[Federal Register Volume 64, Number 116 (Thursday, June 17, 1999)]
[Rules and Regulations]
[Page 32746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15149]
[[Page 32746]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 16
[FAC 97-12; FAR Case 98-007; Item IV]
RIN 9000-AI08
Federal Acquisition Regulation; Competition Under Multiple Award
Task and Delivery Order Contracts
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (the Councils) have agreed on a final
rule. The final rule amends the Federal Acquisition Regulation (FAR) to
clarify the procedures governing placement of orders under multiple
award indefinite-delivery contracts.
EFFECTIVE DATE: August 16, 1999.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Ralph DeStefano, Procurement Analyst, at (202)
501-1758. Please cite FAC 97-12, FAR case 98-007.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends the procedures for placing orders under
multiple award contracts at FAR 16.505(b). The rule emphasizes that
agencies must use only fair methods when placing orders. For example,
the contracting officer must not employ allocation or designation of
any preferred awardee(s) that would result in less than fair
consideration being given to all awardees prior to placing each order.
The Councils published a proposed rule in the Federal Register at
63 FR 48416, September 9, 1998.
This regulatory action was not subject to Office of Management and
Budget review under Executive Order 12866, dated September 30, 1993,
and is not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. The rule merely amends the FAR
to clarify the existing prohibition against allocation of orders placed
under multiple award contracts.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 16
Government procurement.
Dated: June 9, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR part 16 as set forth
below:
PART 16--TYPES OF CONTRACTS
1. The authority citation for 48 CFR part 16 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. Amend section 16.505 by revising paragraph (b)(1); by
redesignating paragraphs (b)(2), (b)(3), and (b)(4) as (b)(4), (b)(5),
and (b)(6), respectively and adding new paragraphs (b)(2) and (b)(3);
and by revising newly designated paragraphs (b)(4)(i) and (b)(4)(ii) to
read as follows:
16.505 Ordering.
* * * * *
(b) Orders under multiple award contracts. (1) Except as provided
in paragraph (b)(4) of this section, for orders issued under multiple
delivery order contracts or multiple task order contracts, each awardee
must be provided a fair opportunity to be considered for each order in
excess of $2,500. In determining the procedures for providing awardees
a fair opportunity to be considered for each order, contracting
officers must exercise broad discretion. The contracting officer, in
making decisions on the award of any individual task order, should
consider factors such as--
(i) Past performance on earlier tasks under the multiple award
contract;
(ii) Quality of deliverables;
(iii) Cost control;
(iv) Price;
(v) Cost; or
(vi) Other factors that the contracting officer believes are
relevant.
(2) In evaluating past performance on individual orders, the
procedural requirements in subpart 42.15 are not mandatory.
(3) The contracting officer must set forth in the solicitation and
contract the procedures and selection criteria that will be used to
provide multiple awardees a fair opportunity to be considered for each
order. The procedures for selecting awardees for the placement of
particular orders need not comply with the competition requirements of
part 6. However, methods, such as allocation or designation in any way
of any preferred awardee(s), that would result in less than fair
consideration being given to all awardees prior to placing each order,
are prohibited. Formal evaluation plans or scoring of quotes or offers
is not required. Agencies may use oral proposals and streamlined
procedures when selecting an order awardee. In addition, the
contracting officer need not contact each of the multiple awardees
under the contract before selecting an order awardee if the contracting
officer has information available to ensure that each awardee is
provided a fair opportunity to be considered for each order.
(4) * * *
(i) The agency need for the supplies or services is so urgent that
providing the opportunity would result in unacceptable delays;
(ii) Only one contractor is capable of providing the supplies or
services at the level of quality required because the supplies or
services are unique or highly specialized;
* * * * *
[FR Doc. 99-15149 Filed 6-16-99; 8:45 am]
BILLING CODE 6820-EP-P
