94-6900. Federal Acquisition Regulation; Price Competition Exemption

[Federal Register Volume 59, Number 59 (Monday, March 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6900]


[Federal Register: March 28, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Part 15

[FAR Case 92-33]


Federal Acquisition Regulation; Price Competition Exemption

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing an amendment to the 
Federal Acquisition Regulation (FAR) to address unnecessarily requiring 
the submission of cost or pricing data and to clarify when adequate 
price competition exists.
    This regulatory action was not subject to Office of Management and 
Budget review pursuant to Executive Order 12866, dated September 30, 
1993.

DATES: Comments should be submitted on or before May 27, 1994 to be 
considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (VRS), 18th & F 
Streets, NW., room 4037, ATTN: Beverly Fayson, Washington, DC 20405.
    Please cite FAR case 92-33 in all correspondence related to this 
case.

FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Olson at [phone] in reference to this FAR case. For 
general information, contact the FAR Secretariat, room 4037, GS 
Building, Washington, DC 20405 [phone]. Please cite FAR case 92-
33.

SUPPLEMENTARY INFORMATION: 

A. Background

    The revisions to FAR 15.804-1 and 15.804-2 originated as part of 
the Defense Management Review.
    President Bush's memorandum on ``Reducing the Burden of Government 
Regulation'' tasked selected agencies and departments to review current 
regulations, to identify those that impose a substantial cost on the 
economy, and to make appropriate revisions. In response to this 
direction, the Federal Acquisition Regulatory Council solicited and 
received the views of various industry associations and the public. The 
revision to FAR 15.804-3 originated from an industry recommendation.

B. Regulatory Flexibility Act

    The proposed rule is not expected to 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., because it 
clarifies current policy. An Initial Regulatory Flexibility Analysis 
has, therefore, not been performed. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected FAR subpart will also be considered in 
accordance with 5 U.S.C. 610. Such comments must be submitted 
separately and should cite 5 U.S.C. 601, et seq. (FAR case 92-33), in 
correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public which require the approval of the 
Office of Management and Budget under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 15

    Government procurement.

    Dated: March 18, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

    Therefore, it is proposed that 48 CFR part 15 be amended as set 
forth below:

PART 15--CONTRACTING BY NEGOTIATION

    1. The authority citation for 48 CFR part 15 continues to read as 
follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

    2. Section 15.804-1 is amended by redesignating paragraph (a) as 
(a)(1) and adding paragraph (a)(2) to read as follows:


Sec. 15.804-1  General.

    (a) * * *
    (2) Unnecessarily requiring the submission of cost or pricing data 
is not in the best interest of the Government because it leads to 
increased proposal preparation costs, extends acquisition lead-time, 
and wastes both contractor and Government resources.
* * * * *
    3. Section 15.804-2 is amended by adding paragraph (d) to read as 
follows:


Sec. 15.804-2  Requiring certified cost or pricing data.

* * * * *
    (d) When there is a reasonable expectation that adequate price 
competition will result on a particular procurement, the contracting 
officer should rarely have a need to require the submission or 
certification of cost or pricing data, regardless of the contract type.
    4. Section 15.804-3 is amended by revising paragraphs (b)(1)(ii), 
(b)(1)(iii), (b)(2)(ii), and (b)(2)(iii) to read as follows:


Sec. 15.804-3  Exemptions from or waiver of submission of certified 
cost or pricing data.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Two or more responsible offerors that can satisfy the 
Government's requirements compete independently and submit priced 
offers responsive to the solicitation's expressed requirements; and
    (iii) Award will be made to a responsible offeror whose proposal is 
either--
    (A) The lowest price; or
    (B) Offers the greatest value (see 15.605(c)) to the Government and 
price is a stated substantial factor in source selection.
    (2) * * *
    (ii) An offeror has such a decided advantage that it is practically 
immune from competition; or
    (iii) There is a finding supported by a statement of the facts and 
approved at a level above the contracting officer, that the price of 
the otherwise successful offeror is unreasonable.
* * * * *
[FR Doc. 94-6900 Filed 3-25-94; 8:45 am]
BILLING CODE 6820-34-M