96-3593. General Services Administration Acquisition Regulation; Acquisition of Commercial Items  

  • [Federal Register Volume 61, Number 33 (Friday, February 16, 1996)]
    [Rules and Regulations]
    [Pages 6164-6173]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-3593]
    
    
    
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    GENERAL SERVICES ADMINISTRATION
    
    48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515, 538, 539, 543, 
    546, 552 and 570
    
    [APD 2800.12A, CHGE 70]
    RIN 3090-AF86
    
    
    General Services Administration Acquisition Regulation; 
    Acquisition of Commercial Items
    
    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 implement Items I and III of Federal Acquisition 
    Circular 90-32 which amended the Federal Acquisition Regulation (FAR) 
    to implement the portions of the Federal Acquisition Streamlining Act 
    of 1994 (Pub. L. 103-355) dealing with the Truth in Negotiations Act 
    and with the acquisition of commercial items. The GSAR is revised to 
    conform to the FAR as revised by FAC 90-32 and to implement portions of 
    the FAR where necessary to provide agency procedures. The Multiple 
    Award Schedule (MAS) Policy Statement of October 1, 1982 (47 FR 50242, 
    November 5, 1982) is canceled.
    
    DATES: Effective Date: March 4, 1996. (See Supplementary Information 
    for further guidance.)
        Comment Date: Comments should be submitted in writing to the 
    address shown below on or before April 16, 1996 to be considered in 
    formulating the final rule.
    
    ADDRESSES: Interested parties should submit written comments to the 
    Office of Acquisition Policy (MV), General Services Administration, 
    Room 4010, 18th & F Streets, NW, Washington, DC 20405.
    
    FOR FURTHER INFORMATION CONTACT:
    Les Davison, Office of GSA Acquisition Policy, (202) 501-1224.
    
    SUPPLEMENTARY INFORMATION: All new solicitations for commercial items 
    and open season solicitations issued under the multiple award schedule 
    program issued after March 4, 1996 shall conform to this interim rule. 
    To the maximum extent practical, solicitations for commercial items and 
    open season solicitations, that have been issued but where no contract 
    has been awarded shall be amended to conform to this interim rule. 
    However, offerors shall not be required to resubmit information on 
    commercial sales practices and any requests for additional information 
    shall be limited to the minimum needed. Existing MAS contracts may be 
    modified, at the discretion of contracting officers, to conform to all 
    or part of this interim rule.
    
    A. Determination To Issue an Interim Rule
    
        A determination has been made under the authority of the 
    Administrator of General Services that urgent and compelling reasons 
    exist to publish an interim rule prior to affording the public an 
    opportunity to comment. Federal Acquisition Circular 90-32 (60 FR 
    48206, September 18, 1995) revised the Federal Acquisition Regulation 
    (FAR) to implement Title VIII of Public Law 103-355. Title VIII of 
    Public Law 103-355 contained requirements for the acquisition of 
    commercial items and required publication of implementing FAR revisions 
    by October 1, 1995. The FAR rule became available for use on October 1, 
    1995, and is mandatory for use by all Federal agencies in commercial 
    items solicitations issued after December 1, 1995. This GSAR rule 
    implements GSA unique requirements and revises the GSAR to bring it 
    into conformance with the FAR. Immediate GSAR coverage is needed to 
    permit GSA contracting activities to comply with Pub. L. 103-355 and 
    the implementing FAR requirements pertaining to the acquisition of 
    commercial items and Truth in Negotiations Act.
    
    B. Executive Order 12866
    
        This rule was not submitted to the Office of Management and Budget 
    (OMB) because it is not a significant rule as defined in Executive 
    Order 12866, Regulatory Planning and Review.
    
    C. Regulatory Flexibility Act
    
        This interim rule is expected to have a positive 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 
    simplifies procedures for GSA acquisition of commercial items. An 
    Initial Regulatory Flexibility Analysis (IRFA) has been prepared and 
    may be obtained from the address stated above. A copy of the IRFA has 
    been submitted to the Chief Counsel for Advocacy of the Small Business 
    Administration. Comments from small entities will be considered in 
    accordance with Section 610 of the Act.
    
    D. Paperwork Reduction Act
    
        The Paperwork Reduction Act applies to this interim rule. The 
    information collection requirements in 515.804-8 and related provisions 
    and clauses have been approved by the Office of Management and Budget 
    (OMB) under OMB Control Number 9000-0013. The information collection 
    requirements in 552.212-70, Preparation of Offer (Multiple Award 
    Schedule), represent customary commercial practice and are approved 
    under OMB Control Number 3090-0250.
    
    List of Subjects in 48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 
    515, 538, 539, 543, 546, 552, and 570
    
        Government procurement.
    
        Accordingly, 48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515, 
    538, 539, 543, 546, and 552 and 570 are amended as follows:
    
    PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION 
    SYSTEM
    
        1. The authority citation for 48 CFR Parts 501, 504, 507, 510, 511, 
    512, 514, 515, 538, 539, 543, 546, 552 and 570 continues to read as 
    follows:
    
        Authority: 40 U.S.C. 486(c).
    
    
    501.105  [Amended]
    
        2. Section 501.105 is amended by removing the following GSAR 
    references and corresponding OMB control numbers: 510.004-70-3090-0203, 
    510.011(i)-3090-0246, 
    
    [[Page 6165]]
    512.104(a)(2) and 512.104(a)(4)-3090-0204.
    
    PART 504--ADMINISTRATIVE MATTERS
    
        3. Section 504.803 is amended by revising paragraphs (a)(12) and 
    (a)(25) to read as follows:
    
    
    504.803  Contents of contract files.
    
        (a) * * *
        (12) Cost or pricing data and information other than cost or 
    pricing data. Where the requirement for submission of cost or pricing 
    data is waived, as provided in FAR 15.804-1(b)(5), the waiver and 
    documentation supporting the waiver should be filed under this tab.
    * * * * *
        (25) Any required approvals--GSA 1535, Recommendation for Award, or 
    documentation of approval of Subcontracting Plan (as applicable). The 
    contracting officer's and any other departing procurement official's 
    certificate of procurement integrity, required by FAR 3.104-7(a) and 48 
    CFR 503.104-7 and the record of individuals authorized access to 
    proprietary or source selection information, required by FAR 3.104-
    5(d)(2) and 3.104-9(e)(iii) should be filed under this tab.
    * * * * *
    
    PART 507--ACQUISITION PLANNING
    
    
    507.103  [Amended]
    
        4. Section 507.103 is amended by removing ``510.002'' and inserting 
    ``48 CFR 511.002''.
        5. Part 510 heading is revised to read as follows:
    
    PART 10--MARKET RESEARCH
    
    
    510.001  [Redesignated as 511.001]
    
        6. Section 510.001 is redesignated as 511.001.
    
    
    510.002  [Redesignated as 511.002 and amended]
    
        7. Section 510.002 is redesignated as 511.002 and the first 
    sentence is amended by removing ``FAR 10.002(c)'' and inserting ``FAR 
    11.002(b).''
    
    
    510.004  [Removed]
    
    
    510.004-70  [Removed]
    
    
    510.004-71  [Removed]
    
    
    510.007  [Removed]
    
    
    510.007-70  [Removed]
    
        8. Sections 510.004, 510.004-70, 510.004-71, 510.007 and 510.007-70 
    are removed.
    
    
    510.011  [Redesignated as 511.204 and amended]
    
        9. Section 510.011 is redesignated as 511.204 and paragraph (a) is 
    amended by removing ``552.210-70'' and inserting ``48 CFR 552.211-
    711''; by removing ``552.210-71'' and inserting ``48 CFR 552.211-72'' 
    in paragraph (b); by removing paragraphs (c) and (d); by redesignating 
    paragraph (e) as (c) and in newly designated paragraph (c) removing 
    ``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating 
    paragraph (f) as (d), and in newly designated paragraph (d) removing 
    ``552.210-76'' and inserting ``48 CFR 552.211-74'', and by removing 
    ``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating 
    paragraph (g) as (e) and in newly designated paragraph (e), by removing 
    ``552.210-77'' and inserting ``48 CFR 552.211-75''; by redesignating 
    paragraph (h) as (f) and in newly designated paragraph (f) removing 
    ``552.210-78'' and inserting ``48 CFR 552.211-76''; by redesignating 
    paragraph (i) as (g), and in newly designated paragraph (g) removing 
    ``552.210-79'' and inserting ``48 CFR 552.211-77.''
    
    
    510.070  [Removed]
    
    
    510.070-1  [Removed]
    
    
    510.070-2  [Removed]
    
    
    510.070-3  [Removed]
    
    
    510.070-4  [Removed]
    
    
    510.071  [Removed]
    
    PART 510--[RESERVED]
    
        10. Sections 510.070, 510.070-1, 510.070-2, 510.070-3, 510.070-4 
    and 510.071 are removed and Part 510 is reserved.
        11. Part 511 heading is revised to read as follows:
    
    PART 511--DESCRIBING AGENCY NEEDS
    
    
    511.003  [Removed]
    
    
    511.070  [Removed]
    
        12. Sections 511.003 and 511.070 are removed.
        13. Subpart 511.1 consisting of sections 511.103 and 511.170 are 
    added to read as follows:
    
    Subpart 511.1--Selecting and Developing Requirements Documents
    
    Sec.
    511.103  Market acceptance.
    511.170  Use of brand name or equal product descriptions.
    
    Subpart 511.1--Selecting and Developing Requirements Documents
    
    
    511.103  Market acceptance.
    
        The contracting officer may require offerors to meet market 
    acceptance criteria in accordance with FAR 11.103 when such criteria 
    determined necessary to satisfy the agency's needs.
    
    
    511.170  Use of brand name or equal product descriptions.
    
        (a) Policy. When a ``brand name or equal'' purchase description is 
    used the purchase description should--
        (1) Cite all brand name products known to be acceptable and of 
    current manufacture;
        (2) Specify each physical or functional characteristic essential to 
    the intended use of the product including permissible tolerances;
        (3) Avoid specifying characteristics that cannot be shown to 
    materially affect the intended end use and which unnecessarily restrict 
    competition; and
        (4) Give prospective offerors the opportunity to offer products 
    other than those specifically referenced by brand name, as long as they 
    meet the needs of the Government in essentially the same manner as the 
    brand name product.
        (b) Solicitation provisions. The solicitation--
        (1) May require bid samples for ``or equal'' offers, but not for 
    ``brand name'' offers.
        (2) Must provide for full consideration and evaluation of ``or 
    equal'' offers against the salient characteristics specified in the 
    purchase description. Do not reject offers for minor differences in 
    design, construction, or features which do not affect the suitability 
    of the product for its intended use.
        (3) Must include the following immediately after the item 
    description--
    
    Offering on:
    
    Manufacturer's Name----------------------------------------------------
    Brand------------------------------------------------------------------
    Model or Part No.------------------------------------------------------
    
        (4) Should include the following notice, unless bid samples are 
    required for ``or equal'' offers, in the item listing after each brand 
    name or equal item (or component part) or at the bottom of each page 
    listing several items:
    
        OFFERORS OFFERING OTHER THAN BRAND NAME ITEMS IDENTIFIED HEREIN 
    MUST PROVIDE ADEQUATE INFORMATION TO ENSURE THAT A DETERMINATION CAN 
    BE MADE AS TO EQUALITY OF THE PRODUCT(S) OFFERED.
    
        (c) Contract clause. The contracting officer shall include a clause 
    substantially the same as the clause at 48 CFR 552.211-70, Brand Name 
    or Equal, when a brand name or equal 
    
    [[Page 6166]]
    purchase description is used. When component parts or an end item are 
    described by brand name or equal descriptions and application of the 
    clause to some or all of the components is impracticable, either do not 
    use the clause or limit its application to specified components.
        14. Subpart 511.2 is added to read as follows:
    
    Subpart 511.2--Using and Maintaining Requirements Documents
    
    PART 512--ACQUISITION OF COMMERCIAL ITEMS
    
        15. Part 512 heading is revised as set forth above.
    
    
    Subpart 512.1  [Redesignated as Subpart 511.4]
    
    
    512.101  [Redesignated as 511.401]
    
    
    512.104  [Redesignated as 511.404 and amended]
    
        15a. Subpart 512.1 is redesignated as subpart 511.4, section 
    512.101 is redesignated as 511.401, and section 512.104 is redesignated 
    as 511.404.
        16. Newly designated section 511.404 is amended by redesignating 
    paragraph (a)(5) as paragraph (a)(6) and amending paragraph (a)(6) by 
    removing ``552.212-72'' and inserting ``48 CFR 552.211-83''; by 
    redesignating paragraph (a)(4) as paragraph (a)(5), and amending 
    paragraph (a)(5) by removing ``552.212-71'' and inserting ``48 CFR 
    552.211-82''; by redesignating paragraph (a)(3) as paragraph (a)(4) and 
    amending paragraph (a)(4) by removing ``552.212-70'' and inserting ``48 
    CFR 552.211-81'' and by removing ``552.212-72'' and inserting ``48 CFR 
    552.211-83''; by removing ``552.212-1(a)'' in paragraph (a)(1) and 
    inserting ``48 CFR 552.211-1''; amending paragraph (b) by removing 
    ``552.212-74'' and inserting ``48 CFR 552.211-84''; and by revising 
    paragraph (a)(2) and adding a new paragraph (a)(3) to read as follows:
    
    
    511.404  Contract clauses.
    
        (a) * * *
        (2) 48 CFR 552.211-78, Commercial Delivery Schedule (Multiple Award 
    Schedule), in solicitations issued and contracts awarded under the 
    multiple award schedule program.
        (3) 48 CFR 552.211-79, Acceptable Age of Supplies, or 48 CFR 
    552.211-80, Age on Delivery, in solicitations and contracts if the 
    contractor will be required to furnish shelf-life items within a 
    specified number of months from the date of manufacture or production 
    of the supplies. (See 101-27.206-2 of the Federal Property Management 
    Regulation.) The Acceptable Age of Supplies clause at 48 CFR 552.211-79 
    should be used when the required shelf-life period is 12 months or 
    less, and lengthy acceptance testing may be involved. For items having 
    a limited shelf-life, Alternate I to 48 CFR 552.211-79 must be 
    substituted for the basic clause when required by the director of the 
    48 CFR 552.211-80 should be used when the required shelf-life period is 
    more than 12 months, or when source inspection can be performed within 
    a short time period.
    * * * * *
        17. Subpart 512.2 consisting of sections 512.203 and 512.209 is 
    added to read as follows:
    
    Subpart 512.2--Special Requirements for the Acquisition of Commercial 
    Items
    
    Sec.
    512.203  Procedures for solicitation, evaluation, and award.
    512.209  Pricing of commercial items when contracting by 
    negotiation.
    
    Subpart 512.2--Special Requirements for the Acquisition of 
    Commercial Items
    
    
    512.203  Procedures for solicitation, evaluation, and award.
    
        Contracting officers shall use the policies in FAR Part 12 and 48 
    CFR Part 512 in conjunction with the policies and procedures for 
    Federal Supply Schedules in FAR Part 38 and 48 CFR Part 538.
    
    
    512.209  Pricing of commercial items when contracting by negotiation.
    
        When awarding multiple award schedule contracts for commercial 
    items, the policies and procedures in FAR Part 15 and 48 CFR Part 515 
    shall be used to establish the reasonableness of prices.
        18. Subpart 512.3 consisting of sections 512.301 and 512.302 is 
    added to read as follows:
    
    Subpart 512.3--Solicitation Provisions and Contract Clauses for the 
    Acquisition of Commercial Items
    
    Sec.
    512.301  Solicitation provisions and contract clauses for the 
    acquisition of commercial items.
    512.302  Tailoring of provisions and clauses for the acquisition of 
    commercial items.
    
    
    512.301  Solicitation provisions and contract clauses for the 
    acquisition of commercial items.
    
        (a) Solicitation provisions/clauses. The contracting officer shall 
    insert the following provisions or clauses in solicitations for the 
    acquisition of commercial items in accordance with the prescriptions 
    provided:
        (1) The provision at 48 CFR 552.212-70, Preparation of Offer 
    (Multiple Award Schedule), in solicitations issued under the multiple 
    award schedule program.
        (2) The clause at 48 CFR 552.212-71, Contract Terms and Conditions 
    Applicable to GSA Acquisition of Commercial Items when listed clauses 
    apply and are incorporated by reference. The clause provides for the 
    incorporation by reference of terms and conditions which are, to the 
    maximum extent practicable, consistent with customary commercial 
    practice. The contracting officer may tailor this clause.
        (3) The clause at 48 CFR 552.212-72, Contract Terms and Conditions 
    Required to Implement Statutes or Executive Orders Applicable to GSA 
    Acquisitions of Commercial Items when listed clauses apply and are 
    incorporated by reference. The clause provides for the incorporation by 
    reference of terms and conditions which are required to implement 
    provisions of law or executive orders applicable to acquisitions of 
    commercial items.
        (4) The provision at 48 CFR 552.212-73, Evaluation--Commercial 
    Items (Multiple Award Schedule), shall be used instead of FAR 52.212-2 
    in solicitations issued under the multiple award schedule program.
        (b) Use of required GSAR provisions and clauses. Notwithstanding 
    prescriptions contained elsewhere in the GSAR (48 CFR Chapter 5), when 
    acquiring commercial items, contracting officers shall be required to 
    use only those provisions and clauses prescribed in this part. The 
    provisions and clauses prescribed in this part shall be revised, as 
    necessary, to reflect the applicability of statutes and executive 
    orders to the acquisition of commercial items.
        (c) Discretionary use of GSAR provisions and clauses. The 
    contracting officer may include in solicitations and contracts by 
    addendum other GSAR provisions and clauses when their use is consistent 
    with the limitations contained in FAR 12.302(c).
        (d) Use of additional provisions and clauses. Provisions or clauses 
    that are not prescribed in the FAR or GSAR for use in contracts for 
    commercial items may not be used unless approved by the Senior 
    Procurement Executive (see 48 CFR 502.101) or determined to be 
    consistent with customary commercial practice through market research.
    
    
    512.302  Tailoring of provisions and clauses for the acquisition of 
    commercial items.
    
        Requests for waivers shall be prepared in accordance with FAR 
    12.302(c) and submitted for approval by the chief of the contracting 
    office (see 48 CFR 
    
    [[Page 6167]]
    502.101) if an individual contract is involved or by the contracting 
    director (see 48 CFR 502.101) if a class of contracts is involved.
    
    PART 514--SEALED BIDDING
    
        19. Section 514.201-70 is revised to read as follows:
    
    
    514.201-70  GSA Forms.
    
        The GSA Form 1602, Notice Concerning Solicitation, may be used to:
        (a) Describe the type of contract, the duration of the contract, 
    and the type of supplies or services being procured;
        (b) Direct the attention of prospective offerors to special 
    requirements which if overlooked, may result in rejection of the offer;
        (c) Highlight significant changes from previous solicitations 
    covering the same supplies and services; and
        (d) Include other special notices as appropriate.
    
    PART 515--CONTRACTING BY NEGOTIATION
    
        20. Section 515.106-70 is revised to read as follows:
    
    
    515.106-70  Examination of records by GSA clause.
    
        The contracting officer shall insert the clause at 48 CFR 552.215-
    70, Examination of Records by GSA or at 48 CFR 552.215-71 Examination 
    of Records by GSA (Multiple Award Schedule), in solicitations and 
    contracts that
        (a) Involve the use or disposition of Government-furnished 
    property,
        (b) Provide for advance payments, progress payments based on cost, 
    or guaranteed loan,
        (c) Contain a price warranty or price reduction clause,
        (d) Involve income to the Government where income is based on 
    operations that are under the control of the contractor,
        (e) Include an economic price adjustment clause,
        (f) Are requirements, indefinite-quantity or letter type contracts 
    as defined in FAR Part 16,
        (g) Are subject to adjustment based on a negotiated cost escalation 
    base or
        (h) Contain the provision at FAR 52.223-4, Recovered Material 
    Certification. The clause at 48 CFR 552.215-71 shall be used for 
    solicitations issued and contracts awarded under the multiple award 
    schedule program. The contracting officer may modify the clause to 
    define the specific area of audit (e.g., the use or disposition of 
    Government-furnished property, compliance with the price reduction 
    clause). Counsel and the Assistant Inspector General-Auditing or 
    Regional Inspector General-Auditing, as appropriate, must concur in any 
    modifications to the clause.
    
    
    515.412  [Removed]
    
        21. Section 515.412 is removed.
        22. Section 515.414-70 is revised to read as follows:
    
    
    515.414-70  GSA Forms.
    
        The GSA Form 1602, Notice Concerning Solicitation, may be used as 
    prescribed in 48 CFR 514.201-70.
        23. The section heading for 515.804 is revised to read as follows:
    
    
    515.804  Cost or pricing data and information other than cost or 
    pricing data.
    
    
    515.804-3  [Reserved]
    
        24. Section 515.804-3 is removed and reserved.
        25. Section 515.804-6 is revised to read as follows:
    
    
    515.804-6  Instructions for submission of cost or pricing data or 
    information other than cost or pricing data.
    
        (a) Contracting officers should use Alternate IV of the FAR 
    provision at 52.215-41, Requirements for Cost or Pricing Data or 
    Information Other Than Cost or Pricing Data, to provide the format for 
    submission of information other than cost or pricing data for multiple 
    award schedule (MAS) contracts. To provide for uniformity in request 
    under the MAS program, contracting officers should insert the following 
    in paragraph (b) of the provisions:
    
        (1) An offer prepared and submitted in accordance with the 
    provision at 552.212-70, Preparation of Offer (Multiple Award 
    Schedule);
        (2) Commercial sales practices submitted in the format provided 
    in this solicitation in accordance with the instructions at Table 
    515-1 of the GSA Acquisition Regulation (48 CFR 515-1); and
        (3) Any additional supporting information requested by the 
    Contracting Officer to determine whether the price(s) offered is 
    fair and reasonable.
        (4) By submission of an offer in response to this solicitation 
    or a request for modification, the Offeror grants the Contracting 
    officer or an authorized representative the right to examine, at any 
    time before award, books, records, documents, papers, and other 
    directly pertinent records to verify any request for and exception 
    to the requirement for cost or pricing data, and the reasonableness 
    of prices(s) and for two years after award or modification of this 
    contract to verify that the information submitted was complete, 
    current and accurate. Access does not extend to cost or profit 
    information or other data relevant solely to the Offeror's 
    determination of the prices to be offered in the catalog or 
    marketplace.
    
        (b) Contracting officers shall insert the following format for 
    commercial sales practices in the exhibits or attachments section of 
    the solicitation (see FAR 12.303). Paragraph (5) may be included when 
    the contracting officer, based on market research, anticipates receipt 
    of offers from dealers without significant commercial sales.
    
    Commercial Sales Practices
    
    Name of Offeror--------------------------------------------------------
    SIN--------------------------------------------------------------------
    
        Note: Please refer to provision 552.212-70, PREPARATION OF OFFER 
    (MULTIPLE AWARD SCHEDULE), for additional information concerning 
    your offer.
    
        (1) Request for exception to the requirement for cost and 
    pricing data.
        (a) Do you request an exception to the requirement for 
    submission of cost or pricing data [Check applicable item]
        (i) ______ based on the fact that you have sold substantial 
    quantities of the commercial items offered to the general public at 
    or based on an established catalog or market price (see FAR 15.804-
    1(b)(2)(iv)); or
        (ii) ______ under the authority of FAR 15.804-1(a)(2) for 
    commercial items.
        (b) Provide the dollar value of sales to the general public at 
    or based on an established catalog or market price during the 
    previous 12 month period or the offerors last fiscal year. 
    $________. in the event that a dollar value is not an appropriate 
    measure of the sales, provide and describe your own measure of the 
    sales of the item (FAR 15.804-1(b)(2)(iv). You may qualify for an 
    exception under the authority of FAR 15.804-1(a)(2), even though 
    substantial sales have not been made, although that exception 
    requires that special post award access to records be included in 
    the contract (see 52.215-43, Audit-Commercial Items).
        (2) Show total estimated sales to the Government for the 
    contract term, excluding options, for the SIN offered. $________
        (3) Are the discounts which you offer the Government equal to or 
    better than your best discount to any customer acquiring the same 
    items offered for this SIN regardless of quantity or terms and 
    conditions? YES ______ NO ______ See definition of ``discount'' in 
    552.212-70.
        (4)(a) Provide information as requested for each SIN (or group 
    of SINs for which the information is the same) in accordance with 
    the instructions at 48 CFR Table 515-1 which is provided in this 
    solicitation for your convenience. The information should be 
    provided in the chart below. Rows should be added to accommodate as 
    many customers as required.
    
    [[Page 6168]]
    
    
    ------------------------------------------------------------------------
                                                                Column 5--  
      Column 1--     Column 2--     Column 3--    Column 4--    additional  
       customer       discount       quantity/     FOB term    discounts or 
                                      volume                    concessions 
    ------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
    ------------------------------------------------------------------------
    
        (b) Do any deviations from the discounting practices disclosed 
    ever result in better discounts (lower prices) than indicated? YES 
    ______ NO ______. If YES, explain deviations in accordance with the 
    instructions at 48 CFR Table 515-1 which is provided in this 
    solicitation for your convenience.
        (5) If the Offeror is a dealer/reseller, the sales information 
    relative to the manufacturer's pricing to the dealer required by 
    paragraph (b)(1) through (4) above together with written access to 
    the manufacturer's records in accordance with 52.215-41 (Alt IV), 
    should be provided separately by the offeror for each item/SIN from 
    a single manufacturer whose total sales under any resulting contract 
    are expected to exceed $500,000. The information is required in 
    order to enable the Government to make a determination that the 
    offered price is fair and reasonable. To expedite the review and 
    processing of offers the dealer/reseller submitting the offer should 
    advise the manufacturer(s) of this requirement. The contracting 
    officer may require the information be submitted on electronic media 
    with commercially available spreadsheet(s). The information may be 
    provided by the manufacturer directly to the Government. If the 
    manufacturer's items(s) is being offered by multiple dealers/
    resellers, only one copy of the requested information should be 
    submitted to the Government. In addition, the dealer/reseller 
    submitting the offer shall submit the following information along 
    with a listing of contact information regarding each of the 
    manufacturers whose products and/or services are included in the 
    offer (include the manufacturer's name, address, the manufacturer's 
    contact point, telephone number, and FAX number) for each model 
    offered by SIN:
    
    (a) Manufacturer's Name
    (b) Manufacturer's Part Number
    (c) Dealer's/Reseller's Part Number
    (d) Product Description
    (e) Manufacturer's List Price
    (f) Dealer's/Reseller's percentage discount from List Price or net 
    prices
    
    (End of Format)
    
        (c) The contracting officer should include the instructions for 
    completing the commercial sales practices format in Table 551-1 in 
    solicitations issued under the multiple award schedule program.
    
        Table 515-1.--Instructions for Commercial Sales Practices Format    
    ------------------------------------------------------------------------
                                                                            
    -------------------------------------------------------------------------
      If you responded ``YES'' to question (3), on the COMMERCIAL SALES     
     PRACTICES FORMAT, complete the chart for the customer(s) who receive   
     your best discount. If you responded ``NO'' to question (3), complete  
     the chart for all customers or customer categories to whom you sell at 
     a discount which equals or exceeds the discount(s) offered to the      
     Government under this solicitation or with which the Offeror has a     
     current agreement to sell at a discount which equals or exceeds the    
     discount(s) offered under this solicitation. Such agreement shall be in
     effect on the date the offer is submitted or contain an effective date 
     during the proposed multiple award schedule contract period. The       
     Offeror shall also disclose any changes to discount(s) and discount    
     policies which occur after the offer is submitted, but before the close
     of negotiations. If the Offeror's discount practices vary by model or  
     product line, the discount information should be by model or product   
     line as appropriate. The offeror may limit the number of models or     
     product lines reported to those which in total anticipated sales exceed
     75% of the estimated value of the special item number (SIN).           
       Column 1--Identify the applicable customer or category or customer. A
     ``customer is any entity, except the Federal Government, which acquires
     supplies or services from the Offeror. The term customer includes, but 
         is not limited to original equipment manufacturers, value added    
        resellers, state and local governments, distributors, educational   
       institutions (an elementary, junior high, or degree granting school  
        which maintains regular faculty and established curriculum and an   
     organized body of students), dealers, national accounts, and end users.
    In any instance where the Offeror is asked to disclose information for a
     customer, the Offeror may disclose information by category or customer 
    if the offeror's discount policies are the same for all customers in the
         category. (Use a separate line for each customer or category of    
                                   customer.)                               
       Column 2--Identify the discount. The term ``discount'' is as defined 
       in solicitation provision 552.212-70 Preparation of Offer (Multiple  
        Award Schedule). Indicate the best discount at which the Offeror    
        customarily or repetitively sells to the customer or category of    
     customer identified in column 1, without regard to quantity; terms and 
      conditions of the agreements under which the discounts are given, and 
     whether they are written or oral. Net prices or discounts off of other 
     price lists should be expressed as percentage discounts from the price 
    list which is the basis for your offer. If the price lists which are the
      basis of the discounts given to the customers identified in the chart 
      are different than the price list submitted upon which your offer is  
       based, identify the type of title and date of each price list. The   
       contracting officer may require submission of these price lists. To  
     expedite evaluation, offerors may provide these price lists at the time
                                 of submission.                             
       Pricing information need be provided only on customary or repetitive 
        sales. Information need not include erratic, ad hoc discounting;    
       however, the existence of such discounting shall be disclosed. This  
     disclosure should include a discussion of ad hoc discounting practices,
    including the types of circumstances when ad hoc discounts are given and
    the frequency of occurrence: i.e., a statement ``the ad hoc sales do not
    exceed $______ per year'' or ``the ad hoc sales do not exceed ______% of
       total sales.'' To be considered ``ad hoc discounting'' the practice  
        shall not: (a) represent a significant pricing practice: that is,   
       accounting for more than a marginal portion of the total commercial  
     sales; (b) establish a preferred customer: e.g., discounts to state and
         local governments, or repetitive discounts received by a single    
         customer; (c) include other than low value, extraordinary price    
                      reductions due to unique situations.                  
      Column 3--Identify the quantity or volume of sales. Insert the minimum
      quantity or sales volume which the identified customer or category of 
      customer must either purchase/order, per order or within a specified  
       period, to earn the discount. Specify the period of relevant sales   
                                  accumulation.                             
      Column 4--Indicate the FOB delivery term for each identified customer.
     (See FAR 47.3 for an explanation of FOB delivery terms.)               
       Column 5--Indicate additional discounts or concessions regardless of 
    quantity granted to the identified customer or category of customer. The
     additional discounts may include per order quantity discount; aggregate
          discount, prompt payment discount. Concessions are defined in     
     solicitation provision 552.212-70 Preparation of Offers (Multiple Award
    Schedule). If the space provided is inadequate, the disclosure should be
                     made on a separate sheet by reference.                 
    ------------------------------------------------------------------------
    
        (d) The contracting officer shall insert the clause at 48 CFR 
    552.215-72, Price Adjustment for Incomplete, Not Current or Inaccurate 
    Information Other Than Cost or Pricing Data, in solicitations and 
    contracts to be awarded under the multiple award schedule program.
    
    PART 538--FSS SCHEDULE CONTRACTING
    
        26. Part 538 heading is revised as set forth above.
        
    [[Page 6169]]
    
    
    
    538.000   [Removed]
    
        27. Section 538.000 is removed.
        28. Section 538.270 is added to read as follows:
    
    
    538.270   Evaluation of multiple award schedule offers.
    
        (a) The Government will seek to obtain the offeror's best discount 
    (most favored customer). However, the Government recognizes that the 
    terms and conditions of commercial sales vary and that there may be 
    legitimate reasons why the best discount is not achieved.
        (b) The contracting officer will establish negotiation objectives 
    and determine price reasonableness subject to the requirements of 
    paragraphs (c) through (e) of this section.
        (c) The contracting officer will establish negotiation objectives 
    based on a review of relevant data. If an exception may apply pursuant 
    to FAR 15.804-1(a)(2), then information to be acquired pursuant to FAR 
    15.804-5(b) (1) and (2) shall be limited to that which is reasonably 
    available and quantifiable.
        (d) When establishing negotiation objectives and determining price 
    reasonableness, contracting officers will compare the terms and 
    conditions of agreements with customers. The contracting officer will 
    consider the following factors to determine the Government's price 
    negotiation objectives:
        (1) Aggregate volume of anticipated purchases;
        (2) The purchase of a minimum quantity or a pattern of historic 
    purchases;
        (3) Discounts/prices offered;
        (4) Length of the contract period;
        (5) Warranties, training, maintenance included in the purchase 
    price or provided at additional cost to the product prices;
        (6) Ordering and delivery practices; and
        (7) Any other relevant information including differences between 
    the MAS solicitation and commercial terms and conditions that may 
    warrant differentials between the offer and the discounts offered to 
    the best customers. In cases where the best discount is not offered to 
    the Government, the offeror is responsible for identifying, 
    substantiating and valuating any asserted differences.
        (e) The contracting officer may not award a contract containing 
    pricing which is less favorable than the best discount the offeror 
    extends to any commercial customer purchasing under circumstances 
    comparable to the Government, unless the contracting officer makes a 
    written determination that
        (1) The prices offered to the Government are fair and reasonable, 
    even though comparable discounts were not negotiated, and
        (2) Award of a contract is otherwise in the best interest of the 
    Government.
        29. Section 538.271 is added to read as follows:
    
    
    538.271   MAS contract awards.
    
        (a) MAS awards will, to the maximum extent practicable, be 
    commercial items negotiated as a discount from established catalog 
    prices for items sold in substantial quantities to the general public.
        (b) Before awarding any MAS contract, the contracting officer will 
    determine whether offered prices are fair and reasonable in accordance 
    with FAR subparts 15.8 and 15.9 and 48 CFR 538.270.
    
    PART 539--MANAGEMENT, ACQUISITION, AND USE OF INFORMATION 
    RESOURCES--RESERVED
    
        30. Part 539 is reserved.
    
    
    539.000   [Removed]
    
        31. Section 539.000 is removed
    
    PART 543--CONTRACT MODIFICATIONS
    
        32. Section 543.205 is amended by adding paragraph (c) to read as 
    follows:
    
    
    543.205   Contract clauses.
    
    * * * * *
        (c) The contracting officer shall insert the clause at 48 CFR 
    552.243-72, Modifications (Multiple Award Schedule), in solicitations 
    and multiple award schedule contracts. Alternate I should be used when 
    stable technology is involved and few changes are expected.
    
    PART 546--QUALITY ASSURANCE
    
        33. Section 546.710 is amended by revising paragraph (a)(2) to read 
    as follows:
    
    
    546.710   Contract Clauses.
    
        (a) * * *
        (2) If commercial products or items are being acquired under a 
    program other than Multiple Award Schedules, the contracting officer 
    shall use the clause at 48 CFR 552.247.17 with its Alternate I.
    * * * * *
    
    PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
    
    552.209-73   [Amended]
    
        34. The clause at section 552.209-73 is amended by revising the 
    date of the clause to read ``(FEB 1996)'' and by inserting a period 
    after the word ``default'' and removing all remaining text beginning 
    with the word ``under.''
    
    
    552.210-70  [Redesignated as 552.211-71 and amended]
    
        35. Section 552.210-70 is redesignated as 552.211-71, the 
    introductory paragraph is amended by removing ``510.011(a)'' and 
    inserting ``48 CFR 511.204(a)'', and the date of the clause is revised 
    to read ``(FEB 1996)''.
    
    
    552.210-71  [Redesignated as 552.211-72 and amended]
    
        36. Section 552.210-71 is redesignated as 552.211-72, the 
    introductory paragraph is amended by removing ``510.011(b)'' and 
    inserting ``48 CFR 511.204(b)'', and the date of the clause is revised 
    to read ``(FEB 1996)''.
    
    
    552.210-72  [Redesignated as 552.211-79]
    
        37. Section 552.210-72 is redesignated as 552.211-79, the 
    introductory paragraph is amended by removing ``510.011(c)'' and 
    inserting ``48 CFR 511.404(a)'', by revising the date of the basic 
    clause and the Alternate I to read ``(FEB 1996)'' and by removing all 
    the text in the last sentence in the basic clause after the phrase 
    ``reject the supplies'' and inserting a period after ``supplies''.
    
    
    552.210-73  [Redesignated as 552.211-80 and amended]
    
        38. Section 552.210-73 is redesignated as 552.211.80, the 
    introductory paragraph is amended by removing ``510.011(c)'' and 
    inserting ``48 CFR 511.404(a)'', by revising the date of the clause to 
    read ``(FEB 1996)'' and by removing all the text in the last sentence 
    after the phrase ``reject the supplies'' and inserting a period after 
    the word ``supplies''.
    
    
    552.210-74  [Redesignated as 552.211-70]
    
        39. Section 552.211-70 is removed, section 552.210-74 is 
    redesignated as 552.211-70, the introductory paragraph is amended by 
    removing ``510.011(d)'' and inserting ``48 CFR 511.170(c)'' and by 
    revising the date of the clause to read ``(FEB 1996)''.
    
    
    552.210-75  [Redesignated as 552.211-73]
    
        40. Section 552.210-75 is redesignated as 552.211-73, the 
    introductory paragraph is amended by removing ``510.011(e)'' and 
    inserting 
    
    [[Page 6170]]
    ``48 CFR 511.204(c)'' and by revising the date of the clause to read 
    ``(FEB 1996)''.
    
    
    552.210-76  [Redesignated as 552.211-74 and amended]
    
        41. Section 552.210-76 is redesignated as 552.211-74, the 
    introductory paragraph is amended by removing ``510.011(f)'' and 
    inserting ``48 CFR 511.204(d)'', by revising the date of the clause to 
    read ``(FEB 1996)'', and by removing ``552.210-75'' from the text of 
    the clause and inserting ``48 CFR 552.211-73''.
    
    
    552.210-77  [Redesignated as 552.211-75 and amended]
    
        42. Section 552.211-77 is redesignated as 552.211-75, the 
    introductory paragraph is amended by removing ``510.011(g)'' and 
    inserting ``48 CFR 511.204(e)'' and by revising the date of the clause 
    to read ``(FEB 1996)''.
    
    
    552.210-78  [Redesignated as 552.211-76 and amended]
    
        43. Section 552.210-78 is redesignated as 552.211-76, the 
    introductory paragraph is amended by removing ``510.011(h)'' and 
    inserting ``48 CFR 511.204(f)'' and by revising the date of the clause 
    to read ``(FEB 1996)''.
    
    
    552.210-79  [Redesignated as 552.211-77 and amended]
    
        44. Section 552.210-79 is redesignated as 552.211-77, the 
    introductory paragraph is amended by removing ``510.011(i)'' and 
    inserting ``48 CFR 511.204(g)'' and by revising the date of the clause 
    to read ``(FEB 1996)''.
        45. Section 552.211-78 is added to read as follows:
    
    
    552.211-78  Commercial Delivery Schedule (Multiple Award Schedule).
    
        As prescribed in 48 CFR 511.404(a)(2), insert the following clause:
    
    Commercial Delivery Schedule (Multiple Award Schedule) (Feb 1996)
    
        (a) Time of Delivery. The Contractor shall deliver to 
    destination within the number of calendar days after receipt of 
    order (ARO) in the case of F.O.B. Destination prices; or to place of 
    shipment in transit in the case of F.O.B. Origin prices, as set 
    forth below. Offerors shall insert in the ``Time of Delivery (days 
    ARO)'' column in the schedule of Items a definite number of calendar 
    days within which delivery will be made. In no case shall the 
    offered delivery time exceed the Contractor's normal commercial 
    practice. The Government requires the Contractor's normal commercial 
    delivery time, as long as it is less than the ``stated'' delivery 
    time(s) shown below. If the Offeror does not insert a delivery time 
    in the schedule of items, the Offeror will be deemed to offer 
    delivery in accordance with the Government's stated delivery time, 
    as stated below:
    
    ----------------------------------------------------------------------------------------------------------------
      Items or group of items (special      Government's stated delivery time      Contractor's normal commercial   
          item No. or nomenclature)                    (days ARO)                           delivery time           
    ----------------------------------------------------------------------------------------------------------------
                                                                                                                    
                                                                                                                    
                                                                                                                    
    ----------------------------------------------------------------------------------------------------------------
    
        (b) Expedited Delivery Times. For those items that can be 
    delivered quicker than the delivery times in paragraph (a), above, 
    the Offeror is requested to insert below, a time (hours/days ARO) 
    that delivery can be made when expedited delivery is requested.
    
    ------------------------------------------------------------------------
      Item or group of items (special    Expedited delivery time (hours/days
         item No. of nomenclature)                       ARO)               
    ------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
    ------------------------------------------------------------------------
    
        (c) Overnight and 2-Day Delivery Times. Ordering activities may 
    require overnight or 2-day delivery. The Offeror is requested to 
    annotate its price list or by separate attachment identify the items 
    that can be delivered overnight or within 2 days. Contractors 
    offering such delivery services will be required to state in the 
    cover sheet to its FSS price list details concerning this service.
    (End of Clause)
    
    
    Sec. 552.212-1  [Redesignated as 552.211-1 and amended]
    
        46. Section 552.212-1 is redesignated as 552.211-1, paragraph (a) 
    is amended by removing the paragraph designation ``(a)'' and by 
    removing ``512.104(a)(1)'' and inserting ``48 CFR 511.404(a)(1)'', by 
    revising the date of the clause and the Alternate I to read ``(FEB 
    1996)'' and by removing paragraph (b).
    
    
    Sec. 552.212-70  [Redesignated as 552.211-81 and amended]
    
        47. Section 552.212-70 is redesignated as 552.211-81, the 
    introductory paragraph is amended by removing ``512.104(a)(3)'' and 
    inserting ``48 CFR 511.404(a)(4)'' and by revising the date of the 
    basic clause and the Alternate I clause to read ``(FEB 1996)''.
    
    
    Sec. 552.212-71  [Redesignated as 552.211-82 and amended]
    
        48. Section 552.212-71 is redesignated as 52.211-82, the 
    introductory paragraph is amended by removing ``512.104(a)(4)'' and 
    inserting ``48 CFR 511.404(a)(5)'' and by revising the date of the 
    clause to read ``(FEB 1996)''.
    
    
    Sec. 552.212-72  [Redesignated as 552.211-83 and amended]
    
        50. Section 552.212-72 is redesignated as 552.211-83, the 
    introductory paragraph is amended by removing ``512.104(a)(5)'' and 
    inserting ``48 CFR 511.404(a)(6)'' and by revising the date of the 
    basic and alternate clause to read ``(FEB 1996)''.
    
    
    Sec. 552.212-74  [Redesignated as 552.211-84 and amended]
    
        51. Section 552.212-74 is redesignated as 552.211-84, the 
    introductory paragraph is amended by removing ``512.104(b)'' and 
    inserting 48 CFR 511.404(b)'' and by revising the date of the clause to 
    read ``(FEB 1996)''.
        52. Section 552.212-70 is added to read as follows:
    
    
    552.212-70  Preparation of Offer (Multiple Award Schedule)
    
        As prescribed in 48 CFR 512.301(a)(1), insert the following clause:
    
    552.212-70  Preparation of Offer (Multiple Award Schedule) (Feb 1996)
    
        (a) Definitions. Concession, as used in this solicitation, means 
    a benefit, enhancement or privilege (other than a discount), which 
    either reduces the overall costs of a customer's acquisition or 
    encourages a customer to consummate a purchase. Concessions include, 
    but are not limited to freight allowance, extended warranty, 
    extended price guarantees, free installation and bonus goods.
        Discount, as used in this solicitation, means a reduction to 
    catalog prices (published or unpublished). Discounts include, but 
    are not limited to, rebates, quantity discounts, purchase option 
    credits, and any other terms or conditions which reduce the amount 
    of money a customer ultimately pays for goods or services ordered or 
    received. Any net price lower than the list price is considered a 
    ``discount'' by the percentage difference from the list price to the 
    net price.
        (b) For each Special Item Number (SIN) included in an offer, the 
    Offeror shall provide the information outlined in paragraph (c). 
    Offerors may provide a single response 
    
    [[Page 6171]]
    covering more than one SIN, if the information disclosed is the same 
    for all products under each SIN. If discounts and concessions vary 
    by model or product line, offerors shall ensure that information is 
    clearly annotated as to item or items referenced.
        (c) Provide information described below for each SIN:
        (1) Two copies of the offeror's current published (dated or 
    otherwise identified) commercial descriptive catalogs and/or price 
    list(s) from which discounts are offered. Special catalogs or price 
    lists printed for the purpose of this offer, showing only net prices 
    to the Government or references to previous submissions, are not 
    acceptable.
        (2) Next to each offered item in the commercial catalog and/or 
    price list, the Offeror shall write the special item number under 
    which the item is being offered. All other items shall be marked 
    ``excluded,'' lined out, and initialed by the offeror.
        (3) The discount(s) offered under this solicitation.
        (4) A description of any additional discounts offered, such as 
    prompt payment discounts, quantity/dollar volume discounts (indicate 
    whether models/products can be combined within the SIN or whether 
    SINs can be combined to earn discounts, blanket purchase agreement 
    discounts, or purchase option credits. If the terms of sale 
    appearing in the commercial catalogs or price list on which an offer 
    is based are in conflict with the terms of this solicitation the 
    latter shall govern.
        (5) A description of concessions offered under this solicitation 
    which are not granted to other customers. Such concessions may 
    include, but are not limited to, an extended warranty, a return/
    exchange goods policy, or enhanced or additional services.
        (6) If the Offeror is a dealer/reseller or the Offeror will use 
    dealers to perform any aspect of contract awarded under this 
    solicitation, describe the functions, if any, that the dealer/
    reseller will perform.
    
    (End of Provision)
    
        53. Section 552.212-71 is added to read as follows:
    
    
    Sec. 552.212-71  Contract terms and conditions applicable to GSA 
    acquisition of commercial items.
    
        As prescribed in 48 CFR 512.301(a)(2), insert the following 
    provision:
    
    Contract Terms and Conditions Applicable to GSA Acquisition of 
    Commercial Items (Feb 1996)
    
        The Contractor agrees to comply with any provision or clause 
    that is incorporated herein by reference to implement agency policy 
    applicable to acquisition of commercial times or components. The 
    provision or clause in effect based on the applicable regulation 
    cited on the date the solicitation is issued applies unless 
    otherwise stated herein. The following provisions and clauses are 
    incorporated by reference:
    
    [The contracting officer should either check the clauses that apply 
    or delete the clauses that do not apply from the list. The 
    contracting officer may add the date of the clause if desired for 
    clarity.]
    
    --552.203-70  Restriction on Advertising
    --552.211-73  Marking
    --552.215-70  Examination of Records by GSA
    --552.212-71  Examination of Records by GSA (Multiple Award 
    Schedule)
    --552.25-72  Price Adjustment for Incomplete, Not Current or 
    Inaccurate Information Other Than Cost or Pricing Data
    --552.219-71  Allocation of Orders--Partially Set-Aside Items
    --552.228-75  Workmen's Compensation
    --552.229-70  Federal, State, and Local Taxes
    --552.232-8  Discounts for Prompt Payment
    --552.232-23  Assignment of Claims
    --552.232-70  Payments by Electronic Funds Transfer
    --552.232-77  Availability of Funds
    --552.232-78  Adjusting Payments
    --552.232-79  Final Payment
    --552.237-70  Qualifications of Offerors
    --552.237-71  Qualifications of Employees
    --552.238-72  Contractor's Report of Sales
    --552.238-74  Submission and Distribution of Authorized FSS Schedule 
    Price List
    --552.238-76  Price Reductions
    --552.242-70  Status Report of Orders and Shipments
    --552.243-72  Modifications (Multiple Award Schedule)
    --552.246-73  Warranty--Multiple Award Schedule
    --552.246-76  Warranty of Pesticides
    
    (End of Provision)
    
        54. Section 552.212-72 is added to read as follows:
    
    
    552.212-73  Contract terms and conditions required to implement 
    statutes or Executive Orders applicable to GSA acquisition of 
    commercial items.
    
        As prescribed in 48 CFR 512.301(a)(3), insert the following 
    provision:
    
    Contract Terms and Conditions Required to Implement Statutes or 
    Executive Orders Applicable to GSA Acquisition of Commercial Items (Feb 
    1996)
    
        The Contractor agrees to comply with any provision or clause 
    that is incorporated herein by reference to implement provisions of 
    law or Executive Orders applicable to acquisition of commercial 
    items or components. The provision or clause in effect based on the 
    applicable regulation cited on the date the solicitation is issued 
    applies unless otherwise stated herein. The following provisions and 
    clauses are incorporated by reference:
    
    [The contracting officer should either check the clauses that apply 
    or delete the clauses that do not apply from the list. The 
    contracting officer may add the date of the clause if desired for 
    clarity.]
    
    --552.223-70  Hazardous Substances
    --552.223-71  Hazardous Material Information
    --552.223-72  Nonconforming Hazardous Material
    --552.225-70  Buy American Act--Hand or Measuring Tools or Stainless 
    Steel Flatware
    --552.225-71  Notice of Procurement Restriction--Hand or Measuring 
    Tools or Stainless Steel Flatware
    --552.238-70  Identification of Electronic Office Equipment 
    Providing Accessibility for the Handicapped
    --552.238-75  Identification of Energy-Efficient Office Equipment 
    and Supplies Containing Recovered Materials or Other Environmental 
    Attributes
    --552.238-77  Industrial Funding Fee
    
    (End of Clause)
    
        55. Section 552.212-73 is added to read as follows:
    
    
    552.212-73  Evaluation--Commercial Items (Multiple Award Schedule).
    
        As prescribed in 48 CFR 512.301(a)(4), insert the following 
    provision:
    
    552.212-73  Evaluation--Commercial Items (Multiple Award Schedule) (Feb 
    1996)
    
        (a) The Government may make multiple awards for the supplies or 
    services offered in response to this solicitation that meet the 
    definition of a ``commercial item'' in FAR 52.202-1. Award is to be 
    based upon a catalog or market price exception (FAR 15.804-1(a) (i) 
    and (ii)) to the requirement for cost or pricing data or if other 
    exceptions are not available, an exception for commercial items (FAR 
    15.804-1(a)(2)), without submission of cost or pricing data. Awards 
    may be made to those responsible offerors that offer reasonable 
    pricing, conforming to the solicitation, and will be most 
    advantageous to the Government, taking into consideration the 
    multiplicity and complexity of items of various manufacturers and 
    the differences in performance required to accomplish or produce 
    required end results, production and distribution facilities, price, 
    compliance with delivery requirements, and other pertinent factors. 
    By providing a selection of comparable supplies or services, 
    ordering activities are afforded the opportunity to fulfill their 
    requirements with the item(s) that constitute the best value and 
    that meet their needs at the lowest overall cost. In exceptional 
    circumstances, if an item does not qualify for an exception from 
    cost or pricing data requirements, the contracting officer may 
    consider cost or pricing data if pricing cannot be reasonably 
    evaluated without it, and procurement of the item is the best 
    interest of the Government.
        (b) A written notice of award or acceptance of an offer, mailed 
    or otherwise furnished to the offeror within the time for acceptance 
    specified in the offer, shall result in a binding contract without 
    further action by either party. Before the offer's specified 
    expiration time, the Government may accept an offer (or part of an 
    offer), whether or not there are negotiations after its receipt, 
    unless a written notice of withdrawal is received before award.
    
    (End of Provision)
    
    [[Page 6172]]
    
    
    Alternate I (FEB 1996)
    
        When anticipating competition of identical items, add the 
    following paragraph after paragraph (b) of the basic provision.
        (c) The Government reserves the right to award only one contract 
    for all or part of a manufacturer's product line. When two or more 
    offerors (e.g., dealer/resellers) offer the identical product, award 
    may be made competitively to only one offeror on the basis of the 
    lowest price. (Discounts for early payment will not be considered as 
    an evaluation factor in determining the low offeror). During initial 
    open season for an option period, any offers that are equal to or 
    lower than the current contract price received for identical items 
    will be considered. Current contractors will also be allowed to 
    submit offers for identical items during this initial open season. 
    The current contractor which has the identical item on contract will 
    be included in the evaluation process. The Government will evaluate 
    all offers and may award only one contract for each specified 
    product or aggregate group.
    
        56. Section 552.215-70 is amended by revising the date of the 
    clause and the last sentence of the clause to read as follows:
    
    
    552.215-70  Examination of records by GSA.
    
    * * * * *
    
    Examination of Records by GSA (Feb 1996)
    
    * * * * *
        The term ``subcontract'' as used in this clause excludes (a) 
    purchase orders not exceeding $100,000 and (b) subcontracts or purchase 
    orders for public utility services at rates established for uniform 
    applicability to the general public.
        57. Section 552.215-71 is added to read as follows:
    
    
    552.215-71  Examination of records by GSA (Multiple Award Schedule).
    
        As prescribed in 48 CFR 515.106-70, insert the following clause:
    
    Examination of Records by GSA (Multiple Award Schedule) (Feb 1996)
    
        The Contractor agrees that the Administrator of General Services 
    or any duly authorized representative shall, until the expiration of 
    2 years after the end of the basic contract period or after the end 
    of the option period for any option periods, have access to and the 
    right to examine any books, documents, papers and records of the 
    Contractor involving transactions related to this contract for 
    overbillings, billing errors, compliance with the Price Reduction 
    clause and compliance with the Industrial Funding Fee clause of this 
    contract. This right is in addition to the right to examine 
    information provided by FAR 52.215-41 (Alt IV) and FAR 52.215-43, if 
    applicable)
    
    (End of Clause)
    
        58. Section 552.215-72 is added to read as follows:
    
    
    552.215-72  Price adjustment for incomplete, not current or inaccurate 
    information other than cost or pricing data.
    
        As prescribed in 48 CFR 515.804-6(d), insert the following clause:
    
    Price Adjustment for Incomplete, not Current or Inaccurate Information 
    Other Than Cost or Pricing Data (Feb 1996)
    
        (a) If, subsequent to the award of any contract resulting from 
    this solicitation or modification of this contract, it is found that 
    any price negotiated in this contract was increased by a significant 
    amount because of the occurrence of (1), (2) or (3) below, the 
    contract price shall be reduced by such amount of the increase.
        (i) The information requested by the Government and submitted by 
    the offeror (contractor) was not complete; or
        (2) The information submitted was not current and accurate; or
        (3) Changes in the Contractor's commercial prices, discounts or 
    discount policies which occurred after the original submission were 
    not disclosed prior to the completion of negotiations.
        (b) The Government will consider information submitted to be 
    current, accurate and complete if the data is current, accurate and 
    complete as of 14 calendar days prior to the solicitation closing 
    date or the date it is submitted whichever is later. Failure to 
    agree on the amount of the decrease shall be resolved as a dispute.
    
    (End of Clause)
    
    
    552.216-71  [Amended]
    
        59. Section 552.216-71 is amended by revising the date of the 
    clause to read ``FEB 1996'' and amending paragraph (d)(2) by removing 
    ``Discount Schedule and Marketing Data'' and inserting ``Commercial 
    Sales Price format.''
    
    
    552.238-74  [Amended]
    
        60. Section 552.238-74 is amended by removing ``GSA'' in the 
    section heading, clause heading, paragraphs (b), (c)(1)(i), (c)(1)(ii), 
    (c)(2)(i) and (e) and inserting ``FSS'' and by revising the date of the 
    clause to read ``(FEB 1996)''.
        61. Section 552.243-72 is added to read as follows:
    
    
    552.243-72  Modifications (Multiple Award Schedule).
    
        As prescribed in 48 CFR 543.205(c), insert the following clause:
    
    552.243-72  MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1996)
    
        (a) General. The Contractor may request a contract modification 
    by submitting a request to the Contracting Officer for approval, 
    except as noted in paragraph (e) of this clause. A separate request 
    should be submitted for each type of proposed modification. At a 
    minimum, every request shall describe the proposed change(s) and 
    provide the rationale for the requested change(s).
        (b) Types of Modifications.
        (1) Additional items/additional SIN's. When requesting 
    additions, the following information must be submitted:
        (i) A request for an exemption from the requirement to submit 
    cost and pricing data as required by 52.215-41 (ALT IV) shall be 
    provided. To add items, submit the information requested in 
    paragraph 1(a) of the Commercial Sales Format. To add SIN's provide 
    the information requested in paragraph (1) and (2) of the Commercial 
    Sales Practice Format.
        (ii) Discount information for the new item(s) or new SIN(s) as 
    required by 52.215-41 (ALT IV) must be provided. Specifically, 
    submit the information requested in paragraphs 3 through 5 of the 
    Commercial Sales Practice Format. If this information is the same as 
    the initial award, a statement to that effect may be submitted 
    instead.
        (iii) Information about the new item(s) or new SIN(s) as 
    described in 552.212-70, Preparation of Offer (Multiple Award 
    Schedule) is required.
        (iv) Delivery time(s) for the new item(s) or the item(s) under 
    the new SIN(s) must be submitted in accordance with 552.211-78, 
    Commercial Delivery Schedule (Multiple Award Schedules).
        (v) Production point(s) for the new item(s) or the item(s) under 
    the new SIN(s) must be submitted if required by 52.215-20, 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; and 552.223-71, Hazardous 
    Material Information; and as requested by the Separate Charge for 
    Performance Oriented Packaging clause of this contract, if 
    applicable.
        (vii) Recovered Material estimate(s) and certification (if 
    applicable) must be submitted as required by 52.223-8 (or 52.223-8 
    (ALT I) or 52.223-8 (ALT II), Estimate of Percentage of Recovered 
    Material for Designated Items to be used in the Performance of the 
    Contract; and 52.223-9, Certification of Recovered Material Content 
    for EPA Designated Items used in Performance of the Contract.
        (viii) A statement that the request for additional item(s) or 
    item(s) under the new SIN(s) is in compliance with 552.225-9, Trade 
    Agreements Act, and 552.225-8, Trade Agreements Act Certificate is 
    required.
        (2) Deletions. The Contractors shall provide an explanation for 
    the deletion. The Government reserves the right to reject any 
    subsequent offer of the same item or a substantially equal item at a 
    higher price during the same contract period, if the contracting 
    officer finds the higher price to be unreasonable when compared with 
    the deleted item.
        (3) Price Reduction. The Contractor shall indicate whether the 
    price reduction falls under the item (i), (ii), or (iii) of 
    subparagraph (c)(1) of the Price Reduction clause at 552.238-76. If 
    the price reduction falls under item (i) or (ii), the Contractor 
    shall submit a copy of the dated commercial price list. If the price 
    reduction falls under item (iii), the Contractor shall submit a copy 
    of the applicable price list(s), bulletins or letters or customer 
    agreements which outline the effective date, duration, terms and 
    conditions of the price reduction.
    
    [[Page 6173]]
    
        (4) Revision of Commercial Price List. The Contractor may 
    request a modification to substitute a new catalog or price list for 
    the one originally submitted if, after award and no later than 30 
    calendar days before the start of the schedule contract period, the 
    Contractor changes its established commercial catalog or price list 
    on which the contract was awarded. The new catalog or price list 
    shall be submitted to the Contracting Officer along with a statement 
    that (i) the new commercial price list is or will be in effect prior 
    to the start of the contract period, and (ii) the discount(s) 
    offered to the Government remain at the same ratio to those 
    available to the customer (or category of customer) which was the 
    basic of award.
        (c) Effective dates. The effective date of any modification is 
    the date specified in the modification, except as otherwise provided 
    in the Price Reduction clause at 552.238-76.
        (d) Electronic file updates. The Contractor shall update 
    electronic file submissions to reflect all modifications. Except for 
    price reductions and corrections, the Contractor shall obtain the 
    contracting officer's approval before transmitting changes. Contract 
    modifications will not be made effective until updates to electronic 
    files are received. Price reductions and correction may be 
    transmitted without prior approval. However, the contracting officer 
    shall be notified as set forth in the Price Reduction clause at 
    552.238-76.
        (e) Amendments to paper Federal Supply Schedule Price Lists. The 
    Contractor shall distribute a supplemental paper Federal Supply 
    Schedule Price List reflecting accepted changes within 15 days after 
    the effective date of the modification. At a minimum, distribution 
    shall be made to these ordering activities that previously received 
    the basic document. In addition, two copies of the supplemental 
    price list shall be submitted to the contracting officer, and one 
    copy shall be submitted to the FSS Schedule Information Center.
    
    (End of Clause)
    
    Alternate I (Feb 1996)
    
        Substitute the following introductory text in subparagraph (1) 
    for the introductory text in subparagraph (1) of the basic clause.
        (1) Additional items/additional SIN's. Consideration for adding 
    new items or new SIN's will be given 3 months into the contract 
    period. After then, the contractor may request additions at any 
    time. When requesting additions the following information must be 
    submitted.
    
        62. Section 552.246-73 is amended by revising the date of the 
    clause and the basic clause to read as follows:
    
    
    552.246-73  Warranty--Multiple Award Schedule.
    
    * * * * *
    
    Warranty--Multiple Award Schedule (Feb 1996)
    
        Unless specified otherwise in this contract, the Contractor's 
    standard commercial warranty as stated in the Contractor's 
    commercial price list will apply to this contract.
    
    (End of Clause)
    
    
    552.253-70  [Removed]
    
        63. Section 552.253-70 is removed.
    
    PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY
    
    
    570.308-2  [Amended]
    
        64. Section 570.308-2 is amended in paragraph (c) by removing ``and 
    515.804-3'' at the end of the sentence.
    
    
    570.602-2  [Amended]
    
        65. Section 570.602-2 is amended in paragraphs (c)(3) and (d) by 
    removing ``and 515.804-3''.
    
        Dated: February 6, 1996.
    Ida M. Ustad,
    Deputy Associate Administrator for Acquisition Policy.
    [FR Doc. 96-3593 Filed 2-15-96; 8:45 am]
    BILLING CODE 6820-61-M
    
    

Document Information

Published:
02/16/1996
Department:
General Services Administration
Entry Type:
Rule
Action:
Interim rule with request for comments.
Document Number:
96-3593
Pages:
6164-6173 (10 pages)
Docket Numbers:
APD 2800.12A, CHGE 70
RINs:
3090-AF86: Acquisition of Commercial Items, CHGE 70 (GSAR 5-408)
RIN Links:
https://www.federalregister.gov/regulations/3090-AF86/acquisition-of-commercial-items-chge-70-gsar-5-408-
PDF File:
96-3593.pdf
CFR: (7)
48 CFR 511.103
48 CFR 511.170
48 CFR 552.212-1
48 CFR 552.212-70
48 CFR 552.212-71
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