[Federal Register Volume 60, Number 127 (Monday, July 3, 1995)]
[Rules and Regulations]
[Pages 34733-34734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16080]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1
[FAC 90-29; FAR Case 95-10, Item I]
RIN 9000-AG55
Federal Acquisition Regulation; FAR Guiding Principles
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Federal Acquisition Regulatory Council agreed on a final
rule to amend the Federal Acquisition Regulation (FAR) to incorporate
the Statement of Guiding Principles. This regulatory action was not
subject to Office of Management and Budget review under Executive Order
12866, dated September 30, 1993.
EFFECTIVE DATE: July 3, 1995.
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 90-29,
FAR case 95-10.
SUPPLEMENTARY INFORMATION:
A. Background
On Friday, January 20, 1995, the Office of Federal Procurement
Policy (OFPP), Office of Management and Budget, published in the
Federal Register at 60 FR 4205, a Notice of Core Guiding Principles for
the Federal Acquisition System. The OFPP, in accordance with a decision
of the FAR Rewrite Board of Directors, then requested that the Core
Guiding Principles be incorporated into the regulation. This final rule
completes the action requested by the Board of Directors.
B. Regulatory Flexibility Act
The final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. Therefore, the Regulatory
Flexibility Act does not apply. However, comments from small entities
concerning the affected subpart will be considered in accordance with 5
U.S.C. 610. Such comments must be submitted separately and cite 5
U.S.C. 601, et seq. (FAC 90-29, FAR case 95-10), in correspondence.
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 Part 1
Government procurement.
Dated: June 26, 1995.
C. Allen Olson,
Director, Office of Federal Acquisition Policy.
Therefore, 48 CFR Part 1 is amended as set forth below:
1. The authority citation for 48 CFR Part 1 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 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
1.102-1.105 [Redesignated as 1.103-1.106]
2. Subpart 1.1 is amended by redesignating sections 1.102 through
1.105 as 1.103 through 1.106 and adding new sections 1.102 through
1.02-4 to read as follows:
1.102 Statement of guiding principles for the federal acquisition
system.
(a) 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 and fulfilling public policy objectives.
Participants in the acquisition process should work together as a team
and should be empowered to make decisions within their area of
responsibility.
(b) The Federal Acquisition System will--
(1) Satisfy the customer in terms of cost, quality, and timeliness
of the delivered product or service by, for example--
(i) Maximizing the use of commercial products and services;
(ii) Using contractors who have a track record of successful past
performance or who demonstrate a current superior ability to perform;
and
(iii) Promoting competition;
(2) Minimize administrative operating costs;
(3) Conduct business with integrity, fairness, and openness; and
(4) Fulfill public policy objectives.
(c) The Acquisition Team consists of all participants in Government
acquisition including not only representatives of the technical,
supply, and procurement communities but also the customers they serve,
and the contractors who provide the products and services.
(d) 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. In exercising
initiative, Government members of the Acquisition Team may assume if a
specific strategy, practice, policy or procedure is in the best
interests of the Government and is not addressed in the FAR nor
prohibited by law (statute or case law), Executive order or other
regulation, that the strategy, practice, policy or procedure is a
permissible exercise of authority.
1.102-1 Discussion
(a) Introduction. The statement of Guiding Principles for the
Federal Acquisition System (System) represents a concise statement
designed to be user-friendly for all participants in Government
acquisition. The following discussion of the principles is provided in
order to illuminate the meaning of the terms and phrases used. The
framework for the System includes the Guiding Principles for the System
and
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the supporting policies and procedures in the FAR.
(b) Vision. All participants in the System are responsible for
making acquisition decisions that deliver the best value product or
service to the customer. Best value must be viewed from a broad
perspective and is achieved by balancing the many competing interests
in the System. The result is a system which works better and costs
less.
1.102-2 Performance standards.
(a) Satisfy the customer in terms of cost, quality, and timeliness
of the delivered product or service. (1) The principal customers for
the product or service provided by the System are the users and line
managers, acting on behalf of the American taxpayer.
(2) The System must be responsive and adaptive to customer needs,
concerns, and feedback. Implementation of acquisition policies and
procedures, as well as consideration of timeliness, quality and cost
throughout the process, must take into account the perspective of the
user of the product or service.
(3) When selecting contractors to provide products or perform
services the Government will use contractors who have a track record of
successful past performance or who demonstrate a current superior
ability to perform.
(4) 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. The Government will maximize its use of commercial
products and services in meeting Government requirements.
(5) It is the policy of the System to promote competition in the
acquisition process.
(6) The System must perform in a timely, high quality, and cost-
effective manner.
(7) All members of the Team are required to employ planning as an
integral part of the overall process of acquiring products or services.
Although advance planning is required, each member of the Team must be
flexible in order to accommodate changing or unforeseen mission needs.
Planning is a tool for the accomplishment of tasks, and application of
its discipline should be commensurate with the size and nature of a
given task.
(b) Minimize administrative operating costs. (1) 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 administrative processes, including reviews,
and to rules and procedures applied to the contractor community.
(2) The 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.
(c) Conduct business with integrity, fairness, and openness. (1) An
essential consideration in every aspect of the System is maintaining
the public's trust. Not only must the System have integrity, but the
actions of each member of the Team must reflect integrity, fairness,
and openness. The foundation of integrity within the System is a
competent, experienced, and well-trained, professional workforce.
Accordingly each member of the Team is responsible and accountable for
the wise use of public resources as well as acting in a manner which
maintains the public's trust. Fairness and openness require open
communication among team members, internal and external customers, and
the public.
(2) To achieve efficient operations, the 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.
(d) Fulfill public policy objectives. The System must support the
attainment of public policy goals adopted by the Congress and the
President. In attaining these goals, and in its overalll operations,
the process shall ensure the efficient use of public resources.
Sec. 1.102-3 Acquisition team.
The purpose of defining the Federal Acquisition Team (Team) in the
Guiding Principles is to ensure that participants in the System are
identified--beginning with the customer and ending with the contractor
of the product or service. By identifying the team members in this
manner, teamwork, unity of purpose, and open communication among the
members of the Team in sharing the vision and achieving the goal of the
System are encouraged. Individual team members will participate in the
acquisition process at the appropriate time.
Sec. 1.102-4 Role of the acquisition team.
(a) Government members of the 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 application of rules, regulations, and
policies, on a specific contract.
(b) The authority to make decisions and the accountability for the
decision made will be delegated to the lowest level within the System,
consistent with law.
(c) The Team must be 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 for all Government
participants on the Team, both with regard to their particular area of
responsibility within the System, and their respective role as a team
member. The contractor community is encouraged to do likewise.
(d) The System will foster cooperative relationships between the
Government and its contractors consistent with its overriding
responsibility to the taxpayers.
(e) The FAR outlines procurement policies and procedures that are
used by members of the Acquisition Team. If a policy or procedure, or a
particular strategy or practice, is in the best interest of the
Government and is not specifically addressed in the FAR, nor prohibited
by law (statute or case law), Executive order or other regulation,
Government members of the Team should not assume it is prohibited.
Rather, absence of direction should be interpreted as permitting the
Team to innovative and use sound business judgment that is otherwise
consistent with law and within the limits of their authority.
[FR Doc. 95-16080 Filed 6-30-95; 8:45 am]
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