[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31650-31651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14531]
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DEPARTMENT OF DEFENSE
48 CFR Parts 25 and 52
[FAC 90-39; FAR Case 92-048; Item XVI]
RIN 9000-AF83
Federal Acquisition Regulation; Fluctuating Exchange Rates
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR) to provide guidance and a
solicitation provision regarding evaluation of foreign currency offers.
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.
EFFECTIVE DATE: August 19, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such at (202) 501-1759 in
reference to this FAR case. For general information, contact the FAR
Secretariat, Room 4037, GS Building, Washington, DC 20405 (202) 501-
4755. Please cite FAC 90-39, FAR case 92-048.
SUPPLEMENTARY INFORMATION:
A. Background
An amendment to FAR Subpart 25.5 and a corresponding solicitation
provision were published in the Federal Register as a proposed rule,
with a request for comments (see 59 FR 16391, April 6, 1994). Two
responses were received. The Council's analysis of those comments
resulted in a revision to the rule to delete ``commercially available''
in the description of the current market exchange rate used in the
evaluation of foreign currency offers. The final rule also adds
language at 25.501(b) and 52.225-4 to address evaluation of offers in
negotiated acquisitions, when award is based on initial offers
received.
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., because the rule pertains to
contracts entered into and performed overseas and, with rare
exceptions, will affect only foreign concerns. No comments were
received on the impact of this rule on small entities during the public
comment period.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the 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 Parts 25 and 52
Government procurement.
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Parts 25 and 52 are amended as set forth below:
1. The authority citation for 48 CFR Parts 25 and 52 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).
PART 25--FOREIGN ACQUISITION
2. In part 25, subpart 25.5, the heading is revised to read as
follows:
Subpart 25.5--Use of Foreign Currency
3. Section 25.501 is revised to read as follows:
25.501 Policy.
(a) Unless a specific currency is required by international
agreement or by the Trade Agreements Act (see 25.405(d)), contracting
officers shall determine whether solicitations for contracts to be
entered into and performed outside the United States will require
submission of offers either in U.S. currency or in a specified foreign
[[Page 31651]]
currency. In unusual circumstances, the contracting officer may permit
submission of offers in other than a specified currency.
(b) To ensure a fair evaluation of offers, solicitations should
generally require all offers to be priced in the same currency.
However, if submission of offers in other than a specified currency is
permitted, the contracting officer shall convert the offered prices to
U.S. currency for evaluation purposes. The contracting officer shall
use the current market exchange rate from a commonly used source in
effect on the
(1) Date of bid opening for sealed bid acquisitions,
(2) Closing date for negotiated acquisitions when award is based on
initial offers, or
(3) Due date for receipt of best and final offers, for other
negotiated acquisitions.
(c) If contracts are priced in foreign currency, agencies must
ensure that adequate funds are available to cover currency fluctuations
in order to avoid a violation of the Anti-Deficiency Act.
4. Section 25.502 is added to read as follows:
25.502 Solicitation provision. -
The contracting officer shall insert the provision at 52.225-4,
Evaluation of Foreign Currency Offers, in solicitations if the use of
other than a specified currency is permitted. The contracting officer
shall insert the source of the rate to be used in the evaluation of
offers.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 52.225-4 is added to read as follows:
52.225-4 Evaluation of Foreign Currency Offers.
As prescribed in 25.502, insert the following provision:
EVALUATION OF FOREIGN CURRENCY OFFERS (AUG 1996)
If offers are received in more than one currency, offers shall
be evaluated by converting the foreign currency to United States
currency using (insert source of rate) in effect on the (a) date of
bid opening for sealed bid acquisitions, (b) closing date for
negotiated acquisitions when award is based on initial offers, or
(c) due date for receipt of best and final offers, for other
acquisitions.
(End of provision)
[FR Doc. 96-14531 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
