Pricing Practices for Reimbursable Work Authorizations

GENERAL SERVICES ADMINISTRATION

41 CFR Part 101-21

RIN 3090-AG35

Pricing Practices for Reimbursable Work Authorizations

AGENCY: Public Buildings Service, General Services Administration.

ACTION: Interim rule with request for comments.

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SUMMARY: This interim rule modifies the Public Buildings Service's

(PBS's) pricing practices for Reimbursable Work Authorizations (RWAs).

Currently, our customer agencies are billed the actual costs for

supplies, materials, labor, contract costs and overhead related to the

RWA. This interim rule establishes a fixed price policy for one-time

RWA's, such as painting, cleaning and alterations. A fixed price RWA is

one in which the authorized amount is the billed amount including all

project changes. The fixed price will change only if the work request

is modified or unforeseen site conditions arise. Customers will not

have to pay for delays caused by GSA. Fixed price reimbursables will

help PBS: Act as a provider of choice with the new delegation of

alterations authority to agencies for alterations up to $100,000;

implement predominant commercial sector pricing practices; and enhance

the satisfaction and quality of service to our customers by making the

work faster through streamlined processes.

DATES: Effective date: May 22, 1997.

Comment date: July 21, 1997.

ADDRESSES: Comments should be submitted to the General Services

Administration, Public Buildings Service, Office of Property

Management, (PM), Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Jeffrey Neely, Acting Deputy Assistant

Commissioner, Office of Property Management at (202) 501-0971.

SUPPLEMENTARY INFORMATION: In the past, PBS was a mandatory source on

all reimbursable work done in PBS controlled buildings. However, PBS is

now entering a new era. The National Performance Review and the ``Can't

Beat GSA Alterations Program'' envision a more competitive PBS. Fixed

pricing facilitates this objective. The fixed price method of charging

RWAs to our customers will make their budgeting for reimbursable work

an easier and more accurate process, as well as enhance their ability

to make informed choices about RWA services. Billing problems should be

reduced or eliminated. Total costs and a payment schedule will be

determined clearly at the outset. It should also serve as incentive to

PBS to ensure that the job is done efficiently and to the customer's

satisfaction.

The General Services Administration has determined that this rule

is not a significant regulatory action for the purposes of Executive

Order 12866 of September 30, 1993. This interim rule is not required to

be published in the Federal Register for notice and comment. Therefore,

the Regulatory Flexibility Act does not apply. The Paperwork Reduction

Act does not apply to this action because the proposed changes to the

Federal Property Management Regulations do not impose reporting,

recordkeeping or information collection requirements which require the

approval of the Office of Management and Budget pursuant to 44 U.S.C.

3501, et seq. This rule also is exempt from congressional review

prescribed under 5 U.S.C. 801 since it relates solely to agency

management and personnel.

List of Subjects in 41 CFR Part 101-21

Federal buildings and services, Government property management,

Space and services.

[[Page 27973]]

Dated: March 26, 1997.

David J. Barram,

Acting Administrator of General Services.

PART 101-21--[AMENDED]

Therefore 41, CFR part 101-21 is amended as set forth below:

1. The authority citation for 41 CFR part 101-21 continues to read

as follows:

Authority: Sec. 205(c), 63 Stat. 390, 40 U.S.C. 486(c).

Subpart 101-21.6--Billings, Payments, and Related Budgeting

Information for Space and Services Furnished by the General

Services Administration

2. Section 101-21.604 is amended by revising paragraphs (d) through

(h) and by adding paragraph (i) to read as follows:

Sec. 101-21.604 Billing procedures for reimbursable charges.

* * * * *

(d) The following basic types of reimbursable work are performed by

GSA on a fixed price basis. The fixed price is the amount of the

Reimbursable Work Authorization (RWA) which is the authorized amount:

(1) Non-recurring services performed above standard levels of

service, such as out-of-cycle painting;

(2) Recurring services not included in the standard level for which

a price can be established;

(3) Repairs and alterations in buildings not controlled by GSA;

(4) Special space alterations and adjustments performed by GSA in

GSA-operated buildings, which are requested and financed by other

agencies in accordance with Sec. 101-20.106, Reimbursable services, of

this chapter; and

(5) Alteration projects up to the prospectus threshold.

(e) Where the amount of the RWA is less than $25,000, billing will

occur at termination date. Other bills will be rendered at the

customer's option, based on delivered orders either monthly or

quarterly.

(f) RWAs above the prospectus threshold shall be performed on an

actual cost basis. In special circumstances, when GSA and the ordering

agency agree, non-prospectus alterations work may be performed on an

actual cost basis. GSA will make every effort to obtain approval and

certification of additional funds before incurring any obligations in

excess of 10 percent of the authorized amount or $500, whichever is

greater. However, failure of GSA to notify the agency that obligations

will exceed the authorized amount, regardless of dollar amount, does

not relieve the agency of paying in full the actual costs.

(g) A Reimbursable Work Authorization request (Form 2957 or other

acceptable request) must be completed and approved by GSA and an agency

official certifying that he/she has the authority to order the services

and commit the agency to payment.

(h) Bills for recurring above-standard level services are rendered

in advance at an established cost equal to the estimated amount. This

type of work authorization, with the right to cancel (subject to

incurred costs and obligations) upon 60 days notice by either party

must be completed and forwarded to GSA prior to the commencement of the

period for which services are required. With the exception of recurring

work authorizations for utilities, which GSA may limit to 3-month

periods, each recurring type work authorization must authorize charges

for the full period during the fiscal year that the services will be

required. These work authorizations must always begin and end within

the same fiscal year.

(i) Agencies shall be responsible for timely payment and resolving

any billing problems regarding orders they place under GSA contracts.

[FR Doc. 97-13489 Filed 5-21-97; 8:45 am]

BILLING CODE 6820-BR-P