General Services Administration Acquisition Regulation; Acquisition of Commercial Items

Federal RegisterFeb 16, 1996

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GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515, 538, 539, 543,

546, 552 and 570

[APD 2800.12A, CHGE 70]

RIN 3090-AF86

General Services Administration Acquisition Regulation;

Acquisition of Commercial Items

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Interim rule with request for comments.

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SUMMARY: The General Services Administration Acquisition Regulation

(GSAR) is amended to implement Items I and III of Federal Acquisition

Circular 90-32 which amended the Federal Acquisition Regulation (FAR)

to implement the portions of the Federal Acquisition Streamlining Act

of 1994 (Pub. L. 103-355) dealing with the Truth in Negotiations Act

and with the acquisition of commercial items. The GSAR is revised to

conform to the FAR as revised by FAC 90-32 and to implement portions of

the FAR where necessary to provide agency procedures. The Multiple

Award Schedule (MAS) Policy Statement of October 1, 1982 (47 FR 50242,

November 5, 1982) is canceled.

DATES: Effective Date: March 4, 1996. (See Supplementary Information

for further guidance.)

Comment Date: Comments should be submitted in writing to the

address shown below on or before April 16, 1996 to be considered in

formulating the final rule.

ADDRESSES: Interested parties should submit written comments to the

Office of Acquisition Policy (MV), General Services Administration,

Room 4010, 18th & F Streets, NW, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:

Les Davison, Office of GSA Acquisition Policy, (202) 501-1224.

SUPPLEMENTARY INFORMATION: All new solicitations for commercial items

and open season solicitations issued under the multiple award schedule

program issued after March 4, 1996 shall conform to this interim rule.

To the maximum extent practical, solicitations for commercial items and

open season solicitations, that have been issued but where no contract

has been awarded shall be amended to conform to this interim rule.

However, offerors shall not be required to resubmit information on

commercial sales practices and any requests for additional information

shall be limited to the minimum needed. Existing MAS contracts may be

modified, at the discretion of contracting officers, to conform to all

or part of this interim rule.

A. Determination To Issue an Interim Rule

A determination has been made under the authority of the

Administrator of General Services that urgent and compelling reasons

exist to publish an interim rule prior to affording the public an

opportunity to comment. Federal Acquisition Circular 90-32 (60 FR

48206, September 18, 1995) revised the Federal Acquisition Regulation

(FAR) to implement Title VIII of Public Law 103-355. Title VIII of

Public Law 103-355 contained requirements for the acquisition of

commercial items and required publication of implementing FAR revisions

by October 1, 1995. The FAR rule became available for use on October 1,

1995, and is mandatory for use by all Federal agencies in commercial

items solicitations issued after December 1, 1995. This GSAR rule

implements GSA unique requirements and revises the GSAR to bring it

into conformance with the FAR. Immediate GSAR coverage is needed to

permit GSA contracting activities to comply with Pub. L. 103-355 and

the implementing FAR requirements pertaining to the acquisition of

commercial items and Truth in Negotiations Act.

B. Executive Order 12866

This rule was not submitted to the Office of Management and Budget

(OMB) because it is not a significant rule as defined in Executive

Order 12866, Regulatory Planning and Review.

C. Regulatory Flexibility Act

This interim rule is expected to have a positive 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

simplifies procedures for GSA acquisition of commercial items. An

Initial Regulatory Flexibility Analysis (IRFA) has been prepared and

may be obtained from the address stated above. A copy of the IRFA has

been submitted to the Chief Counsel for Advocacy of the Small Business

Administration. Comments from small entities will be considered in

accordance with Section 610 of the Act.

D. Paperwork Reduction Act

The Paperwork Reduction Act applies to this interim rule. The

information collection requirements in 515.804-8 and related provisions

and clauses have been approved by the Office of Management and Budget

(OMB) under OMB Control Number 9000-0013. The information collection

requirements in 552.212-70, Preparation of Offer (Multiple Award

Schedule), represent customary commercial practice and are approved

under OMB Control Number 3090-0250.

List of Subjects in 48 CFR Parts 501, 504, 507, 510, 511, 512, 514,

515, 538, 539, 543, 546, 552, and 570

Government procurement.

Accordingly, 48 CFR Parts 501, 504, 507, 510, 511, 512, 514, 515,

538, 539, 543, 546, and 552 and 570 are amended as follows:

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION

SYSTEM

1. The authority citation for 48 CFR Parts 501, 504, 507, 510, 511,

512, 514, 515, 538, 539, 543, 546, 552 and 570 continues to read as

follows:

Authority: 40 U.S.C. 486(c).

501.105 [Amended]

2. Section 501.105 is amended by removing the following GSAR

references and corresponding OMB control numbers: 510.004-70-3090-0203,

510.011(i)-3090-0246,

[[Page 6165]]

512.104(a)(2) and 512.104(a)(4)-3090-0204.

PART 504--ADMINISTRATIVE MATTERS

3. Section 504.803 is amended by revising paragraphs (a)(12) and

(a)(25) to read as follows:

504.803 Contents of contract files.

(a) * * *

(12) Cost or pricing data and information other than cost or

pricing data. Where the requirement for submission of cost or pricing

data is waived, as provided in FAR 15.804-1(b)(5), the waiver and

documentation supporting the waiver should be filed under this tab.

* * * * *

(25) Any required approvals--GSA 1535, Recommendation for Award, or

documentation of approval of Subcontracting Plan (as applicable). The

contracting officer's and any other departing procurement official's

certificate of procurement integrity, required by FAR 3.104-7(a) and 48

CFR 503.104-7 and the record of individuals authorized access to

proprietary or source selection information, required by FAR 3.104-

5(d)(2) and 3.104-9(e)(iii) should be filed under this tab.

* * * * *

PART 507--ACQUISITION PLANNING

507.103 [Amended]

4. Section 507.103 is amended by removing ``510.002'' and inserting

``48 CFR 511.002''.

5. Part 510 heading is revised to read as follows:

PART 10--MARKET RESEARCH

510.001 [Redesignated as 511.001]

6. Section 510.001 is redesignated as 511.001.

510.002 [Redesignated as 511.002 and amended]

7. Section 510.002 is redesignated as 511.002 and the first

sentence is amended by removing ``FAR 10.002(c)'' and inserting ``FAR

11.002(b).''

510.004 [Removed]

510.004-70 [Removed]

510.004-71 [Removed]

510.007 [Removed]

510.007-70 [Removed]

8. Sections 510.004, 510.004-70, 510.004-71, 510.007 and 510.007-70

are removed.

510.011 [Redesignated as 511.204 and amended]

9. Section 510.011 is redesignated as 511.204 and paragraph (a) is

amended by removing ``552.210-70'' and inserting ``48 CFR 552.211-

711''; by removing ``552.210-71'' and inserting ``48 CFR 552.211-72''

in paragraph (b); by removing paragraphs (c) and (d); by redesignating

paragraph (e) as (c) and in newly designated paragraph (c) removing

``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating

paragraph (f) as (d), and in newly designated paragraph (d) removing

``552.210-76'' and inserting ``48 CFR 552.211-74'', and by removing

``552.210-75'' and inserting ``48 CFR 552.211-73''; by redesignating

paragraph (g) as (e) and in newly designated paragraph (e), by removing

``552.210-77'' and inserting ``48 CFR 552.211-75''; by redesignating

paragraph (h) as (f) and in newly designated paragraph (f) removing

``552.210-78'' and inserting ``48 CFR 552.211-76''; by redesignating

paragraph (i) as (g), and in newly designated paragraph (g) removing

``552.210-79'' and inserting ``48 CFR 552.211-77.''

510.070 [Removed]

510.070-1 [Removed]

510.070-2 [Removed]

510.070-3 [Removed]

510.070-4 [Removed]

510.071 [Removed]

PART 510--[RESERVED]

10. Sections 510.070, 510.070-1, 510.070-2, 510.070-3, 510.070-4

and 510.071 are removed and Part 510 is reserved.

11. Part 511 heading is revised to read as follows:

PART 511--DESCRIBING AGENCY NEEDS

511.003 [Removed]

511.070 [Removed]

12. Sections 511.003 and 511.070 are removed.

13. Subpart 511.1 consisting of sections 511.103 and 511.170 are

added to read as follows:

Subpart 511.1--Selecting and Developing Requirements Documents

Sec.

511.103 Market acceptance.

511.170 Use of brand name or equal product descriptions.

Subpart 511.1--Selecting and Developing Requirements Documents

511.103 Market acceptance.

The contracting officer may require offerors to meet market

acceptance criteria in accordance with FAR 11.103 when such criteria

determined necessary to satisfy the agency's needs.

511.170 Use of brand name or equal product descriptions.

(a) Policy. When a ``brand name or equal'' purchase description is

used the purchase description should--

(1) Cite all brand name products known to be acceptable and of

current manufacture;

(2) Specify each physical or functional characteristic essential to

the intended use of the product including permissible tolerances;

(3) Avoid specifying characteristics that cannot be shown to

materially affect the intended end use and which unnecessarily restrict

competition; and

(4) Give prospective offerors the opportunity to offer products

other than those specifically referenced by brand name, as long as they

meet the needs of the Government in essentially the same manner as the

brand name product.

(b) Solicitation provisions. The solicitation--

(1) May require bid samples for ``or equal'' offers, but not for

``brand name'' offers.

(2) Must provide for full consideration and evaluation of ``or

equal'' offers against the salient characteristics specified in the

purchase description. Do not reject offers for minor differences in

design, construction, or features which do not affect the suitability

of the product for its intended use.

(3) Must include the following immediately after the item

description--

Offering on:

Manufacturer's Name----------------------------------------------------

Brand------------------------------------------------------------------

Model or Part No.------------------------------------------------------

(4) Should include the following notice, unless bid samples are

required for ``or equal'' offers, in the item listing after each brand

name or equal item (or component part) or at the bottom of each page

listing several items:

OFFERORS OFFERING OTHER THAN BRAND NAME ITEMS IDENTIFIED HEREIN

MUST PROVIDE ADEQUATE INFORMATION TO ENSURE THAT A DETERMINATION CAN

BE MADE AS TO EQUALITY OF THE PRODUCT(S) OFFERED.

substantially the same as the clause at 48 CFR 552.211-70, Brand Name

or Equal, when a brand name or equal

[[Page 6166]]

purchase description is used. When component parts or an end item are

described by brand name or equal descriptions and application of the

clause to some or all of the components is impracticable, either do not

use the clause or limit its application to specified components.

14. Subpart 511.2 is added to read as follows:

Subpart 511.2--Using and Maintaining Requirements Documents

PART 512--ACQUISITION OF COMMERCIAL ITEMS

15. Part 512 heading is revised as set forth above.

Subpart 512.1 [Redesignated as Subpart 511.4]

512.101 [Redesignated as 511.401]

512.104 [Redesignated as 511.404 and amended]

15a. Subpart 512.1 is redesignated as subpart 511.4, section

512.101 is redesignated as 511.401, and section 512.104 is redesignated

as 511.404.

16. Newly designated section 511.404 is amended by redesignating

paragraph (a)(5) as paragraph (a)(6) and amending paragraph (a)(6) by

removing ``552.212-72'' and inserting ``48 CFR 552.211-83''; by

redesignating paragraph (a)(4) as paragraph (a)(5), and amending

paragraph (a)(5) by removing ``552.212-71'' and inserting ``48 CFR

552.211-82''; by redesignating paragraph (a)(3) as paragraph (a)(4) and

amending paragraph (a)(4) by removing ``552.212-70'' and inserting ``48

CFR 552.211-81'' and by removing ``552.212-72'' and inserting ``48 CFR

552.211-83''; by removing ``552.212-1(a)'' in paragraph (a)(1) and

inserting ``48 CFR 552.211-1''; amending paragraph (b) by removing

``552.212-74'' and inserting ``48 CFR 552.211-84''; and by revising

paragraph (a)(2) and adding a new paragraph (a)(3) to read as follows:

511.404 Contract clauses.

(a) * * *

(2) 48 CFR 552.211-78, Commercial Delivery Schedule (Multiple Award

Schedule), in solicitations issued and contracts awarded under the

multiple award schedule program.

(3) 48 CFR 552.211-79, Acceptable Age of Supplies, or 48 CFR

552.211-80, Age on Delivery, in solicitations and contracts if the

contractor will be required to furnish shelf-life items within a

specified number of months from the date of manufacture or production

of the supplies. (See 101-27.206-2 of the Federal Property Management

Regulation.) The Acceptable Age of Supplies clause at 48 CFR 552.211-79

should be used when the required shelf-life period is 12 months or

less, and lengthy acceptance testing may be involved. For items having

a limited shelf-life, Alternate I to 48 CFR 552.211-79 must be

substituted for the basic clause when required by the director of the

48 CFR 552.211-80 should be used when the required shelf-life period is

more than 12 months, or when source inspection can be performed within

a short time period.

* * * * *

17. Subpart 512.2 consisting of sections 512.203 and 512.209 is

added to read as follows:

Subpart 512.2--Special Requirements for the Acquisition of Commercial

Items

Sec.

512.203 Procedures for solicitation, evaluation, and award.

512.209 Pricing of commercial items when contracting by

negotiation.

Subpart 512.2--Special Requirements for the Acquisition of

Commercial Items

512.203 Procedures for solicitation, evaluation, and award.

Contracting officers shall use the policies in FAR Part 12 and 48

CFR Part 512 in conjunction with the policies and procedures for

Federal Supply Schedules in FAR Part 38 and 48 CFR Part 538.

512.209 Pricing of commercial items when contracting by negotiation.

When awarding multiple award schedule contracts for commercial

items, the policies and procedures in FAR Part 15 and 48 CFR Part 515

shall be used to establish the reasonableness of prices.

18. Subpart 512.3 consisting of sections 512.301 and 512.302 is

added to read as follows:

Subpart 512.3--Solicitation Provisions and Contract Clauses for the

Acquisition of Commercial Items

Sec.

512.301 Solicitation provisions and contract clauses for the

acquisition of commercial items.

512.302 Tailoring of provisions and clauses for the acquisition of

commercial items.

512.301 Solicitation provisions and contract clauses for the

acquisition of commercial items.

(a) Solicitation provisions/clauses. The contracting officer shall

insert the following provisions or clauses in solicitations for the

acquisition of commercial items in accordance with the prescriptions

provided:

(1) The provision at 48 CFR 552.212-70, Preparation of Offer

(Multiple Award Schedule), in solicitations issued under the multiple

award schedule program.

(2) The clause at 48 CFR 552.212-71, Contract Terms and Conditions

Applicable to GSA Acquisition of Commercial Items when listed clauses

apply and are incorporated by reference. The clause provides for the

incorporation by reference of terms and conditions which are, to the

maximum extent practicable, consistent with customary commercial

practice. The contracting officer may tailor this clause.

(3) The clause at 48 CFR 552.212-72, Contract Terms and Conditions

Required to Implement Statutes or Executive Orders Applicable to GSA

Acquisitions of Commercial Items when listed clauses apply and are

incorporated by reference. The clause provides for the incorporation by

reference of terms and conditions which are required to implement

provisions of law or executive orders applicable to acquisitions of

commercial items.

(4) The provision at 48 CFR 552.212-73, Evaluation--Commercial

Items (Multiple Award Schedule), shall be used instead of FAR 52.212-2

in solicitations issued under the multiple award schedule program.

(b) Use of required GSAR provisions and clauses. Notwithstanding

prescriptions contained elsewhere in the GSAR (48 CFR Chapter 5), when

acquiring commercial items, contracting officers shall be required to

use only those provisions and clauses prescribed in this part. The

provisions and clauses prescribed in this part shall be revised, as

necessary, to reflect the applicability of statutes and executive

orders to the acquisition of commercial items.

contracting officer may include in solicitations and contracts by

addendum other GSAR provisions and clauses when their use is consistent

with the limitations contained in FAR 12.302(c).

(d) Use of additional provisions and clauses. Provisions or clauses

that are not prescribed in the FAR or GSAR for use in contracts for

commercial items may not be used unless approved by the Senior

Procurement Executive (see 48 CFR 502.101) or determined to be

consistent with customary commercial practice through market research.

512.302 Tailoring of provisions and clauses for the acquisition of

commercial items.

Requests for waivers shall be prepared in accordance with FAR

12.302(c) and submitted for approval by the chief of the contracting

office (see 48 CFR

[[Page 6167]]

502.101) if an individual contract is involved or by the contracting

director (see 48 CFR 502.101) if a class of contracts is involved.

PART 514--SEALED BIDDING

19. Section 514.201-70 is revised to read as follows:

514.201-70 GSA Forms.

The GSA Form 1602, Notice Concerning Solicitation, may be used to:

(a) Describe the type of contract, the duration of the contract,

and the type of supplies or services being procured;

(b) Direct the attention of prospective offerors to special

requirements which if overlooked, may result in rejection of the offer;

covering the same supplies and services; and

(d) Include other special notices as appropriate.

PART 515--CONTRACTING BY NEGOTIATION

20. Section 515.106-70 is revised to read as follows:

515.106-70 Examination of records by GSA clause.

The contracting officer shall insert the clause at 48 CFR 552.215-

70, Examination of Records by GSA or at 48 CFR 552.215-71 Examination

of Records by GSA (Multiple Award Schedule), in solicitations and

contracts that

(a) Involve the use or disposition of Government-furnished

property,

(b) Provide for advance payments, progress payments based on cost,

or guaranteed loan,

(d) Involve income to the Government where income is based on

operations that are under the control of the contractor,

(e) Include an economic price adjustment clause,

(f) Are requirements, indefinite-quantity or letter type contracts

as defined in FAR Part 16,

(g) Are subject to adjustment based on a negotiated cost escalation

base or

(h) Contain the provision at FAR 52.223-4, Recovered Material

Certification. The clause at 48 CFR 552.215-71 shall be used for

solicitations issued and contracts awarded under the multiple award

schedule program. The contracting officer may modify the clause to

define the specific area of audit (e.g., the use or disposition of

Government-furnished property, compliance with the price reduction

clause). Counsel and the Assistant Inspector General-Auditing or

Regional Inspector General-Auditing, as appropriate, must concur in any

modifications to the clause.

515.412 [Removed]

21. Section 515.412 is removed.

22. Section 515.414-70 is revised to read as follows:

515.414-70 GSA Forms.

The GSA Form 1602, Notice Concerning Solicitation, may be used as

prescribed in 48 CFR 514.201-70.

23. The section heading for 515.804 is revised to read as follows:

515.804 Cost or pricing data and information other than cost or

pricing data.

515.804-3 [Reserved]

24. Section 515.804-3 is removed and reserved.

25. Section 515.804-6 is revised to read as follows:

515.804-6 Instructions for submission of cost or pricing data or

information other than cost or pricing data.

(a) Contracting officers should use Alternate IV of the FAR

provision at 52.215-41, Requirements for Cost or Pricing Data or

Information Other Than Cost or Pricing Data, to provide the format for

submission of information other than cost or pricing data for multiple

award schedule (MAS) contracts. To provide for uniformity in request

under the MAS program, contracting officers should insert the following

in paragraph (b) of the provisions:

(1) An offer prepared and submitted in accordance with the

provision at 552.212-70, Preparation of Offer (Multiple Award

Schedule);

(2) Commercial sales practices submitted in the format provided

in this solicitation in accordance with the instructions at Table

515-1 of the GSA Acquisition Regulation (48 CFR 515-1); and

(3) Any additional supporting information requested by the

Contracting Officer to determine whether the price(s) offered is

fair and reasonable.

(4) By submission of an offer in response to this solicitation

or a request for modification, the Offeror grants the Contracting

officer or an authorized representative the right to examine, at any

time before award, books, records, documents, papers, and other

directly pertinent records to verify any request for and exception

to the requirement for cost or pricing data, and the reasonableness

of prices(s) and for two years after award or modification of this

contract to verify that the information submitted was complete,

current and accurate. Access does not extend to cost or profit

information or other data relevant solely to the Offeror's

determination of the prices to be offered in the catalog or

marketplace.

(b) Contracting officers shall insert the following format for

commercial sales practices in the exhibits or attachments section of

the solicitation (see FAR 12.303). Paragraph (5) may be included when

the contracting officer, based on market research, anticipates receipt

of offers from dealers without significant commercial sales.

Commercial Sales Practices

Name of Offeror--------------------------------------------------------

SIN--------------------------------------------------------------------

Note: Please refer to provision 552.212-70, PREPARATION OF OFFER

(MULTIPLE AWARD SCHEDULE), for additional information concerning

your offer.

(1) Request for exception to the requirement for cost and

pricing data.

(a) Do you request an exception to the requirement for

submission of cost or pricing data [Check applicable item]

(i) ______ based on the fact that you have sold substantial

quantities of the commercial items offered to the general public at

or based on an established catalog or market price (see FAR 15.804-

1(b)(2)(iv)); or

(ii) ______ under the authority of FAR 15.804-1(a)(2) for

commercial items.

(b) Provide the dollar value of sales to the general public at

or based on an established catalog or market price during the

previous 12 month period or the offerors last fiscal year.

$________. in the event that a dollar value is not an appropriate

measure of the sales, provide and describe your own measure of the

sales of the item (FAR 15.804-1(b)(2)(iv). You may qualify for an

exception under the authority of FAR 15.804-1(a)(2), even though

substantial sales have not been made, although that exception

requires that special post award access to records be included in

the contract (see 52.215-43, Audit-Commercial Items).

(2) Show total estimated sales to the Government for the

contract term, excluding options, for the SIN offered. $________

(3) Are the discounts which you offer the Government equal to or

better than your best discount to any customer acquiring the same

items offered for this SIN regardless of quantity or terms and

conditions? YES ______ NO ______ See definition of ``discount'' in

552.212-70.

(4)(a) Provide information as requested for each SIN (or group

of SINs for which the information is the same) in accordance with

the instructions at 48 CFR Table 515-1 which is provided in this

solicitation for your convenience. The information should be

provided in the chart below. Rows should be added to accommodate as

many customers as required.

[[Page 6168]]

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Column 5--

Column 1-- Column 2-- Column 3-- Column 4-- additional

customer discount quantity/ FOB term discounts or

volume concessions

------------------------------------------------------------------------

(b) Do any deviations from the discounting practices disclosed

ever result in better discounts (lower prices) than indicated? YES

______ NO ______. If YES, explain deviations in accordance with the

instructions at 48 CFR Table 515-1 which is provided in this

solicitation for your convenience.

(5) If the Offeror is a dealer/reseller, the sales information

relative to the manufacturer's pricing to the dealer required by

paragraph (b)(1) through (4) above together with written access to

the manufacturer's records in accordance with 52.215-41 (Alt IV),

should be provided separately by the offeror for each item/SIN from

a single manufacturer whose total sales under any resulting contract

are expected to exceed $500,000. The information is required in

order to enable the Government to make a determination that the

offered price is fair and reasonable. To expedite the review and

processing of offers the dealer/reseller submitting the offer should

advise the manufacturer(s) of this requirement. The contracting

officer may require the information be submitted on electronic media

with commercially available spreadsheet(s). The information may be

provided by the manufacturer directly to the Government. If the

manufacturer's items(s) is being offered by multiple dealers/

resellers, only one copy of the requested information should be

submitted to the Government. In addition, the dealer/reseller

submitting the offer shall submit the following information along

with a listing of contact information regarding each of the

manufacturers whose products and/or services are included in the

offer (include the manufacturer's name, address, the manufacturer's

contact point, telephone number, and FAX number) for each model

offered by SIN:

(a) Manufacturer's Name

(b) Manufacturer's Part Number

(d) Product Description

(e) Manufacturer's List Price

(f) Dealer's/Reseller's percentage discount from List Price or net

prices

(End of Format)

completing the commercial sales practices format in Table 551-1 in

solicitations issued under the multiple award schedule program.

Table 515-1.--Instructions for Commercial Sales Practices Format

------------------------------------------------------------------------

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If you responded ``YES'' to question (3), on the COMMERCIAL SALES

PRACTICES FORMAT, complete the chart for the customer(s) who receive

your best discount. If you responded ``NO'' to question (3), complete

the chart for all customers or customer categories to whom you sell at

a discount which equals or exceeds the discount(s) offered to the

Government under this solicitation or with which the Offeror has a

current agreement to sell at a discount which equals or exceeds the

discount(s) offered under this solicitation. Such agreement shall be in

effect on the date the offer is submitted or contain an effective date

during the proposed multiple award schedule contract period. The

Offeror shall also disclose any changes to discount(s) and discount

policies which occur after the offer is submitted, but before the close

of negotiations. If the Offeror's discount practices vary by model or

product line, the discount information should be by model or product

line as appropriate. The offeror may limit the number of models or

product lines reported to those which in total anticipated sales exceed

75% of the estimated value of the special item number (SIN).

Column 1--Identify the applicable customer or category or customer. A

``customer is any entity, except the Federal Government, which acquires

supplies or services from the Offeror. The term customer includes, but

is not limited to original equipment manufacturers, value added

resellers, state and local governments, distributors, educational

institutions (an elementary, junior high, or degree granting school

which maintains regular faculty and established curriculum and an

organized body of students), dealers, national accounts, and end users.

In any instance where the Offeror is asked to disclose information for a

customer, the Offeror may disclose information by category or customer

if the offeror's discount policies are the same for all customers in the

category. (Use a separate line for each customer or category of

customer.)

Column 2--Identify the discount. The term ``discount'' is as defined

in solicitation provision 552.212-70 Preparation of Offer (Multiple

Award Schedule). Indicate the best discount at which the Offeror

customarily or repetitively sells to the customer or category of

customer identified in column 1, without regard to quantity; terms and

conditions of the agreements under which the discounts are given, and

whether they are written or oral. Net prices or discounts off of other

price lists should be expressed as percentage discounts from the price

list which is the basis for your offer. If the price lists which are the

basis of the discounts given to the customers identified in the chart

are different than the price list submitted upon which your offer is

based, identify the type of title and date of each price list. The

contracting officer may require submission of these price lists. To

expedite evaluation, offerors may provide these price lists at the time

of submission.

Pricing information need be provided only on customary or repetitive

sales. Information need not include erratic, ad hoc discounting;

however, the existence of such discounting shall be disclosed. This

disclosure should include a discussion of ad hoc discounting practices,

including the types of circumstances when ad hoc discounts are given and

the frequency of occurrence: i.e., a statement ``the ad hoc sales do not

exceed $______ per year'' or ``the ad hoc sales do not exceed ______% of

total sales.'' To be considered ``ad hoc discounting'' the practice

shall not: (a) represent a significant pricing practice: that is,

accounting for more than a marginal portion of the total commercial

sales; (b) establish a preferred customer: e.g., discounts to state and

local governments, or repetitive discounts received by a single

customer; (c) include other than low value, extraordinary price

reductions due to unique situations.

Column 3--Identify the quantity or volume of sales. Insert the minimum

quantity or sales volume which the identified customer or category of

customer must either purchase/order, per order or within a specified

period, to earn the discount. Specify the period of relevant sales

accumulation.

Column 4--Indicate the FOB delivery term for each identified customer.

(See FAR 47.3 for an explanation of FOB delivery terms.)

Column 5--Indicate additional discounts or concessions regardless of

quantity granted to the identified customer or category of customer. The

additional discounts may include per order quantity discount; aggregate

discount, prompt payment discount. Concessions are defined in

solicitation provision 552.212-70 Preparation of Offers (Multiple Award

Schedule). If the space provided is inadequate, the disclosure should be

made on a separate sheet by reference.

------------------------------------------------------------------------

(d) The contracting officer shall insert the clause at 48 CFR

552.215-72, Price Adjustment for Incomplete, Not Current or Inaccurate

Information Other Than Cost or Pricing Data, in solicitations and

contracts to be awarded under the multiple award schedule program.

PART 538--FSS SCHEDULE CONTRACTING

26. Part 538 heading is revised as set forth above.

[[Page 6169]]

538.000 [Removed]

27. Section 538.000 is removed.

28. Section 538.270 is added to read as follows:

538.270 Evaluation of multiple award schedule offers.

(a) The Government will seek to obtain the offeror's best discount

(most favored customer). However, the Government recognizes that the

terms and conditions of commercial sales vary and that there may be

legitimate reasons why the best discount is not achieved.

(b) The contracting officer will establish negotiation objectives

and determine price reasonableness subject to the requirements of

paragraphs (c) through (e) of this section.

based on a review of relevant data. If an exception may apply pursuant

to FAR 15.804-1(a)(2), then information to be acquired pursuant to FAR

15.804-5(b) (1) and (2) shall be limited to that which is reasonably

available and quantifiable.

(d) When establishing negotiation objectives and determining price

reasonableness, contracting officers will compare the terms and

conditions of agreements with customers. The contracting officer will

consider the following factors to determine the Government's price

negotiation objectives:

(1) Aggregate volume of anticipated purchases;

(2) The purchase of a minimum quantity or a pattern of historic

purchases;

(3) Discounts/prices offered;

(4) Length of the contract period;

(5) Warranties, training, maintenance included in the purchase

price or provided at additional cost to the product prices;

(6) Ordering and delivery practices; and

(7) Any other relevant information including differences between

the MAS solicitation and commercial terms and conditions that may

warrant differentials between the offer and the discounts offered to

the best customers. In cases where the best discount is not offered to

the Government, the offeror is responsible for identifying,

substantiating and valuating any asserted differences.

(e) The contracting officer may not award a contract containing

pricing which is less favorable than the best discount the offeror

extends to any commercial customer purchasing under circumstances

comparable to the Government, unless the contracting officer makes a

written determination that

(1) The prices offered to the Government are fair and reasonable,

even though comparable discounts were not negotiated, and

(2) Award of a contract is otherwise in the best interest of the

Government.

29. Section 538.271 is added to read as follows:

538.271 MAS contract awards.

(a) MAS awards will, to the maximum extent practicable, be

commercial items negotiated as a discount from established catalog

prices for items sold in substantial quantities to the general public.

(b) Before awarding any MAS contract, the contracting officer will

determine whether offered prices are fair and reasonable in accordance

with FAR subparts 15.8 and 15.9 and 48 CFR 538.270.

PART 539--MANAGEMENT, ACQUISITION, AND USE OF INFORMATION

RESOURCES--RESERVED

30. Part 539 is reserved.

539.000 [Removed]

31. Section 539.000 is removed

PART 543--CONTRACT MODIFICATIONS

32. Section 543.205 is amended by adding paragraph (c) to read as

follows:

543.205 Contract clauses.

* * * * *

552.243-72, Modifications (Multiple Award Schedule), in solicitations

and multiple award schedule contracts. Alternate I should be used when

stable technology is involved and few changes are expected.

PART 546--QUALITY ASSURANCE

33. Section 546.710 is amended by revising paragraph (a)(2) to read

as follows:

546.710 Contract Clauses.

(a) * * *

(2) If commercial products or items are being acquired under a

program other than Multiple Award Schedules, the contracting officer

shall use the clause at 48 CFR 552.247.17 with its Alternate I.

* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

552.209-73 [Amended]

34. The clause at section 552.209-73 is amended by revising the

date of the clause to read ``(FEB 1996)'' and by inserting a period

after the word ``default'' and removing all remaining text beginning

with the word ``under.''

552.210-70 [Redesignated as 552.211-71 and amended]

35. Section 552.210-70 is redesignated as 552.211-71, the

introductory paragraph is amended by removing ``510.011(a)'' and

inserting ``48 CFR 511.204(a)'', and the date of the clause is revised

to read ``(FEB 1996)''.

552.210-71 [Redesignated as 552.211-72 and amended]

36. Section 552.210-71 is redesignated as 552.211-72, the

introductory paragraph is amended by removing ``510.011(b)'' and

inserting ``48 CFR 511.204(b)'', and the date of the clause is revised

to read ``(FEB 1996)''.

552.210-72 [Redesignated as 552.211-79]

37. Section 552.210-72 is redesignated as 552.211-79, the

introductory paragraph is amended by removing ``510.011(c)'' and

inserting ``48 CFR 511.404(a)'', by revising the date of the basic

clause and the Alternate I to read ``(FEB 1996)'' and by removing all

the text in the last sentence in the basic clause after the phrase

``reject the supplies'' and inserting a period after ``supplies''.

552.210-73 [Redesignated as 552.211-80 and amended]

38. Section 552.210-73 is redesignated as 552.211.80, the

introductory paragraph is amended by removing ``510.011(c)'' and

inserting ``48 CFR 511.404(a)'', by revising the date of the clause to

read ``(FEB 1996)'' and by removing all the text in the last sentence

after the phrase ``reject the supplies'' and inserting a period after

the word ``supplies''.

552.210-74 [Redesignated as 552.211-70]

39. Section 552.211-70 is removed, section 552.210-74 is

redesignated as 552.211-70, the introductory paragraph is amended by

removing ``510.011(d)'' and inserting ``48 CFR 511.170(c)'' and by

revising the date of the clause to read ``(FEB 1996)''.

552.210-75 [Redesignated as 552.211-73]

40. Section 552.210-75 is redesignated as 552.211-73, the

introductory paragraph is amended by removing ``510.011(e)'' and

inserting

[[Page 6170]]

``48 CFR 511.204(c)'' and by revising the date of the clause to read

``(FEB 1996)''.

552.210-76 [Redesignated as 552.211-74 and amended]

41. Section 552.210-76 is redesignated as 552.211-74, the

introductory paragraph is amended by removing ``510.011(f)'' and

inserting ``48 CFR 511.204(d)'', by revising the date of the clause to

read ``(FEB 1996)'', and by removing ``552.210-75'' from the text of

the clause and inserting ``48 CFR 552.211-73''.

552.210-77 [Redesignated as 552.211-75 and amended]

42. Section 552.211-77 is redesignated as 552.211-75, the

introductory paragraph is amended by removing ``510.011(g)'' and

inserting ``48 CFR 511.204(e)'' and by revising the date of the clause

to read ``(FEB 1996)''.

552.210-78 [Redesignated as 552.211-76 and amended]

43. Section 552.210-78 is redesignated as 552.211-76, the

introductory paragraph is amended by removing ``510.011(h)'' and

inserting ``48 CFR 511.204(f)'' and by revising the date of the clause

to read ``(FEB 1996)''.

552.210-79 [Redesignated as 552.211-77 and amended]

44. Section 552.210-79 is redesignated as 552.211-77, the

introductory paragraph is amended by removing ``510.011(i)'' and

inserting ``48 CFR 511.204(g)'' and by revising the date of the clause

to read ``(FEB 1996)''.

45. Section 552.211-78 is added to read as follows:

552.211-78 Commercial Delivery Schedule (Multiple Award Schedule).

As prescribed in 48 CFR 511.404(a)(2), insert the following clause:

Commercial Delivery Schedule (Multiple Award Schedule) (Feb 1996)

(a) Time of Delivery. The Contractor shall deliver to

destination within the number of calendar days after receipt of

order (ARO) in the case of F.O.B. Destination prices; or to place of

shipment in transit in the case of F.O.B. Origin prices, as set

forth below. Offerors shall insert in the ``Time of Delivery (days

ARO)'' column in the schedule of Items a definite number of calendar

days within which delivery will be made. In no case shall the

offered delivery time exceed the Contractor's normal commercial

practice. The Government requires the Contractor's normal commercial

delivery time, as long as it is less than the ``stated'' delivery

time(s) shown below. If the Offeror does not insert a delivery time

in the schedule of items, the Offeror will be deemed to offer

delivery in accordance with the Government's stated delivery time,

as stated below:

----------------------------------------------------------------------------------------------------------------

Items or group of items (special Government's stated delivery time Contractor's normal commercial

item No. or nomenclature) (days ARO) delivery time

----------------------------------------------------------------------------------------------------------------

(b) Expedited Delivery Times. For those items that can be

delivered quicker than the delivery times in paragraph (a), above,

the Offeror is requested to insert below, a time (hours/days ARO)

that delivery can be made when expedited delivery is requested.

------------------------------------------------------------------------

Item or group of items (special Expedited delivery time (hours/days

item No. of nomenclature) ARO)

------------------------------------------------------------------------

require overnight or 2-day delivery. The Offeror is requested to

annotate its price list or by separate attachment identify the items

that can be delivered overnight or within 2 days. Contractors

offering such delivery services will be required to state in the

cover sheet to its FSS price list details concerning this service.

(End of Clause)

Sec. 552.212-1 [Redesignated as 552.211-1 and amended]

46. Section 552.212-1 is redesignated as 552.211-1, paragraph (a)

is amended by removing the paragraph designation ``(a)'' and by

removing ``512.104(a)(1)'' and inserting ``48 CFR 511.404(a)(1)'', by

revising the date of the clause and the Alternate I to read ``(FEB

1996)'' and by removing paragraph (b).

Sec. 552.212-70 [Redesignated as 552.211-81 and amended]

47. Section 552.212-70 is redesignated as 552.211-81, the

introductory paragraph is amended by removing ``512.104(a)(3)'' and

inserting ``48 CFR 511.404(a)(4)'' and by revising the date of the

basic clause and the Alternate I clause to read ``(FEB 1996)''.

Sec. 552.212-71 [Redesignated as 552.211-82 and amended]

48. Section 552.212-71 is redesignated as 52.211-82, the

introductory paragraph is amended by removing ``512.104(a)(4)'' and

inserting ``48 CFR 511.404(a)(5)'' and by revising the date of the

clause to read ``(FEB 1996)''.

Sec. 552.212-72 [Redesignated as 552.211-83 and amended]

50. Section 552.212-72 is redesignated as 552.211-83, the

introductory paragraph is amended by removing ``512.104(a)(5)'' and

inserting ``48 CFR 511.404(a)(6)'' and by revising the date of the

basic and alternate clause to read ``(FEB 1996)''.

Sec. 552.212-74 [Redesignated as 552.211-84 and amended]

51. Section 552.212-74 is redesignated as 552.211-84, the

introductory paragraph is amended by removing ``512.104(b)'' and

inserting 48 CFR 511.404(b)'' and by revising the date of the clause to

read ``(FEB 1996)''.

52. Section 552.212-70 is added to read as follows:

552.212-70 Preparation of Offer (Multiple Award Schedule)

As prescribed in 48 CFR 512.301(a)(1), insert the following clause:

552.212-70 Preparation of Offer (Multiple Award Schedule) (Feb 1996)

(a) Definitions. Concession, as used in this solicitation, means

a benefit, enhancement or privilege (other than a discount), which

either reduces the overall costs of a customer's acquisition or

encourages a customer to consummate a purchase. Concessions include,

but are not limited to freight allowance, extended warranty,

extended price guarantees, free installation and bonus goods.

Discount, as used in this solicitation, means a reduction to

catalog prices (published or unpublished). Discounts include, but

are not limited to, rebates, quantity discounts, purchase option

credits, and any other terms or conditions which reduce the amount

of money a customer ultimately pays for goods or services ordered or

received. Any net price lower than the list price is considered a

``discount'' by the percentage difference from the list price to the

net price.

(b) For each Special Item Number (SIN) included in an offer, the

Offeror shall provide the information outlined in paragraph (c).

Offerors may provide a single response

[[Page 6171]]

covering more than one SIN, if the information disclosed is the same

for all products under each SIN. If discounts and concessions vary

by model or product line, offerors shall ensure that information is

clearly annotated as to item or items referenced.

(1) Two copies of the offeror's current published (dated or

otherwise identified) commercial descriptive catalogs and/or price

list(s) from which discounts are offered. Special catalogs or price

lists printed for the purpose of this offer, showing only net prices

to the Government or references to previous submissions, are not

acceptable.

(2) Next to each offered item in the commercial catalog and/or

price list, the Offeror shall write the special item number under

which the item is being offered. All other items shall be marked

``excluded,'' lined out, and initialed by the offeror.

(3) The discount(s) offered under this solicitation.

(4) A description of any additional discounts offered, such as

prompt payment discounts, quantity/dollar volume discounts (indicate

whether models/products can be combined within the SIN or whether

SINs can be combined to earn discounts, blanket purchase agreement

discounts, or purchase option credits. If the terms of sale

appearing in the commercial catalogs or price list on which an offer

is based are in conflict with the terms of this solicitation the

latter shall govern.

(5) A description of concessions offered under this solicitation

which are not granted to other customers. Such concessions may

include, but are not limited to, an extended warranty, a return/

exchange goods policy, or enhanced or additional services.

(6) If the Offeror is a dealer/reseller or the Offeror will use

dealers to perform any aspect of contract awarded under this

solicitation, describe the functions, if any, that the dealer/

reseller will perform.

(End of Provision)

53. Section 552.212-71 is added to read as follows:

Sec. 552.212-71 Contract terms and conditions applicable to GSA

acquisition of commercial items.

As prescribed in 48 CFR 512.301(a)(2), insert the following

provision:

Contract Terms and Conditions Applicable to GSA Acquisition of

Commercial Items (Feb 1996)

The Contractor agrees to comply with any provision or clause

that is incorporated herein by reference to implement agency policy

applicable to acquisition of commercial times or components. The

provision or clause in effect based on the applicable regulation

cited on the date the solicitation is issued applies unless

otherwise stated herein. The following provisions and clauses are

incorporated by reference:

[The contracting officer should either check the clauses that apply

or delete the clauses that do not apply from the list. The

contracting officer may add the date of the clause if desired for

clarity.]

--552.203-70 Restriction on Advertising

--552.211-73 Marking

--552.215-70 Examination of Records by GSA

--552.212-71 Examination of Records by GSA (Multiple Award

Schedule)

--552.25-72 Price Adjustment for Incomplete, Not Current or

Inaccurate Information Other Than Cost or Pricing Data

--552.219-71 Allocation of Orders--Partially Set-Aside Items

--552.228-75 Workmen's Compensation

--552.229-70 Federal, State, and Local Taxes

--552.232-8 Discounts for Prompt Payment

--552.232-23 Assignment of Claims

--552.232-70 Payments by Electronic Funds Transfer

--552.232-77 Availability of Funds

--552.232-78 Adjusting Payments

--552.232-79 Final Payment

--552.237-70 Qualifications of Offerors

--552.237-71 Qualifications of Employees

--552.238-72 Contractor's Report of Sales

--552.238-74 Submission and Distribution of Authorized FSS Schedule

Price List

--552.238-76 Price Reductions

--552.242-70 Status Report of Orders and Shipments

--552.243-72 Modifications (Multiple Award Schedule)

--552.246-73 Warranty--Multiple Award Schedule

--552.246-76 Warranty of Pesticides

(End of Provision)

54. Section 552.212-72 is added to read as follows:

552.212-73 Contract terms and conditions required to implement

statutes or Executive Orders applicable to GSA acquisition of

commercial items.

As prescribed in 48 CFR 512.301(a)(3), insert the following

provision:

Contract Terms and Conditions Required to Implement Statutes or

Executive Orders Applicable to GSA Acquisition of Commercial Items (Feb

1996)

The Contractor agrees to comply with any provision or clause

that is incorporated herein by reference to implement provisions of

law or Executive Orders applicable to acquisition of commercial

items or components. The provision or clause in effect based on the

applicable regulation cited on the date the solicitation is issued

applies unless otherwise stated herein. The following provisions and

clauses are incorporated by reference:

[The contracting officer should either check the clauses that apply

or delete the clauses that do not apply from the list. The

contracting officer may add the date of the clause if desired for

clarity.]

--552.223-70 Hazardous Substances

--552.223-71 Hazardous Material Information

--552.223-72 Nonconforming Hazardous Material

--552.225-70 Buy American Act--Hand or Measuring Tools or Stainless

Steel Flatware

--552.225-71 Notice of Procurement Restriction--Hand or Measuring

Tools or Stainless Steel Flatware

--552.238-70 Identification of Electronic Office Equipment

Providing Accessibility for the Handicapped

--552.238-75 Identification of Energy-Efficient Office Equipment

and Supplies Containing Recovered Materials or Other Environmental

Attributes

--552.238-77 Industrial Funding Fee

(End of Clause)

55. Section 552.212-73 is added to read as follows:

552.212-73 Evaluation--Commercial Items (Multiple Award Schedule).

As prescribed in 48 CFR 512.301(a)(4), insert the following

provision:

552.212-73 Evaluation--Commercial Items (Multiple Award Schedule) (Feb

1996)

(a) The Government may make multiple awards for the supplies or

services offered in response to this solicitation that meet the

definition of a ``commercial item'' in FAR 52.202-1. Award is to be

based upon a catalog or market price exception (FAR 15.804-1(a) (i)

and (ii)) to the requirement for cost or pricing data or if other

exceptions are not available, an exception for commercial items (FAR

15.804-1(a)(2)), without submission of cost or pricing data. Awards

may be made to those responsible offerors that offer reasonable

pricing, conforming to the solicitation, and will be most

advantageous to the Government, taking into consideration the

multiplicity and complexity of items of various manufacturers and

the differences in performance required to accomplish or produce

required end results, production and distribution facilities, price,

compliance with delivery requirements, and other pertinent factors.

By providing a selection of comparable supplies or services,

ordering activities are afforded the opportunity to fulfill their

requirements with the item(s) that constitute the best value and

that meet their needs at the lowest overall cost. In exceptional

circumstances, if an item does not qualify for an exception from

cost or pricing data requirements, the contracting officer may

consider cost or pricing data if pricing cannot be reasonably

evaluated without it, and procurement of the item is the best

interest of the Government.

(b) A written notice of award or acceptance of an offer, mailed

or otherwise furnished to the offeror within the time for acceptance

specified in the offer, shall result in a binding contract without

further action by either party. Before the offer's specified

expiration time, the Government may accept an offer (or part of an

offer), whether or not there are negotiations after its receipt,

unless a written notice of withdrawal is received before award.

(End of Provision)

[[Page 6172]]

Alternate I (FEB 1996)

When anticipating competition of identical items, add the

following paragraph after paragraph (b) of the basic provision.

for all or part of a manufacturer's product line. When two or more

offerors (e.g., dealer/resellers) offer the identical product, award

may be made competitively to only one offeror on the basis of the

lowest price. (Discounts for early payment will not be considered as

an evaluation factor in determining the low offeror). During initial

open season for an option period, any offers that are equal to or

lower than the current contract price received for identical items

will be considered. Current contractors will also be allowed to

submit offers for identical items during this initial open season.

The current contractor which has the identical item on contract will

be included in the evaluation process. The Government will evaluate

all offers and may award only one contract for each specified

product or aggregate group.

56. Section 552.215-70 is amended by revising the date of the

clause and the last sentence of the clause to read as follows:

552.215-70 Examination of records by GSA.

* * * * *

Examination of Records by GSA (Feb 1996)

* * * * *

The term ``subcontract'' as used in this clause excludes (a)

purchase orders not exceeding $100,000 and (b) subcontracts or purchase

orders for public utility services at rates established for uniform

applicability to the general public.

57. Section 552.215-71 is added to read as follows:

552.215-71 Examination of records by GSA (Multiple Award Schedule).

As prescribed in 48 CFR 515.106-70, insert the following clause:

Examination of Records by GSA (Multiple Award Schedule) (Feb 1996)

The Contractor agrees that the Administrator of General Services

or any duly authorized representative shall, until the expiration of

2 years after the end of the basic contract period or after the end

of the option period for any option periods, have access to and the

right to examine any books, documents, papers and records of the

Contractor involving transactions related to this contract for

overbillings, billing errors, compliance with the Price Reduction

clause and compliance with the Industrial Funding Fee clause of this

contract. This right is in addition to the right to examine

information provided by FAR 52.215-41 (Alt IV) and FAR 52.215-43, if

applicable)

(End of Clause)

58. Section 552.215-72 is added to read as follows:

552.215-72 Price adjustment for incomplete, not current or inaccurate

information other than cost or pricing data.

As prescribed in 48 CFR 515.804-6(d), insert the following clause:

Price Adjustment for Incomplete, not Current or Inaccurate Information

Other Than Cost or Pricing Data (Feb 1996)

(a) If, subsequent to the award of any contract resulting from

this solicitation or modification of this contract, it is found that

any price negotiated in this contract was increased by a significant

amount because of the occurrence of (1), (2) or (3) below, the

contract price shall be reduced by such amount of the increase.

(i) The information requested by the Government and submitted by

the offeror (contractor) was not complete; or

(2) The information submitted was not current and accurate; or

(3) Changes in the Contractor's commercial prices, discounts or

discount policies which occurred after the original submission were

not disclosed prior to the completion of negotiations.

(b) The Government will consider information submitted to be

current, accurate and complete if the data is current, accurate and

complete as of 14 calendar days prior to the solicitation closing

date or the date it is submitted whichever is later. Failure to

agree on the amount of the decrease shall be resolved as a dispute.

(End of Clause)

552.216-71 [Amended]

59. Section 552.216-71 is amended by revising the date of the

clause to read ``FEB 1996'' and amending paragraph (d)(2) by removing

``Discount Schedule and Marketing Data'' and inserting ``Commercial

Sales Price format.''

552.238-74 [Amended]

60. Section 552.238-74 is amended by removing ``GSA'' in the

section heading, clause heading, paragraphs (b), (c)(1)(i), (c)(1)(ii),

(c)(2)(i) and (e) and inserting ``FSS'' and by revising the date of the

clause to read ``(FEB 1996)''.

61. Section 552.243-72 is added to read as follows:

552.243-72 Modifications (Multiple Award Schedule).

As prescribed in 48 CFR 543.205(c), insert the following clause:

552.243-72 MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1996)

(a) General. The Contractor may request a contract modification

by submitting a request to the Contracting Officer for approval,

except as noted in paragraph (e) of this clause. A separate request

should be submitted for each type of proposed modification. At a

minimum, every request shall describe the proposed change(s) and

provide the rationale for the requested change(s).

(b) Types of Modifications.

(1) Additional items/additional SIN's. When requesting

additions, the following information must be submitted:

(i) A request for an exemption from the requirement to submit

cost and pricing data as required by 52.215-41 (ALT IV) shall be

provided. To add items, submit the information requested in

paragraph 1(a) of the Commercial Sales Format. To add SIN's provide

the information requested in paragraph (1) and (2) of the Commercial

Sales Practice Format.

(ii) Discount information for the new item(s) or new SIN(s) as

required by 52.215-41 (ALT IV) must be provided. Specifically,

submit the information requested in paragraphs 3 through 5 of the

Commercial Sales Practice Format. If this information is the same as

the initial award, a statement to that effect may be submitted

instead.

(iii) Information about the new item(s) or new SIN(s) as

described in 552.212-70, Preparation of Offer (Multiple Award

Schedule) is required.

(iv) Delivery time(s) for the new item(s) or the item(s) under

the new SIN(s) must be submitted in accordance with 552.211-78,

Commercial Delivery Schedule (Multiple Award Schedules).

(v) Production point(s) for the new item(s) or the item(s) under

the new SIN(s) must be submitted if required by 52.215-20, Place of

Performance.

(vi) Hazardous Material information (if applicable) must be

submitted as required by 52.223-3 (ALT I), Hazardous Material

Identification and Material Safety Data; and 552.223-71, Hazardous

Material Information; and as requested by the Separate Charge for

Performance Oriented Packaging clause of this contract, if

applicable.

(vii) Recovered Material estimate(s) and certification (if

applicable) must be submitted as required by 52.223-8 (or 52.223-8

(ALT I) or 52.223-8 (ALT II), Estimate of Percentage of Recovered

Material for Designated Items to be used in the Performance of the

Contract; and 52.223-9, Certification of Recovered Material Content

for EPA Designated Items used in Performance of the Contract.

(viii) A statement that the request for additional item(s) or

item(s) under the new SIN(s) is in compliance with 552.225-9, Trade

Agreements Act, and 552.225-8, Trade Agreements Act Certificate is

required.

(2) Deletions. The Contractors shall provide an explanation for

the deletion. The Government reserves the right to reject any

subsequent offer of the same item or a substantially equal item at a

higher price during the same contract period, if the contracting

officer finds the higher price to be unreasonable when compared with

the deleted item.

(3) Price Reduction. The Contractor shall indicate whether the

price reduction falls under the item (i), (ii), or (iii) of

subparagraph (c)(1) of the Price Reduction clause at 552.238-76. If

the price reduction falls under item (i) or (ii), the Contractor

shall submit a copy of the dated commercial price list. If the price

reduction falls under item (iii), the Contractor shall submit a copy

of the applicable price list(s), bulletins or letters or customer

agreements which outline the effective date, duration, terms and

conditions of the price reduction.

[[Page 6173]]

(4) Revision of Commercial Price List. The Contractor may

request a modification to substitute a new catalog or price list for

the one originally submitted if, after award and no later than 30

calendar days before the start of the schedule contract period, the

Contractor changes its established commercial catalog or price list

on which the contract was awarded. The new catalog or price list

shall be submitted to the Contracting Officer along with a statement

that (i) the new commercial price list is or will be in effect prior

to the start of the contract period, and (ii) the discount(s)

offered to the Government remain at the same ratio to those

available to the customer (or category of customer) which was the

basic of award.

the date specified in the modification, except as otherwise provided

in the Price Reduction clause at 552.238-76.

(d) Electronic file updates. The Contractor shall update

electronic file submissions to reflect all modifications. Except for

price reductions and corrections, the Contractor shall obtain the

contracting officer's approval before transmitting changes. Contract

modifications will not be made effective until updates to electronic

files are received. Price reductions and correction may be

transmitted without prior approval. However, the contracting officer

shall be notified as set forth in the Price Reduction clause at

552.238-76.

(e) Amendments to paper Federal Supply Schedule Price Lists. The

Contractor shall distribute a supplemental paper Federal Supply

Schedule Price List reflecting accepted changes within 15 days after

the effective date of the modification. At a minimum, distribution

shall be made to these ordering activities that previously received

the basic document. In addition, two copies of the supplemental

price list shall be submitted to the contracting officer, and one

copy shall be submitted to the FSS Schedule Information Center.

(End of Clause)

Alternate I (Feb 1996)

Substitute the following introductory text in subparagraph (1)

for the introductory text in subparagraph (1) of the basic clause.

(1) Additional items/additional SIN's. Consideration for adding

new items or new SIN's will be given 3 months into the contract

period. After then, the contractor may request additions at any

time. When requesting additions the following information must be

submitted.

62. Section 552.246-73 is amended by revising the date of the

clause and the basic clause to read as follows:

552.246-73 Warranty--Multiple Award Schedule.

* * * * *

Warranty--Multiple Award Schedule (Feb 1996)

Unless specified otherwise in this contract, the Contractor's

standard commercial warranty as stated in the Contractor's

commercial price list will apply to this contract.

(End of Clause)

552.253-70 [Removed]

63. Section 552.253-70 is removed.

PART 570--ACQUISITION OF LEASEHOLD INTERESTS IN REAL PROPERTY

570.308-2 [Amended]

64. Section 570.308-2 is amended in paragraph (c) by removing ``and

515.804-3'' at the end of the sentence.

570.602-2 [Amended]

65. Section 570.602-2 is amended in paragraphs (c)(3) and (d) by

removing ``and 515.804-3''.

Dated: February 6, 1996.

Ida M. Ustad,

Deputy Associate Administrator for Acquisition Policy.

[FR Doc. 96-3593 Filed 2-15-96; 8:45 am]

BILLING CODE 6820-61-M

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.