[Federal Register Volume 64, Number 147 (Monday, August 2, 1999)]
[Proposed Rules]
[Pages 41882-41883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18864]
[[Page 41882]]
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COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR SEVERELY DISABLED
41 CFR Parts 51-2 and 51-5
Miscellaneous Amendments to Committee Regulations
AGENCY: Committee for Purchase From People Who Are Blind or Severely
Disabled.
ACTION: Proposed rule.
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SUMMARY: The Committee is proposing to make changes to its pricing and
shipping regulations to make them consistent with new Committee pricing
policies reflecting a preference for negotiated rather than formula-
based fair market prices.
DATES: Submit comments on or before October 1, 1999.
ADDRESSES: Committee for Purchase From People Who Are Blind or Severely
Disabled, Crystal Gateway 3, Suite 310, 1215 Jefferson Davis Highway,
Arlington, Virginia 22202-4302.
FOR FURTHER INFORMATION CONTACT: G. John Heyer (703) 603-0665. Copies
of this notice will be made available on request in computer diskette
format.
SUPPLEMENTARY INFORMATION: The Committee is proposing to revise 41 CFR
51-2.7, the Committee's general fair market pricing regulation, to
reflect the preference for negotiated prices set forth in the
Committee's recently-adopted pricing policies and the methods of price-
setting established by those policies. Paragraph (a) of 41 CFR 51-5.5
is proposed to be revised to emphasize the statutory nature of the
Committee's price-setting authority. This revision is intended to
emphasize the exemption of the Committee's prices from a statutory
requirement that cost or pricing data be submitted to contracting
activities before a price can be negotiated and recommended to the
Committee. Paragraph (d)(2) of 41 CFR 51-5.5 is proposed to be revised
to change the minimum time for a contracting activity to submit
required wage determination paperwork to the appropriate central
nonprofit agency from 90 to 60 days before the beginning of a new
service period, and to eliminate the requirement for submission of
Standard Form 98, which is no longer needed to learn the applicable
wage determination rate. Paragraph (e) of 41 CFR 51-5.5 is proposed to
be revised to give more flexibility in pricing of special packaging and
marking of products and to accommodate current contract documentation.
Prior to a November 16, 1994 change to the Committee's regulations
(59 FR 59338), pricing and delivery terms for JWOD commodities, other
than military resale commodities, were on an ``F.O.B. origin'' basis.
The 1994 change permitted use of ``F.O.B. destination'' as an
alternative. Since then, the Committee's commodity pricing policies
have been revised to designate ``F.O.B. destination'' as the preferred
pricing and delivery basis. ``F.O.B. origin'' pricing and delivery
remain available as an alternative when the nonprofit agency and the
Government contracting activity agree to use this basis. The proposed
revision of the shipping regulation (41 CFR 51-5.6) reflects the change
in Committee pricing policy by identifying ``F.O.B. destination'' as
the preferred pricing and shipping basis for all JWOD commodities, with
``F.O.B. origin'' as a possible alternative basis.
Regulatory Flexibility Act
I certify that this proposed revision of the Committee regulations
will not have a significant economic impact on a substantial number of
small entities because the revision clarifies program policies and does
not essentially change the impact of the regulations on small entities.
Paperwork Reduction Act
The Paperwork Reduction Act does not apply to this proposed rule
because it contains no new information collection or recordkeeping
requirements as defined in that Act and its regulations.
Executive Order No. 12866
The Committee has been exempted from the regulatory review
requirements of the Executive Order by the Office of Information and
Regulatory Affairs. Additionally, the proposed rule is not a
significant regulatory action as defined in the Executive Order.
List of Subjects
41 CFR Part 51-2
Organization and functions (Government agencies).
41 CFR Part 51-5
Government procurement, Handicapped.
For the reasons set out in the preamble, Parts 51-2 and 51-5 of
Title 41, Chapter 51 of the Code of Federal Regulations are proposed to
be amended as follows:
1. The authority citation for Parts 51-2 and 51-5 continues to read
as follows:
Authority: 41 U.S.C. 46-48c.
PART 51-2--COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR
SEVERELY DISABLED
2. Section 51-2.7 is revised to read as follows:
Sec. 51-2.7 Fair market price.
(a) The Committee is responsible for determining fair market
prices, and changes thereto, for commodities and services on the
Procurement List. The Committee establishes an initial fair market
price at the time a commodity or service is added to the Procurement
List. This initial price is based on Committee procedures, which permit
negotiations between the contracting activity and the nonprofit agency
which will produce or provide the commodity or service to the
Government, assisted by the appropriate central nonprofit agency. If
agreed to by the negotiating parties, the initial price may be
developed using other methodologies specified in Committee pricing
procedures.
(b) Prices are revised in accordance with changing market
conditions under Committee procedures, which include negotiations
between contracting activities and producing nonprofit agencies,
assisted by central nonprofit agencies, or the use of economic indices,
changes in nonprofit agency costs, or other methodologies permitted
under these procedures.
(c) Recommendations for initial fair market prices, or changes
thereto, shall be submitted jointly by the contracting activities and
nonprofit agencies concerned to the appropriate central nonprofit
agency. After review and analysis, the central nonprofit agency shall
submit the recommended prices and methods by which prices shall be
changed to the Committee, along with the information required by
Committee pricing procedures to support each recommendation. The
Committee will review the recommendations, revise the recommended
prices where appropriate, and establish a fair market price, or change
thereto, for each commodity or service which is the subject of a
recommendation.
PART 51-5--CONTRACTING REQUIREMENTS
3. Section 51-5.5 is amended by revising paragraphs (a), (d)(2),
and (e), to read as follows:
[[Page 41883]]
Sec. 51-5.5 Prices.
(a) The prices for items on the Procurement List are fair market
prices established by the Committee under authority of the Javits-
Wagner-O'Day Act (41 U.S.C. 47(b)).
* * * * *
(d) * * *
(2) Provide a copy of the new wage determination rate or the
Department of Labor document stating that the wage determination rate
is unchanged to the central nonprofit agency at least 60 days before
the beginning of the new service period.
* * * * *
(e) If a contracting activity desires packing, packaging, or
marking of products other than the standard pack or as provided in the
Procurement List, any difference in cost shall be negotiated with the
nonprofit agency.
4. Section 51-5.6 is revised to read as follows:
Sec. 51-5.6 Shipping.
(a) Except as provided in paragraph (b) of this section,
commodities are sold to the Government on an ``F.O.B. destination''
basis, with delivery being accomplished when the shipment reaches the
facility designated by the contracting activity. Time of delivery is
when the shipment is released by the carrier and accepted by the
contracting activity or its agent. In this delivery method, the
nonprofit agency will normally use commercial bills of lading and will
be responsible for any loss or damage to the goods occurring before the
commodities reach the designated delivery point. The nonprofit agency
will prepare and distribute commercial bills of lading, furnish
delivery schedules, designate the carriers, and pay all shipping
charges to specified delivery points.
(b) The Committee may determine that certain commodities are to be
sold to the Government on an ``F.O.B. origin'' basis, with delivery
being accomplished when a shipment is placed aboard the vehicle of the
initial carrier. Time of delivery is when the shipment is released to
and accepted by the initial carrier. In this delivery method, the
nonprofit agency will normally use Government bills of lading, and
responsibility for loss or damage to the goods while in transit passes
to the Government at the time the initial carrier accepts a shipment.
If the contracting activity fails to furnish a Government bill of
lading promptly, such failure shall be considered an excusable delay in
delivery.
Dated: July 20, 1999.
Beverly L. Milkman,
Executive Director.
[FR Doc. 99-18864 Filed 7-30-99; 8:45 am]
BILLING CODE 6353-01-P
