General Services Administration Acquisition Regulation; Streamlining Administration of Federal Supply Service (FSS) Multiple Award Schedule (MAS) Contracts and Clarifying Marking Requirements

GENERAL SERVICES ADMINISTRATION

48 CFR Parts 511, 516, 542, and 552

[APD 2800.12A, CHGE 81]

RIN 3090-AG81

General Services Administration Acquisition Regulation;

Streamlining Administration of Federal Supply Service (FSS) Multiple

Award Schedule (MAS) Contracts and Clarifying Marking Requirements

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 clarify requirements for marking deliveries under

contracts that provide for delivery to both civilian and military

locations, clarify the contracting activities that are authorized to

place orders under Federal Supply Service (FSS) contracts, allowing

Procuring Contracting Officers (PCOs) in FSS in authorize

Administrative Contracting Officers (ACOs) to issue cure or show cause

notices, revise the time for submission to close-out reports under FSS

multiple award schedule (MAS) contracts, and simplify the process for

deleting items from FSS MAS contracts.

DATES: Effective date: February 1, 1999. Comments should be submitted

in writing to the address shown below on or before April 2, 1999.

ADDRESSES: Mail comments to General Services Administration, Office of

Acquisition Policy, GSA Acquisition Policy Division (MVP), 1800 F

Street, NW., Room 4012, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT:

Gloria Sochon, GSA Acquisition Policy Division, (202) 208-6726.

SUPPLEMENTARY INFORMATION:

A. Background

GSA is amending the GSAR for clarification and to delete

unnecessary review requirements. GSAR 511.204 is amended to clarify the

applicability of the clause at GSAR 552.211-73, Marking, so that

deliveries are properly labeled for delivery at military or civilian

locations. GSAR 516.505 and 552.216-73 are amended to define activities

authorized to place orders under an FSS schedule contract when the

contract provides that ordering activities may place orders directly.

They are also amended to reflect that schedule contracts may provide

for either or both task and delivery orders. GSAR 542.302 is amended to

allow FSS PCOs to authorize ACOs to issue show cause or cure notices.

This will streamline FSS's internal processes and allow for quicker

response to contractor performance problems. GSAR 552.238-72 is amended

to change the time for submission to contract close-out reports to

eliminate a potential conflict between the required report date and the

final date of performance of delivery orders. GSAR 552.238-76 is

amended to change the reference to ``maximum order limit'' to ``maximum

order threshold.'' This is an administrative change to make 552.238-76

consistent with Federal Acquisition Regulation (FAR) subpart 8.4. GSAR

552.243-72 is amended to allow FSS MAS contractors to delete items

without prior approval. This will remove a burdensome and time-

consuming procedure that does not have value for the Government. GSAR

552.243-72 is also revised to give contractors the option of publishing

supplemental price lists as modifications occur or on a quarterly

basis. This recognizes that many contractors now issue electronic

notices of changes and that modifications occur with such frequency

that grouping changes to periodic updates in paper is more efficient

for both contractors and the Government. GSAR 552.243-72 is also

revised to update a FAR reference and to delete a reference to an

obsolete cause.

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

The GSA certifies that this interim 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. The change will benefit all FSS MAS contractors, large and small,

by streamlining administrative requirements.

--The change to the time for submission of contract close-out reports

eliminates a potential conflict between the required report date and

the final date of performance of delivery orders; this avoids placing a

potentially impracticable requirement on FSS contractors.

--Updating the definition of activities authorized to place orders

under FSS schedule contracts is necessary to accurately reflect current

authority and avoid inconsistency with other order FSS solicitation and

contract terms.

--Allowing FSS MAS contractors to delete items without prior approval

will remove a burdensome and time-consuming procedure that does not

have value for the Government. It allows contractors to provide

potential customers the most current information on contract items.

--Contractors will have the option of publishing supplemental price

lists as modifications occur or on a quarterly basis; letting them

choose the most efficient method based on their individual

circumstances.

D. Paperwork Reduction Act

The revised clause at 552.216-73 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 3090-0248. The revised

clause at 552.238-72, Contractor's Report of Sales, also contains an

information collection requirement subject to the Paperwork Reduction

Act. However, the revisions to the clause made by this rule do not

affect the information collection requirement which was approved

[[Page 4789]]

previously by OMB and assigned control number 3090-0121. The other

changes in this rule do not impose recordkeeping or information

collection requirements, or otherwise collect information from

offerors, contractors, or members of the public that require approval

of the Office of Management and Budget under 44 U.S.C. 3501 et seq.

E. Determination To Issue an Interim Rule

Urgent and compelling reasons exist to promulgate this interim rule

without prior opportunity for public comment. GSA believes this rule

will provide significant benefits to both the Federal government and

GSA contractors:

--The change to 511.204 clarifies the applicability of the clause at

552.211-73, Marking, so that deliveries are properly labeled for

delivery at military or civilian locations, helping to avoid delays or

misdeliveries.

--Updating the definition of activities authorized to place orders

under FSS schedule contracts is necessary to accurately reflect current

authority and avoid inconsistency with other FSS solicitation and

contract terms.

--Allowing FSS PCOs to authorize ACOs to issue show cause or cure

notices streamlines FSS's internal processes and allows for quicker

response to contractor performance problems.

--The change to the time for submission of contract close-out reports

eliminates a potential conflict between the required report date and

the final date of performance of delivery orders; this avoids placing a

potentially impracticable requirement on FSS contractors.

--The change to allow FSS MAS contractors to delete items without prior

approval will remove a burdensome and time-consuming procedure that

does not have value for the Government. Preapproval of deletions is not

necessary either for ascertaining cost reasonableness or to maintain

control over the contract. Quicker notification of deletions will in

fact help Federal agencies avoid ordering discontinued items.

--Giving contractors the option of publishing supplemental price lists

as modifications occur or on a quarterly basis allows contractors to

choose the most efficient method of notification and reduces the filing

burden on Government users.

However, Pursuant to Pub. L. 98-577 and FAR 1.501, GSA will

consider public comments received in response to this interim rule in

the formation of the final rule.

List of Subjects in 48 CFR Parts 511, 516, 542, and 552

Government procurement.

Accordingly, 48 CFR is amended as follows:

1. The authority citation for 48 CFR parts 511, 516, 542, and 552

continues to read as follows:

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

PART 511--DESCRIBING AGENCY NEEDS

2. Section 511.204 is amended by revising paragraph (c) to read as

follows:

511.204 Solicitation provisions and contract clauses.

* * * * *

(c) The contracting officer shall include the clause at 552.211-73,

Marking, in solicitations and contracts for supplies when deliveries

may be made to both civilian and military activities and the contract

amount is expected to exceed the simplified acquisition threshold.

* * * * *

PART 516--TYPES OF CONTRACTS

3. Section 516.505 is amended by revising paragraph (a) to read as

follows:

516.505 Contract clauses.

(a) The contracting officer shall insert the clause at 552.216-73.

Placement of Orders, in solicitations and contracts for stock or

special order program items when the contract authorizes FSS and other

agencies to issue delivery orders. If only FSS will issue delivery

orders under any of its supply programs, use Alternate I. If a Federal

Supply Schedule contract (single or multiple award) permits other

organizations to issue task or delivery orders, use Alternate II.

* * * * *

PART 542--CONTRACT ADMINISTRATION

4. Section 542.302 is amended by revising paragraph (b)(5) to read

as follows:

542.302 Contract administration functions.

* * * * *

(b) * * *

* * * * *

(5) Issue cure or show cause notices (only applies to ACOs in FSS).

* * * * *

PART 552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

5. Section 552.216-73 is amended by revising Alternate II to read

as follows:

552.216-73 Placement of orders.

* * * * *

Alternate II (Feb. 1999). As prescribed in 516.505(a), substitute

the following paragraph (a) for paragraph (a) of this basic clause:

(a) The organizations listed below may place orders under this

contract. Questions regarding organizations authorized to use this

schedule should be directed to the Contracting Officer.

(1) Executive agencies.

(2) Other Federal agencies.

(3) Mixed-ownership Government corporations.

(4) The District of Columbia.

(5) Government contractors authorized in writing by a Federal

agency pursuant to 48 CFR 51.1.

(6) Other activities and organizations authorized by statute or

regulation to use GSA as a source of supply.

6. Section 552.238-72 is amended by revising the date of the clause

and paragraph (e) to read as follows:

552.238-72 Contractor's report of sales.

* * * * *

CONTRACTOR'S REPORT OF SALES (FEB 1999)

* * * * *

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

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

report within 120 days after the expiration of the contract. The

contract expires upon physical completion of the last, outstanding

task or delivery order of the contract. The 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)

7. Section 552.238-76 is amended by revising the date of the clause

and paragraph (d)(1) to read as follows:

552.238-76 Price reductions.

* * * * *

PRICE REDUCTIONS (FEB 1999)

* * * * *

(d) * * *

(1) To commercial customers under firm, fixed-price definite

quantity contracts with specified delivery in excess of the maximum

order threshold specified in this contract;

* * * * *

8. Section 552.243-72 is amended by revising the date of the clause

and paragraphs (b)(1) (v) and (vi), the first sentence of (b)(3), (c),

(d) and (e) to read as follows:

552.243-72 Modifications (Multiple Award Schedule).

* * * * *

[[Page 4790]]

MODIFICATIONS (MULTIPLE AWARD SCHEDULE) (FEB 1999)

* * * * *

(b) * * *

(1) * * *

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

the new SIN(s) must be submitted if required by 52.215-6, 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.

* * * * *

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

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

(c)(1) of the Price Reductions clause at 552.238-76. * * *

(c) Effective Dates. The effective date of any modification is

the date specified in the modification, except as otherwise provided

in the Price Reductions clause at 552.238-76.

(d) Electronic File Updates. The Contractor shall update

electronic file submissions to reflect all modifications. For

additional items or SINs, the Contractor shall obtain the

contracting officer's approval before transmitting changes. Contract

modifications will not be made effective until the Government

receives the electronic file updates. The Contractor may transmit

price reductions, item deletions, and corrections without prior

approval. However, the Contractor shall notify the contracting

officer as set forth in the Price Reductions clause at 552.238-76.

(e) Amendments to Paper Federal Supply Schedule Price Lists.

(1) The Contractor must provide supplements to its paper price

lists, reflecting the most current changes. The Contractor may

either:

(i) Distribute a supplemental paper Federal Supply Schedule

Price List within 15 days after the effective date of each

modification.

(ii) Distribute cumulative supplements. The period covered by a

cumulative supplement is at the discretion of the Contractor, but

may not exceed three months from the effective date of the earliest

modification. The Contractor must distribute a cumulative supplement

within 15 days from the date of the latest modification covered.

(2) At a minimum, the Contractor shall distribute each

supplement to those ordering activities that previously received the

basic document. In addition, the Contractor shall submit two copies

of each supplement to the contracting officer and one copy to the

FSS Schedule Information Center.

(End of Clause)

Dated: January 21, 1999.

Ida M. Ustad,

Deputy Associate Administrator for Acquisition Policy.

[FR Doc. 99-1973 Filed 1-29-99; 8:45 am]

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