Federal Acquisition Regulation; ADP/Telecommunications Federal Supply Schedules

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 8, 13, and 51

[FAC 97-01; FAR Case 96-602; Item VIII]

RIN 9000-AH29

Federal Acquisition Regulation; ADP/Telecommunications Federal

Supply Schedules

AGENCIES: Department of Defense (DoD), General Services Administration

(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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

SUMMARY: The Civilian Agency Acquisition Council and the Defense

Acquisition Regulations Council have agreed on a final rule amending

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, and is not a major rule under 5 U.S.C. 804.

DATES: Effective October 21, 1997.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS

Building, Washington, DC 20405 (202) 501-4755 for information

pertaining to status or publication schedules. For clarification of

content, contact Ms. Linda Nelson, Procurement Analyst, at (202) 501-

1900. Please cite FAC 97-01, FAR case 96-602.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Parts 8, 13, and 51 to recognize 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, clarify when ordering offices should

seek price reductions under schedule contracts, and to clarify

procedures for placing schedule orders above the maximum order

threshold.

A proposed rule requesting comment was published in the Federal

Register at 61 FR 52844, October 8, 1996. Thirty-eight comments were

received from twelve respondents. All comments were considered in

developing the final rule.

B. Regulatory Flexibility Act

The Department of Defense, the General Services Administration, and

the National Aeronautics and Space Administration certify that this

final rule will not 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.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the changes to

the FAR do not impose recordkeeping 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, and 51

Government procurement.

Dated: August 7, 1997.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 8, 13, and 51 are amended as set forth

below:

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

to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; 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 commercial

supplies and services at prices associated with volume buying (also see

8.001). 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,

entitled 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, TX 76115. Copies of GSA Form 457

also may be obtained from this address.

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

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

information (i.e., national stock number, 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

[[Page 44818]]

contractors for orders using the Governmentwide commercial purchase

card (or pay GSA). Ordering offices may access the ``GSA Advantage!''

shopping service by connecting to the Internet and using a web browser

to connect to the Acquisition Reform Network (http://www.arnet.gov) or

the GSA, Federal Supply Service (FSS) Home Page (http://

www.fss.gsa.gov). For more information or assistance, contact GSA at

Internet e-mail address: [email protected].

3. Section 8.402 is added to read as follows:

8.402 Applicability.

Procedures in this subpart apply to Federal Supply Schedule

contracts. Occasionally, special ordering procedures may be

established. In such cases the procedures will be outlined in the

``Federal Supply Schedules''.

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

the paragraph heading of (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, the

simplified acquisition procedures of part 13 and the small business

set-aside provisions of subpart 19.5 do not apply except for the

provision at 13.202(c)(3). Orders placed pursuant to a Multiple Award

Schedule (MAS), using the procedures in this subpart, 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. GSA

has already determined the prices of items under schedule contracts to

be fair and reasonable. By placing an order against a schedule using

the procedures in this section, the ordering office has concluded that

the order represents the best value and results in the lowest overall

cost alternative (considering price, special features, administrative

costs, etc.) to meet the Government's needs.

(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 Federal Supply

Schedule contractor.

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

the maximum order threshold. Orders should be placed with the schedule

contractor that can provide the supply or service that represents the

best value. Before placing an order, ordering offices should consider

reasonably available information about the supply or service offered

under MAS contracts by using the ``GSA Advantage!'' on-line shopping

service, or by reviewing the catalogs/pricelists of at least three

schedule contractors and select the delivery and other options

available under the schedule that meet the agency's needs. In selecting

the supply or service representing the best value, the ordering office

may consider--

(i) Special features of the supply or service that are required in

effective program performance and that are not provided by a comparable

supply or service;

(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.

(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. In addition to following the procedures in

paragraph (b)(2) of this section and before placing an order that

exceeds the maximum order threshold, ordering offices shall--

(i) Review additional schedule contractors' catalogs/pricelists or

use the ``GSA Advantage!'' on-line shopping service;

(ii) Based upon the initial evaluation, generally seek price

reductions from the schedule contractor(s) appearing to provide the

best value (considering price and other factors); and

(iii) After price reductions have been sought, place the order with

the schedule contractor that provides the best value and results in the

lowest overall cost alternative (see 8.404(a)). If further price

reductions are not offered, an order may still be placed, if the

ordering office determines that it is appropriate.

(4) Blanket purchase agreements (BPAs). The establishment of

Federal Supply Schedule BPAs is permitted (see 13.202(c)(3)) when

following the ordering procedures in this subpart. All schedule

contracts contain BPA provisions. Ordering offices may use BPAs to

establish accounts with contractors to fill recurring requirements.

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

and delivery locations and times.

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

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

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

example, when the ordering office finds a schedule supply or service

elsewhere at a lower price or when a 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 greater 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.

(6) 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.

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

identifying the contractor the item was purchased from, the item

purchased, and the amount paid. If an agency requirement in excess of

the micro-purchase threshold is defined so as to require a particular

brand name, product, or a feature of a product peculiar to one

manufacturer, thereby precluding consideration of a product

manufactured by another company, the ordering office shall include an

explanation in the file as to why the particular brand name, product,

or feature is essential to satisfy the agency's needs.

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

PART 13--SIMPLIFIED ACQUISITION PROCEDURES

5. Section 13.202 is amended by adding paragraph (a)(4) and

revising paragraph (c)(3) to read as follows:

13.202 Establishment of blanket purchase agreements (BPAs).

(a) * * *

(4) There is no existing requirements contract for the same supply

or service that the contracting activity is required to use.

* * * * *

(c) * * *

(3) Federal Supply Schedule contractors, if not inconsistent with

the

[[Page 44819]]

terms of the applicable schedule contract.

* * * * *

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. 97-21493 Filed 8-21-97; 8:45 am]

BILLING CODE 6820-EP-P