Acquisition Regulation: Requesting Debriefings at GSA; Electronic Sales Reporting; Schedule for Submission of Reports; Fees for Industrial Funding Under Federal Supply Service Schedule Contracts

GENERAL SERVICES ADMINISTRATION

48 CFR Parts 501, 515, 538, and 552

[APD 2800.12A, CHGE 78]

RIN 3090-AG71

Acquisition Regulation: Requesting Debriefings at GSA; Electronic

Sales Reporting; Schedule for Submission of Reports; Fees for

Industrial Funding Under Federal Supply Service Schedule Contracts

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration Acquisition Regulation

(GSAR) is amended to provide for electronic reporting of sales under

the Federal Supply Service (FSS) Schedule program and to require

reporting of sales and payment of the industrial funding fee (IFF) on a

calendar quarter basis. The GSAR is also amended to define General

Services Administration (GSA) business hours for purposes of requesting

postaward debriefings.

DATES: Effective Date: April 17, 1998.

FOR FURTHER INFORMATION CONTACT: Gloria Sochon, GSA Acquisition Policy

Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

FSS, in consultation with industry, identified sales reporting

under FSS Schedule contracts as an area in need of updating to make it

more consistent with commercial business practices. The prior system

required contractors to submit sales reports quarterly on paper forms.

Quarters were based on the contract's start date and did not

necessarily coincide with calendar quarters. These changes revise the

system to require FSS Schedule contractors to submit sales reports

electronically via the Internet and to eliminate the use of paper

forms. Contractors will continue to report quarterly, but based on

``standard business'' (i.e., calendar) quarters.

The transition to electronic reporting facilitates contractors'

compliance with sales reporting requirements. The updated system

enables FSS Schedule contractors to use the Internet to eliminate the

time-consuming paperwork required to manually complete paper reports.

Since reports for all contracts are now due at the same time,

contractors no longer have to maintain a unique reporting schedule for

each contract. Furthermore, this streamlined transmittal method allows

the Government to process reports more efficiently and allocate

resources more effectively.

Federal Acquisition Regulation (FAR) sections 15.505 and 15.506

establish standards for timely submission of preaward protest requests

and timely receipt of postaward debriefing requests. This rule defines

GSA business hours to help offerors make timely debriefing requests and

avoid unnecessary protests over timeliness.

[[Page 19194]]

B. Executive Order 12866

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.

C. Regulatory Flexibility Act

This final rule is not a significant revision requiring public

comments and therefore the Regulatory Flexibility Act, 5 U.S.C. 601, et

seq., does not apply.

D. Paperwork Reduction Act

The revised clause at 552.238-72, Contractor's Report of Sales,

contains an information collection requirement subject to the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.). However, the revisions to the

clause made by this rule do not affect the information collection

requirement which was approved previously by OMB and assigned control

number 3090-0121.

The revised clause at 552.238-77, Industrial Funding Fee, contains

an information collection requirement subject to the Paperwork

Reduction Act (44 U.S.C. 3501 et seq.). However, the revisions to the

clause made by this rule do not affect the information collection

requirement previously approved under GSA's blanket approval under

control number 3090-0250 from OMB for information collections with a

zero burden estimate.

E. Determination To Issue a Final Rule

GSA expects this rule will have no significant cost or

administrative burden on contractors or offerors. First, the rule

requires contractors under the FSS program to report the industrial

funding fee electronically. The requirement for reporting is not new,

only the method of reporting is changed from paper-based to electronic.

Contractors require Internet access to make the reports electronically.

For those without Internet capability at their place of business, free

access is readily available at public facilities such as libraries.

Electronic reporting will be simpler, quicker, and less expensive than

paper-based reporting. Second, the rule requires reporting sales on a

calendar quarter schedule rather than quarters based from date of

contract award. This change does not increase the frequency of

reporting, but makes it simpler for contractors to track and follows

more closely with other customary business reports and records.

Finally, defining agency business hours will help offerors make timely

debriefing requests and avoid unnecessary protests over timeliness.

Therefore, GSA is promulgating this final rule without prior

opportunity for public comment.

List of Subjects in 48 CFR Parts 501, 515, 538, and 552

Government procurement.

Accordingly, 48 CFR 501, 515, 538, and 552 are amended as follows:

1. The authority citation for 48 CFR Parts 501, 515, 538, and 552

continues to read as follows:

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

PART 501--GENERAL SERVICES ADMINISTRATION ACQUISITION REGULATION

SYSTEM

Sec. 501.103 [Amended]

2. Section 501.103 is amended in paragraph (b) by adding

``515.406,'' immediately after ``515.1,'' in the first sentence.

PART 515--CONTRACTING BY NEGOTIATION

3. Section 515.406-1 is amended by revising paragraph (b) to read

as follows:

515.406-1 Uniform contract format.

* * * * *

(b) All solicitations and contracts must include the two notices in

paragraphs (b)(1) and (2), except solicitations for leases and leases

of real property must include only the notice in paragraph (b)(1):

(1) ``The information collection requirements contained in this

solicitation/contract that are not required by regulation have been

approved by the Office of Management and Budget pursuant to the

Paperwork Reduction Act and assigned OMB Control No. 3090-0163.''

(2) ``GSA's hours of operation are 8:00 a.m. to 4:30 p.m. Requests

for preaward debriefings postmarked or otherwise submitted after 4:30

p.m. will be considered submitted the following business day. Requests

for postaward debriefings delivered after 4:30 p.m. will be considered

received and filed the following business day.''

PART 538--GSA SCHEDULE CONTRACTING

4. Section 538.203-71 is amended by revising paragraph (a) to read

as follows:

538.203-71 Solicitation provisions and contract clauses.

(a) The Contracting Officer shall insert the clause at 552.238-72,

Contractor's Report of Sales, in solicitations issued and contracts

awarded under GSA's schedule program.

* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

5. Section 552.238-72 is revised to read as follows:

552.238-72 Contractor's Report of Sales.

As prescribed in 538.203-71(a), insert the following clause:

Contractor's Report of Sales (Apr 1998)

(a) The Contractor must report the quarterly dollar value (in

U.S. dollars and rounded to the nearest whole dollar) of all sales

under this contract by calendar quarter (i.e., January-March, April-

June, July-September, and October-December). The dollar value of a

sale is the price paid by the schedule user for products and

services on a schedule contract delivery order, as recorded by the

Contractor. The reported contract sales value must include the

industrial funding fee (see Clause 552.238-77).

(b) The Contractor must report the quarterly dollar value of

sales on electronic GSA Form 72A, Contractor's Report of Sales, to

the FSS Vendor Support Center (VSC) Website at Internet, http://

VSC.gsa.gov. The Contractor must report sales separately for each

National Stock Number (NSN), Special Item Number (SIN), or subitem.

If no sales occur, the Contractor must show zero on the report for

each separate NSN, SIN, or subitem.

(c) The Contractor must register with the VSC before using the

automated reporting system. To register, the Contractor (or its

authorized representative) must call the VSC at (703) 305-6235 and

provide the necessary information regarding the company, contact

name(s), and telephone number(s). The VSC will then issue a 72A

specific password and provide other information needed to access the

reporting system. Instructions for electronic reporting are

available at the VSC Website or by calling the above phone number.

(d) The Contractor must convert the total value of sales made in

foreign currency to U.S. dollars using the ``Treasury Reporting

Rates of Exchange,'' issued by the U.S. Department of Treasury,

Financial Management Service. The Contractor must use the issue of

the Treasury report in effect on the last day of the calendar

quarter. The report is available from: Department of the Treasury,

Financial Management Service, International Funds Branch, 3700 East-

West Highway, PGCII, Room 5A19, Hyattsville, MD 20782, Telephone:

(202) 874-7994, Internet: http://www.fms.treas.gov/intn.html

(e) The report is due 30 days following the completion of the

reporting period. The Contractor must provide a close-out report

within 120 days after the expiration date of the contract. This

close-out report must cover all sales not shown in the final

quarterly report and reconcile all errors and credits. If the

Contractor reported all contract sales and reconciled all errors and

credits on the final quarterly report, then show zero sales in the

close-out report.

(End of Clause)

6. Section 552.238-77 is revised to read as follows:

[[Page 19195]]

552.238-77 Industrial Funding Fee.

As prescribed in 538.203-71(f) insert the following clause:

Industrial Funding Fee (Apr 1998)

(a) The Contractor must pay the Federal Supply Service, GSA, an

industrial funding fee (IFF). The Contractor must remit the IFF in

U.S. dollars within 30 days after the end of each quarterly

reporting period as established in clause 552.238-72, Contractor's

Report of Sales. The IFF equals ______* of total quarterly sales

reported. The IFF reimburses the GSA Federal Supply Service for the

costs of operating the Federal Supply Schedules Program and recoups

its operating costs from ordering activities. Offerors must include

the IFF in their prices. The fee is included in the award price(s)

and reflected in the total amount charged to ordering activities.

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* The Commissioner, Federal Supply Service, or a designee

determines and provides to contracting officers the percentage

amount of the fee to insert in the above clause.

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(b) The Contractor must remit any monies due as a result of the

close-out report required by Clause 552.238-72 at the time the

close-out report is submitted to GSA.

(c) The contractor must pay the IFF amount due by check, or

electronic funds transfer through the Automated Clearing House

(ACH), to the ``General Services Administration.'' If the payment

involves multiple special item numbers or contracts, the Contractor

may consolidate the IFFs into one payment. To ensure that the

payment is credited properly, the Contractor must identify the check

or electronic transmission as an ``Industrial Funding Fee'' and

include the following information: contract number(s); report

amount(s); and report period(s). If the Contractor makes payment by

check, provide this information on either the check, check stub, or

other remittance material.

(1) If paying the IFF by check, the Contractor must forward the

check to the following address: General Services Administration,

Accounts Receivable Branch, P.O. Box 70500, Chicago, IL 60673-0500.

(2) If paying by electronic funds transfer through the ACH, the

Contractor must call GSA, Financial Information Control Branch,

Receivables, Collections and Sales Section (6BCDR) at [Contracting

Officer to insert phone number] to make arrangements.

(d) If the full amount of the IFF is not paid within 30 calendar

days after the end of the applicable reporting period, it

constitutes a contract debt to the United States Government under

the terms of FAR 32.6. The Government may exercise all rights under

the Debt Collection Act of 1982, including withholding or setting

off payments and interest on the debt (see FAR 52.232-17, Interest).

(e) If the Contractor fails to submit sales reports, falsifies

sales reports, or fails to pay the IFF in a timely manner, the

Government may terminate or cancel this contract. Willful failure or

refusal to furnish the required reports, falsification of sales

reports, or failure to pay the IFF timely constitutes sufficient

cause for terminating the Contractor for cause under the termination

provisions of this contract.

(End of Clause)

Dated: April 10, 1998.

Ida M. Ustad,

Deputy Associate Administrator for Acquisition Policy.

[FR Doc. 98-10244 Filed 4-16-98; 8:45 am]

BILLING CODE 6820-61-P