Federal Acquisition Regulation; Electronic Contracting

[[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:

[[Page 34737]]

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.

* * * * *

[[Page 34738]]

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