascertaining cost reasonableness or to maintain
control over the contract. Quicker notification of deletions will in
fact help Federal agencies avoid ordering discontinued items.
--Giving contractors the option of publishing supplemental price lists
as modifications occur or on a quarterly basis allows contractors to
choose the most efficient method of notification and reduces the filing
burden on Government users.
However, Pursuant to Pub. L. 98-577 and FAR 1.501, GSA will
consider public comments received in response to this interim rule in
the formation of the final rule.
List of Subjects in 48 CFR Parts 511, 516, 542, and 552
Government procurement.
Accordingly, 48 CFR is amended as follows:
1. The authority citation for 48 CFR parts 511, 516, 542, and 552
continues to read as follows:
Authority: 40 U.S.C. 486(c).
PART 511--DESCRIBING AGENCY NEEDS
2. Section 511.204 is amended by revising paragraph (c) to read as
follows:
511.204 Solicitation provisions and contract clauses.
* * * * *
(c) The contracting officer shall include the clause at 552.211-73,
Marking, in solicitations and contracts for supplies when deliveries
may be made to both civilian and military activities and the contract
amount is expected to exceed the simplified acquisition threshold.
* * * * *
PART 516--TYPES OF CONTRACTS
3. Section 516.505 is amended by revising paragraph (a) to read as
follows:
516.505 Contract clauses.
(a) The contracting officer shall insert the clause at 552.216-73.
Placement of Orders, in solicitations and contracts for stock or
special order program items when the contract authorizes FSS and other
agencies to issue delivery orders. If only FSS will issue delivery
orders under any of its supply programs, use Alternate I. If a Federal
Supply Schedule contract (single or multiple award) permits other
organizations to issue task or delivery orders, use Alternate II.
* * * * *
PART 542--CONTRACT ADMINISTRATION
4. Section 542.302 is amended by revising paragraph (b)(5) to read
as follows:
542.302 Contract administration functions.
* * * * *
(b) * * *
* * * * *
(5) Issue cure or show cause notices (only applies to ACOs in FSS).
* * * * *
PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 552.216-73 is amended by revising Alternate II to read
as follows:
552.216-73 Placement of orders.
* * * * *
Alternate II (Feb. 1999). As prescribed in 516.505(a), substitute
the following paragraph (a) for paragraph (a) of this basic clause:
(a) The organizations listed below may place orders under this
contract. Questions regarding organizations authorized to use this
schedule should be directed to the Contracting Officer.
(1) Executive agencies.
(2) Other Federal agencies.
(3) Mixed-ownership Government corporations.
(4) The District of Columbia.
(5) Government contractors authorized in writing by a Federal
agency pursuant to 48 CFR 51.1.
(6) Other activities and organizations authorized by statute or
regulation to use GSA as a source of supply.
6. Section 552.238-72 is amended by revising the date of the clause
and paragraph (e) to read as follows:
552.238-72 Contractor's report of sales.
* * * * *
CONTRACTOR'S REPORT OF SALES (FEB 1999)
* * * * *
(e) The report is due 30 days following the completion of the
reporting period. The Contractor must also provide a close-out
report within 120 days after the expiration of the contract. The
contract expires upon physical completion of the last, outstanding
task or delivery order of the contract. The close-out report must
cover all sales not shown in the final quarterly report and
reconcile all errors and credits. If the Contractor reported all
contract sales and reconciled all errors and credits on the final
quarterly report, then show zero sales in the close-out report.
(End of Clause)
7. Section 552.238-76 is amended by revising the date of the clause
and paragraph (d)(1) to read as follows:
552.238-76 Price reductions.
* * * * *
PRICE REDUCTIONS (FEB 1999)
* * * * *
(d) * * *
(1) To commercial customers under firm, fixed-price definite
quantity contracts with specified delivery in excess of the maximum
order threshold specified in this contract;
* * * * *
8. Section 552.243-72 is amended by revising the date of the clause
and paragraphs (b)(1) (v) and (vi), the first sentence of (b)(3), (c),
(d) and (e) to read as follows:
552.243-72 Modifications (Multiple Award Schedule).
* * * * *
[[Page 4790]]
MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1999)
* * * * *
(b) * * *
(1) * * *
(v) Production point(s) for the new item(s) or the item(s) under
the new SIN(s) must be submitted if required by 52.215-6, Place of
Performance.
(vi) Hazardous material information (if applicable) must be
submitted as required by 52.223-3 (ALT I), Hazardous Material
Identification and Material Safety Data.
* * * * *
(3) Price Reduction, The Contractor shall indicate whether the
price reduction falls under item (i), (ii), or (iii) of paragraph
(c)(1) of the Price Reductions clause at 552.238-76. * * *
(c) Effective Dates. The effective date of any modification is
the date specified in the modification, except as otherwise provided
in the Price Reductions clause at 552.238-76.
(d) Electronic File Updates. The Contractor shall update
electronic file submissions to reflect all modifications. For
additional items or SINs, the Contractor shall obtain the
contracting officer's approval before transmitting changes. Contract
modifications will not be made effective until the Government
receives the electronic file updates. The Contractor may transmit
price reductions, item deletions, and corrections without prior
approval. However, the Contractor shall notify the contracting
officer as set forth in the Price Reductions clause at 552.238-76.
(e) Amendments to Paper Federal Supply Schedule Price Lists.
(1) The Contractor must provide supplements to its paper price
lists, reflecting the most current changes. The Contractor may
either:
(i) Distribute a supplemental paper Federal Supply Schedule
Price List within 15 days after the effective date of each
modification.
(ii) Distribute cumulative supplements. The period covered by a
cumulative supplement is at the discretion of the Contractor, but
may not exceed three months from the effective date of the earliest
modification. The Contractor must distribute a cumulative supplement
within 15 days from the date of the latest modification covered.
(2) At a minimum, the Contractor shall distribute each
supplement to those ordering activities that previously received the
basic document. In addition, the Contractor shall submit two copies
of each supplement to the contracting officer and one copy to the
FSS Schedule Information Center.
(End of Clause)
Dated: January 21, 1999.
Ida M. Ustad,
Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 99-1973 Filed 1-29-99; 8:45 am]
BILLING CODE 6820-01-M
