[Federal Register Volume 61, Number 120 (Thursday, June 20, 1996)]
[Rules and Regulations]
[Pages 31663-31664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14545]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Part 52
[FAC 90-39; FAR Case 91-031; Item XXX]
RIN 9000-AE41
Federal Acquisition Regulation; Contract Award--Sealed Bidding--
Construction
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
[[Page 31664]]
ACTION: Final rule.
-----------------------------------------------------------------------
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 inform offerors under
construction solicitations that the Government may reject bids as
nonresponsive if the prices are materially unbalanced. The proposed
rule was published in the Federal Register at 56 FR 29539, June 27,
1991. 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. Jack O'Neill at (202) 501-3856 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 91-31.
SUPPLEMENTARY INFORMATION:
A. Background
The FAR was previously amended to include unbalanced bidding
provisions at 52.214-10, Contract Award--Sealed Bidding, and 52.215-16,
Contract Award, for supplies and services procured under sealed bidding
and negotiation procedures. At that time, the unbalanced bidding
provisions were not made applicable to construction solicitations.
However, the Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have decided that, for consistency,
construction solicitations should include a similar provision to notify
offerors that their bids may be rejected as nonresponsive if the prices
are materially unbalanced.
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 unbalanced bidding
provisions have already been incorporated in solicitations, for other
than construction, with no known impact on the small business
community. 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 OMB under 44
U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 52
Government procurement.
Dated: June 4, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, 48 CFR Part 52 is amended as set forth below:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1. The authority citation for 48 CFR Part 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).
2. Section 52.214-19 is amended by revising the date of the
provision to read ``(AUG 1996)''; and by adding paragraph (d) to the
provision to read as follows:
52.214-19 Contract Award--Sealed Bidding--Construction.
* * * * *
CONTRACT AWARD--SEALED BIDDING--CONSTRUCTION (AUG 1996)
* * * * *
(d) The Government may reject a bid as nonresponsive if the
prices bid are materially unbalanced between line items or subline
items. A bid is materially unbalanced when it is based on prices
significantly less than cost for some work and prices which are
significantly overstated in relation to cost for other work, and if
there is a reasonable doubt that the bid will result in the lowest
overall cost to the Government even though it may be the low
evaluated bid, or if it is so unbalanced as to be tantamount to
allowing an advance payment.
[FR Doc. 96-14545 Filed 6-19-96; 8:45 am]
BILLING CODE 6820-EP-P
