[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Proposed Rules]
[Pages 49948-49949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23828]
[[Page 49947]]
_______________________________________________________________________
Part X
Department of Defense General Services
Administration
National Aeronautics and Space Administration
_______________________________________________________________________
48 CFR Parts 8 and 38
Federal Acquisition Regulation; Federal Supply Schedules Small Business
Opportunities; Proposed Rule
Federal Register / Vol. 64, No. 177 / Tuesday, September 14, 1999 /
Proposed Rules
[[Page 49948]]
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 8 and 38
[FAR Case 98-609]
RIN 9000-AI48
Federal Acquisition Regulation; Federal Supply Schedules Small
Business Opportunities
agencies: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
action: Proposed rule.
-----------------------------------------------------------------------
summary: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) are proposing to amend the
Federal Acquisition Regulation (FAR) to enhance the participation of
small business concerns under the Federal Supply Schedules Program.
dates: Comments should be submitted on or before November 15, 1999 to
be considered in the formulation of a final rule.
addresses: Interested parties should submit written comments to:
General Services Administration, FAR Secretariat (MVRS), 1800 F Street,
NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405.
Address e-mail comments submitted via the Internet to 609@gsa.gov.
Please cite FAR case 98-609 in all correspondence related to this
case.
for further information contact: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, at (202) 501-4755 for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-
1900. Please cite FAR case 98-609.
supplementary information:
A. Background
This proposed rule recommends amending FAR Part 8 to encourage
ordering offices to consider small businesses when conducting
evaluations before placing an order. The rule also recognizes the
recent change made by the Small Business Administration whereby
agencies are required, beginning in fiscal year 1999, to include in
their procurement base and goals, the dollar value of orders expected
to be placed against the General Services Administration's (GSA)
Federal Supply Service (FSS) Schedules, and to report accomplishments
against these goals. The rule also proposes to amend FAR Part 38 to
reaffirm that the General Services Administration and agencies
delegated the authority to establish a Federal Supply Schedule must
comply with all statutory and regulatory requirements before a
solicitation is issued. In addition, the rule proposes several minor
revisions.
This rule was not subject to Office of Management and Budget review
under Section 6(b) of Executive Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
B. Regulatory Flexibility Act
This proposed 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 more
orders placed against Federal Supply Schedules may be awarded to small
business concerns. Since this may result in a positive impact on small
entities, an Initial Regulatory Flexibility Analysis (IRFA) has been
performed and is summarized as follows:
The objective of the rule is to ensure that small business
concerns have the maximum practicable opportunity to compete in
Federal Supply Schedule acquisitions. According to statistical data
maintained by the General Services Administration's Federal Supply
Service, there are 4,900 Federal Supply Schedule contracts that are
in effect with small business concerns out of a population of 7,000
national scope schedule contracts. Approximately 70 percent of the
schedule contractors are small business concerns. In fiscal year
1998, small business schedule contractors received approximately
$2.5 billion, or 33 percent, of total schedule sales. The proposed
rule encourages ordering offices to consider the availability of
small business concerns under the schedule and encourages the
consideration of such firms when conducting evaluations before
placing an order.
The FAR Secretariat has submitted a copy of the IRFA to the Chief
Counsel for Advocacy of the Small Business Administration. A copy of
the IRFA may be obtained from the FAR Secretariat. The Councils will
consider comments from small entities concerning the affected FAR
Subparts 8 and 38 in accordance with 5 U.S.C. 610. Comments must be
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case
98-609), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose information collection requirements that 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 8 and 38:
Government procurement.
Dated: September 7, 1999.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA propose that 48 CFR Parts 8 and 38 be
amended as set forth below:
1. The authority citation for 48 CFR parts 8 and 38 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 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES
2. Revise section 8.402 to read as follows:
8.402 Applicability.
Procedures in this subpart apply to orders placed against Federal
Supply Schedules. Occasionally, GSA may establish special ordering
procedures. The affected Federal Supply Schedules will outline these
procedures.
3. In section 8.404--
a. Revise paragraph (a);
b. Remove from paragraph (b)(1) ``Ordering Offices can place'' and
add ``Place'' in its place;
c. Revise the introductory text of paragraph (b)(2);
d. Revise paragraph (b)(2)(i);
e. Remove from the introductory text of paragraph (b)(3) ``,
ordering offices shall'';
f. Revise paragraph (b)(3)(i);
g. Revise the first sentence in paragraph (b)(3)(iii); and
h. Revise paragraphs (b)(4), (b)(5), and (b)(6) to read as follows:
Sec. 8.404 Using schedules.
(a) General. Parts 13 and 19 do not apply to orders placed against
Federal Supply Schedules, except for the provision at 13.303-2(c)(3).
Orders placed against a Multiple Award Schedule (MAS), using the
procedures in this subpart, are considered to be issued using full and
open competition (see 6.102(d)(3)). Therefore, ordering offices need
not seek further competition, synopsize the requirement, make a
separate determination of fair and reasonable pricing, or consider
[[Page 49949]]
small business programs. GSA has already determined the prices of items
under schedule contracts to be fair and reasonable. By placing an order
against a schedule using the procedures in this section, the ordering
office has concluded that the order represents the best value and
results in the lowest overall cost alternative (considering price,
special features, administrative costs, etc.) to meet the Government's
needs.
(b) * * *
(2) Orders exceeding the micro-purchase threshold but not exceeding
the maximum order threshold. Place orders with the schedule contractor
that can provide the supply or service that represents the best value.
Consider reasonably available information about the supply or service
offered under MAS contracts by using the ``GSA Advantage!'' on-line
shopping service, or by reviewing the catalogs or pricelists of at
least three schedule contractors (see 8.404(b)(6)). Select the delivery
and other options available under the schedule that meet the agency's
needs. When selecting the supply or service representing the best
value, consider--
(i) Special features of the supply or service required for
effective program performance;
* * * * *
(3) * * *
(i) Review additional schedule contractors' catalogs or pricelists,
or use the ``GSA Advantage!'' on-line shopping service;
* * * * *
(iii) After seeking price reductions, place the order with the
schedule contractor that provides the best value and results in the
lowest overall cost alternative (see 8.404(a)). * * *
(4) Blanket purchase agreements (BPAs). Agencies may establish BPAs
(see 13.303-2(c)(3)) when following the ordering procedures in this
subpart. All schedule contracts contain BPA provisions. Ordering
offices may use BPAs to establish accounts with contractors to fill
recurring requirements. BPAs should address ordering frequency,
invoicing, discounts, and delivery locations and times.
(5) Price reductions. In addition to the circumstances in paragraph
(b)(3) of this section, there may be other reasons to request a price
reduction. For example, seek a price reduction when the supply or
service is available elsewhere at a lower price or when establishing a
BPA to fill recurring requirements. The potential volume of orders
under BPAs, regardless of the size of the individual order, offer the
opportunity to secure greater discounts. Schedule contractors are not
required to pass on to all schedule users a price reduction extended
only to an individual agency for a specific order.
(6) Small business. When conducting evaluations and before placing
an order, consider including, if available, one or more small, small
women-owned and or small disadvantaged business schedule contractor(s).
Orders placed against the schedules may be credited toward the ordering
agency's small business goals. For orders exceeding the micro-purchase
threshold, ordering offices should give preference to the items of
small business concerns when two or more items at the same delivered
price will satisfy the requirement.
* * * * *
PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING
4. Revise section 38.101 to read as follows:
38.101 General.
(a) The Federal Supply Schedule program, pursuant to 41 U.S.C.
259(b)(3), provides Federal agencies with a simplified process of of
acquiring commonly used supplies and services in varying quantities
while obtaining volume discounts. Indenfinite-delivery contracts
(including requirements contracts) are awarded using competitive
procedures to commercial firms. The firms provide supplies and services
at stated prices for given periods of time, for delivery within a
stated geographic area such as the 48 continguous states, the District
of Columbia, Alaska, Hawaii, and overseas. The schedule contracting
office issues Federal Supply Schedules that contain information needed
for placing orders.
(b) Each schedule identifies agencies that are required to use the
contracts as primary sources of supply.
(c) Federal agencies not identified in the schedules as mandatory
users (see 8.404-2) may issue orders under the schedules. Contractors
are encouraged to accept the orders.
(d) Although GSA awards most Federal Supply contracts, it may
authorize other agencies to award schedule contracts and publish
schedules. For example, the Department of Veterans Affairs awards
schedule contracts for certain medical and nonperisable subsistence
items.
(e) When establishing Federal Supply Schedules, GSA, or an agency
delegated that authority, is responsible for complying with all
applicable statutory and regulatory requirements (e.g., parts 5, 6, and
19). The requirements of parts 5, 6, and 19 apply at the acquisition
planning stage prior to issuing the schedule soliciation and do not
apply to orders and BPAs placed under resulting schedule contracts (see
8.404).
[FR Doc. 99-23828 Filed 9-13-99; 8:45 am]
BILLING CODE 6820-EP-M
