[Federal Register Volume 59, Number 99 (Tuesday, May 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12592]
[[Page Unknown]]
[Federal Register: May 24, 1994]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
48 CFR Chapter 99
Federal Acquisition Regulation (FAR) Rewrite
AGENCY: Office of Federal Procurement Policy, Office of Management and
Budget.
ACTION: Request for comments.
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SUMMARY: In response to the report of the National Performance Review
(NPR), the Administrator for Federal Procurement Policy has established
a Board of Directors comprised of senior level individuals from the
Executive Branch to implement the recommendation pertaining to the
Federal Acquisition Regulation (FAR). The underlying objective of the
recommendation is to convert the FAR from rigid rules to guiding
principles.
DATES: Written comments must be received in the Office of Federal
Procurement Policy on or before June 23, 1994.
ADDRESSES: Susan E. Alesi, Office of Federal Procurement Policy, 725
17th Street, NW., Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT:
Susan E. Alesi, Office of Federal Procurement Policy, 202-395-6803.
SUPPLEMENTARY INFORMATION: On September 7, 1993, the Vice President
released the report of the NPR which, among other things, required the
Administration to simplify the procurement process by rewriting the
FAR, shifting from rigid rules to guiding principles. According to the
report, the FAR, the government's principal set of procurement
regulations, is too process oriented, changes too often, minimizes
discretion of procurement professionals, and stifles innovation. The
report tasks the Administration to develop a plan which includes goals,
resources and milestones to rewrite the FAR to move from a system of
rigid rules to guiding principles, promote decision making at the
lowest level, eliminate unnecessary regulatory requirements, and
facilitate innovative contracting.
As a first step, the Board has drafted a set of core guiding
principles intended to define and guide the Government's general vision
and goals for the Federal acquisition process. It is anticipated that,
when approved by the Board, this set of principles will be issued as a
policy statement by the Office of Federal Procurement Policy. These
principles and the accompanying discussion will be used by the rewrite
teams as parts of the FAR are rewritten. As a parallel action, drafting
principles are being formulated which will provide the rewrite team
with the methodology by which each part will be restructured to
accommodate the NPR recommendation. These drafting principles will be
published for comment in a separate Federal Register notice.
The Board requests comments on the following set of core guiding
principles and the accompanying discussion. The Board also requests
comment on whether the statement of the principles should be included
in a preface to the FAR, one part to the FAR or merely referenced in
the FAR.
Acquisition Guiding Principles
The Acquisition Team includes the customer and the technical,
supply, procurement, and vendor communities.
The Vision for the Federal Acquisition System is to deliver, on a
timely basis, the best value product or service to the customer, while
maintaining the public's trust.
The Goals of the Acquisition System are to meet the VISION by
balancing the interests below:
Satisfying the customer in terms of cost, quality, and
timeliness of the delivered product or service;
Minimizing administrative operating costs;
Conducting business with integrity, fairness, and
openness;
Using commercial products and services in preference to
government-unique specifications;
Using vendors that have demonstrated by past performance
or who demonstrate a current superior ability to perform; and
Fulfilling public policy.
The Role of each member of the Acquisition Team is to exercise
personal initiative and sound business judgment in providing the best
value product or service to meet the customer's needs. The system will
empower the Team to fulfill its role.
The Success of the Acquisition System will be measured by:
The level of customer satisfaction;
Reduced costs of and time consumed by the acquisition
process; and
The degree to which public policy is achieved.
Discussion on Acquisition Guiding Principles
The Acquisition Guiding Principles represent a concise statement
designed to be user-friendly for the entire acquisition community. In
order to illuminate the meaning of the terms and phrases used, the
following discussion of the Acquisition Team, Vision, and Goals is
provided. The framework for the acquisition system includes the
Acquisition Guiding Principles and the supporting policies and
procedures provided in the Federal Acquisition Regulation (FAR).
Acquisition Team
The purpose of defining the Acquisition Team in the Acquisition
Guiding Principles is to ensure that participants in the Acquisition
System are identified--beginning with the customer and ending with the
vendor of the supply or service. By identifying the team members in
this manner, teamwork, unity of purpose and open communications between
the members of the Team in sharing the vision and achieving the goals
of the Acquisition System is encouraged. Individual team members will
participate in the acquisition process at the appropriate time.
Vision
Best value must be defined from a broad perspective and is achieved
through the balanced application of the acquisition goals. All
participants in the System are responsible for making acquisition
decisions that appropriately balance the goals, resulting in a system
which works better and costs less.
Goals
Satisfying the customer in terms of cost, quality, and timeliness
of the delivered product or service.
While there is a wide variety of customers of the Acquisition
System, the principal customers of the System include the users and
line managers of the products or services provided by the System, as
well as the American taxpayer.
The Federal Acquisition System must be responsive and adaptive to
customer needs, concerns, and feedback. Implementation of Acquisition
System policies and procedures, as well as considerations of
timeliness, quality and cost at each level in the process must take
into account the perspective of the user of the product or service.
The Acquisition System must perform in a timely, high quality and
cost effective manner.
All members of the Acquisition Team are encouraged to employ
planning as an integral part of the overall process of acquiring
products or services. Although advance planning is desirable, each
member of the Team must be flexible in order to accommodate changing or
unforeseen mission needs. Planning is a tool for accomplishment of
tasks, and application of its disciplines should be commensurate with
the size and nature of a given task.
Minimizing Administrative Operating Costs
In order to ensure that maximum efficiency is obtained, rules,
regulations and policies should be promulgated only when their benefits
clearly exceed the costs of their development, implementation,
administration, and enforcement. This applies to internal and
administrative processes, including reviews, and to rules and
procedures applied to the vendor community.
The Acquisition System must provide uniformity where it contributes
to efficiency or where fairness or predictability is essential. The
System should also, however, encourage innovation, and local adaptation
where uniformity is not essential.
Conducting Business With Integrity, Fairness, Openness
An essential consideration in every aspect of the Acquisition
System is maintaining the public's trust. Not only must the Acquisition
System have integrity, but the actions of each member of the
Acquisition Team must reflect that integrity. Accordingly, each member
of the Acquisition Team is responsible and accountable for the wise use
of public resources as well as for acting in a manner which maintains
the public's trust. The foundation of integrity within the Acquisition
System is a competent, experienced and well-trained, professional
workforce.
To achieve efficient operations the Acquisition System must shift
its focus from ``risk avoidance'' to one of ``risk management.'' The
cost to the taxpayer of attempting to eliminate all risk is
prohibitive. The Executive Branch will accept and manage the risk
associated with empowering local procurement officials to take
independent action based on their professional judgment.
Using Commercial Products and Services in Preference to Unique
Specifications
The government must not hesitate to communicate with the commercial
sector, as early as possible in the acquisition cycle to help the
government determine the capabilities available in the commercial
marketplace. In satisfying its needs the government will rely on
commercial products and services utilizing commercial standards and
practices in preference to unique government specifications.
Using Vendors That Have Demonstrated by Past Performance or Who
Demonstrate a Current Superior Ability to Perform
When selecting vendors to provide products or perform services the
government will use vendors that demonstrate a superior ability to
perform.
Fulfilling Public Policy
The Acquisition System must support the attainment of public policy
goals adopted by the Congress and the President. In attaining these
goals, and in its overall operations, the process shall ensure the
efficient use of public resources.
Role of the Acquisition Team
The authority to make decisions and the accountability for the
decisions made will be delegated to the lowest level within the
Acquisition System, consistent with law.
Members of the government Acquisition Team must be empowered to
make acquisition decisions within their areas of responsibility
including selection, negotiation and administration of contracts
consistent with the Guiding Principles. In particular, the Contracting
Officer must have the authority, to the maximum extent practicable and
consistent with law, to determine the appropriate application of rules,
regulations and policies, other than statutes, to a specific contract.
To ensure that each member of the Acquisition Team is prepared to
perform the functions and duties assigned, the government is committed
to provide training, professional development and other resources
necessary for maintaining and improving the knowledge, skills and
abilities of all government participants on the Team, both with regard
to their particular area of responsibility within the System and their
role as a Team member.
The Acquisition System will foster cooperative relationships
between the government and its vendors consistent with its overriding
responsibility to the taxpayers.
Dated: May 18, 1994.
Steven Kelman,
Administrator.
[FR Doc. 94-12592 Filed 5-23-94; 8:45 am]
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