Streamlining of Commerce Acquisition Process

DEPARTMENT OF COMMERCE

48 CFR Ch. 13

[Docket No. 960826231-6231-01]

RIN 0690-AA26

Streamlining of Commerce Acquisition Process

AGENCY: Department of Commerce.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Department of Commerce has reengineered its acquisition

processes and is planning to implement these new processes department-

wide. The Department is also testing the effectiveness of the new

processes at two Pilot sites within the agency. The new processes are

described in the Acquisition Process Case for Change, Concept of

Operations (CONOPS). The new processes were developed by a team of

departmental representatives who extensively reviewed private and

public sector acquisition practices and recommendations. The intended

effect is to create a more customer-friendly acquisition process that

is less complex,

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less time consuming and less expensive for the Department as well as

the vendor community, and is more responsive to meeting the

Department's program objectives. The new processes are also designed to

be fair, to increase the public's insight into the Government's mission

objectives and acquisition processes and to increase the range of

potential approaches and capabilities which may compete to meet a

particular Department need.

In order to implement the new processes on a department-wide basis,

a class deviation to applicable provisions of the Federal Acquisition

Regulations (FAR) would be required. The Department is inviting public

comment on the proposed streamlined acquisition processes and proposed

FAR deviations

DATES: Comments must be submitted on or before January 10, 1997.

ADDRESSES: Comments may be mailed to Joe Gray, Office of Procurement

Policy and Programs, U.S. Department of Commerce, 14th and Constitution

N.W., Room 6422, Washington, D.C. 20230. Comments may also be submitted

electronically via the following Internet site: http://

www.conops.doc.gov.

FOR FURTHER INFORMATION CONTACT:

Joe Gray at 301 258-4505, ext. 25; E-mail: JLG[email protected].

SUPPLEMENTARY INFORMATION: The Department of Commerce (DOC) Office of

Acquisition Management has sponsored a business process reengineering

effort to create a more customer-friendly, cost-effective acquisition

process that is less complex and time consuming and is more responsive

to meeting the agency's program objectives. The effort was facilitated

by the PTO Office of Business Process Reengineering. The reengineered

process is described in the Acquisition Process Case for Change,

Concept of Operations (CONOPS).

The CONOPS is the product of a cross-functional team of

departmental representatives who extensively reviewed private and

public sector acquisition practices and recommendations. The

reengineered practices will streamline the Department's acquisition

processes and provide significant benefits to the agency and the vendor

community by reducing the time and effort required to complete the

acquisition cycle and by providing an opportunity for substantially

increasing the value and quality of acquisition products.

The Department of Commerce is testing the effectiveness of the new

processes on several projects at two Pilot sites within the agency. The

results of these pilots will be used to validate and refine the CONOPS

for future implementation on a department-wide basis.

In order to implement the reengineered processes on a department-

wide basis a class deviation to the Federal Acquisition Regulations

(FAR) provisions is required in accordance with FAR 1.404. Since the

reengineered processes will substantially affect the way in which the

Department will conduct its acquisitions, public comment on the new

processes and proposed FAR deviations is invited. Public comment will

be taken into account in refining the CONOPS and in preparation and

issuance of the FAR deviations which facilitate implementation of the

CONOPS.

Part 1. Reengineered Acquisition Process

The Concept of Operations (CONOPS) may be obtained by submitting a

written request to Joe Gray, U.S. Department of Commerce, 14th and

Constitution, N.W., Room 6422, Washington, D.C. 20230, or fax to 202-

482-1711. The CONOPS is also available at the following Internet site:

http://www.conops.doc.gov.

Part 2. Class Deviation

Class Definition

The class of procurements to which the proposed FAR deviation will

apply is ``all acquisitions conducted within the Department of Commerce

in accordance with the CONOPS''.

Proposed FAR Deviations

In order to implement the reengineered acquisition processes the

following deviations from the Federal Acquisition Regulations (FAR) are

required.

1. FAR Subparts 10 and 11. Minimum Needs.

Discussion: One of the premises of the BPR CONOPS is to seek early

involvement of the private sector in the acquisition process, and to

maximize competition and promote innovative solutions wherever

practicable by stating requirements in the form of a statement of need

in terms of mission/project objectives rather than a detailed statement

of work. While the recommended practice appears to be consistent with

the intent of the FAR, the use of the term ``minimum needs'' (FAR

10.004(a)(1)) as well as the numerous references to requirements,

specifications, and purchase descriptions, found in Subparts 10 and 11

create ambiguity and are interpreted by some to preclude adoption of

the recommended approach.

Proposed FAR Deviation: Nothing in FAR Subparts 10 or 11 will be

construed to prohibit the expression of requirements in terms of

mission or project needs and objectives (rather than detailed

statements of work) together with appropriate guidance to potential

sources, as a basis for soliciting and evaluating proposed approaches,

capabilities and proposals, for the purpose of down-selecting for

negotiation, as needed, and award.

2. FAR Subparts 5, 6, 10 and 15. Publicizing, market research,

competition, solicitation, proposal and competitive range requirements.

Discussion: The BPR CONOPS is based on a two-phased approach to

meeting mission/project needs which combines market research and

solicitation into a single process. The initial phase involves issuance

of a procurement opportunity notice in the Commerce Business Daily, and

release of a description of the project objectives and ground rules for

receipt and down-selection, including evaluation factors such as

approach, capability, past performance and cost. Upon conclusion of the

initial phase, only those sources considered likely candidates for

award will be invited to participate in the second phase during which

more detailed proposals and discussions will occur. The intent is to

meet requirements for full and open competition while limiting the

extent of solicitation and proposal preparation, evaluation and

negotiation to that which contributes significantly to the achievement

of project objectives and the opportunity for private sector sources to

participate in those objectives.

Negotiations will be concluded when the Project Team is satisfied

that it has reached agreement on contract terms and conditions with a

source which has been determined, in accordance with the evaluation

factors, to be the source most likely to provide the best value

performance in relation to the Government's needs, with due

consideration to fairness in providing sources the opportunity to

present their offers. Additional streamlining is sought through the

elimination of announcement of the close of negotiations and the use of

best and final offers. Offerors will be expected to make their best

proposals available at appropriate times during the process without a

need for a final call.

Proposed FAR Deviation: A deviation from the provisions of FAR

Subparts 5, 6, 10 and 15 is requested which will allow the Department

of Commerce to combine publicizing, market research and solicitation

into a single two-phased

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process as outlined above and described more fully in the CONOPS.

Pursuant to this deviation the agency may meet publicizing requirements

by publishing the Project Agreement or a notice of its availability in

the CBD, and meet the requirement for full and open competition by

inviting all responsible sources to submit information regarding their

qualifications and approach to meeting the agencies objectives as

described in the Project Agreement.

Features specifically permitted include, but are not limited to,

the ability of the Department of Commerce Project Teams:

(1) during the initial phase to down-select among sources on the

basis of capabilities, approach, past performance and other criteria as

specified in the published Project Agreement and Ground Rules, without

the necessity of receiving or reviewing detailed technical proposals;

(2) to continue market research and initiate solicitation by

issuance of the Project Agreement during the initial phase of the

acquisition process;

(3) to invite only those sources to participate during the second

phase who were found to have a reasonable likelihood of receiving a

contract award as a result of their participation during phase one;

(4) to conclude negotiations at any time after receipt of vendor

information during phase two, in accordance with published ground rules

and criteria, and to conduct and conclude discussions without the need

to notify the sources in advance of the date and time for conclusion of

discussions, or to request best and final offers; and

(5) to deviate from the Uniform Contract Format and to deviate from

or omit solicitation and contract terms and conditions prescribed by

the FAR as necessary and appropriate to reflect the streamlined

processes upon which this deviation is based, except where and to the

extent required by statute.

(6) to down-select among proposals and sources and eliminate

sources where there is significant doubt as to whether a proposal has a

reasonable chance of being selected for award.

3. FAR Subparts 15, 16 and 42. Contract Type and Required Audit

Sources.

Discussion: Current regulations have a preference for use of fixed

price and cost-based contracts over labor-hour and time and materials

contracts and require use of Government audit agencies to conduct

contractor cost audits. It is our intent to reduce the need for pre-

and post-award cost audits by utilizing cost-based contracting only as

a last resort and utilizing fixed-price and labor hour or time and

materials types for task order and incremental development process

(IDP) contracts, as described in the CONOPS, instead. When audits are

needed these would be obtained utilizing commercial auditing

capabilities, e.g., reputable private sector Certified Public

Accountants (CPAs), instead of Government audit agencies. This will be

less expensive and administratively less burdensome for both the agency

and the contractor.

Proposed FAR Deviation: A deviation from FAR provisions is

requested to permit use of appropriate contract type without necessity

of preparing a determination and findings that no other type is more

suitable. Also a deviation is requested which will permit the use of

private sector CPAs to perform audits instead of Government audit

agencies.

Authority: The Federal Property and Administrative Services Act

of 1949, as amended, and other applicable laws and regulations.

Dated: August 30, 1996.

Kenneth J. Buck,

Acting Director, Office of Acquisition Management, U.S. Department of

Commerce.

[FR Doc. 96-30060 Filed 11-25-96; 8:45 am]

BILLING CODE 3510-03-M