95-16081. Federal Acquisition Regulation; Electronic Contracting  

  • [Federal Register Volume 60, Number 127 (Monday, July 3, 1995)]
    [Rules and Regulations]
    [Pages 34734-34741]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-16081]
    
    
    
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    [[Page 34735]]
    
    
    
    DEPARTMENT OF DEFENSE
    DEPARTMENT OF DEFENSE
    
    GENERAL SERVICES ADMINISTRATION
    
    NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
    
    48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16, 19, 20, 25, 28, 
    32, 36, 45, 52, and 53
    
    [FAC 90-29; FAR Case 91-104; Item II]
    RIN 9000-AE46
    
    
    Federal Acquisition Regulation; Electronic Contracting
    
    AGENCY: Department of Defense (DOD), General Services Administration 
    (GSA), and National Aeronautics and Space Administration (NASA).
    
    ACTION: Interim rule with request for comment.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Federal Acquisition Regulatory Council (FARC) is issuing 
    an interim rule to amend the Federal Acquisition Regulation (FAR) to 
    address the use of electronic commerce/electronic data interchange in 
    Government contracting. This regulatory action was subject to Office of 
    Management and Budget review under Executive Order 12866, dated 
    September 30, 1993.
    
    DATES: Effective Date: July 3, 1995.
        Comment Date: Comments should be submitted to the FAR Secretariat 
    at the address shown below on or before September 1, 1995 to be 
    considered in the formulation of a final rule.
    
    ADDRESSES: Interested parties should submit written comments to: 
    General Services Administration, FAR Secretariat (VRS), 18th & F 
    Streets, NW, Room 4037, Attn: Ms. Beverly Fayson, Washington, DC 20405. 
    Please cite FAC 90-29, FAR case 91-104 in all correspondence related to 
    this case.
    
    FOR FURTHER INFORMATION CONTACT:
    Mr. Edward Loeb at (202) 501-4547 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 91-104).
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        A proposed rule was published in the Federal Register at 58 FR 
    69588, December 30, 1993. The rule proposed amendments to the FAR to 
    remove any barriers to the use of electronic data interchange in 
    Government contracting. Thirty-six comments from ten respondents were 
    received during the public comment period. After evaluating the public 
    comments, another proposed rule was published because significant 
    changes to the rule published on December 30, 1993, were deemed to be 
    necessary.
        A revised proposed rule was published in the Federal Register at 60 
    FR 12384, March 6, 1995. Eighteen comments were received in response to 
    the proposed rule.
        This interim rule and the interim rule published elsewhere in this 
    issue under FAR case 94-770, Simplified Acquisition Procedures/FACENET, 
    are interdependent and are meant to be considered jointly.
    
    B. Regulatory Flexibility Act
    
        This interim rule is expected to 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 it 
    encourages broader use of electronic contracting, thereby improving 
    industry access to Federal contracting opportunities. The 
    implementation of Electronic Contracting and use of the Federal 
    Acquisition Computer Network (FACENET) will provide for electronic 
    exchange of acquisition information between the private sector and the 
    Federal Government that will increase the opportunities for vendors 
    currently doing business with the Government, particularly small 
    businesses. It is recognized that an initial start-up cost will be 
    incurred for the purchase of a personal computer, modem, software, and 
    telephone lines, estimated to be $1,500. Additionally, it is 
    anticipated that most small businesses will subscribe to third party 
    value added network (VAN) services to facilitate their communications 
    with the Government's computers. The cost of an advance subscription 
    ranges from approximately $30 to $100 per month, depending on the type 
    of services obtained. The interim rule does not duplicate, overlap, or 
    conflict with any other Federal rules. An Initial Regulatory 
    Flexibility Analysis (IRFA) has been prepared and may be obtained from 
    the FAR Secretariat. A copy of the IRFA will be submitted to the Chief 
    Counsel for Advocacy of the Small Business Administration. Comments are 
    invited from small businesses and other interested parties. Comments 
    from small entities concerning the affected FAR parts will also be 
    considered in accordance with 5 U.S.C. 610. Such comments must be 
    submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 
    91-104) in correspondence.
    C. Paperwork Reduction Act
    
        The Paperwork Reduction Act does not apply because the interim rule 
    does not impose any information collection requirements which require 
    the approval of the Office of Management and Budget under 44 U.S.C. 
    3501, et seq.
    
    D. Determination to Issue an Interim Rule
    
        A determination has been made by the Secretary of Defense (DOD), 
    the Administrator of General Services (GSA), and the Administrator of 
    the National Aeronautics and Space Administration (NASA) under the 
    authority provided by section 22 of the Office of Federal Procurement 
    Policy Act (41 U.S.C. 418b) to issue this regulation as an interim 
    rule.
        The Simplified Acquisition Threshold Procedures/Federal Acquisition 
    Computer Network (SAT/FACNET) rule (FAR Case 94-770) and the Electronic 
    Contracting (EC) rule (FAR Case 91-104) benefit industry and Government 
    by enhancing efficiency of contracting in an environment of declining 
    personnel staffing and resulting increase in workload for contracting 
    personnel. The rules are linked and require simultaneous promulgation. 
    The proposed rules were published simultaneously in the Federal 
    Register on March 6, 1995, with the public comment period closing on 
    May 5, 1995. A public meeting was held on these rules on April 3, 1995, 
    and no substantive comments were presented at the meeting.
        Section 22 of the Office of Federal Procurement Policy Act permits 
    issuance of procurement policies, regulations, procedures, or forms as 
    interim rules prior to consideration of public comments when urgent and 
    compelling circumstances make it impracticable to do otherwise. Urgent 
    and compelling reasons exist to make these rules effective prior to 
    full consideration of public comment. Proceeding with these interim 
    rules is required to permit the Federal Government to cope with the 
    fundamental downsizing of its acquisition workforce and the large end-
    of-fiscal-year workload, with diminished resources. The Federal 
    Acquisition Streamlining Act of 1994 (FASA) and its provisions on SAT/
    FACNET, provide relief from various burdens that affect the Government 
    acquisition process. For example, purchases under the new simplified 
    acquisition approach will become far less complex than today. Using 
    figures from the Department of Defense for 
    
    [[Page 34736]]
    illustrative purposes, large purchase solicitations run 29 pages on the 
    average whereas non-automated small purchases are about 12 pages in 
    length, and automated small purchase solicitations, used by some DoD 
    purchasing activities, are even less, 1 to 2 pages. The beneficial 
    results of implementing these FASA provisions are evidenced further by 
    the time saved in awarding orders under the existing small purchase 
    procedures as opposed to contracts above the small purchase threshold 
    of $25,000. The current average lead-time for awards below $25,000 is 
    26 days, while above $25,000 the average lead-time is 90 days for 
    sealed bids and 210 days for competitive negotiations. These timeframes 
    will be reduced further by implementation of the simplified acquisition 
    authority in this rule by establishing reasonable timeframes for 
    submission of offers for simplified acquisitions in lieu of a rigid 30 
    days period. Through use of the simplified acquisition procedures for 
    actions not exceeding $50,000, the lead-time for approximately 30,000 
    contracts per year will be reduced to a fraction of the current lead-
    time. Use of electronic commerce/electronic data interchange 
    capabilities at procurement activities certified to use FACNET will 
    reduce lead-times even further and will increase the number of 
    contracts affected to approximately 45,000, since FACNET users will be 
    able to use the newly authorized simplified acquisition threshold of 
    $100,000 rather than only $50,000 where FACNET has not been certified. 
    Use of electronic commerce/electronic data interchange at a DoD test 
    site reduced lead-time to 11 days. Reducing the lead-time will allow 
    the contracting community to be more responsive in spite of the already 
    reduced personnel resources, focus its efforts on more complex 
    procurements, reduce the cost of the procurement process for both 
    Government and industry, and provide better service to the direct users 
    of the acquisition system, and ultimately to the public.
        FASA called for its implementation in the FAR by October 1, 1995, 
    or earlier. Due to the time required to fully consider, analyze, and 
    document the analysis of public comments received in response to these 
    proposed rules, it is unlikely that the rules could be published in the 
    FAR, promulgated to procurement personnel and contractors, have 
    procurement personnel and contractors trained, and have the new rules 
    in use by the beginning of the last quarter of the fiscal year. It is 
    essential that these rules be made effective by the beginning of the 
    last quarter of the fiscal year because of personnel downsizing that 
    has already occurred and that is expected before the end of the fiscal 
    year. Additionally, the workload in the last quarter of the fiscal year 
    is the most demanding of the fiscal year. Introduction of new 
    procedures and processes in the middle of that quarter would be 
    counterproductive to efficiency and would require operations to be 
    suspended while retraining of the workforce is accomplished. Therefore, 
    the regulations in FAC 90-29 must be effective no later than July 3, 
    1995, to provide the Federal acquisition workforce the labor and cost 
    saving benefits provided by the statute, or they must be delayed until 
    the end of the fiscal year so as not to interfere with acquisition 
    operations. Immediate implementation as an interim rule will permit 
    time for training of the acquisition workforce and FAR acquisition 
    procedures to be fully operational before the final quarter of FY 1995.
        Pursuant to Public Law 98-577 and FAR 1.501, public comments 
    received in response to these interim rules and the prior proposed 
    rules will be considered in formulating the final rules.
    
    List of Subjects in 48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16, 
    19, 20, 25, 28, 32, 36, 45, 52, and 53
    
        Government procurement.
    
        Dated: June 26, 1995.
    C. Allen Olson,
    Director, Office of Federal Acquisition Policy.
        Therefore, 48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 14, 15, 16, 19, 
    20, 25, 28, 32, 36, 45, 52, and 53 are amended as set forth below:
        1. The authority citation for 48 CFR Parts 1, 2, 4, 5, 7, 8, 9, 12, 
    14, 15, 16, 19, 20, 25, 28, 32, 45, 52, and 53 continues to read as 
    follows:
    
        Authority: 40 USC 486(c); 10 U.S.C. chapter 137; and 42 U.S.C. 
    2473(c).
    
    PART 1--FEDERAL ACQUISITION REGULATIONS SYSTEM
    
    
    1.105  [Amended]
    
        2. Section 1.105 is amended in the FAR segment column by removing 
    entry ``14.406'' and inserting ``14.407'' in its place.
    
    PART 2--DEFINITIONS OF WORDS AND TERMS
    
        3. Section 2.101 is amended by adding, in alphabetical order, the 
    definitions ``In writing'' or written'' and signature'' or 
    ``Signature'' or ``signed'' to read as follows:
    
    
    2.101  Definitions.
    
    * * * * *
        In writing or written means any worded or numbered expression which 
    can be read, reproduced, and later communicated, and includes 
    electronically transmitted and stored information.
     * * * * *
        Signature or signed means the discrete, verifiable symbol of an 
    individual which, when affixed to a writing with the knowledge and 
    consent of the individual, indicates a present intention to 
    authenticate the writing. This includes electronic systems.
     * * * * *
    
    PART 4--ADMINISTRATIVE MATTERS
    
        4. Section 4.101 is revised to read as follows:
    
    
    4.101  Contracting officer's signature.
    
        Only contracting officers shall sign contracts on behalf of the 
    United States. The contracting officer's name and official title shall 
    be typed, stamped, or printed on the contract. The contracting officer 
    normally signs the contract after it has been signed by the contractor. 
    The contracting officer shall ensure that the signer(s) have authority 
    to bind the contractor (see specific requirements in 4.102 of this 
    subpart).
    
    
    4.201  [Amended]
    
        5 & 6. Section 4.201 is amended in paragraph (a) by removing the 
    parenthetical ``(see 4.101(b)),''; in paragraph (b)(1) by removing the 
    parenthetical ``(stamped ``DUPLICATE ORIGINAL,'' see 4.101(b))''; and 
    in paragraph (d) by revising the parenthetical ``(see 30.401(b)) to 
    read ``(see 30.601(b))''.
    
    PART 5--PUBLICIZING CONTRACT ACTIONS
    
        7. Section 5.101 is amended by adding paragraph (a)(2)(iv) to read 
    as follows:
    
    
    5.101  Methods of disseminating information.
    
     * * * * *
        (a) * * *
        (2) * * *
        (iv) Electronic dissemination available to the public at the 
    contracting office may be used to satisfy the public display 
    requirement. Contracting offices utilizing electronic systems for 
    public posting shall periodically publicize the methods for accessing 
    such information.
     * * * * *
        8. Section 5.102(a)(4)(i) is revised to read as follows:
    
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    5.102  availability of solicitations.
    
        (a) * * *
        (4) * * *
        (i) A copy of the solicitation specifications. In the case of 
    solicitations disseminated by electronic data interchange, 
    solicitations may be furnished directly to the electronic address of 
    the small business concern;
     * * * * *
        (9) Section 5.207 is amended by adding a new paragraph (c)(2)(xvii) 
    to read as follows:
    
    
    5.207  Preparation and transmittal of synopses.
    
     * * * * *
        (c) * * *
        (2) * * *
        (xvii) If the solicitation will be made available to interested 
    parties through electronic data interchange, provide any information 
    necessary to obtain and respond to the solicitation electronically.
     * * * * *
    
    PART 7--ACQUISITION PLANNING
    
    
    7.30  [Amended]
    
        10. Section 7.304(b)(3) is amended in the first sentence by 
    adding'', or electronic equivalent,'' after the word ``envelope''.
        11. Section 7.306(a)(1)(i) is revised to read as follows:
    
    
    7.306  Evaluation.
    
     * * * * *
        (a)(1) * * *
        (i) Open the sealed cost comparison on which the cost estimate for 
    Government performance has been entered;
     * * * * *
    
    
    7.307  [Amended]
    
        12. Section 7.307 is amended in the first sentence of paragraph (b) 
    by removing ``14.407-8'' and inserting ``14.408-8'' in its place.
    
    PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
    
        13. Section 8.405-2 is amended by revising the first sentence of 
    the introductory text to read as follows:
    
    
    8.405-2  Order placement.
    
        Ordering offices may use Optional Form 347, an agency-prescribed 
    form, or an established electronic communications format to order items 
    from schedules and shall place orders directly with the contractor 
    within the limitations specified in each schedule. * * *
     * * * * *
    
    
    8.705-3  [Amended]
    
        14. Section 8.705-3(a) is amended in the first sentence by removing 
    the word ``letter'' and inserting ``written'' in its place.
    PART 9--CONTRACTOR QUALIFICATIONS
    
    
    9.206-3  [Amended]
    
        15. Section 9.206-3(b) is amended in the first sentence by removing 
    ``requested copies of the solicitation'' and inserting ``expressed 
    interest in the acquisition'' in its place.
    
    PART 12--CONTRACT DELIVERY OR PERFORMANCE
    
        16. Section 12.103(e) is revised to read as follows:
    
    
    12.103  Supplies or services.
    
    * * * * *
        (e) In invitations for bids, if the delivery schedule is based on 
    the date of the contract, and a bid offers delivery based on the date 
    the contractor receives the contract or notice of award, the 
    contracting officer shall evaluate the bid by adding 5 calendar days 
    (as representing the normal time for arrival through ordinary mail). If 
    the contract or notice of award will be transmitted electronically, (1) 
    the solicitation shall so state; and (2) the contracting officer shall 
    evaluate delivery schedule based on the date of contract receipt or 
    notice of award, by adding one working day. (The term ``working day'' 
    excludes weekends and U.S. Federal holidays.) If the offered delivery 
    date computed with mailing or transmittal time is later than the 
    delivery date required by the invitation for bids, the bid shall be 
    considered nonresponsive and rejected. If award is made, the delivery 
    date will be the number of days offered in the bid after the contractor 
    actually receives the notice of award.
    
    PART 14--SEALED BIDDING
    
        17. Section 14.201-6(e)(1) is revised to read as follows:
    
    
    14.201-6  Solicitation provisions.
    
    * * * * *
        (e) * * *
        (1) 52.214-9, Failure to Submit Bid, except when using electronic 
    data interchange methods not requiring solicitation mailing lists; and
    * * * * *
    
    
    14.202-1  Bidding time.
    
        18. Section 14.202-1(b)(6) is amended by removing the word 
    ``mailing'' and inserting ``transmittal'' in its place.
        19. Section 14.202-2(a)(1) is revised to read as follows:
    
    
    14.202-2  Telegraphic bids.
    
        (a) * * *
        (1) The date for the opening of bids will not allow bidders 
    sufficient time to submit bids in the prescribed format; or
    * * * * *
        20. Section 14.202-8 is added to read as follows:
    
    
    14.202-8  Electronic bids.
    
        In accordance with subpart 4.5, contracting officers may authorize 
    use of electronic commerce for submission of bids. If electronic bids 
    are authorized, the solicitation shall specify the electronic commerce 
    method(s) that bidders may use.
        21. Section 14.203-1 is revised to read as follows:
    
    
    14.203-1  Transmittal to prospective bidders.
    
        Invitations for bids or presolicitation notices shall be 
    transmitted as specified in 14.205, and shall be provided to others in 
    accordance with 5.102. When a contracting office is located in the 
    United States, any solicitation sent to a prospective bidder located at 
    a foreign address shall be sent by electronic data interchange or 
    international air mail if security classification permits.
        22. Section 14.205-1(a) is revised to read as follows:
    
    
    14.205-1  Establishment of lists.
    
        (a) Solicitation mailing lists shall be established by contracting 
    activities to assure access to adequate sources of supplies and 
    services. This rule need not be followed, however, when (1) the 
    requirements of the contracting office can be obtained through use of 
    simplified acquisition procedures (see part 13), (2) the requirements 
    are nonrecurring, or (3) electronic commerce methods are used which 
    transmit solicitations or presolicitation notices automatically to all 
    interested sources participating in electronic contracting with the 
    purchasing activity. Lists may be established as a central list for use 
    by all contracting offices within the contracting activity, or as local 
    lists maintained by each contracting office.
    * * * * *
        23. Section 14.209(b) is amended by adding a second sentence to 
    read as follows:
    
    
    14.209  Cancellation of invitations before opening.
    
    * * * * *
        (b) * * * For bids received electronically, the data received shall 
    not be viewed and shall be purged from primary and backup data storage 
    systems.
    * * * * *
    
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        24. Section 14.301 is amended by adding paragraph (e) to read as 
    follows:
    
    
    14.301  Responsiveness of bids.
    
    * * * * *
        (e) Bids submitted by electronic commerce shall be considered only 
    if the electronic commerce method was specifically stipulated or 
    permitted by the solicitation.
        25. Section 14.303 is amended by revising the first sentence of 
    paragraph (a) and adding (c) to read as follows:
    
    
    14.303  Mofification or withdrawal of bids.
    
        (a) Bids may be modified or withdrawn by any method authorized by 
    the solicitation, if notice is received in the office designated in the 
    solicitation not later than the exact time set for opening of bids. * * 
    *
    * * * * *
        (c) Upon withdrawal of an electronically transmitted bid, the data 
    received shall not be viewed and shall be purged from primary and 
    backup data storage systems.
        26. Section 14.304-1 is amended by removing the word ``either'' at 
    the end of paragraph (a) introductory text, by removing the word ``or'' 
    at the end of paragraph (a)(2), by removing the period at the end of 
    paragraph (a)(3) and inserting ``; or'' in its place, and adding 
    paragraph (a)(4) to read as follows:
    
    
    14.304-1  General.
    
    * * * * *
        (a) * * *
        (4) It was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government not 
    later than 5:00 p.m. one working day prior to the date specified for 
    receipt of bids.
    * * * * *
        27. Section 14.401(a) is amended by revising the second sentence to 
    read as follows:
    
    
    14.401  Receipt and safeguarding of bids.
    
        (a) * * * Except as provided in paragraph (b) of this section, the 
    bids shall not be opened or viewed, and shall remain in a locked bid 
    box, a safe, or in a secured, restricted-access electronic bid box. * * 
    * 
    * * * * *
        28. Section 14.402-3(a)(1) is revised to read as follows:
    
    
    14.402-3  Postponement of openings.
    
        (a) * * *
        (1) The contracting officer has reason to believe that the bids of 
    an important segment of bidders have been delayed in the mails, or in 
    the communications system specified for transmission of bids, for 
    causes beyond their control and without their fault or negligence 
    (e.g., flood, fire, accident, weather conditions, strikes, or 
    Government equipment blackout or malfunction when bids are due); or
    * * * * *
    
    
    14.406 through 14.408-2  [Redesignated as 14.407 through 14.409-2; new 
    14.406 added]
    
        29. Sections 14.406 through 14.406-4; 14.407 through 14.407-8; and 
    14.408, 14.408-1, and 14.408-2 are redesignated as 14.407 through 
    14.407-4; 14.408 through 14.408-8; and 14.409, 14.409-1, and 14.409-2, 
    respectively, and a new section 14.406 is added to read as follows:
    
    
    14.406  Receipt of an unreadable electronic bid.
    
        If a bid received at the Government facility by electronic data 
    interchange is unreadable to the degree that conformance to the 
    essential requirements of the invitation for bids cannot be 
    ascertained, the contracting officer immediately shall notify the 
    bidder that the bid will be rejected unless the bidder provides clear 
    and convincing evidence--
        (a) Of the content of the bid as originally submitted; and
        (b) That the unreadable condition of the bid was caused by 
    Government software or hardware error, malfunction, or other Government 
    mishandling.
        30. Newly-redesignated section 14.407-2 is amended by adding 
    paragraph (c) to read as follows:
    
    
    14.407-2  Apparent clerical mistakes.
    
    * * * * *
        (c) Correction of bids submitted by electronic data interchange 
    shall be effected by including in the electronic solicitation file the 
    original bid, the verification request, and the bid verification.
    
    
    14.407-1, 14.407-3, 14.407-4, 14.408-6, and 14.409-2  [Amended]
    
        30a. In addition to the amendments set forth above, newly-
    redesignated sections 14.407-1 through 14.409-2 are amended by updating 
    the internal references as follows:
    
    ------------------------------------------------------------------------
                         Section                        Remove      Insert  
    ------------------------------------------------------------------------
    14.407-1........................................      14.406      14.407
    14.407-3 intro. text............................    14.406-3            
                                                        14.406-2    14.407-3
                                                                    14.407-2
    14.407-3(e), (h) & (i)..........................    14.406-3    14.407-3
    14.407-4(f).....................................    14.406-4    14.407-4
    14.408-6(c).....................................    14.407-6    14.408-6
    14.409-2........................................    14.408-1    14.409-1
    ------------------------------------------------------------------------
    
    PART 15--CONTRACTING BY NEGOTIATION
    
        31. Section 15.402 is amended by adding paragraph (k) to read as 
    follows:
    
    
    15.402  General.
    
    * * * * *
        (k) In accordance with subpart 4.5, contracting officers may 
    authorize use of electronic commerce for submission of offers. If 
    electronic offers are authorized, the solicitation shall specify the 
    electronic commerce method(s) that offerors may use.
        32. Section 15.407(d)(3) is revised to read as follows:
    
    
    15.407  Solicitation provisions.
    
    * * * * *
        (d) * * *
        (3) Insert in RFP's the provision at 52.215-15, Failure to Submit 
    Offer, except when using electronic data interchange methods not 
    requiring solicitation mailing lists; and
    * * * * *
        33. Section 15.410(b) is revised to read as follows:
    
    
    15.410  Amendment of solicitations before closing date.
    
    * * * * *
        (b) The contracting officer shall determine if the closing date 
    needs to be changed when amending a solicitation. If the time available 
    before closing is insufficient, prospective offerors or quoters shall 
    be notified by electronic data interchange, telegram, or telephone of 
    an extension of the closing date. Telephonic and telegraphic notices 
    shall be confirmed in the written amendment to the solicitation. The 
    contracting officer shall not award a contract unless any amendments 
    made to an RFP have been issued in sufficient time to be considered by 
    prospective offerors.
    * * * * *
        34. Section 15.412 is amended by revising the heading and adding 
    paragraph (h) to read as follows:
    
    
    15.412  Late proposals, modifications, and withdrawals of proposals.
    
    * * * * *
        (h) Upon withdrawal of an electronically transmitted proposal, the 
    data received shall not be viewed and shall be purged from primary and 
    backup data storage systems.
        35. Section 15.607 is amended by adding paragraph (d) to read as 
    follows:
    
    
    15.607  Disclosure of mistakes before award.
    
    * * * * *
        (d) If a proposal received at the Government facility in electronic 
    format is unreadable to the degree that 
    
    [[Page 34739]]
    conformance to the essential requirements of the solicitation cannot be 
    ascertained from the document, the contracting officer immediately 
    shall notify the offeror and provide the opportunity for the offeror to 
    submit clear and convincing evidence--
        (1) Of the content of the proposal as originally submitted; and
        (2) That the unreadable condition of the proposal was caused by 
    Government software or hardware error, malfunction, or other Government 
    mishandling.
    
    
    15.607, 15.608, and 15.1005  [Amended]
    
        36. In addition to the amendments set forth above, sections 15.607, 
    15.608 and 15.1005 are amended by updating the internal references as 
    follows:
    
    ------------------------------------------------------------------------
                         Section                        Remove      Insert  
    ------------------------------------------------------------------------
    15.607(a).......................................      14.406      14.407
    15.608(c).......................................    14.407-3    14.408-3
    15.1005.........................................    14.406-4    14.407-4
    ------------------------------------------------------------------------
    
    PART 16--TYPES OF CONTRACTS
    
    
    16.203-2  [Amended]
    
        37. Section 16.203-2 is amended in the last sentence of the 
    introductory text by removing ``14.407-4'' and inserting ``14.408-4'' 
    in its place.
        38. Section 16.506(c) is revised to read as follows:
    
    
    16.506  Ordering.
    
    * * * * *
        (c) Orders may be placed by electronic commerce methods when 
    permitted under the contract.
    * * * * *
    
    PART 19--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS
    
    
    19.811-2  [Amended]
    
        39. Section 19.811-2 is amended in the introductory text of 
    paragraph (a) by removing ``14.407-1(d)'' and inserting ``14.408-1(d)'' 
    in its place.
    
    PART 20--LABOR SURPLUS AREA CONCERNS
    
    
    20.104  [Amended]
    
        40. Section 20.104 is amended in paragraph (f) by removing 
    ``14.407-6'' and inserting ``14.408-6'' in its place.
    
    PART 25--FOREIGN ACQUISITION
    
    
    25.405  [Amended]
    
        41. Section 25.405 is amended in paragraph (e) by removing 
    ``14.408-1(a)(2)'' and inserting ``14.409-1(a)(2)'' in its place.
    
    PART 28--BONDS AND INSURANCE
    
    
    28.101-4  [Amended]
    
        42. Section 28.101-4 is amended in paragraph (c)(5) by removing 
    ``14.406'' and inserting ``14.407'' in its place.
    
    PART 32--CONTRACTING FINANCING
    
        43. Section 32.503-1(b) is revised to read as follows:
    
    
    32.503-1  Contractor requests.
    
    * * * * *
        (b) Comply with the instructions appropriate to the applicable 
    form, and the contract terms; and
    * * * * *
    
    PART 36--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
    
    
    36.304  [Amended]
    
        44. Section 36.304 is amended in the introductory text by removing 
    ``14.407'' and inserting ``14.408'' in its place.
    
    PART 45--GOVERNMENT PROPERTY
    
        45. Section 45.606-5 is amended by revising paragraphs (b)(3) and 
    (b)(4) to read as follows:
    
    
    45.606-5  Instructions for preparing and submitting schedules of 
    contractor inventory.
    
    * * * * *
        (b) * * *
        (3) The standard inventory schedule forms may be electronically 
    reproduced by contractors pursuant to 53.105, provided no change is 
    made to the name, content or sequence of the data elements. All 
    essential elements of data must be included and the form must be 
    signed.
        (4) The appropriate continuation sheet shall be used when more 
    space is needed.
    * * * * *
    
    PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
        46. Section 52.212-1 is amended by revising the date in the heading 
    of the clause and the fourth sentence in paragraph (b), and removing 
    ``(R 7-104.92(b) 1974 APR)'', ``(R 1-1.316-5)'' and ``(R 1-1316-4(c))'' 
    after ``(End of clause)'' to read as follows:
    
    
    52.212-1  Time of Delivery.
    
    * * * * *
    
    Time of Delivery (Jul 1995)
    
    * * * * *
        (b) * * * However, the Government will evaluate an offer that 
    proposes delivery based on the Contractor's date of receipt of the 
    contract or notice of award by adding (i) five calendar days for 
    delivery of the award through the ordinary mails, or (ii) one 
    working day if the solicitation states that the contract or notice 
    of award will be transmitted electronically. (The term ``working 
    day'' excludes weekends and U.S. Federal holidays.) * * *
    
    (End of clause)
    
    * * * * *
        47. Section 52.212-2 is amended by revising the date in the heading 
    of the clause and the fourth sentence in paragraph (b), and removing 
    ``(R 7-104.92(c) 1974 APR)'', ``(R 1-1.316-5(c))'' and ``(R 1-1.316-
    4(c))'' following ``(End of clause)'' to read as follows:
    
    
    52.212-2  Desired and Required Time of Delivery.
    
    * * * * *
    
    Desired and Required Time of Delivery (Jul 1995)
    
    * * * * *
        (b) * * * However, the Government will evaluate an offer that 
    proposes delivery based on the Contractor's date of receipt of the 
    contract or notice of award by adding (i) five calendar days for 
    delivery of the award through the ordinary mails, or (ii) one 
    working day if the solicitation states that the contract or notice 
    of award will be transmitted electronically. (The term ``working 
    day'' excludes weekends and U.S. Federal holidays.) * * *
    
    (End of clause)
    
    * * * * *
        48. Section 52.214-5 is amended by revising the date in the heading 
    of the provision and adding paragraph (d) to read as follows:
    
    
    52.214-5  Submission of Bids.
    
    * * * * *
    Submission of Bids (Jul 1995)
    
    * * * * *
        (d) Bids submitted by electronic commerce shall be considered 
    only if the electronic commerce method was specifically stipulated 
    or permitted by the solicitation.
    
        49. Section 52.214-7 is amended by revising the date in the 
    provision heading, at the end of paragraph (a)(2) by removing ``or'', 
    at the end of paragraph (a)(3) by removing the period and inserting ''; 
    or'' in its place, and adding paragraph (a)(4) to read as follows:
    
    
    52.214-7  Late Submissions, Modifications, and Withdrawals of Bids.
    
    * * * * *
    
    Late Submissions, Modifications, and Withdrawals of Bids (Jul 1995)
    
        (a) * * *
        (4) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m., one 
    
    [[Page 34740]]
    working day prior to the date specified for receipt of bids.
    * * * * *
    
    (End of provision)
    
        50. Section 52.214-9 is amended by revising the introductory text, 
    the date in the heading of the provision, and the second sentence of 
    the provision, and by removing ``(R SF 33A, Para 6, 1978 JAN)'' after 
    ``(End of provision)'' to read as follows:
    
    
    52.214-9  Failure to Submit Bid.
    
        As prescribed in 14.201-6(e)(1), insert the following provision in 
    invitations for bids:
    
    Failure to Submit Bid (Jul 1995)
    
        * * * Instead, they should advise the issuing office by letter, 
    postcard, or established electronic commerce methods, whether they 
    want to receive future solicitations for similar requirements.* * *
    
    (End of provision)
    
        51. Section 52.214-23 is amended by revising the date in the 
    heading of the provision, at the end of paragraph (a)(3) by removing 
    ``or''; redesignating paragraph (a)(4) as (a)(5), and adding a new 
    paragraph (a)(4) to read as follows:
    
    
    52.214-23  Late Submissions, Modifications, and Withdrawals of 
    Technical Proposals Under Two-Step Sealed Bidding.
    
    * * * * *
    
    Late Submissions, Modifications, and Withdrawals of Technical Proposals 
    Under Two-Step Sealed Bidding (Jul 1995)
    
        (a) * * *
        (4) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m. one working day prior to the date specified 
    for receipt of technical proposals; or
    * * * * *
        52. Section 52.214-32 is amended by revising the date in the 
    heading of the provision and paragraph (a) to read as follows:
    
    
    52.214-32  Late Submissions, Modifications, and Withdrawals of Bids 
    (Overseas).
    
    * * * * *
    
    Late Submissions, Modifications, and Withdrawals of Bids (Overseas) 
    (Jul 1995)
    
        (a) Any bid received at the office designated in the 
    solicitation after the exact time specified for receipt will not be 
    considered unless it is received before award is made and it--
        (1) Was sent by mail or, if authorized by the solicitation, was 
    sent by telegram or via facsimile, and it is determined by the 
    Government that the late receipt was due solely to mishandling by 
    the Government after receipt at the Government installation; or
        (2) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m. one working day prior to the date specified 
    for receipt of bids. The term ``working day'' excludes weekends and 
    U.S. Federal holidays.
    * * * * *
        53. Section 52.214-33 is amended by revising the date in the 
    heading of the provision, at the end of paragraph (a)(1) by removing 
    the word ``or'', redesignating paragraph (a)(2) as (a)(3), and adding a 
    new paragraph (a)(2) to read as follows:
    
    
    52.214-33  Late Submissions, Modifications, and Withdrawals of 
    Technical Proposals Under Two-Step Sealed Bidding (Overseas).
    
    * * * * *
    
    Late Submissions, Modifications, and Withdrawals of Technical Proposals 
    Under Two-Step Sealed Bidding (Overseas) (Jul 1995)
    
        (a) * * *
        (2) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m. one working day prior to the date specified 
    for receipt of technical proposals. The term ``working day'' 
    excludes weekends and U.S. Federal holidays; or
    * * * * *
        54. Section 52.215-9 is amended by revising the date in the 
    provision heading, redesignating paragraph (d) as (e), and adding a new 
    paragraph (d) to read as follows:
    
    
    52.215-9  Submission of Offers.
    
    * * * * *
    
    Submission of Offers (Jul 1995)
    
        (d) Offers submitted by electronic commerce shall be considered 
    only if the electronic commerce method was specifically stipulated 
    or permitted by the solicitation.
    * * * * *
        55. Section 52.215-10 is amended by revising the introductory text 
    and the date in the provision heading, at the end of (a)(3) by removing 
    the word ``or'', redesignating paragraph (a)(4) as (a)(5), and adding a 
    new paragraph (a)(4) to read as follows:
    
    
    52.215-10  Late Submissions, Modifications, and Withdrawals of 
    Proposals.
    
        As prescribed in 15.407(c)(6), insert the following provision:
    
    Late Submissions, Modifications, and Withdrawals of Proposals (Jul 
    1995)
    
        (a) * * *
        (4) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m. one working day prior to the date specified 
    for receipt of proposals; or
    * * * * *
        56. Section 52.215-15 is revised to read as follows:
    
    
    52.215-15  Failure to Submit Offer.
    
        As prescribed in 15.407(d)(3), insert the following provision:
    
    Failure to Submit Offer (Jul 1995)
    
        Recipients of this solicitation not responding with an offer 
    should not return this solicitation, unless it specifies otherwise. 
    Instead, they should advise the issuing office by letter, postcard, 
    or established electronic commerce methods, whether they want to 
    receive future solicitations for similar requirements. If a 
    recipient does not submit an offer and does not notify the issuing 
    office that future solicitations are desired, the recipient's name 
    may be removed from the applicable mailing list.
    
    (End of provision)
    
        57. Section 52.215-36 is amended by revising the date in the 
    provision heading, at the end of paragraph (a)(1) by removing the word 
    ``or'', redesignating paragraph (a)(2) as (a)(3), and adding a new 
    paragraph (a)(2) to read as follows:
    
    
    52.215-36  Late Submissions, Modifications, and Withdrawals of 
    Proposals (Overseas).
    
    * * * * *
    
    Late Submissions, Modifications, and Withdrawals of Proposals 
    (Overseas) (Jul 1995)
    
        (a) * * *
        (2) Was transmitted through an electronic commerce method 
    authorized by the solicitation and was received by the Government 
    not later than 5:00 p.m. one working day prior to the date specified 
    for receipt of proposals; or
    * * * * *
    
    (End of provision)
    
    
    52.223-3  [Amended]
    
        58. Section 52.223-3, Alternate I, is amended by removing ``(NOV 
    1991)'' and inserting ``(JUL 1995)'' in its place, and in the second 
    sentence of paragraph (i)(1) by removing the word ``mail'' and 
    inserting ``transmit'' in its place.
        59. Section 52.242-12 is amended by revising the date in the clause 
    heading and the second and third sentences of the clause to read as 
    follows:
    
    
    52.242-12  Report of Shipment (REPSHIP).
    
    * * * * *
    Report of Shipment (Repship) (Jul 1995)
    
        * * * The notice shall be transmitted by rapid means to be 
    received by the consignee transportation officer at least 24 hours 
    before the arrival of the shipment. The Government bill of lading, 
    commercial bill of lading or letter or other document that contains 
    all of 
    
    [[Page 34741]]
    the following shall be addressed and sent promptly to the receiving 
    transportation officer. * * *
    * * * * *
    
    (End of clause)
    
        60. Section 52.242-13 is amended by revising the date in the clause 
    and the first sentence of the clause to read as follows:
    
    
    52.242-13  Bankruptcy.
    
    * * * * *
    
    Bankruptcy (Jul 1995)
    
        In the event the Contractor enters into proceedings relating to 
    bankruptcy, whether voluntary or involuntary, the Contractor agrees 
    to furnish, by certified mail or electronic commerce method 
    authorized by the contract, written notification of the bankruptcy 
    to the Contracting Officer responsible for administering the 
    contract. * * *
    
        61. Section 52.247-48 is amended by revising the introductory text, 
    the date in the clause heading, redesignating the introductory text of 
    the clause and paragraphs (a), (b), and (c) as (a) introductory text 
    (a)(1), (a)(2), and (a)(3), respectively, adding new paragraph (b), and 
    removing ``(R 7-104.76 1968 JUN)'' after ``(End of clause)'' to read as 
    follows:
    
    
    52.247-48  F.o.b. Destination--Evidence of Shipment.
    
        As prescribed in 47.305-4(c), insert the following clause:
    
    F.O.B. Destination--Evidence of Shipment (Jul 1995)
    
    * * * * *
        (b) Electronic transmission of the information required by 
    paragraph (a) of this clause is acceptable.
    
    (End of clause)
    
    PART 53--FORMS
    
        62. Section 53.105 is revised to read as follows:
    
    
    53.105  Computer generation.
    
        (a) Agencies may computer-generate the Standard and Optional Forms 
    prescribed in the FAR without exception approval (see 53.103), 
    provided--
        (1) The form is in an electronic format that complies with Federal 
    Information Processing Standard Number 161; or
        (2) There is no change to the name, content, or sequence of the 
    data elements, and the form carries the Standard or Optional Form 
    number and edition date.
        (b) The forms prescribed by this part may be computer generated by 
    the public. Unless prohibited by agency regulations, forms prescribed 
    by agency FAR supplements may also be computer generated by the public. 
    Computer generated forms shall either comply with Federal Information 
    Processing Standard Number 161 or shall retain the name, content, or 
    sequence of the data elements, and shall carry the Standard or Optional 
    Form or agency number and edition date (see 53.111).
    
    
    53.214  [Amended]
    
        63. Section 53.214 is amended in paragraph (a) by removing 
    ``14.407-1(d)'' and inserting ``14.408-1(d)(1)'' in its place.
    
    [FR Doc. 95-16081 Filed 6-30-95; 8:45 am]
    BILLING CODE 6820-EP-M
    
    

Document Information

Published:
07/03/1995
Department:
National Aeronautics and Space Administration
Entry Type:
Rule
Action:
Interim rule with request for comment.
Document Number:
95-16081
Pages:
34734-34741 (8 pages)
Docket Numbers:
FAC 90-29, FAR Case 91-104, Item II
RINs:
9000-AE46
PDF File:
95-16081.pdf
CFR: (15)
48 CFR 1
48 CFR 2
48 CFR 4
48 CFR 5
48 CFR 7
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