Amendment of FIRMR Provisions To Modify Requirements for Obtaining Delegations of Procurement Authority

GENERAL SERVICES ADMINISTRATION

41 CFR Part 201-20

[FIRMR Interim Rule 2]

RIN 3090--AE71

Amendment of FIRMR Provisions To Modify Requirements for

Obtaining Delegations of Procurement Authority

AGENCY: Information Resources Management Service, GSA.

ACTION: Interim rule with request for comments.

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SUMMARY: This amendment to the Federal Information Resources Management

Regulation (FIRMR) revises policies regarding delegations of

procurement authority from GSA for the acquisition of Federal

information processing (FIP) resources. Currently, GSA authorizes

agencies to make individual purchases of up to $2.5 million in

information technology equipment and services. This rule raises the

authorization levels to $20 million, $10 million and $5 million based

on the size of an agency's information technology budget and its

management record. In return for the higher thresholds, agencies will

be required to identify and justify their information technology

acquisition requirements in terms of functional and measurable

outcomes. These outcomes will be related to business objectives.

Examples of outcomes may include faster delivery of service to the

client, reduction of billing time, or reduction of agency expenditures.

GSA will continually review acquisitions performed under its

authorities to assist agencies to meet the needs of the end user,

achieve acquisition requirements, and obtain favorable prices compared

to market trends. Programs not proceeding as planned are subject to

withdrawal of delegated authorities.

In addition to increasing the dollar amounts of regulatory

delegations thresholds, this interim rule changes the basis upon which

specific acquisition delegations are required from the dollar value of

each type of resource to the combined dollar value of FIP resources;

clarifies that delegations are not required when using GSA

Governmentwide programs; and strongly encourages agency Designated

Senior Officials to redelegate 50 percent of GSA's exclusive

procurement authority for FIP resources to qualified officials at other

levels.

DATES: This amendment is effective immediately upon publication.

Comments will be considered in the final rule, but must be received on

or before November 23, 1994.

ADDRESSES: Comments may be mailed to GSA, Regulations Analysis Division

(KMR), 18th and F Streets, NW., Room 3224, Washington, DC 20405, Attn:

Anne Horth, or delivered to that address between 8:00 a.m. and 4:30

p.m.

FOR FURTHER INFORMATION CONTACT:

Anne Horth, FTS/Commercial (202) 501-0960 (v) or FTS/Commercial (202)

501-0657 (tdd).

SUPPLEMENTARY INFORMATION: (1) This interim rule will enable GSA to

focus on high dollar, high risk, more complex systems. It will also

provide more authority to agencies, while, at the same time, increased

measures of accountability and outcomes. The increased authority allows

agencies to streamline their internal acquisition management and review

functions. It also provides an opportunity for more expeditious and

efficient acquisitions, especially with regard to the lower dollar,

less complex requirements.

(2) This amendment clarifies that a delegation is not required for

multiagency contracts awarded by GSA that are approved for

Governmentwide use. This includes FTS2000, local telecommunications

services contracts, the Financial Management Systems Software schedule,

or other services provided, or contracts established, by GSA.

(3) An explanation of the changes being made follows:

(a) Subsection 201-20.305(a) is amended to encourage Designated

Senior Officials (DSOs) to redelegate 50 percent of the monetary value

of GSA's delegated procurement authority to other qualified agency

officials at lower organizational levels where sufficient expertise

exists. Such redelegations will expedite FIP acquisitions and provide

for a more efficient process. DSOs who elect not to redelegate at the

50 percent level, or who withdraw earlier delegations, must advise GSA

in writing of the circumstances that will not allow redelegation and

the management action being taken to allow such redelegation in the

future.

Subsection 201-20.305-1 is amended to grant delegations on the

basis of the total estimated costs of all FIP requirements (equipment,

software, services, support services, and FIP-related supplies when the

resources are procured as an integral part of an acquisition),

including all option items and option periods, over the life of the

contract. The current regulatory delegation thresholds apply to each

type of resource (i.e., equipment, software, or services), but include

all optional items and option periods. To simplify determining when a

delegation is needed, the application of delegations thresholds is

being changed from individual resources to the combined requirements

for all resources over the life of the contract. Subsection 201-20.305-

1 is also amended to change the manner in which regulatory delegations

are established. Instead of the same delegation threshold applying to

all agencies, regulatory thresholds will be based on the size of an

agency's information technology (IT) budget. Agencies are placed in one

of three groups depending on the size of their IT budget. The

categories and amounts being established by this amendment are:

--$20,000,000 ($2,000,000 for a specific make and model specification

or for a requirement available from only one responsible source). This

threshold applies to the group of agencies having the largest IT

budgets.

--$10,000,000 ($1,000,000 for a specific make and model specification

or for a requirement available from only one responsible source). This

threshold applies to a group of agencies having the next largest IT

budgets.

--$5,000,000 ($500,000 for a specific make and model specification or

for a requirement available from only one responsible source). This

threshold applies to all other agencies.

Agencies will be required to submit performance measurement data in

accordance with procedures in FIRMR Bulletin C-5, ``Delegation of

procurement authority for a specific acquisition''.

GSA has the authority to increase or decrease regulatory delegation

thresholds through the use of specific agency thresholds. The latter

are based on how effectively and efficiently an agency acquires FIP

resources and manages its IRM program. Performance measurement data

that agencies submit will be a significant factor in determining agency

delegations thresholds.

(c) Subsection 201-20.305-1 is amended to list the GSA programs

that do not require a delegation of procurement authority prior to use

by agencies.

(3) This rule was submitted to, and approved by, the Office of

Management and Budget in accordance with Executive Order 12866,

Regulatory Planning and Review.

(4) The recordkeeping provisions of the Paperwork Reduction Act do

not apply because the FIRMR changes do not impose information

collection requirements or collection 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 41 CFR Part 201-20

Archives and records, Computer technology, Federal information

processing resources activities, Government procurement, Property

management, Records management, and Telecommunications.

For the reasons set forth in the preamble, GSA is amending 41 CFR

Part 201-20 as follows:

PART 201-20--ACQUISITION

1. The authority citation for Part 201-20 continues to read as

follows:

Authority: 40 U.S.C. 486(c) and 751(f).

2. Section 201-20.305 is amended by revising paragraph (a)(3) and

adding new paragraphs (a) (5) and (6) as follows:

Sec. 201-20.305 Delegation of GSA's exclusive procurement authority.

(a) * * *

(3) The agency's DSO should redelegate, at a maximum, 50 percent of

the monetary value of GSA's delegated exclusive authorities for FIP

resources to qualified officials possessing the expertise to conduct

and manage FIP acquisitions.

* * * * *

(5) DSO's who elect not to redelegate 50 percent of the monetary

value of the delegated authority, or who withdraw a delegation, shall

advise GSA/KMA, 18th and F Streets, NW, Washington, DC 20405, in

writing, of the circumstances involving such redelegations and their

new plan regarding redelegations within the agency.

(6) Under this section:

(i) Agencies will justify their information technology acquisition

requirements in terms of functional and measurable outcomes for the

client and the taxpayer.

(ii) GSA will continually review acquisitions performed under its

authorities with the goal of assisting agencies to meet acquisition

requirements and achieving favorable prices compared to market trends.

Programs not proceeding as planned are subject to withdrawal of

delegated authorities.

* * * * *

3. Section 201-20.305-1 is amended by removing the introductory

text to the section; revising paragraphs (a)(1) introductory text,

(a)(3) and (b); and removing paragraph (c) as follows:

Sec. 201-20.305-1 Regulatory delegations.

(a) * * *

(1) FIP equipment, software, services, support services, and

related supplies (if the acquisition is not solely for related

supplies) when the total estimated dollar value of all of the FIP

resources to be acquired under the contract, including all optional

items and all option periods, does not exceed $20,000,000 ($2,000,000

for a specific make and model or a requirement available from only one

responsible source) for Department of the Air Force, Department of the

Army, Department of Defense/Office of the Secretary of Defense,

Department of Energy, Department of Health and Human Services,

Department of the Navy, Department of Transportation, Department of the

Treasury, and National Aeronautics and Space Administration;

$10,000,000 ($1,000,000 for a specific make and model or a requirement

available from only one responsible source) for Department of

Agriculture, Department of Commerce, Environmental Protection Agency,

General Services Administration, Department of the Interior, Department

of Justice, Department of State, and Department of Veterans Affairs;

$5,000,000 ($500,000 for a specific make or model or a requirement

available from only one responsible source) for all other agencies; and

if either paragraph (a)(1) (i), (ii), or (iii) of this section applies:

* * * * *

(3) FIP resources from the following GSA contracting programs do

not require delegations of procurement authority:

(i) FTS2000 Program.

(ii) Consolidated Local Telecommunications Services Program.

(iii) Financial Management Systems Software Multiple Award Schedule

Contracts Program.

(iv) Purchase of Telephones and Services Program.

(v) Other multiagency services and contracts provided by GSA's

Information Resources Management Service (IRMS) unless the service

results in a contract which will be turned over to the agency after

award. (A delegation is required for agency acquisitions conducted by

IRMS when the contract will be turned over to the agency after award.

This includes agency acquisitions conducted by the Federal Computer

Acquisition Center (FEDCAC)).

(b) When FIP equipment, software, services, and support services

(or any combination thereof) are combined and acquired under a single

contract action, a specific acquisition delegation shall be required

when the dollar value of all combined resources exceeds the regulatory

dollar thresholds in paragraph (a)(1) of this section, or any specific

agency delegation threshold.

Dated: October 11, 1994.

Roger W. Johnson,

Administrator of General Services.

[FR Doc. 94-26121 Filed 10-21-94; 8:45 am]

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