Federal Acquisition Regulation; ADP/Telecommunications Federal Supply Schedules

SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council are proposing to amend the Federal

Acquisition Regulation (FAR) with respect to GSA''s Federal Supply

Schedules program. This regulatory action was not subject to Office of

Management and Budget review under Executive Order 12866, dated

September 30, 1993. This is not a major rule under 5 U.S.C. 804.

DATES: Comments should be submitted on or before December 9, 1996 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 and F

Streets, NW, Room 4037, Washington, DC 20405.

Please cite FAR case 96-602 in all correspondence related to this

case.

FOR FURTHER INFORMATION CONTACT: Ms. Linda Klein at (202) 501-3775 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 FAR case 96-602.

SUPPLEMENTARY INFORMATION:

A. Background

This proposed rule amends the FAR to reflect the reassignment of

Federal Supply Schedule contracts for ADP/Telecommunications to GSA''s

Federal Supply Service; to add new coverage on the GSA Advantage!

program; to clarify when ordering offices should seek price reductions;

and to implement changes pertaining to procedures when placing orders

above the maximum order.

B. Regulatory Flexibility Act

This proposed rule is not 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 the rule

merely updates and clarifies guidance for Government agencies regarding

use of the GSA Federal Supply Schedule program. An Initial Regulatory

Flexibility Analysis has, therefore, not been performed. Comments from

small entities concerning the affected FAR subpart will be considered

in accordance with 5 U.S.C. 610 of the Act. Such comments must be

submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case

96-602), in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the proposed

changes to the FAR do not impose any additional reporting or

information collection requirements, or collections of information from

offerors, contractors, or members of the public which 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, 13, 38, and 51

Government procurement.

Dated: October 2, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, it is proposed that 48 CFR Parts 8, 13, 38, and 51 be

amended as set forth below:

1. The authority citation for 48 CFR Parts 8, 13, 38, and 51

continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. 2301 to 2331; and 42

U.S.C. 2473(c).

PART 8--REQUIRED SOURCES OF SUPPLIES AND SERVICES

2. Section 8.401 is revised to read as follows:

8.401 General.

(a) The Federal Supply Schedule program, directed and managed by

the General Services Administration (GSA), provides Federal agencies

with a simplified process for obtaining commonly used supplies and

services at prices associated with volume buying. Indefinite delivery

contracts (including requirements contracts) are established with

commercial firms to provide supplies and services at stated prices for

given periods of time. Similar systems of schedule-type contracting are

used for military items managed by the Department of Defense. These

systems are not included in the Federal Supply Schedule program covered

by this subpart.

(b) The GSA schedule contracting office issues publications, titled

Federal Supply Schedules, containing the information necessary for

placing delivery orders with schedule contractors. Ordering offices

issue delivery orders directly to the schedule contractors for the

required supplies and services. Ordering offices may request copies of

schedules by completing GSA Form 457, FSS Publications Mailing List

Application, and mailing it to the GSA Centralized Mailing List Service

(7CAFL), P.O. Box 6477, Fort Worth, Texas, 76115. Copies of GSA Form

457 also may be obtained from the above address.

(c) GSA offers an on-line shopping service called ``GSA

Advantage!'' that enables ordering offices to search product specific

information (i.e., NSN, part number, common name), review delivery

options, place orders directly with contractors (or ask GSA to place

orders on the agency's behalf), and pay contractors for orders using

the Governmentwide commercial purchase card (or pay GSA). Ordering

offices may access the ``GSA Advantage!'' shopping service by

connecting to Internet and using a web browser to connect to the GSA

Home Page (http://www.gsa.gov, or http://www.fss.gsa.gov). For more

information or assistance, contact GSA at Internet e-mail address:

[email protected].

3. Section 8.404 is amended by revising paragraphs (a) and (b), and

the heading of paragraph (c) to read as follows:

8.404 Using schedules.

(a) General. When agency requirements are to be satisfied through

the use of Federal Supply Schedules as set forth in this subpart 8.4,

the policies and procedures of FAR part 13 do not apply. Orders placed,

pursuant to a Multiple Award Schedule (MAS), using the procedures in

this subpart 8.4 are considered to be issued pursuant to full and open

competition (see 6.102(d)(3)). Therefore, when placing orders under

Federal Supply Schedules, ordering offices need not seek further

competition, synopsize the requirement, make a separate determination

of fair and reasonable pricing, or consider small business set-asides

in accordance with subpart 19.5.

(b) Ordering procedures for optional use schedules--(1) Orders at

or below the micro-purchase threshold. Ordering offices can place

orders at or below the micro-purchase threshold with any

[[Page 52845]]

Federal Supply Schedule contractor. GSA has already determined the

prices of items under these contracts to be fair and reasonable.

(2) Orders exceeding the micro-purchase threshold and not exceeding

the maximum order threshold. Before placing an order, ordering offices

should consider reasonably available information about products offered

under Multiple Award Schedule (MAS) contracts by using the ``GSA

Advantage!'' on-line shopping service, or if an automated information

system is not available, by reviewing the catalog, including price

lists, of at least 3 schedule contractors.

(3) Orders exceeding the maximum order threshold. Each schedule

contract has an established maximum order threshold. This threshold

represents the point where it is advantageous for the ordering office

to seek a price reduction. Before placing an order that exceeds the

maximum order threshold, ordering offices shall follow the procedures

in paragraph (b)(2) of this section; and--

(i) Review the catalogs, including price lists, of additional

schedule contractors, if appropriate, considering the dollar value of

the proposed order; and

(ii) Seek a further reduction in price and/or more favorable

delivery terms before selecting the contractor to receive the order.

(4) Blanket purchase agreements (BPAs). All schedule contracts

contain BPA provisions. Ordering offices are encouraged to use BPAs to

establish accounts with contractors to fill recurring requirements.

BPAs should address the frequency of ordering and invoicing, discounts,

delivery locations and times. BPAs may be used for any size orders.

(5) Price reductions. In addition to the circumstances outlined in

paragraph (b)(3) of this section, there may be instances where ordering

offices will find it advantageous to request a price reduction. For

example, when the ordering office finds a schedule product elsewhere at

a lower price or when a blanket purchase agreement (BPA) is being

established to fill recurring requirements, requesting a price

reduction could be advantageous. The potential volume of orders under

these agreements, regardless of the size of the individual order, may

offer the ordering office the opportunity to secure higher 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 or under a BPA.

(6) Best value selection for orders exceeding the micro-purchase

threshold. Orders should be placed with the schedule contractor that

can provide an item which represents the best value. In selecting the

item representing the best value, the ordering office may consider--

(i) Special features of one item which are required in effective

program performance and which are not provided by comparable items;

(ii) Trade in considerations;

(iii) Probable life of the item selected as compared with that of a

comparable item;

(iv) Warranty considerations;

(v) Maintenance availability;

(vi) Past performance; and

(vii) Environmental and energy efficiency considerations.

(7) Small business. 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.

(8) Documentation. Orders should be documented, at a minimum, by

identifying the contractor the item was purchased from, the item

purchased, and the amount paid.

(c) Ordering procedures for mandatory use schedules. * * *

* * * * *

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

4. Section 13.202 is amended by revising paragraph (c)(3) to read

as follows:

13.202 Establishment of blanket purchase agreements (BPA's).

* * * * *

(c) * * *

(3) Federal Supply Schedule contractors if not inconsistent with

the terms of the applicable schedule or other contract.

* * * * *

PART 38--FEDERAL SUPPLY SCHEDULE CONTRACTING

5. Section 38.000 is revised to read as follows:

38.000 Scope of part.

This part prescribes policies and procedures for contracting for

supplies and services under the Federal Supply Schedule program, which

is directed and managed by the General Services Administration (see

subpart 8.4, Federal Supply Schedules, for additional information). The

Department of Defense uses a similar system of schedule contracting for

military items that are not a part of the Federal Supply Schedule

program.

PART 51--USE OF GOVERNMENT SOURCES BY CONTRACTORS

51.103 [Amended]

6. Section 51.103 is amended by removing paragraph (c) and

redesignating paragraph (d) as (c).

[FR Doc. 96-25721 Filed 10-7-96; 8:45 am]

BILLING CODE 6820-EP-U