[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3706]
[[Page Unknown]]
[Federal Register: February 23, 1994]
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GENERAL SERVICES ADMINISTRATION
48 CFR Chapter 5
Reinventing Multiple Award Schedule Ordering Procedures
AGENCY: Office of Acquisition Policy, GSA.
ACTION: Request for comments.
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SUMMARY: The General Services Administration (GSA) plans to deregulate,
streamline and unify its multiple award schedule (MAS) ordering
procedures. GSA establishes MAS contracts to provide Federal agencies a
cost-effective mechanism for ordering common use commercial items. Two
GSA organizations award and manage MAS contracts, the Federal Supply
Service (FSS) and the Information Resources Management Service (IRMS).
Three different regulations contain MAS ordering procedures; i.e., the
Federal Property Management Regulation (FPMR), the Federal Information
Resources Management Regulation (FIRMR), and the Federal Acquisition
Regulation (FAR).
This document invites public comment on proposals to eliminate MAS
ordering instructions to customer agencies from the FPMR and FIRMR.
Applicable regulations, however, will retain pertinent solicitation
provisions, contract clauses, and those policies and procedures that
govern the Government-contractor relationship. GSA has initiated a case
to make similar changes to the Federal Acquisition Regulation. In lieu
of the current regulatory scheme, GSA proposes to adopt a uniform set
of non-regulatory principles for MAS ordering. FSS and IRMS will issue
and maintain the principles in the FSS Program Guide and FIRMR Bulletin
series, respectively.
This document also invites public comment on a proposal to revise
the Price Reduction Clause currently used in MAS contracts and include
it in the General Services Administration Acquisition Regulation
(GSAR). Additionally, GSA announces its decision to eliminate
regulatorily prescribed mandatory use provisions from the MAS Program.
When combined, the proposed changes described in this document will
result in a uniform set of principles that empower ordering activities
to make ``best value'' buying decisions in a de-monopolized
environment. The proposed changes are consistent with the Report on the
National Performance Review (NPR) and are one part of GSA's larger plan
to help create a Government that works better and costs less.
DATES: Comments are due in writing on or before April 25, 1994.
ADDRESSES: Comments should be addressed to Carolyn Harris, Office of
Multiple Award Schedule Program Management, 18th and F Streets, NW.,
room 4040, Washington, DC 20405.
FOR FURTHER INFORMATION CONTACT:
Carolyn Harris, Office of Multiple Award Schedule Program Management,
(202-501-1043).
SUPPLEMENTARY INFORMATION: GSA, the General Accounting Office (GAO) and
the NPR have all recently examined MAS ordering procedures and
recommended improvements. Among other things, GAO found that Federal
agencies do not consistently comply with existing regulations and
recommended that GSA clarify its requirements. The NPR generally
recommended that GSA simplify its regulations and eliminate complex
administrative requirements. After reviewing the various
recommendations, GSA decided to eliminate regulatorily prescribed
mandatory use provisions imposed on other agencies. Solicitations that
have a closing date after January 13, 1994, will reflect GSA's new
position on non-mandatory use. Existing contractual obligations will
not be affected by the change. GSA also proposes to ``deregulate'' MAS
ordering procedures and provide agencies with non-regulatory guidance
that is simpler, more customer-oriented, and less paperbound than
current requirements. These principles will enable ordering officials
to take advantage of competition within the scope of the MAS
contracting system.
Description of Changes
GSA proposes the following changes:
1. Most of the existing regulatory instructions regarding the use
of MAS and single award Federal Supply Schedules will be deleted from
the FPMR and FIRMR.
2. GSA regulations will not require agencies to place orders
against future MAS contracts.
3. The current requirement that an ordering activity publicize in
the Commerce Business Daily its intent to place an order against an MAS
contract for federal information processing (FIP) resources valued in
excess of $50,000 will be eliminated. This requirement is the product
of regulation, (i.e., order synopsis not required by statute) for MAS
contracting, and is inconsistent with GSA's efforts to empower its
customers, and streamline and maximize the efficiency of the program.
4. GSA will not dictate an across-the-board Maximum Order
Limitation (MOL) for MAS schedules. Instead, contracting officers will
establish MOL's on a schedule-by-schedule basis. Contracting officers
will set MOL's at levels appropriate for negotiation of volume
purchasing prices.
5. GSA will generally award MAS contracts as indefinite-delivery,
indefinite-quantity type contracts. Indefinite-delivery, indefinite-
quantity type MAS contracts will normally obligate the Government to
purchase a minimum amount during the contract term. Contractors must
deliver up to the MOL for each delivery order they receive.
6. The clause entitled ``Price Reductions'' will be modified to
delete paragraph (c), ``Price Reductions to Federal Agencies''. The
modified clause will be incorporated into the GSAR. Other MAS
provisions and clauses will be amended as necessary to reflect revised
ordering procedures.
7. GSA will streamline existing ordering procedures and state them
in the form of guiding principles. The resulting non-regulatory
guidance will read as follows:
a. GSA awards Multiple Award Schedule (MAS) contracts for a variety
of commercial products and services at prices determined to be fair and
reasonable. The administrative cost of placing a MAS order can be
significantly lower than purchasing by other means. Accordingly, for
orders of minimal dollar value (e.g., $10,000 or below) ordering
activities are given wide latitude to order items at those prices that
represent the best value for the money.
b. To reasonably ensure that a selection meets the agency's needs
at the lowest overall cost before placing an MAS order of significant
dollar value (e.g., greater than $10,000) an ordering activity should:
(1) Consider reasonably available information about products
offered under MAS contracts; this standard is met if the ordering
activity does the following:
Consider products and prices contained in any GSA MAS
automated information system; (e.g., Information Resources Management--
On-line Schedule System, Federal Supply Service--Automated Product
Listing Service); or
If automated information is not available, review at least
3 price lists.
(2) Make reasonable efforts to compare differing functions,
performance characteristics and prices of MAS items. The nature and
degree of such comparisons should be commensurate with the value of the
order. The agency's administrative costs should be considered in making
a best value determination.
(3) Give preference to the items of small business and/or labor
surplus area concerns by following the order of priority in FAR 14.407-
6 when two or more items at the same delivered price will meet an
ordering activity's needs.
c. MAS contractors will not be required to pass on to all schedule
users a price reduction extended only to an individual agency for a
specific order. There may be circumstances where an ordering activity
finds it advantageous to request a price reduction, such as where the
ordering activity finds that a schedule product is available elsewhere
at a lower price, or where the quantity of an individual order clearly
indicates the potential for obtaining a reduced price.
d. Ordering activities should document MAS ordering files in
accordance with internal agency practices. Agencies should keep
documentation to a minimum.
Dated: December 28, 1993.
Richard H. Hopf, III,
Associate Administrator for Acquisition Policy.
[FR Doc. 94-3706 Filed 2-22-94; 8:45 am]
BILLING CODE 6820-61-M
